Project/activity information

In Thailand, smallholder tree plantations are playing an increasingly important role in the supply of tropical timber, and have the potential to contribute significantly to income generation in rural households. The proposed pre -project will seek to improve smallholder access to markets both by addressing barriers in government legislation and increasing smallholder effectiveness in the initial stages of the value chain by improved primary processing (e.g. felling, skidding to roadside and grading and potentially squaring of logs on site).

Due to immediate cash needs, plantations are very often harvested prematurely, before trees reach optimum diameters and value per volume. In a number of cases, for example in Lao PDR, smallholders have successfully used their standing trees as collateral in microfinance schemes, by using forest certification (FSC) documentation of their legal rights over plantation management. This project will actively learn from good practice examples in the region, and develop a strategy for applying lessons learned in the context of smallholders in Thailand.

This approach will also lead to extended rotation times thereby increasing carbon storage in forestry production systems. This in turn will also provide access to additional financial resources for smallholders.

The outputs of the pre-project are as follows:
Output 1: Identification of constraints in relation to rotation time and share in value chains for sawn plantation teak timber in smallholder teak production
Output 2: Understanding of the opportunities, risks and legal constraints of using standing trees as collateral in loans from commercial banks and micro finance institutions
Output 3: Identification of good practice in the region (Lao PDR and Indonesia) on certified teak timber value chains focusing on smallholders´ share and increased access to capital
Output 4: Development of a full ITTO project to act on the findings from the pre-project