4.1 Wood energy flows from rural areas
4.2 Wood energy traders
The wood energy trade in Phnom Penh is within the informal sector, which made it difficult to form a methodical sampling strategy. However, as this study is intended to provide an overview of the distribution system, it was sufficient to select traders to interview during observation tours of the city. The boundary of Phnom Penh was taken to be the municipal boundary.
The team interviewed 95 wholesalers and large retailers of firewood and charcoal within the 7 districts, shown in Table 19.
Table 19: Interviews with Wood Energy Traders in Phnom Penh
|
District |
Interviews |
|
Dangkao |
16 |
|
Toul Kork |
19 |
|
7 Makara |
9 |
|
Doun Penh |
22 |
|
Russei Keo |
10 |
|
Meanchay |
8 |
|
Chamkarmon |
11 |
|
TOTAL |
95 |
The study revealed the many complexities of the distribution system, as shown on Diagram 1.
Firewood and charcoal are transported to Phnom Penh through points such as National Routes 4, 5 and 6A and by railway and river. Table 20 shows the results of a survey of wood energy flows through Department of Forestry Checkpoints over a 2 day study period.
Table 21 indicates the daily, monthly and annual flows of firewood and charcoal. The figures represent 70,119 steres of natural forest and 25,248 steres of rubber, flooded forest and sawmill off-cuts. In conjunction with Table 5, it shows the following results:
Firewood:
95,377 steres flowing into Phnom Penh
7,455 steres flowing out of Phnom Penh
87,922 steres used in Phnom Penh
Charcoal:
23,802 tonnes flowing into Phnom Penh
1,181 tonnes flowing out of Phnom Penh
22,621 tonnes used in Phnom Penh.
Table 20: Wood Energy Flows Over a Two Day Period at Department of Forestry Checkpoints
|
Location |
Transportation |
Quantity of Firewood |
Quantity of Charcoal Sacks |
||||||||
|
Truck |
Nissan |
Sedan |
Truck with Cart |
Moto-cart |
Train |
Boat |
Bundle |
Metre |
Stere |
||
|
NR 4 |
6 |
14 |
46 |
11 |
93 |
- |
- |
18,900 |
249 |
- |
941 |
|
NR 5 |
6 |
1 |
- |
1 |
30 |
- |
- |
- |
10 |
- |
788 |
|
NR 6A |
1 |
7 |
- |
1 |
3 |
- |
- |
3,216 |
- |
- |
112 |
|
Train |
- |
- |
- |
- |
- |
3 |
- |
|
|
222 |
100 |
|
River |
- |
- |
- |
- |
- |
- |
3 |
- |
- |
300 |
- |
|
TOTAL |
13 |
22 |
46 |
13 |
126 |
3 |
3 |
22,116 |
259 |
522 |
1,941 |
Table 21: Estimated Wood Energy Flows into Phnom Penh
|
Location |
Firewood |
Charcoal |
||||
|
stere/day |
stere/month |
stere/year |
ton/day |
ton/month |
ton/year |
|
|
National Route 4 |
74,1 |
2,255 |
27,059 |
25.9 |
787 |
9,445 |
|
National Route 5 |
5.0 |
152 |
1,825 |
21.7 |
659 |
7,910 |
|
National Route 6A |
2.0 |
61 |
730 |
3.1 |
94 |
1,124 |
|
Train |
111.0 |
3,376 |
40,515 |
2.8 |
84 |
1,004 |
|
River |
69.2 |
2,104 |
25,248 |
11.8 |
360 |
4,320 |
|
TOTAL |
261,3 |
7,948 |
95,377 |
65.2 |
1,984 |
23,803 |
Woodfuels are transported by National Route 4 for distribution through the depots of Kaodai, Beoung Salang, Depo and Toul Kok, although some is supplied directly to Tahkmao.
The flows of charcoal and firewood through National Route 5 were distributed to depots such as O'Russei, Psa Cha and other retail stores along National Route 5 next to Chroychangva Bridge to Chraing Chamreah Quarter within Russey Kao District.
