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Small Scale Teak Plantations in Luang Prabang Province, Lao

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Small Scale Teak Plantations in Luang Prabang Province, Lao Small scale teak plantations in Luang Prabang province, Lao PDR - Silviculture, ownership and market ii Foreword This minor field study (MFS) was carried out as part of the requirements and corresponds to 10 credits on C level. The Department of Silviculture at the Swedish University of Agriculture Sciences has planned the study in co-operation with the National Agriculture and Forestry Research Institute (NAFRI) in Lao PDR with the objective to describe the silviculture practise in teak plantations established by small-scale farmers. Besides bio- physical aspects, tenure and market prospects both for plantations as well as for the wood have been discussed. Acknowledgement This study was funded by Sida (Swedish International Development Agency) as an MFS (Minor Field study). The MFS was hosted by the Lao-Swedish Upland Agriculture and Forestry Research Programme (LSUAFRP) which is a programme financed by Sida and run by the National Agriculture and Forestry Research Institute of Lao PDR (NAFRI) and Scandia consult Natura (SCC). The MFS took in place in Lao PDR in August and September 2003 and was written in Sweden later that year. We, Niklas Fogdestam and Helena Gålnander, would like to thank the following persons for their support and assistance during the time we have been working with this project: Mr Houmchitsavath, our guide and interpreter during the field days in Pone Xay district. Mr Olle Forshed, our mentor in professional as well as social life in Lao PDR. Mr Robert Nygård, our manager and supporter in Sweden who encouraged us to study our data more thoroughly than we thought possible. Mr Calle Mossberg, for great support and help in Lao PDR, both professionally and socially. Mr Bounchan, for help with getting and performing the appointments in the villages. Mr Thansamai, for taking us on a great field trip to Pho May Sack and generously sharing his knowledge in teak with us. Mr John Raintree, for help with analyzing and understanding our data. Mr Joust Foppes, for support and interesting questioning of our work and results. Mr Songkham, for taking his time to teach us about the Lao teak market and showing us his industry. Mr Peter Fogde, for sacrificing his time on us and explaining in Swedish what the tropical timber market really is about. Mr Khampoui, for showing us forest research centre and helping us to design our field form and our questionnaires. Mr Sianouvong, for explaining the legal framework of the Lao timber industry. The students at the Namboo resort, for serving us the local delicacies and keeping us company at the resort. The 12 villages and all the people living in them for taking their time to answer our questions. iii Abstract This Minor Field Study was done in the Pone Xay district the Luang Prabang province in the north of Lao PDR during August and September in 2003. The objective was to describe and analyse the current tenure system and the silvicultural practices of Teak plantations and to discuss its long-term potential to improve farmers’ livelihood. In 12 out 13 villages in the Pone Xay district the village headmen and a sample of the teak-owning families were interviewed and at least one of their teak plots was visited. Our results showed differences in teak-owning among ethnic groups; 31 % Lao Loum, 17 % Lao Theung and 21 % Lao Seung, as well as among the wealthy, with 29 % of “surplus farmer” versus 19 %o in three sample villages. Out of the 195 families who owned teak, 23 families have sold the plantations which, when expressed in seedlings is 18 300, which equals 10 %. About half (52 %) of the interviewed farmers intended to continue with a second teak plantation after the current one, 21 % say that they won’t continue, and 27 % don’t know yet. A majority of the farmers answered that they have thinned (80 %) and pruned (62 %) in their plantations, however, none of the visited the plots had been pruned or thinned so far, i.e. in the scientific meaning of the words. To analyse the entire market chain of teak outside the district and/or province, interviews with saw-mill owners, merchants, traders and government administrators were made on transport and labour costs as well as teak prices. The main finding is that prices offered by middlemen to farmers varied between 100 and 200 USD/m3, depending on size and quality. Assuming a teak value of 100 USD per cubic metre and a standing volume of approximately 10 000 m3 spread over 80 hectares in the Pone Xay district, it would be worth one million (1 000 000) US dollars. Our assessment of the standing volume in the Pone Xay district shows that there is approximately 10 000 m3 divided on 80 hectares. If it would be sold today for 100 USD per m3 it would be worth 1 000 000 USD. In order to improve teak production in the district we would like to recommend the farmers to: 1) Be careful when they select plant material and try to get the best there is. 2) Thin the trees on a regular basis and save the healthy and strong trees for further development. 3) Prune the trees with a straight and whole stem and aim for good and mature heartwood. Keywords: tectona grandis; teak; lao PDR; forest plantations; land use iv TABLE OF CONTENTS 1. INTRODUCTION................................................................................................................ 1 1.1 OBJECTIVES....................................................................................................................... 1 1.2 BACKGROUND ................................................................................................................... 1 1.2.1 Forest Policy............................................................................................................... 2 1.2.2 LSUAFRP ...................................................................................................................2 1.3 PEOPLES DEMOCRATIC REPUBLIC OF LAO......................................................................... 2 1.3.1 General ....................................................................................................................... 2 1.3.2 Population .................................................................................................................. 3 1.3.3 Luang Prabang Province............................................................................................ 4 1.4 TEAK (TECTONA GRANDIS) ................................................................................................. 4 1.4.1 Introduction ................................................................................................................ 4 1.4.2 Morphology and phenology........................................................................................ 5 1.4.3 Site requirements ........................................................................................................ 7 1.4.4 Use of teak .................................................................................................................. 7 1.4.5 Silviculture in general ................................................................................................ 7 1.4.6 Silviculture in Lao PDR.............................................................................................. 7 1.4.7 Pests and other problems ........................................................................................... 8 2 METHODS ............................................................................................................................ 9 2.1 STUDY SITE........................................................................................................................ 9 2.2 SAMPLE ............................................................................................................................. 9 2.2.1 The villages................................................................................................................. 9 2.2.2 The Interviews............................................................................................................. 9 2.3 MARKET CHANNEL ANALYSIS ........................................................................................ 11 2.4 ASSESSMENT OF STANDING VOLUME IN THE PONE XAY DISTRICT ................................... 11 3 RESULT............................................................................................................................... 12 3.1 STUDY SITE...................................................................................................................... 12 3.2 SAMPLE ........................................................................................................................... 12 3.2.1 The Villages ..............................................................................................................12 3.2.2 The Interviews........................................................................................................... 14 3.3 MARKET CHANNEL ANALYSIS ........................................................................................ 17 4 DISCUSSION ...................................................................................................................... 19 4.1 SAMPLE ........................................................................................................................... 19 4.1.1 The field visits........................................................................................................... 19 4.1.2 The interviews..........................................................................................................
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