At the recent academic seminar titled “Market-Led and Innovation-Driven for Income Growth Through Fast-growing Economic Trees” held at the Faculty of Forestry, Kasetsart University, the network involved in the cultivation and management of fast-growing economic trees unanimously agreed that “fast-growing economic trees” (with a harvesting cycle of no more than 7 years and a growth rate of over 1.5 centimeters in diameter per year) are still filled with benefits and opportunities to generate income for the growers. Most of these growers are small-scale farmers and individuals in the supply chain. This is due to the high domestic and international market demand, especially the current trend of processing them into “eco-friendly products” as alternatives to plastics derived from fossil fuels. This aligns with the megatrend of reducing global warming, which will change consumer behavior and global trade rules to be more environmentally friendly.
However, to achieve success in these initiatives, employing “Market-led” and “Innovation-driven” strategies is necessary. This means cultivating fast-growing economic trees that meet current and future market demands by incorporating technology and innovation to enhance efficiency, reduce costs, and increase per-rai yield to meet market quality requirements. This is particularly true for eucalyptus and rubber trees, the two fast-growing economic trees currently driving Thailand’s fast-growing economic tree market, resulting in a higher “return on investment.” As farmers’ incomes increase, there is a motivation to expand the planting area from the current area of no more than 5 million rai, leading to “sustained investment in the industry.”
Mahasan Thieravarut, Managing Director of Siam Forestry Company Limited, a subsidiary of SCGP, which promotes the planting of eucalyptus under the “Khu Din by SCGP” brand, highlights the potential of fast-growing economic trees, noting the increasingly diverse uses of such trees in the current market. These trees are being developed into products used in daily life, especially in Europe, such as wooden cultlery; clothing produced from wood pulp; water bottles made from wood pulp as an alternative to PET plastic bottles; and roofing materials utilizing wood pulp (wood for construction), including wood pulp as an ingredient in medicine production. Furthermore, there is a trend towards developing other “Bio-based” products, contributing to an ongoing reduction in carbon dioxide emissions.
“In the past, our company has worked on developing plant species and has encouraged small-scale farmers to plant saplings before buying them back to bring into our pulp plants within the group. We see that eucalyptus is a leading fast-growing economic tree in Thailand. However, a challenge is that these trees are not planted in large plots. About 70-80% of the land is grown by small-scale farmers in areas of 5-10 rai, posing a challenge to expand the planting area into large plots of 50 rai to achieve economies of scale.”
In addition, the seminar noted that the government and relevant sectors must collaborate more in “promoting the planting of fast-growing economic trees” to meet the increasing future demand for their use. This includes designating zoning areas for the utilization of land for planting fast-growing economic trees, enacting laws to support greater use of wood products, such as tax reductions or other incentives, creating awareness and understanding of the benefits of planting fast-growing economic trees that using wood products does not destroy forests but rather helps increase them (the more we use, the more we plant), fostering collaboration in developing species together with the government, and pushing projects for planting fast-growing economic trees along with other economic plants (agroforestry) to maximize the benefits of land use, providing farmers with additional income while waiting for the fast-growing economic trees to reach the harvest cycle.
Pramuan Pratoom, an advisor to Siam Tree Development Company Limited, said that eucalyptus still has a distinct market but requires good management to increase per rai yield and must develop diverse uses to increase the wood’s value.
“Some people say eucalyptus has no future, which is not true. It’s more about how the area is managed. Do not view eucalyptus negatively when, in reality, it helps create jobs and generate income. We need to shift our perspective towards better management. The overall use of eucalyptus in Thailand is at 5-6 million tons per year, with exports to Japan, China, Taiwan, and Indonesia. In 2023, exports amounted to 5.17 million tons.”
Wattanapong Thongsoi, a representative of the Thai Biomass Trade Association, shared insights on the energy wood situation, saying that in the long term, the energy wood market in Thailand, which currently consists of more than 50% rubberwood, will be driven by the goal of carbon neutrality and achieving net-zero greenhouse gas emissions. These global goals aim to reduce the use of fossil fuels, presenting an opportunity to expand the energy wood market. Thailand has a strong position due to its abundant raw materials and tropical location, facilitating rapid tree growth.
However, it is necessary to have good planting and marketing management by cultivating large plots, which can lead to a maximum investment return of up to 20%. Development should occur simultaneously among growers, processors, and exporters. At the same time, products must be diversified, and research should be expanded in more dimensions, such as logistics.
Samran Hantaley, CEO of Kitti Wana Group, believes that the planting of fast-growing economic trees creates opportunities, jobs, and income for farmers and leads to an increase in diverse industries related to wood. Additionally, he observed the continuous development of eucalyptus species, which has led to an increase in yield per rai to 20-25 tons within a 4.5-year growth period, compared to the original eucalyptus species (seed propagation), which yields only 8-10 tons per rai but takes 8-10 years to grow. Therefore, species that meet market demand are something that those in this industry must not overlook.
Prachak Ruenrit, a representative from SilviCarbon Agroforestry Company Limited, said that the cultivation of fast-growing economic trees suitable for growers and processors requires the use of innovations, such as species improvement and selection, sapling production, planting and maintenance, utilization of wood, marketing, and finance. Continuous development in all these areas is essential.
Associate Professor Dr. Nopparat Kaakkurivaara, a lecturer of the Department of Forestry Engineering at the Faculty of Forestry, Kasetsart University, believes that technology used in the cultivation and management of fast-growing economic trees must address the needs of the growers. With over 70% of Thailand’s fast-growing economic tree growers being small-scale farmers, technology must be accessible, user-friendly, compact, easily transportable, and affordable. This is essential to promote the widespread application of technology in managing fast-growing economic forests.
Natnarong Iammee, manager of Tree Technology Company Limited, suggested that planting eucalyptus on ridges between paddies can enhance land utilization efficiency and increase income for farmers. Many ridges, currently left unused, can be modified to be 1.5-3 meters wide, and if fast-growing economic trees are planted on these ridges—80-200 trees per rai—within 6 years, farmers could generate an income of 24,000-40,000 baht per rai. However, proper care and management are necessary to achieve the quality demanded by the market. Therefore, policy support from the government is seen as crucial, such as financial support and the provision of knowledge on managing fast-growing economic trees to maximize benefits.
All of this reflects the potential of fast-growing economic trees from the perspective of distinguished speakers from the network of cultivation and management of fast-growing economic trees. They all see the “opportunity” in developing fast-growing economic trees in terms of expanding the planting area into larger plots, utilizing market-led and innovation-driven strategies to make fast-growing economic trees a more significant driver of the economy in the future.
