PI - Bamboo by Number


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A Story about Bamboo!


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  • Reformatting first line, changed ‘right now’ & ‘the future’
  • I modified the text here accordingly
  • Dear Julie, this table should replace the former one – more updated data. JNFixed
  • 1. The y Axis should be labelled “Proportion of Population” – 2. there is also a misalignment of numbers on the y axis. 3. Please convert .2, .4, .6 etc to 20%, 40% 60% 80% and 100% - easier to understand JN fixed
  • I’ve updated these figures with new estimates for jobs
  • Julie this slide needs some work as the text is too small. JN put it in 2 slides
  • Julie this slide needs some work as the text is too small.
  • PI - Bamboo by Number

    1. 2. INTRODUCTION [ bamboo by numbers ] SECTION 01 [ bamboo story ] SECTION 02 [ poverty reduction ] SECTION 03 [ carbon case ] SECTION 04 [ business case ]
    2. 3. [ bamboo by numbers ]
    3. 4. The world needs solutions to poverty and climate change! Yes bamboo conjures up images of traditional lifestyles and products, however….
    4. 5. Right now there is an historical event taking place. In the last 15 years, businesses and innovators have perfected ways to turn bamboo into many high value things – from wood products like construction panels to high quality textiles – at a global industrial scale. These are not fad or niche products. The current global market for bamboo products is $12-15B illion . Bamboo has unique tensile strength, absorptive and other physical qualities. Coupled with diverse aesthetic appeal, bamboo manufacturers are competing and gaining large share in high value markets around the world. The future is very exciting.
    5. 6. We all need bamboo industries to continue on this trend of new market success . Bamboo has an enormous potential to be part of the solution for of the most important issues of our era: Bamboo is grown by the world’s poor. Poor bamboo growers benefit much more than small holders gain from the main forest industries. Bamboo forests provide excellent carbon and environmental benefits to all of us. 2 1 2
    6. 7. Ultimately, bamboo’s success is all about the numbers… Think about bamboo… good for poverty reduction good for a low carbon future good for business … 1 2 3
    7. 8. [ bamboo story ]
    8. 9. 37M illion Ha The current area of bamboo in the world is slightly more than the area of Germany (35M) Lobovokov 2009 1B illion The number of people (most of whom are poor) who use bamboo in their everyday lives.
    9. 10. BAMBOO FARMING IN VIET NAM Photo: Tran Hong Nhung
    10. 11. Low carbon transportation to market in Northern Viet Nam Photo: Patrice Lambelle
    11. 12. Bamboos grow naturally in the tropical and sub-tropical regions between 46° North and 47° South on all continents except Europe and from sea level up to 4000m elevation Scurlock et al. 2000. Their distribution coincides with potential CDM host countries. Globally, bamboo forests grow on at least 37 M illion Ha Lobovikov et al. 2007 and make up 3% of the forest areas of their host countries on average. India, China, Indonesia, Ecuador, Myanmar and Viet Nam have the largest bamboo resources of 25 countries recently surveyed Lobovikov et al. 2007.
    12. 13. >1000 The number of bamboo species in the world >100 The range of products in the global market
    13. 14. Mai khom bamboo shoot, Lao PDR Luong bamboo Viet Nam Lao PDR Photo: Patrice Lambelle Photo: Phillippe Rousseau Photo: Ding Xingcui Photo: Nigel Smith Bambusa Polymorphia, India Moso Bamboo China 1 1 2 3 4 2 3 4
    14. 15. The parts of a bamboo plant are utilised for many different products Zhu 2005 Leftovers & processing waste 4 1 2 3 5 6 7 8 9 Fuels Pulp Charcoal Fiber boards Lumber Blinds, Mats, Carpet Flooring Vegetable Handicrafts Brooms, Cloths Manure, Fodder Extracts, Medicine Bamboo poles Laminated furniture Charcoal, Pulp Handicrafts Chopsticks, Toothpicks Scaffoldings Chopsticks, Toothpicks Middle upper Middle lower Base Shoots Sheath & Rhizome Twigs Leaves Top 9 8 7 6 5 3 2 1 4
    15. 17. [ poverty reduction ]
    16. 18. $1200/Ha/yr The return per hectare for bamboo farmers in Anji China (>$400/Ha/yr in Viet Nam) 45 days/yr The number of labour days required to manage a hectare of bamboo per year