Charcoal is brought in greater quantities than firewood along National Route 6A. These woodfuels are distributed to various depots within Phnom Penh.
Diagram 1: Wood Energy Flows to Phnom Penh
Road transport is usually by moto-cart, car, pick-up and truck. Along National Route 4, container trucks pick up firewood and stack it underneath the truck. On this and other routes, firewood and charcoal is sometimes brought as a part load on trucks and pick-ups.
The quantity of woodfuels transported by train is high. Most of this quantity arrives at Pochentong Railway Station, where the wholesalers line the railway tracks. The woodfuels are sold on to retailers and restaurants in Phnom Penh, although some is sold to supply handicrafts units and households in Takhmao. Interviews with traders at Pochentong showed 4 families transporting firewood to Takhmao daily by moto-cart, where each moto-cart carries 2 steres. In addition, 1 car from Takhmao collects firewood daily from Pochentong and carries 3 steres.
Firewood and charcoal arrives from Kratie at Psa Toch and Chhbar Ampeou by river. From the wholesalers at the ports, charcoal is delivered to retailers in the city, and some is transported out to areas such as Kandal and Nhek Loeung. Firewood transported in this way is mostly from old rubber trees and off-cuts from sawmills, and is supplied to brick and tile kilns in addition to handicrafts production units in Phnom Penh.
Kolexim sawmill is located within the boundaries of Phnom Penh. The sawmill distributes its off-cuts to handicrafts production units, restaurants and households in Phnom Penh. The Kolexim sawmill has the capacity to produce 200 cubic metres of timber per day. In general, 1 cubic metre produces the following:
|
processed timber |
60.5% |
|
off-cuts |
15.5% |
|
waste wood |
6.0% |
|
sawdust |
18.0% |
The company exports processed timber and other products are sold for local use (Lao SP, 1993). The quantity of off-cuts from Kolexim annually is:
200 cubic metres x 260 operating days x 21.5% = 11,180 cubic metres = 14,520 steres.
4.2.1 Depots in Phnom Penh
4.2.2 Prices and units of sale
4.2.3 Income and expenditure
4.2.4 Trading relationships
4.2.5 Reasons for trade
It is difficult to differentiate between wholesalers and retailers as they have a lot of the same characteristics, but for the purpose of this study, they are described as follows.
Wholesalers
Wholesalers buy firewood and charcoal directly from rural supply areas in quantities of 5,000 -50,000 bundles of firewood and 50 sacks - 200 sacks of charcoal per month. They sell to retailers, restaurants, bakeries, tile and brick kilns in similar quantities to those purchased. Wholesalers also sell charcoal and firewood directly for domestic consumption in large and small quantities. Wholesalers sell only woodfuels.
Retailers
Retailers mainly buy firewood and charcoal from wholesalers, but some also buy directly from the rural supply areas. They usually buy in quantities of 500 - 2,000 bundles of firewood and 5 -10 sacks of charcoal per month. Retailers sell mainly small quantities for domestic consumption, but sometimes sell to restaurants and for use on special occasions. Retailers usually sell other goods in addition to woodfuels at their shops.
The prices of firewood and charcoal increase as they move through the distribution system. At each stage of trade, an amount is added to cover expenditure and to allow an income to be earned by each level of trader. Table 22 shows the stages of trade, but it is important to note that the units of trade may also change as progression is made through the system. (The units of trade are illustrated on Page iv.)
