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The economics of industrial trees plantations in Lao PDR: incentives or constraints to land conversion

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The promotion of commercial crops and industrial trees is a key priority of the Lao Government for long term socioeconomic development. An important constraint for the adoption of these new crops by villagers is the lack of information about the different aspects of their production: e.g. capital invested, labor requirements, management techniques, productivity, market outlet, contract-farming, timeframe between plantation, harvest, maturity. Key production parameters are provided in this paper to facilitate decision making on adoption of different commercial crops and industrial trees plantation: i.e. Teak (Tectoma grandis), Rubber tree (Hevea brasiliensis), Eucalyptus (Eucalyptus camaldulensis), Northern black wattle (Acacia auriculiformis), Jatropha (Jatropha curcas) and Oil palm (Elaeis guineensis). This study was implemented based on documents available at the National Agriculture and Forestry Research Institute and the Department of Forestry of the Ministry of Agriculture and Forestry, at Faculty of Forestry of the National University of Laos and also on Internet websites. This study was conducted from April to July 2009. Its main objective was to propose a large range of options for tree plantation that would be adapted to different natural and human environmental found in the northern uplands of Laos.
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