    17. 19. Woman harvesting Truc Sao bamboo Cao Bang Province, Viet Nam Luong bamboo part of a mixed farming system in upland Viet Nam Photo: Patrice Lambelle Photo: Tran Hong Nhung 1 2 1 2
    18. 20. >200 tonnes/yr The amount of soil lost from steeper upland slopes under cassava/maize cropping >2 times The relative returns to day labour for farmers producing luong bamboo compared to producing rice, maize, sugarcane and other upland crops Viet Nam
    19. 21. Photo: Tran Duc Toan Gross income returns (VND millions) measured i) per hectare and ii) per family day labour of typical upland crops. PI Analysis 2009 Some upland farming systems in Viet Nam are not sustainable Bamboo is a good use of a farmer’s time in the uplands Crop   Sample Per hectare Per family labour day N Median Median Ordinary rice (irrigated) 178 9.856 0.0438 Cassava/manioc 153 5.333 0.02 Bamboo 140 2.364 0.0982 Maize/corn 117 4.5 0.0279 Glutinous rice (irrigated) 73 9.875 0.0547 Vegetables 46 3.833 0.0139 Upland rice (non-irrigated) 36 0.354 0.0018 Sugar cane 34 13 0.0477 Peanuts 21 3.28 0.025
    20. 22. 500,000 & 25% The number of people in bamboo producing households and the % of their household income from bamboo in Northern Viet Nam PI analysis 2009 69% The % of people living below $2/day in northern Viet Nam in 2008 in bamboo communities PI analysis 2009
    21. 23. Industrial bamboo firms and supply areas in Northern Viet Nam and Lao PDR Marsh and Ngo 2009
    22. 24. Bamboo as a major income segment for upland farmers in Viet Nam PI Analysis 2009 Income Segment Crop 24.70% Livestock 17.70% Bamboo 25.20% Other 32.50%
    23. 25. Per capita Income (real 2008 VND millions) Bamboo household total incomes in Thanh Hoa Viet Nam 2006 to 2008. Positive steps to moving out of poverty (curve moves to right). PI analysis 2009 2006 2008
    24. 26. $40M Bamboo “farmgate” sales in Northern Viet Nam in 2008 PI Analysis 2009 63% The proportion of women working in bamboo processing jobs – the highest segment of waged labour in the industry PI Analysis 2009
    25. 27. The level of income into poor, near poor and total bamboo selling households In Northern Viet Nam in 2008. PI Analysis 2009 Note: These 1.25 and 2 poverty lines are internationally recognised poverty lines as referenced within Millenium Development Goal Targets, and in UN and World Bank global poverty reports. But these figures are purchasing power parity (ppp) figures. In 2009 the figures for $1.25ppp and $2ppp are approximately: i) Lao PDR - $1.25ppp = LAK 3700/day (44c/day) and $2ppp = LAK5900/day (71c/day) and : ii) Viet Nam - $1.25ppp = VND6000/day (33c/day) and $2ppp = VND9400/day 53c/day). Bamboo Selling Households Target Community # People in bamboo selling HH % HH income from bamboo Total bamboo sales $M in 2008 Those living on <$1.25ppp/ person/day (ie “the Poor”) 254,000 19.9% $6.5 M Those living on <2ppp/person/day (ie “Poor and Near Poor”) 361,000 22.0% $19.0M All bamboo farming households 518,000 25.2% $40.7M
    26. 28. Waged jobs (FTE) and income in the Northern Viet Nam Bamboo Industry 2008 PI Analysis 2009 On Farm Total   Harvesting Other on Farm   FTE Job income FTE Job income FTE Job income   3,600 $1.8M 3,200 $1.6M 400 $0.2M Off Farm Processing and Other Transp/Handling/Other   FTE Job income FTE Job income FTE Job income   10,600 $5.2M 7,600 $3.8M 3,000 $1.3M Total 14,200 $7M
    27. 29. 7,200 The number of people below $2/day benefiting from new investments in bamboo processing by PI’s partners in 2009 PI Analysis 2009 $5M illion /yr and 55,000 The potential scope of impact through i) new income and ii) the number of people below $2/day benefitting by 2014 through new investments by PI’s business partners in Northern Viet Nam PI Analysis 2009
    28. 30. PI’s support to new bamboo industries creating impact in Viet Nam Women hold 63% of jobs in bamboo processing in Viet Nam Photo: Ngo Viet Hung Target Indicator Achieved End 2009 Target 2011 People below $2/day with income from new jobs or sales of bamboo Total Income $M/yr – jobs and sales $0.46M $2.1M New jobs 140 830 # Beneficiaries 7,200 33,000 All people from bamboo communities with income from new jobs or sales of bamboo Total Income $M/yr – jobs and sales $0.72M $3.1M New jobs 370 1,700 # Beneficiaries 11,000 49,000
