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Market perception

Forest plantation development on private land is still embryonic in Peninsular Malaysia. For the planters, market development and access are real concerns. Unlike commercial agricultural crops (e.g. rubber and oil palm) for which markets exist, the potential market for plantation-grown timber has yet to be established. Some respondents were unsure of the future market situation. Nevertheless, they were aware that markets for plantation-grown timber existed. Forty-five percent of the respondents stated their perceived market to be in-country, 22 percent to be foreign markets while 33 percent were undecided (Table 36). Apparently, for a slightly greater proportion of individual planters (48 percent) the domestic market was more important compared to companies (33 percent). A higher percentage of the latter perceive their markets to be in foreign countries (50 percent) than the former (14 percent). One possible reason for this difference is that companies have better access to information on foreign markets than individual planters.

Table 36. Planters’ perceptions of potential markets

Perceived market

Companies

(n= 6  )

Individual planters

(n =21  )

Total

(n =27  )

 

No.

%

No.

%

No.

%

In-country

2

33

10

48

12

45

Foreign

3

50

3

14

6

22

 Not sure

1

17

8

38

9

33

Total

6

100

21

100

27

100

While companies were aware of potential buyers and end-uses for their timber, individual planters were not (Tables 37 and 38). The companies felt that they could sell their timber to either trading agents or furniture mills in the form of sawntimber. Among the 21 individual planters, 63 percent stated that they could either sell their timber to trading agents or furniture mills. Another 33 percent did not know to whom they could sell their timber. Similarly, 47 percent of the individual planters did not have any knowledge of the potential end-uses for the timber they were producing.

Table 37. Planters’ perceptions of potential markets

Perceived market

Companies

(n= 6)

Individual planters

(n =21)

Total

(n =27)

 

No.

%

No.

%

No.

%

Trading agent

3

50

2

10

5

19

Furniture mills

3

50

9

43

12

44

Do not know

0

0

10

47

10

37

Total

6

100

21

100

27

100



Table 38. Planters’ perceptions of timber end usage

Perceived market

Companies

(n= 6)

Individual planters

(n =21)

Total

(n =27)

No.

%

No.

%

No.

%

Furniture

5

83

9

43

14

52

Sawntimber

1

17

0

0

1

4

Others

0

0

2

10

2

7

Do not know

0

0

10

47

10

37

Total

6

100

21

100

27

100

Conclusions

Companies planted on larger areas and invested in more labour inputs for managing their plantations than individual planters. On average, each company planted 75 ha while individual planters established 2 ha only. For companies the lack of suitable land was a serious constraint for extending plantations. The individual planters established trees on their own land so land availability was not an issue. Common problems encountered in planting forest trees for both groups included appropriate species selection, difficulty in obtaining quality seedlings and lack of knowledge on planting. Half of the companies also faced labour shortage, which was not a problem for the individual planters. All the companies were aware of the potential markets and end-uses for plantation-grown timber, but approximately half of the individual planters lacked this knowledge. This indicates that more information on potential markets and end-uses of timber should be disseminated to encourage more planting.

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