18 June 2007
Small Communities See Big Future In Teak
CIFOR headquarters in Bogor was proud host to several major forestry organisations from May 28 - May 30. The reason for the presence on campus was the launch of a new Australian supported initiative to develop profitable smallholder teak plantations in Indonesia.
Known as ‘Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia’ and funded by ACIAR (the Australian Centre for International Agricultural Research) the project's key objectives include:
* Introducing and adapting silvicultural technologies that improve returns for smallholder teak producers
* Identifying and designing financing schemes that provide incentives for smallholder participation in profitable teak production
* Enhancing market access by smallholder teak producers
* Identifying disincentives in policies and regulations in relation to farm management, marketing and financing, as well as making recommendations to improve policies.
Principal partners at the inception meeting included:
* World Agroforestry Center (ICRAF)
* Forestry Research and Development Agency (FORDA) of the Indonesia Ministry of Forestry
* International Center for Applied Finance & Economics (InterCAFE) - Bogor Agricultural University
* School of Resources, Environment and Society - Australian National University (ANU)
* Farm Forestry Consortium (Pokja Hutan Rakyat Lestari)
* Local Tree Grower Cooperative.
A representative from the one of the project’s districts in Yogyakarta, Gunung Kidul, also attended the meeting, as well as participants from WWF-Indonesia and the Ministry of Cooperatives and Small & Medium Scale Enterprises.
The project leader and FORDA secondee, Dede Rohadi, says the project partners examined a range of issues during the three day meeting. These included reviewing lessons learned from past projects that explored similar issues, refining project methodologies, and confirming impact evaluation strategies.
As the project's commissioning partner, CIFOR also ensured the meeting clarified operational issues and strengthened commitments among the project team members in relation to their roles and responsibilities. The first multi-stakeholder meeting at the district level will be organised in late July.
Teak production and furniture manufacturing is a major industry in Java, Indonesia. Logs and sawn timber sales accounted for more than 680,000 m3 of teak valued at nearly AUD $115 million in 2001. In one district alone, Jepara, more than 15,000 factories depend on teak to survive. There are already approximately 1.5 million households in Indonesia growing teak, mostly on degraded land.
But production from the large-scale plantations appears to be in early decline. This is why small-scale producers are important. And ultimately the project aims to help them develop their skills in engaging with the more formal and established teak industry and thereby ensure sustainable supplies of this highly-prized timber.
CIFOR's scientist, Ms. Ani Adiwinata Nawir, who initiated the project with ICRAF’s James Roshetko, says the project will identify and help alleviate the impediments that prevent smallholders from greater industry involvement.
‘There’s a lot of potential for smallholders to feed Indonesia’s timber demand,’ says Nawir, ‘But there are obstacles preventing smallholder teak plantations from succeeding as well as they should. Some of these are poor silvicultural techniques, limited access to credit or capital, limited market knowledge and access, and unfavourable timber regulation policies.’
According to Roshetko, ‘Poor silvicultural techniques often lead to low quality timber and can be difficult for smallholders to improve because of their lack of capital to invest in teak planting. Or they are unable to wait the optimal teak rotation period before having to cut down their trees to get some cash.”
Smallholders also accept prices that are often well below market rates. This is generally due to their limited access to markets, limited market information and inability to resolve transaction costs. Further, government policies -- which have been traditionally designed for large-scale timber production – can restrict the small scale producer.
Given the above issues, a comprehensive, inter-disciplinary approach is required, tackling issues of silviculture, financing, marketing and policy simultaneously. The project will take an action research approach in which project partners improve their understanding of smallholder forestry, as well as its constraints and the measures for overcomingthem.
According to CIFOR’s impact assessment specialist, David Raitzer, the ACIAR project has the potential to generate produce significant long-term livelihood benefits, as smallholder teak can generate substantial income if properly managed. By helping to ensure proper management thorough its focus on silvicultural treatments, financing schemes and marketing, the project may generate AUD $112 million in benefits over 30 years.
Further information:
* For information about the project please email
Dede Rohadi (d.rohadi@cgiar.org).
ACIAR Project Inception Meeting - Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia.