    29. 31. The bamboo industry in Northern Viet Nam in 2008. High utilisation businesses (pressed bamboo and construction board) were added to the processing stream in 2008 alongside sticks and laminated products – this development should catalyse new value added investment in the coming years. PI Analysis 2009 See enlarge chart below
    30. 33. 30% The % of total sector economic output going to small holders from bamboo industries in China and Viet Nam PI Analysis 2009 8% The amount of global forest resources owned by smallholders FAO 2005
    31. 34. Commercial use of Bamboo forests benefits smallholders FAO 2005 and PI Analysis 2009 Commercial Timber Supply Globally Commercial Bamboo Supply in Viet Nam & China
    32. 35. [ carbon case ]
    33. 36. 6.3 (teak) & 47.8 (bamboo) Tonnes/Ha/yr The biomass growth of teak timber and spiny bamboo bambusa bambos , a common tropical variety in India, Myanmar, Indonesia etc Guttiérez et al., 2006 191 (teak) & 442 (bamboo) Tonnes/Ha Total estimated steady state carbon storage in all forms (forest and sequestered within products) in a total lifecycle production systems for tropical forest production in teak timber and bambusa bambos. Teak requires 40 years to reach this level, bambusa bambos 20 years. Boateng 2005; Shanmug-havel and Francis 2002
    34. 37. Bamboo species have high carbon storage and annual carbon production compared to common timber production species. Widenoja 2007 Mean annual biomass productivity above-ground (t/ ha/yr) Total biomass carbon storage at maturation (t C/ha) Total est. carbon storage incl. products (t C/ha) Timber Plantation Species Teak Tectona Grandis 6.3 126 (40 yrs) 191 (40 yrs) Eucalyptus Eucalyptus grandis 16.14 no data no data Eucalyptus Plantar high-yield Eucalyptus 17.5 61.25 (7 yrs) no data Eucalyptus Plantar clones Eucalyptus 21 73.5 (7 yrs) no data Bamboo Species Phyllostachys pubescens Common Name: Moso; Temperate; China and Japan 17.24 - 27.58 92 t C/ha (5-8 years) 159.4 (20 yrs) Bambusa Bambos Common Name: Spiny bamboo Tropical; India, Myanmar Indonesia etc 47.8 149 t C/ha (6 years) 442.15 (20 yrs)
    35. 38. Aboveground biomass of bamboos and timber trees are very similar. For example, the lines cross the point which says that 90% of both timber and bamboo areas have 225t or less of above ground biomass. Hunter and Wu 2002 Aboveground biomass (t/ha) Biomass stock distribution functions Timber Bamboo
    36. 39. 45 The number of commercial bamboo species covering a range of climatic zones in the world. Bamboo is climatically and commercially versatile 5-8 The number of years required to establish a fully producing mature bamboo plantation from bare land
    37. 40. Global distribution of bamboos Lobovokov 2007 Bamboo is a diverse, widely distributed and versatile group of species well suited to smallholder adaptation practices to cope with climate change
    38. 41. 0 The current recognition for bamboo under current UNFCC programmes 2 The UNFCC programmes that should explicitly include bamboo
    39. 42. Bamboo should receive special attention as one of the crops that should be incorporated within the UN Framework Convention on Climate Change (UNFCCC). Bamboo should be included in the UNFCCC programs, particularly Land Use, Land‐Use Change and Forestry (LULUCF) , including the Reducing Emissions from Deforestation and Forest Degradation in Developing Countries Programme (REDD) . (part of the text from a resolution to COP15 signed by the delegates of the World Bamboo Congress, Bangkok September 2009)
    40. 43. [ business case ]
    41. 44. <1% the current share of global high value wood product markets held by bamboo $100B illion /yr The current global market for high value wood products
    42. 45. Market Segment Bamboo Share of Global Market ~0.5% of Global Wood Product Market (2009) Global Wood Product Market
    43. 46. 60% The increase in global hardwood commodity prices 1999 to 2009 $1000/Tonne The current market price for many bamboo products like panel board and engineered lumber
    44. 47. Hardwood Commodity Prices 1999-2009 Hardwood Sawnwood Dark Red Meranti, select and better quality, C&F U.K port per cubic meter Source: IMF Commodities Unit Hardwood logs, Best quality Malaysian Meranti, import price Japan, per cubic meter
    45. 48. Final Quality Product Pressed bamboo (eg Strand Woven ®) is a new high value competitive timber product
