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Technical, Financial and Social Assessments of Forestry Development Projects in Ra Province, Fiji

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Technical, Financial and Social Assessments of Forestry Development Projects in Ra Province, Fiji REVISED DRAFT REPORT Technical, financial and social assessments of forestry development projects in Ra Province, Fiji: Establishment of teak plantations by Future Forests Fiji Limited and Reforestation of degraded forest land by Conservation International 2 June 2013 Disclaimer The contents of this draft report are provided in good faith. Every effort has been made to be accurate, truthful and current. Reasonable care, skill and judgment have been exercised in the preparation of the Report. This Report has been prepared in accordance with the terms of reference for the assignment as provided by Coffey International development Pty Ltd on 5 December 2012. Four Scenes Pty Ltd does not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this report unless contrary to law. Four Scenes Pty Ltd does not accept any responsibility or liability in respect of any opinion provided in this Report or by any person acting in reliance on the information in it. This report was prepared by: Dr Michael Blyth Director of Four Scenes Pty Ltd and Ms Suliana Siwatibau 2 June 2013 Assessment of reforestation by Future Forest Fiji and Conservation International Page 2 Acknowledgements The kind assistance and advice offered to the consultants by the General Manager of Future Forest Fiji Limited, Mr Stephen Clark including facilitating contacts and making his staff available for interviews, is greatly appreciated. Our village visits were efficiently and courteously facilitated by Pastor Aporosa Vunivola to whom we are most grateful. We are thankful to Ms Susana Waqainabete-Tuisese, Fiji Country Director for Conservation International who provided valuable information on CI’s reforestation project in Ra province. Without the willing participation of all the villagers and persons interviewed this task would not have been possible. To all of them we offer our sincere gratitude. Assessment of reforestation by Future Forest Fiji and Conservation International Page 3 Contents Acknowledgements ............................................................................................................ 3 Executive summary ............................................................................................................ 6 1. Introduction ........................................................................................................... 11 1.1 Plantation development, land ownership and forest governance in Fiji ................................... 12 1.1.1 Plantation development .......................................................................................................................... 12 1.1.2 Land tenure ............................................................................................................................................. 13 1.1.3 Fiji forest policy ....................................................................................................................................... 13 1.2 Method ..................................................................................................................................... 14 1.3 Outline ...................................................................................................................................... 14 2. Future Forests Fiji Limited – teak nursery, plantations and processing ........... 14 2.1 The FFF business model ......................................................................................................... 15 2.2 Technical aspects of FFF operations ....................................................................................... 16 2.2.1 Nursery operations ................................................................................................................................. 16 2.2.2 Lessons learnt for nursery best practice ................................................................................................. 21 2.2.3 Plantation establishment and management ............................................................................................ 23 2.2.4 Lessons learnt for plantation establishment and management best practice .......................................... 31 2.2.5 Teak processing ..................................................................................................................................... 34 2.2.6 Lessons learnt for processing and marketing of plantation teak ............................................................. 37 2.3 Social aspects of FFF operations ............................................................................................ 38 2.3.7 Social impacts of the FFF business model ............................................................................................. 38 2.3.8 Lessons learnt from social aspects of reforestation ................................................................................ 46 2.4 Financial aspects of FFF operations ........................................................................................ 48 2.4.1 The FFF nursery ..................................................................................................................................... 48 2.4.2 FFF teak plantations ............................................................................................................................... 50 2.4.3 FFF teak wood processing ...................................................................................................................... 52 2.5 Sharing the benefits and risks .................................................................................................. 54 2.5.4 The company .......................................................................................................................................... 55 2.5.5 Landowners ............................................................................................................................................ 56 2.5.6 Spillover benefits .................................................................................................................................... 57 2.5.7 Benefits and risk sharing under alternative business models ................................................................. 58 3. Conservation International – reforestation project ............................................. 59 3.1 The CI reforestation model ...................................................................................................... 60 3.2 Technical aspects .................................................................................................................... 62 3.3 Social aspects .......................................................................................................................... 63 3.3.1 Social impacts of the CI reforestation model ........................................................................................... 63 3.4 Financial aspects ..................................................................................................................... 65 3.5 Environmental impacts ............................................................................................................. 65 3.6 Lessons learnt from the experience of the CI reforestation project ......................................... 66 4. Lesson learnt from the FFF Limited and CI experiences .................................... 68 4.1 Learning from the differences .................................................................................................. 69 List of Tables Assessment of reforestation by Future Forest Fiji and Conservation International Page 4 Table 1: Assessment of nursery operations for propagating teak seedlings from seed ............ 18 Table 2: Lessons learnt from the operations of the FFF nursery ............................................... 21 Table 3: Current practices of FFF in aggregating land for plantations ....................................... 26 Table 4: Details of FFF lease agreements ................................................................................. 27 Table 5: Assessment of FFF’s plantation operations ................................................................. 28 Table 6: Lessons learnt from FFF teak plantation establishment and management operations 31 Table 7: Area planted per year to produce 5000m3 of log per year to sustain the FFF sawmill (ha/year) ....................................................................................................................... 34 Table 8: Lessons learnt from FFF teak processing .................................................................... 37 Table 9: Payments by FFF to villages for labour contributions to plantation operations............ 39 Table 10: Benefits identified by villagers from their association with FFF and teak plantations .. 42 Table 11: Estimated income received by a village community from FFF ..................................... 44 Table 12: Lessons learnt from social relations between FFF, mataqali and village communities 46 Table 13: Development of FFF nursery ........................................................................................ 48 Table 14: Annual seedling production costs ................................................................................. 49 Table 15: Costs and prices used in financial analyses of FFF teak plantations .......................... 51 Table 16: Inputs, outputs costs and prices assumed for the sawmill model ................................ 53 Table
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