TAILIEUCHUNG - Collaboration for Agriculture & Rural Development:" Sustainable and profitable development of acacia plantations for sawlog production in Vietnam - Milestone 5 "

This report provides basic data concerning the development of plantation sawlogs glue in central and northern Vietnam, logging, harvesting and transportation, and processing of sawn boards in a sawmill. Planting Acacia pulpwood to appear as a profitable enterprise for small-scale farms, many of them are prepared to borrow from banks to establish plantations. Acacia hybrid clones are the materials most popular varieties. A simple spreadsheet financial model for pulpwood development has been developed that internal rate of return can be as high as 24% in basic conditions | Ministry of Agriculture Rural Development Australian Government AusAID Collaboration for Agriculture Rural Development 032 05VIE Sustainable and profitable development of acacia plantations for sawlog production in Vietnam Milestone 5 Baseline conditions established . Harwood C. Beadle Phi Hong Hai and Nguyen Duc Kien May 2007 1 Executive summary This report provides baseline data relating to the growing of acacia sawlogs in plantations in central and northern Vietnam log harvesting and transport and primary processing of sawn boards in sawmills. Growing acacia plantations for pulpwood appears to be a profitable business for smallholder farms many of whom are prepared to borrow from banks to establish plantations. Acacia hybrid clones are now the most favoured planting material. A simple spreadsheet financial model for pulpwood growing was developed indicating that internal rate of return could be as high as 24 under baseline conditions. Sawing technology dictates minimum acceptable log size and some mills can saw m long logs as small as 15 cm small end diameter under bark Sedub . Under pulpwood growing regimes acacia plantations grown for pulpwood will produce a small proportion of small sawlogs even without pruning and thinning. A 9-year-old acacia hybrid plantation in central Vietnam was sampled and estimated to have a mean annual volume increment of cubic metres per hectare per year. Of the total stand volume in this stand 36 was potentially marketable as small sawlogs down to 15 cm Sedub. However trial sawing of sample logs from this unpruned stand revealed many knot defects which substantially reduced saleable sawn product volume. The information collected provides a baseline against which the physical impact and financial benefits of technologies being demonstrated in the project pruning thinning and nutrition and vegetation management can be evaluated. Glossary Dbhob diameter at breast height over bark IRR internal rate of return MAI mean .

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