1. Smallholder production and markets of bolaina blanca (Guazuma crinita) in Ucayali, Peru Jonathan P. Cornelius, L. Julio Ugarte-Guerra World Agroforestry Centre (ICRAF) World Agroforestry Centre (ICRAF)) Presented at Smallholder Timber Workshop, ICRAF, Nairobi, Kenya, December 2004

2. The Ucayali Region, Peru Pucallpa

3. What is bolaina?

4. Bolaina supply chain in Pucallpa Sawmill / wood merchant Smallholders’ secondary forest, fallow Industry in Pucallpa (lolly- sticks, fruit packaging, matches, etc Private consumers in Pucallpa Middlemen (extrctn, freight) 180 stems ha -1 $90 ($0.50 stem -1 ) 5-6 logs stem -1 $405 ($0.45 log -1 ) 8 pieces sawntimber log -1 (2.5mx10cmx1.7cm) $2,160 ($0.3 piece -1 ) Source: CIFOR/CATIE, 1998

5. ….now available in Lima Door frames, 3 pieces, Peruvian S/. 39.90 (USD 12.00)

6. Bolaina plantations Fast growth (on the right site) (H dom =13.7m, 24 months) FONDEBOSQUE is projecting large-scale production and sale of bolaina seedlings in 2005 Incipient planting by wealthier farmers Unrealistic projections in some quarters

7. A standing tree of bolaina sells for around $0.50 From a standing tree, around 40 pieces can be sawn Finished sawnwood sells for around $50/m 3 (about 200 pieces) 40 pieces are worth around $10

8. Is plantation production of bolaina a viable option for smallholder farmers?Is plantation production of bolaina a viable option for smallholder farmers? If so, how?If so, how?

9. Financial analyses 4 scenarios Costs and revenues estimated from published and unpublished sources 1 400 final crop trees 1 CIFOR / CATIE, 1998. Curso - taller sobre metodologías de investigación en bosques secundarios. González, L.A. 2003. Evaluación técnico-económica de plantaciones de bolaina blanca en zonas inundables del Rio Aguaytía. B.Sc. Thesis, UNALM, Lima. Ugarte-Guerra, L.J. Unpublished data

10. Option 1 Block plantation at 3m x 3m Weeding in first two years Thinning after three years, to final crop density of 400 trees ha -1 Standing sale at 6 years of age

11. -$646 ha -1 NDR@10%: -$646 ha -1 Cash income at sale of $182

12. Food for thought for potential bolaina planters… A bolaina seedling costs around $0.30 A six year old standing tree sells for around $0.50

13. Bolaina supply chain in Pucallpa Sawmill / wood merchant Smallholders’ secondary forest, fallow Industry in Pucallpa (lolly- sticks, fruit packaging, matches, etc Private consumers in Pucallpa Middlemen (extrctn, frght) 180 stems ha -1 $90 ($0.50 stem -1 ) 5-6 logs stem -1 $405 ($0.45 log -1 ) 8 pieces sawntimber log -1 (2.5mx10cmx1.7cm) $2,200 ($0.3 piece -1 )

14. Option 2 Farmer fells, crosscuts trees himself Pays for transport of 2.5m logs to river port Average of five 2.5m logs tree -1 Logs sold at $0.30 ( 20cm)

15. -$686 ha -1 NDR@10%: -$686 ha -1 Cash income at sale of $770

16. Option 3 Farmer pays for sawmill service, producing average of 8.6 unfinished pieces (2.5m x 10cm x 1.7cm) per log Pays for transport to Pucallpa Sells pieces at $0.15 each

17. -$113.52 ha -1, IRR 6.4% NDR @ 10%: -$113.52 ha -1, IRR 6.4% Cash income at sale of $2600

18. Option 4 Lengthen rotation to 9 years Average of 7 logs tree -1, and 12.9 pieces log -1

19. $385 ha -1, IRR=15.8% NDR @ 10%: $385 ha -1, IRR=15.8% Cash income at sale of $5500

20. Added value - easier said than done Needs: Stronger organization Equitable alliances with industry

21. Thanks