    46. 49. Hardness and Dimension Stability of Pressed Bamboo in comparison with other types of hardwood (Source: http://strandwoven.com) Hardness of Common Woods Dimensional Stability of Common Woods (smaller values indicate greater stability)
    47. 50. 100% Price advantage of pressed bamboo over timber equivalents, e.g. “iron wood” for joinery in Viet Nam PI Analysis 2009 43% Return on equity (10 year average) for a new pressed bamboo business in Viet Nam PI Analysis 2009
    48. 51. Breakdown of revenue into expenses and profit (EBIT) indicator for Pressed Bamboo Operation in Viet Nam PI Analysis 2009 Key profitability indicators Unit Quantity Total initial investment needed Mil USD 1.13 Equity Mil USD 0.67 Debt Mil USD 0.46 Internal rate of return (IRR) % 49% NPV (20% discount rate) Mil USD 1.88 Return on equity (ROE - 10 year average) % 43% Return on equity in year 10 % 36% EBIT/Revenue (10 years average) % 18% Payback period Years 4
    49. 52. 10-20% Raw material utilisation rates of first generation high value product manufacturing including chopsticks, laminated flooring, etc selling for >$1000/tonne finished product 60-80% Utilisation rates of new generation processing like construction board, pressed bamboo, selling for >$1000/tonne finished product
    50. 53. First Generation Chopsticks $1000/tonne Pressed bamboo $1000/tonne 70-80% End product 10-20% End product 70-80% residues New Generation
    51. 54. 120 The number of pressed bamboo factories in China in 2009 12 months The time required to transfer technology and establish full production
    52. 55. [ data sources ]
    53. 56. Boateng, S. A. 2005. HOW MUCH CARBON DO GHANA’S TEAK PLANTATIONS SEQUESTER? ITTO Tropical Forest Update 15/4 2005. Forestry Research Institute of Ghana: http://www.itto.or.jp/live/Live_Server/1162/tfu.2005.04(22-23).e.pdf Gutiérrez, V.H., Zapata, M., Sierra, C., Laguado, W., and Santacruz, A. 2006. MAXIMISING THE PROFITABILITY OF FORESTRY PROJECTS UNDER THE CLEAN DEVELOPMENT MECHANISM USING A FOREST MANAGEMENT OPTIMISATION MODEL. Forest Ecology and Management 226: 341–350. . Hunter, I. R., and J. Wu. 2002. BAMBOO BIOMASS. International Network for Bamboo and Rattan (INBAR). Lobovikov, M., S. Paudel, M. Piazza, H. Ren, and J. Wu. 2007. WORLD BAMBOO RESOURCES. FAO, Rome, Italy. Lobovikov, M., Yiping Lou, Schoene, D., Widenoja, P. (2009) BAMBOO CARBON TRADE. FAO Marsh, J. and Ngo, V.H. 2009. THE EMERGING INDUSTRIAL BAMBOO CLUSTER IN NORTHERN VIET NAM: IMPACT ON UPLAND POVERTY REDUCTION World Bamboo Congress, Bangkok, Thailand 16-18 September 2009. 1 2 3 4 5 6
    54. 57. Scurlock, J. M. O., D. C. Dayton, and B. Hames. 2000. BAMBOO: AN OVERLOOKED BIOMASS RESOURCE? Biomass and bioenergy 19 :229-244. Shanmughavel, P. And Francis, K. 2002. THE DYNAMICS OF BIOMASS AND NUTRIENTS IN BAMBOO BAMBUSA BAMBOS PLANTATIONS. Journal of Bamboo and Rattan 1(2):157-170 Widenoja, R 2007. SUB-OPTIMAL EQUILIBRIUMS IN THE CARBON FORESTRY GAME: WHY BAMBOO SHOULD WIN BUT WILL NOT. MSc Thesis Tufts University. Zhu, Z. 2005. BAMBOO INDUSTRY’S IMPACDT EVALUATION ON RURAL SUSTAINABLE DEVELOPMENT IN ANJI, CHINA. In INBAR 2005 International Training Workshop on Small Bamboo Daily Product Processing Technologies and Machines. pp. 16 - 33 7 8 9 10
    55. 58. [ thank you ]
    56. 59. www.mekongbamboo.org [email_address] Prosperity Initiative works hand in hand with investors and businesses looking to create value for themselves in industries we have shown can create poverty impact. Prosperity Initiative has projects in the Bamboo, Tourism and Coconut Sectors in Viet Nam, Lao PDR, and Cambodia Mekong Bamboo is a project by Prosperity Initiative to support the bamboo industry. Prosperity Initiative works with governments, donors and development partners committed to achieving poverty reduction on a large scale. <ul><li>Prosperity Initiative is supported by: </li></ul><ul><li>Swiss Agency for Development Cooperation </li></ul><ul><li>Irish Aid </li></ul><ul><li>Oxfam Hong Kong </li></ul><ul><li>Oxfam America </li></ul><ul><li>AusAID </li></ul><ul><li>World Bank </li></ul><ul><li>International Finance Corporation </li></ul><ul><li>UNIFEM </li></ul>www.prosperityinitiative.org
    57. 60. 278 Thuy Khue Street, 8 th fl. Hanoi, Vietnam   Tel: + 84 (4) 372 816 29/30/31 • Fax: + 84 (4)3728 1632