This presentation by Daniel Mendham from CSIRO given during the Forests Asia Summit in the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" focuses on the key threats to profitability of short rotation plantings, how ACIAR supports several research projects in SE Asia that aim to benefit smallholder farmers and how the concrete management on the plantation is working.

1. Indonesia acacia project | Daniel Mendham1
Smallholder engagement with short-
rotation industrial plantation forestry
Daniel Mendham

2. Indonesia acacia project | Daniel MendhamIntroducing the FPOS DSS | Daniel Mendham2
• Indonesia and other countries in SE Asia
have ambitious plans to increase area and
yield of forest plantations
• For regional development and wealth creation
• To support the development of sustainable
supply of feedstock for downstream value
adding, including pulp and paper, and higher
value options
• Profitable yields are essential to attract
growers and keep them interested in
growing pulpwood plantations
• Lots of competing agribusiness options for
farmers
• Farmers have a track record of not achieving
optimal yields
Background

3. Indonesia acacia project | Daniel MendhamIntroducing the FPOS DSS | Daniel Mendham3
• Pathogens are becoming more
prevalent in acacias – root rot and
ceratocystis
• Most likely strategy will be a require
change of species in some areas
• Smallholders have a track record of
lower productivity (=productivity)
• Less intensive management or lack of
information?
• Alternative land uses have significantly
higher profitability in many instances
• Need for a better value proposition for
farmers
Key threats to profitability of short rotation plantings

4. Indonesia acacia project | Daniel MendhamIntroducing the FPOS DSS | Daniel Mendham
ACIAR supports several research projects in SE Asia
that aim to benefit smallholder farmers
Including:
• FST 2009/051: Increasing productivity
and profitability of Indonesian
smallholder plantations
• FST 2006/087: Optimising silvicultural
management and productivity of high-
quality acacia plantations, especially
for sawlogs (Vietnam)
• Sustainable Resources Assessment
• + many others
A strong history of projects with a high
benefit:cost ratio

5. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham5

6. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham6
Site selection
• Site selection critical for productivity
• Makruf Nurudin (PhD) studied the relationships
between mineral soil characteristics and
productivity of A. mangium in South Sumatra
• Productivity related to soil water holding
capacity and drainage
High
productivity
Medium
productivity
Low
productivity
Rooting depth Deep Shallow, some
haematite
Shallow
Drainage Good Poor Poor
Colour Red Yellow-red Brown-yellow
Consistency firm Very firm Very firm
Structure Medium,
subangular
blocky
Strong
subangular
blocky
Strong
subangular
blocky

7. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham8
Sawlog management, Vietnam
ACIAR project FST/2006/087: Explores
optimal stocking density and soil nutrition
for Acacia hybrids
• Higher value plantations can be grown by
including sawlogs as part of the product
mix
• But need to manage risks: Disease, wind
susceptibility, longer rotations

8. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham9

9. • Review of scientific
information from published
studies and long-term
experiments
• Independent analysis of
company plantation
inventory data to examine
trends in space and time
over successive rotations
Harwood and Nambiar: Review of the biophysical sustainability of
short-rotation acacia and eucalypt plantations in SE Asia
10
0
13
25
38
50
1988 1992 1996 2000 2004
MAI(m3ha-1y-1)
Year of planting
First
rotation
Second rotation
Mean productivity (Mean Annual Increment, MAI) of Acacia
mangium for each planting year
over first and second rotations. Total of 454 inventory plots
from 3 sub-regions in Sumatra

10. • No evidence of systemic
sustainability issues
• Growers have demonstrated
an adaptive management
approach to overcome major
threats
• Examples of poor practice
still evident in some areas:
soil management, site
preparation, weed control
Biophysical sustainability of short-rotation acacia and
eucalypt plantations in SE Asia: Conclusions
11
Indonesia: a regional leader in
sustainable practices

11. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham12

12. Indonesia acacia project | Daniel Mendham
Smallholder farmers: Target beneficiaries of ACIAR projects
• Forestry is a valuable part of the enterprise for many
farmers
• Most forestry companies in Indonesia have an
outgrower scheme
• Can be a very good mechanism to improve livelihoods in
very poorly serviced areas
• Allows for short adoption pathway when it works well
• There is a need for some improvements to many schemes
to ensure that farmers continue to be engaged
• Significant potential to increase sustainable wood supply
• Social science is important for helping us to
understand the best mechanisms to deliver research
to farmers
• Social situation is different in almost every location!

13. Indonesia acacia project | Daniel MendhamIntroducing the FPOS DSS | Daniel Mendham
Summary
• ACIAR projects provide a valuable mechanism to
push the frontier of science,
• In a way that is beneficial to farmers
• Practical outcomes are important
• Smallholder farmers are the target beneficiaries
• Many ways for communities to benefit from
commercial forestry

14. Understanding water, nutrient and carbon dynamics in tropical acacia plantations | Daniel Mendham
Acknowledgements