Myanmar promotes plantation establishment

Plantations in Myanmar were established for various objectives. Commercial plantations are mainly designated for domestic timber supply and exports. Plantations designated to supply the local market cover 70,276 acres (28,440 ha) for fuel wood, posts and poles. Industrial type plantations of 52,985 acres (21,442 ha) are for paper mill supply. Plantations for watershed management (catchment protection) cover 187,845 acres (53,356 ha) to prevent erosion. Teak accounts for the largest plantation area of 221,659 acres (89,702 ha). The objective of these plantations is to help increase production while reducing pressure on natural forests.Establishing systematic teak plantations began in 1856 using the Taungya method, an afforestation method where crops are interspersed with trees on cleared land.  However, the extent of plantations at that time was very limited to small scale compensatory plantings to enrich and supplement the growing stock. The post-World War II population boom resulted in an increased use of timber products. Changes in land-use patterns and the deterioration of natural forests further exacerbated pressure on forests. To address the situation, plantations were established to expand the modest compensatory plantings into large scale block plantations since 1962.  From 1896, plantation establishments were systematically organized by the Forest Department (FD). Since 1984, FD had been establishing 30,000 hectares of plantations annually. The total teak plantation area from 1896 to 2007 was 384,123 hectares. Other species planted during the same period were: pyinkado (61,899 hectares); padauk (17,426 hectares); pine (21,685 hectares); and others (421,376 hectares). The teak plantation area is about 18% of the global teak plantation resources.  It is not clear how much plantation timber has been harvested and traded in Myanmar. Most people from the timber trade tend to connect plantations with natural forests. This perception is due to the observation that teak and other valuable species are planted to compensate for the natural forests. Sales of poles and posts are the only way to trace teak from plantations in the timber trade. In other cases, it is necessary to devise a statistical system by respective departments to differentiate which trees are from plantations and which are from natural forests.  The Ministry of Forestry formulated a Special Teak Plantation Programme (STPP) in 1988, designed to establish 8,100 hectares of plantations every year for 40 years, with a view to creating 324,000 hectares of teak plantations. The Forest Department estimated that, after the year 2038, annual sustainable teak production could be as high as 1.8 million m³.In the past, establishment of teak plantations and harvesting of teak has been conducted solely by the State.  According to Myanmar Forest Law of 1992, ‘A standing teak tree wherever situated in the State is owned by the State’. However, in 2005, the Myanmar government granted permission to local investors to establish teak plantations. This has been a great opportunity for local entrepreneurs. Under this scheme, the government leases forest land to local investors to plant teak. The investment returns from teak plantations are shared between the government and the investor on a 20:80 basis. Increasing demand for teakwood, coupled with technical advances in processing led to greater participation from the private sector in establishing plantations. It is reported that many private investors are now involved in plantation investment in Myanmar.There are also a number of challenges facing investors in the country. Long-term investments require proper planning, appropriate agro-forestry practices mixed with short-term tree planting. To combat illegal activities, law enforcement, patrolling and income generation in the community is required. To reduce the monoculture effect, a buffer zone in the plantation area needs to be established and mixed species need to be planted. It is suggested that investors should proceed with caution before investing in teak plantations, as improvement of teak quality and maintenance and further research on utilization of small diameter logs is required.