This presentation by Dede Rohadi, FORDA Scientist, given during the Forests Asia Summit during the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" focuses on the potential development of smallholder timber plantations, the challenges on improving the performance of smallholder timber plantations, lessons learnt from some research activities on smallholder timber plantations and other important insights.

1. Making Timber Plantation as an Attractive
Business to Smallholders
Dede Rohadi
FORDA’s Seconded Scientist to CIFOR

2. Potential development of smallholder
timber plantations:
• Demand on timber
• Supports from governments and
development agencies
• Human factors: cultures, experiences
Challenges on improving the performance
of smallholder timber plantations:
• Limited market information/access
• Not convinced to apply best practices in
timber plantation management.
• Weak bargaining power on timber
marketing

3. Lessons learnt from some research activities on
smallholder timber plantations:
 ACIAR funded project on Smallholder Teak Plantation in
Gunungkidul (2007-2012)
 ACIAR funded project on Community Based Commercial Forestry
(2011-2014)
 Others (Case study in Lampung/ITTO; Case studies in Tanah
Laut South Kalimantan/BMZ)

4. KEY MESSAGES

5. Timber sales share about 15% of the total household income in
Gunungkidul, Indonesia.

6. Farmers allocate around 10% of their private land for woodlots (kitren), and
also plant timber on other land use types (tegalan and home garden)

7. Farmer’s practices in timber
plantations business:
 Selling timber
individually.
 Tebang butuh.
 Produce low quality of
timbers (small diameter
logs, knots, defects).
 Women involved in the
financial aspects of
timber production and
harvesting.
 Constraints by harvest
permits and timber trade
regulations.

8. No. Timber species Grade Diameter
(cm)
Price
(Rp 1,000/m3)
1 Teak (Tectona grandis) – Slow
growth
A1 (DL)
A1 (UP)
A2 (UD)
A3 (UGD)
A4
A5
< 13
16-19
22-28
 30
 44
 54
500 – 700
1,000 – 1,400
2,000 – 2,400
3,000 – 3,500
> 4,000
> 5,000
2 Sengon (Paraserianthes
falcataria) – Fast growth
Length 1.3 m:
10-14
15-19
 20
 25
395 – 470
495 – 570
695 – 720
795 – 875
Length 2.6 m:
25-29
30-29
40-49
 50
800 – 916
925 – 1,100
1,125 – 1,140
1,125 – 1,150
Timber price significantly differs according to their qualities

9. Marketing chain varies significantly across sites/locations. Timber
growers in Java has much more options to sell their timber along
the marketing chains.

10. Options for improving profits:
• Improve farmer’s market
orientation
• Strengthen collective
marketing
• Eliminate regulations
barriers