Market assessment of private land tree plantation products
The study was conducted to assess actual and potential products from private land tree plantation (FLIP), to evaluate market conditions and potential of PI•TP products, to characteristics market buyers of PLTP products, and to evaluate market characteristics of PITT' products The study used secondary data and a survey questionnaire was also developed to ask actual private land tree plantation developer about their management practices, harvesting techniques and market outlets A total of 7 respondents from the Mindanao regions visited were interviewed in this study. The study showed that the actual products currently produced in PLTP areas are lop, lumber and poles Fa!cata is commonly sold in the form of logs in Mindanao. Gmelina arc sold as lop and lumber. Bagras is sold as pulpwood and pole Among the potential products are poles. wood works and finished furniture currently, there is significant demand for wood as evidenced by high importation of wood products and high prices of wood products from natural forests However, profitability of PLTPs is greatly affected by high production costs due to high transportation costs, inefficient harvesting methods, lack of quality of plantation products due to lack of plantation planning. wrong choice of species. The buyers of 111.1? products like timber and lumber are mostly sawmill owners, furniture makers and few households There are few large buyers which have significant control over the market as they provide loam to P1.1? owners and consequently control the wood products trade and pricing Consequently. these buyers financiers make more profit than the PUY owners The market characteristics of PLTP products especially in Mindanao and the Visa)as Regions is general approaching perfect competition because of large number of sellers in the regional context Nevertheless, barriers to entry is almost non-existent because it is easy to loin the market due to low capitalization requirement, provided one has land to devote to tree plantations One condition that prevents the market to become a purely competitive one is the inadequate knowledge of FLIP owners about market conditions and alternatives products that can be produced from their farms This has made PI .1Y establishment unattractive to some landowners Among the recommendations that would make PLTP business more attractive and competitive are as follows a focus on the target products and market - this entails careful planning of tree plantation establishment as well as the silvicultural management methods that would optimize the production and quality of specified products, c g , electric pole from mangium, bagras and gmelina, sawt =bet etc, b more active support of the government m the efficient processing and promotion of PLTP products active participation of national as well as relevant local government units in the dissemination of appropriate technologies to enhance, the quality and value of PLTP products, providing financial incentives to PLTP owners as a means of providing alternative materials that would otherwise will be sourced from natural forests, hence, promoting the conservation of remaining natural forests, c. formation of marketing cooperative or any viable marketing arrangement among the PLTP owners specifically for sharing market information, influencing market prices, sharing of harvesting and marketing technologies. or establishment of processing facilities to support cluster of farms, and d. promotion of value-added processing primarily to obtain higher value for products at the same time generate employment and micro-enterprises within the communities, provide credit facilities for obtaining modern wood processing equipment and technologies