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Forest Plantations and Woodlots in Ethiopia

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Forest Plantations and Woodlots in Ethiopia A PLATFORM FOR STAKEHOLDERS IN AFRICAN FORESTRY FOREST PLANTATIONS AND WOODLOTS IN ETHIOPIA AFRICAN FOREST FORUM WORKING PAPER SERIES VOLUME 1 ISSUE 12, 2011 1 Copyright © African Forest Forum 2011 All rights reserved African Forest Forum P.O. Box 30030 00100 Nairobi GPO KENYA Tel: 254 20 7623900 Fax: +254 20 30677-00100 www.afforum.org Disclaimer The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the African Forest Forum concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries regarding its economic system or degree of development. Excerpts may be reproduced without authorization, on condition that the source is indicated. Views expressed in this publication do not necessarily reflect those of the African Forest Forum. 2 FOREST PLANTATIONS AND WOODLOTS IN ETHIOPIA by Mr. Million Bekele December 2011 3 Table of contents Abbreviations and acronyms ......................................................................................... 5 Preface .......................................................................................................................... 6 Executive summary ....................................................................................................... 7 1. Introduction ............................................................................................................ 11 1.1 Background 11 1.2 Objectives of the study 12 1.3 Scope and coverage 12 1.4 Approach to the study 13 1.5 Structure of the report 13 2. Forest plantations situation ..................................................................................... 13 2.1 Historical background 13 2.2 Location, areas and species composition 13 2.3 Plantation management 14 2.3.1 Establishment ..................................................................................................................................................... 14 2.3.2 Weeding................................................................................................................................................................ 16 2.3.3 Pruning.................................................................................................................................................................. 16 2.3.4 Thinning ................................................................................................................................................................ 16 2.3.5 Forest health ....................................................................................................................................................... 17 2.3.6 Maintaining long term site productivity .................................................................................................... 18 2.3.7 Growth, yield and rotation age .................................................................................................................... 18 2.4 Forest plantation expansion 19 2.4.1 New areas available for forest plantation expansion ........................................................................... 19 2.4.2 Stakeholder views on establishment, expansion and improved management of forest plantations ...................................................................................................................................................................... 20 2.4.3 Constraints and opportunities for plantation expansion .................................................................... 20 3. Out-grower schemes and other woodlots ................................................................ 22 3.1 Extent and impact of woodlots 22 3.2 Factors shaping growth of woodlots 24 4. Forest and tree tenure ............................................................................................. 24 4.1 Current forest/tree tenure systems 24 4.2 Impacts of forest/tree tenure on poverty alleviation and SFM 25 4.3 Suggestions for improvement of tenure system 26 5. Financial and human resources for plantations and woodlots ................................. 28 5.1 Current financing mechanisms 28 5.2 Potential financing mechanisms 29 5.3 Human resources 30 5.4 Other resources 30 6. Incentives for plantation establishment by public/private sectors .......................... 31 6.1 The rationale behind incentives 31 6.2 Current incentives: impacts and effectiveness 31 7. Supply and demand of forest products .................................................................... 32 7.1 Supply scenarios and projections 32 7.2 Demand scenarios and projections 35 7.3 Forest products prices 36 7.4 Forest products trade 36 4 8. Forest royalties and other revenues ........................................................................ 37 8.1 Forest royalties and licences 37 8.1.1 Structure and amount of forest stumpage and licences .................................................................... 37 8.1.2 Suggestions for improvement of forest charges and licences ......................................................... 39 8.2 Forest concessions/permits 40 8.2.1 Current concessionaires/permit holders................................................................................................... 40 8.2.2 Monitoring of compliance ............................................................................................................................... 41 8.2.3. Suggestions for improvement of concessions/permits ...................................................................... 41 8.3 Administration of forestry revenue systems 41 9. Processing of produce ............................................................................................. 42 9.1 Ownership and types of industries 42 9.2 Raw material supply and quality 44 9.3 Constraints facing the sub-sector 44 9.4 Potential for future investment 44 10. Socio-economic and environmental contributions of forests ................................. 45 10.1 Income generation 45 10.1.1 Current income ............................................................................................................................................... 45 10.1.2 Potential for income generation ................................................................................................................ 46 10.2 Employment 46 10.2.1 Current employment ..................................................................................................................................... 46 10.2.2 Potential for employment creation........................................................................................................... 47 10.3 Plantations in forest conservation 48 11. Conclusions and way forward ................................................................................ 48 11.1 Conclusions 48 11.2 Way forward 50 REFERENCES ................................................................................................................ 51 5 Abbreviations and acronyms BERSMP Bale Eco-Region Sustainable Management Programme CDM Clean Development Mechanisms CIDA Canadian International Development Agency COMESA Common Market for Eastern and Southern Africa CIFOR Centre for International Forestry Research CSA Central Statistical Authority DBH Diameter at Breast Height EARO Ethiopian Agricultural Research Organization EC European Commission EFAP Ethiopian Forest Action Plan FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product Ha Hectare ILO International Labour Organization Kg Kilogramme M3 Cubic Meter MAI Mean Annual Increment MDG Millennium Development Goals MoA Ministry of Agriculture NGO Non-Governmental Organizations NORAD Norwegian Agency for Development Cooperation NTFP Non-timber Forest Product OFWE Oromia Forest and Wild life Enterprise PA Peasant Association PASDEP Plan for Accelerated and Sustainable Development to End Poverty PFM Participatory Forest Management PLC Private Limited Company REDD Reducing Emission from Forest Degradation and Deforestation SFM Sustainable Forest Management UAE United Arab Emirates UNDP United Nations Development Programme UNSO Sudano-Sahelian Office of the United Nations UN-WFP United Nations World Food Programme USD United States Dollars WBISPP Woody Biomass Inventory and Strategic Planning Project 6 Preface Ethiopia’s forest resources are rapidly disappearing as a result of the ever-increasing demand both for firewood, and crop and grazing land, stimulated by a rapidly growing population. Agricultural expansion, clearing of land for settlements and commecrial farming have contributed to the problem. It is agrravated by the increase in the production of charcoal and timber and management capacity. Conservation and sustainable use of forest resources are priorities for the Government of Ethiopia. National policies and strategies have been developed. Despite these, the government has been unable to ensure the protection and proper use of the natural and plantation forests. Of the total land area, only 4% is covered with forests with an estimated deforestation rate of 140,000 ha per year. The area of natural forest that is currently available for wood production is diminishing. The country is becoming dependent upon wood product imports mainly sawn wood, paper and ply wood. Large areas of industrial forest plantations were established in the 1970s with Donor support which is discontinued. Poor management have reduced
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