Teak plantations and management of natural forests in Tanzania
©Kilombero Valley Teak Company (KVTC)
Planted teak forest
Teak as a plantation species
The continued destruction of natural forests, Teak (Tectona grandis), a high-value timber especially in the tropics, is reducing the supply species, occurs naturally in India and Southeast of high-value hardwoods in global markets. Asia and has been planted in several countries. The establishment of plantations is gaining In the United Republic of Tanzania, the momentum as a way of both increasing Kilombero Valley Teak Company (KVTC) has supply and reducing harvesting pressure in recognized the value of plantation teak. This natural forests. fact sheet describes its operation. Growing teak KVTC
Teak is difficult to grow, and little scientific KVTC is the only company in the United knowledge exists to guide its silviculture. Tree- Republic of Tanzania growing teak on a large breeding programmes are advancing, however, scale (in cooperation with its outgrowers). and improved genetic material and clones are Established in 1992, KVTC is one of Africa’s being used to produce high-quality products most innovative forest management projects. and increase resilience in the face of pests, At its heart is the planting and sustainable diseases and extreme climatic conditions. harvesting of teak and the protection and Seed is harvested and sown or cuttings taken management of over 20 000 hectares of natural and planted. Young teak plants are reasonably forests and wetlands, which feature a wide tolerant of fire and competition from weeds, range of wild fauna and flora. and the species also coppices with ease. KVTC has established an integrated processing Multiple thinnings are required to obtain high- plant for the production of timber and value- value end products from teak plantations. In added products, bringing long-term social addition, flowering results in stem forking, development to the region and directly after which corrective pruning is required employing 350 people. The company processes to obtain the single stems needed to produce logs into lumber in its own sawmill and high-value logs. also supplies logs to other sawmills. Major shareholders include the Africa Sustainable Forestry Fund and Finnish Development funds.
©Kilombero Valley Teak Company (KVTC)
KVTC workers ©Kilombero Valley Teak Company (KVTC)
In the KVTC sawmill
KVTC’s success factors Outgrowers are located up to 100 km from the main plantation. Contracts between KVTC Establishing teak plantations in small and the outgrowers specify that KVTC covers patches over a large area of rural land carries 50 percent of outgrower establishment costs considerable risk. The KVTC shareholders and, in exchange, it has the first right of refusal are focused on producing high-value, Forest to 25 percent of the timber harvest; outgrowers Stewardship Council-certified timber. The may choose to sell the remaining 75 percent of company is very supportive of local managers, a logs or process them themselves. Ultimately, high proportion of whom having risen through it is envisaged that local outgrowing will help the ranks of KVTC and now play senior roles. sustainably improve the economic and social The company has a very good relationship with conditions of participating communities. the community. KVTC has not taken on debt to finance its operations, resulting in a business The bigger teak picture that has become financially sustainable well in advance of many similar plantation The isolated nature of the KVTC plantation investments. The government has provided and the pioneering of teak as a plantation impressive support, including by upgrading species could have meant costly trial-and- roads and bridges to enable greater access and error processes. KVTC minimizes this risk, easier transport. Company stability has also however, by participating strongly in the wider been crucial, with low management turnover teak industry, including in Brazil. KVTC has its and good team dynamics. own clonal programme and a stable research and development budget to enable continued KVTC and outgrowers improvement. The company participates in Teaknet, a grower network based in India The establishment of company plantations has designed to advance and support teak growers. encouraged local farmers to plant teak. KVTC Teaknet meets every two years to address areas has helped them by establishing a formal of collective need. outgrower scheme. Challenges
KVTC can be proud of its achievements, but • Marketing. The strong promotion of wood the challenges are considerable, including the as a “green” product would stimulate wood following: demand in the United Republic of Tanzania, as would government procurement policies • Lack of infrastructure. The area is remote stipulating the use of (certified) wood. and a long way from markets. The continued upgrading of infrastructure is crucial. • Fragmentation. The fragmented nature of land use in the area, and the presence • Outdated law. The country’s forest law was of large conservation areas, increases the not designed for private companies active difficulty of managing forest encroachment in forest management. Regulations need and fire. to be modified to facilitate commercial plantations, including by removing • Capacity. Forest managers are needed requirements for tree marking, which is who can both run the business and train designed for selective harvesting. personnel in commercial forest practices.
For further information, please contact: Forest Products and Statistics Team Forestry Policy and Resources Division (FOA) Forestry Department Food and Agriculture Organization of the United Nations [email protected]