Forest Plantations Working Papers - Case Study of the Tropical Forest Plantations in Malaysia

Based on the work in 1998 of
D.B. Krishnapillay
Consultant

Edited by M. Varmola

June 2002

Forest Resources Development Service
Forest Resources Division
Forestry Department

Working Paper FP/23
FAO, Rome (Italy)

Table of Contents

Table of Contents

Acknowledgements

Abstract

Acronyms

1. Historical background of forest plantation development

1.1. Historical resume
1.2. Government policy

1.2.1. Wood for pulp and paper production
1.2.2. General utility timber
1.2.3. High quality timber

2. Current status of forest plantation development

2.1. Area, location, species and ownership

2.1.1. Peninsular Malaysia
2.1.2. Sabah
2.1.3. Sarawak
2.1.4. Malaysia

2.2. Management objectives

2.2.1. To meet the anticipated deficit in timber supply
2.2.2. To reduce pressure on natural forests
2.2.3. To ensure better land use

3. Constraints and challenges in forest plantations

3.1. Strategies in establishing forest plantations - issues to be resolved

3.1.1. Ecology
3.1.2. Land
3.1.3. Species selection
3.1.4. Inadequate supply of quality planting material
3.1.5. Labour and mechanization
3.1.6. Finance and private involvement

3.2. Government tax incentives and regulations
3.3. Privatisation

4. Current status of rubber estates as forest plantations

4.1. Introduction
4.2. Log production and consumption
4.3. Total area of land under Hevea plantations

5. Economic viability of Hevea, acacia, teak and sentang

5.1. Introduction
5.2. Different options
5.3. Assumptions

5.3.1. Products
5.3.2. Log volumes
5.3.3. Log prices
5.3.4. Silviculture and agro-management
5.3.5. Latex yield
5.3.6. Latex price

5.4. Planting density and final stand

5.4.1. Log harvesting cost
5.4.2. Tapping cost

5.5. Limitations of the study
5.6. Return on investment
5.7. Discussion on viability

5.7.1. Mono-culture: wood extraction only
5.7.2. Mono-culture: Hevea wood - latex extraction (shorter planting cycle)
5.7.3. Mixed plantation: Hevea-teak and Hevea-sentang

6. Conclusions

References

Appendix

Appendix 1. Assumptions of the various options
Appendix 2. Investment returns of various options
Appendix 3. Sensitivity analyses for mono-culture plantations: Wood extraction only
Appendix 4. Sensitivity analysis for mono-culture plantation: Hevea wood-latex extraction (2,000 ha, 15-year rotation)
Appendix 5. Sensitivity analysis for mixed plantation: Hevea-sentang (40 ha, 20-year rotation)

List of Working Papers on Forest Plantation