Table 22: Stages of Trade
|
Trader |
Pursat |
Kg Chhnang |
Kg Speu |
Kg Thom |
Kratie |
|||||
|
Fuelw. |
Char. |
Fuelw. |
Char. |
Fuelw. |
Char. |
Fuelw. |
Char. |
Fuelw. |
Char. |
|
|
Bundle |
Sack |
Bundle |
Sack |
Bundle |
Sack |
Bundle |
Sack |
Bundle |
Sack |
|
|
Wood Collector |
120 |
- |
120 |
- |
90 |
- |
- |
- |
- |
- |
|
Charcoal Producer |
- |
8,000 |
- |
8,000 |
- |
8,000 |
- |
8,000 |
- |
7,000 |
|
Transporter |
160 |
13,000 |
150 |
12,000 |
120 |
12,000 |
100 |
14,000 |
100 |
14,000 |
|
Wholesaler |
180 |
15,000 |
175 |
15,000 |
170 |
14,000 |
140 |
15,000 |
150 |
16,000 |
|
Retailer |
200 |
17,000 |
190 |
16,500 |
200 |
16,000 |
190 |
16,500 |
200 |
19,000 |
Sacks of charcoal in Table 22 weigh 60 kg from Kratie and 55 kg from other provinces. The price depends on quality, species and weight. Charcoal from Kratie is renowned for being the best quality. The preferred species is chambok (Irvingia sp.), because it has a high heating quality and burns without smoke, but it also has the highest price. Firewood from Pursat, Kampong Chhnang and Kampong Speu come from natural forests, and those from Kampong Thom and Kratie from sawmills.
Prices differ in the wet and dry seasons. The prices are lower in the dry season because there are more people collecting firewood. During the wet season it is difficult to travel into the forest to collect wood.
Sources of Income
According to responses during the interviews with the traders, income is gained mostly from firewood and charcoal selling, especially for the wholesalers. Other sources of income include civil service, selling groceries, farming, motor and car taxi service, rice selling, pharmacy, motorbike repairs, tailor, and money exchange. Income levels are difficult to ascertain because the traders do not keep records of their accounts and are reluctant to discuss the issue. However, some traders reported that their income was sufficient only to cover their daily expenses, whilst others gained profits enough to allow them to lend to charcoal producers to build kilns, and can stock woodfuels in the dry season to sell at higher prices in the wet season. Some traders reported making a loss and were running down their businesses.
Operating costs
General expenditure of the traders include rent, guards, workers, transport, tax and police. The payments for each of these items is difficult to determine due to the nature of the trade, but generally it depends on the nature of the rest of the business and the amount of woodfuels sold. In the depots there are some workers who earn an income from loading and unloading woodfuels, packing charcoal into sacks, chopping firewood and bundling it and guarding the depots at night. Wood is split at the wholesale depots to the request of customers. Small pieces of charcoal left over from sales are sold to ironsmiths for making knives, axes, etc. Labour is usually by household members, and therefore is uncosted.
Transport of firewood and charcoal between buyers and sellers may be arranged by either party, but if the seller organizes the transport, a small amount is added to the cost of the woodfuel. Forms of transport include handcart, cyclo, moto-cart, car and truck, and the transport costs vary accordingly.
The study shows that firewood and charcoal traders in Phnom Penh have differences in their sales patterns. Some travel to the rural supply areas to purchase the woodfuels themselves, others buy from other depots in Phnom Penh, and others pay people to transport the woodfuels from the rural supply areas. Customers buy from depots in Phnom Penh, from moto-carts selling along the road, or arrange for the trader to deliver to their houses. Some consumers collect the woodfuels themselves directly from the rural traders, particularly from those located along National Route 4.
Trading relationships develop between the suppliers and traders. Charcoal producers wanting to build kilns, borrow, in advance from the traders. The relationship between the customer and trader is that if the customers consistently buy from the same trader, they may be given a credit facility.
Firewood and charcoal purchases and sales between traders and customers are, in the majority of cases, cash transactions, but in some cases the buyers can owe part of the amount due until they re-sell. Also, if there is a large amount of firewood and charcoal, it can be stocked at the depots with an agreement for payment to be made after the sales. This process of credit can only operate between traders who have traded together for a long time.
Some of the traders have been in business since 1979, although most began after 1990. The number of traders is increasing, and the reasons for selecting this particular type of work include the need to earn a daily income, or to supplement other forms of income. Many traders appeared keen to remain in this business, but others, particularly those with low sales, are planning to end their involvement but have little idea about alternative work. It is possible to make a profit if traders operate in partnership with suppliers. Those who have been in the business longer consider it a traditional family trade and so are reluctant to change.