Information about project stakeholders
* ACIAR: www.aciar.gov.au
* ICRAF: www.worldagroforestrycentre.org
* RI Ministry of Forestry: www.dephut.go.id
* International Center for Applied Finance and Economics
* SRES ANU
* Bogor Agricultural University: www.ipb.ac.id/
* Farm Forestry Consortium
* Yogyakarta District of Gunung Kidul: http://www.gunungkidulkab.go.id/
_____
cifor
Known as ‘Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia’ and funded by ACIAR (the Australian Centre for International Agricultural Research) the project's key objectives include:
* Introducing and adapting silvicultural technologies that improve returns for smallholder teak producers
* Identifying and designing financing schemes that provide incentives for smallholder participation in profitable teak production
* Enhancing market access by smallholder teak producers
* Identifying disincentives in policies and regulations in relation to farm management, marketing and financing, as well as making recommendations to improve policies.
Principal partners at the inception meeting included:
* World Agroforestry Center (ICRAF)
* Forestry Research and Development Agency (FORDA) of the Indonesia Ministry of Forestry
* International Center for Applied Finance & Economics (InterCAFE) - Bogor Agricultural University
* School of Resources, Environment and Society - Australian National University (ANU)
* Farm Forestry Consortium (Pokja Hutan Rakyat Lestari)
* Local Tree Grower Cooperative.
A representative from the one of the project’s districts in Yogyakarta, Gunung Kidul, also attended the meeting, as well as participants from WWF-Indonesia and the Ministry of Cooperatives and Small & Medium Scale Enterprises.
The project leader and FORDA secondee, Dede Rohadi, says the project partners examined a range of issues during the three day meeting. These included reviewing lessons learned from past projects that explored similar issues, refining project methodologies, and confirming impact evaluation strategies.
As the project's commissioning partner, CIFOR also ensured the meeting clarified operational issues and strengthened commitments among the project team members in relation to their roles and responsibilities. The first multi-stakeholder meeting at the district level will be organised in late July.
Teak production and furniture manufacturing is a major industry in Java, Indonesia. Logs and sawn timber sales accounted for more than 680,000 m3 of teak valued at nearly AUD $115 million in 2001. In one district alone, Jepara, more than 15,000 factories depend on teak to survive. There are already approximately 1.5 million households in Indonesia growing teak, mostly on degraded land.
But production from the large-scale plantations appears to be in early decline. This is why small-scale producers are important. And ultimately the project aims to help them develop their skills in engaging with the more formal and established teak industry and thereby ensure sustainable supplies of this highly-prized timber.
CIFOR's scientist, Ms. Ani Adiwinata Nawir, who initiated the project with ICRAF’s James Roshetko, says the project will identify and help alleviate the impediments that prevent smallholders from greater industry involvement.
‘There’s a lot of potential for smallholders to feed Indonesia’s timber demand,’ says Nawir, ‘But there are obstacles preventing smallholder teak plantations from succeeding as well as they should. Some of these are poor silvicultural techniques, limited access to credit or capital, limited market knowledge and access, and unfavourable timber regulation policies.’
According to Roshetko, ‘Poor silvicultural techniques often lead to low quality timber and can be difficult for smallholders to improve because of their lack of capital to invest in teak planting. Or they are unable to wait the optimal teak rotation period before having to cut down their trees to get some cash.”
Smallholders also accept prices that are often well below market rates. This is generally due to their limited access to markets, limited market information and inability to resolve transaction costs. Further, government policies -- which have been traditionally designed for large-scale timber production – can restrict the small scale producer.
Given the above issues, a comprehensive, inter-disciplinary approach is required, tackling issues of silviculture, financing, marketing and policy simultaneously. The project will take an action research approach in which project partners improve their understanding of smallholder forestry, as well as its constraints and the measures for overcomingthem.
According to CIFOR’s impact assessment specialist, David Raitzer, the ACIAR project has the potential to generate produce significant long-term livelihood benefits, as smallholder teak can generate substantial income if properly managed. By helping to ensure proper management thorough its focus on silvicultural treatments, financing schemes and marketing, the project may generate AUD $112 million in benefits over 30 years.
Further information:
* For information about the project please email
Dede Rohadi (d.rohadi@cgiar.org).
ACIAR Project Inception Meeting - Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia.
Information about project stakeholders
* ACIAR: www.aciar.gov.au
* ICRAF: www.worldagroforestrycentre.org
* RI Ministry of Forestry: www.dephut.go.id
* International Center for Applied Finance and Economics
* SRES ANU
* Bogor Agricultural University: www.ipb.ac.id/
* Farm Forestry Consortium
* Yogyakarta District of Gunung Kidul: http://www.gunungkidulkab.go.id/
_____
cifor
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