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.

1. Contract tree farming and Small landholders: Drivers of adoption in Thailand Source: Boulay, Axelle. 2010. Contract tree farming and smallholders: Drivers of adoption in Thailand, PhD Thesis, Australian National University, Australia [email_address]

4. Conceptual framework: Strategies and marketing situations Government [email_address] SELL TO Smallholders Contract growers Industry

9. Case study: Contract eucalypt tree farming in Thailand [email_address] Advance Agro Chachoengsao Siam Forestry Ratchaburi Phoenix Pulp and Paper Khon Kaen Siam Forestry Kamphaeng phet 3 large pulp and paper companies and >60,000 contract tree growers Bangkok

12. Case study: Contract eucalypt tree farming in Thailand Company extension work [email_address] 2008 / 01 / 26 AgriculturalFair_KhonKaen

13. Case study: Contract eucalypt tree farming in Thailand Eucalypt block planting [email_address]

14. Case study: Contract eucalypt tree farming in Thailand Eucalypt intercropped with cassava [email_address] 2008 / 02 / 13 Kanchanaburi

15. Case study: Contract eucalypt tree farming in Thailand Eucalypt paddy-bund planting [email_address]

22. Results: Drivers of adoption of tree farming [email_address] Mean characteristics of sampled non-tree growers and tree growers for variables assessed in the quantitative survey, and significance of differences Mean for Non-tree growers n=171 Mean for Tree growers n=461 P-value ***p<0.01 ** p<0.05 * p<0.10 Total land owned (rai) 19.5 29.5 *** Percentage of land owned with sandy soil 43% 45% Total income (baht/month) 9,890 10,395 * Off farm income as % of household income 38% 41% Household on-farm labour available (number of persons) 2.1 2.0 Smallholder age (years) 49.3 50.0 Education (scale from 1 to 5) 2.3 2.2 * Number of middle men known 4.8 2.8 *** Knowledge about eucalypt tree farming (scale from 1 to 5) 2.0 2.5 *** Source: Boulay, Axelle. 2010. Contract tree farming and smallholders: Drivers of adoption in Thailand, PhD Thesis, Australian National University, Australia.

23. Results: Drivers of adoption of tree farming [email_address] Previous use of plots planted with eucalypts unused cassava rice sugarcane kenaf fruit trees

26. Results: Drivers of adoption of contract tree farming [email_address] Mean characteristics of sampled independent tree growers and contract tree growers for variables assessed in the quantitative survey, and significance of differences Mean for Independent TG n=169 Mean for Contract TG n=292 P-value ***p<0.01 ** p<0.05 * p<0.10 Total land owned (rai) 28.5 30.3 Percentage of sandy soil 49% 41% * Area planted with eucalypts (rai) 11.1 10.9 Total income (baht/month) 10,315 10,475 Eucalypts’ rotation planned (year) 3.7 4.0 *** Frequency of company’s visits (scale 1 to 3) 1.3 1.8 *** Trust in company for wood measurement 1-5 3.5 4.0 *** Experienced tree growers 55% 28% *** Growers who preferred the company’s plants 55% 97% *** Number of middle men known 4.4 1.8 *** Source: Boulay, Axelle. 2010. Contract tree farming and smallholders: Drivers of adoption in Thailand, PhD Thesis, Australian National University, Australia.