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Fast-wood plantations are needed to supply large quantities of fresh fibre for the paper industry. The most popular outsourcing arrangement between companies and smallholders is known as ’outgrower scheme’ or ’contract tree farming’. In Thailand as in other countries, contracts for eucalypt (Eucalyptus spp) growing have become critical for the major pulp companies to ensure their raw material supply. I present the current situation of eucalypt plantations in Thailand, the pulp and paper industrial growth and the development of contract tree farming. It is based on a thorough review of most recent works and original research.