Eucalyptus Investment

[Amsterdam]

Hello all,

I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

[feffejonsson]

I just asked my wife. Her father grows Eucalyptus. She says that on a 10 rai plot after three years the profit is about THB 300.000. She also says that the quality of the land and access to water has some effect but not that much.

[farangnoi]

Asked my wife aswell, but same answer as always ""can not"

[Issangeorge]

farangnoi, your wife sound like mine, never a real answer, just cannot or no. Issangeorge

[Thaicoon]

Hello all,

I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

Yes i think it can be done, but prices ?, i am planting 3000 Eucas for 5 years, then i will have a rotation in crop, i have planted our first crop at 1.5 metres apart, and they are doing well, had a few die but no big deal, we will sell as pulp or scaffolding poles, there are now a lot of thais who have got into this, this worrys me a little as supply and demand, this will have an effect on the prices, we have only done this as we have spare land doing nothing.

[Amsterdam]

Hello all,

I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

Yes i think it can be done, but prices ?, i am planting 3000 Eucas for 5 years, then i will have a rotation in crop, i have planted our first crop at 1.5 metres apart, and they are doing well, had a few die but no big deal, we will sell as pulp or scaffolding poles, there are now a lot of thais who have got into this, this worrys me a little as supply and demand, this will have an effect on the prices, we have only done this as we have spare land doing nothing.

ok but at today's prices what could you get for a 5 year old tree? thb 100? did you plant the trees near watter?

[Thaicoon]

Yes, lake opposite, but also planted just before the rainy season, we only watered them daily when first planted, once the rainy season came they seemed to look after themself.

[Gary A]

From what I have learned, the best planting density is about 200 trees per rai. There are 1600 square meters in a rai and you normally need enough space for a tractor between the trees for weed control and when you cut. At the time I was considering Eucalyptus, the selling price was between 900 and 1,000 baht per ton. The yield was estimated at 16 ton per rai for a five year planting. You are looking at maybe 3,000 baht per rai per year gross. That's not counting any expense.

[ozzydom]

Hello all,

I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

Amsterdam, the figures you quote is giving a return of 20k per annum per rai.

If those sort of returns were available from eucalypt you would see 90% of rural Thailand under eucalyptus plantation.

800 trees per rai is about 1.5m spacing both ways, it could be done but the growth rate would be abysmal and the fertilizer cost to get them to grow at all would not be cost effective. As well this leaves no access for maintenance or harvesting,so everything would have to be done by hand at greater cost.

Trellis planting (1.5 m) is usually with rows 2-3m apart which only gives 340-520 trees per rai.

Reasoning would indicate that if as your figures suggest ,eucalyptus would return 100-300% higher profit than most other crops , what the outcome would be.

I have seen a few times where harvesting crews tell you they will be back in 4 years to give you 12-13k per rai for your timber but when they turn up in 4 years they offer 8-9k per rai.

Look in on a yard selling nice straight 4 year old scaffolding poles for 75-80baht each and not to forget that price includes their harvesting,transportation and profit margin gives you an idea of what you will ultimately receive, whether it is by per tree or per tonne for wood chips.

[C-sip-degree]

Nice one Ozzydom, Gary A

I feel much better now that I’m back in the ball park….with my U-car bat.

Regards

C-sip

[sokmeister]

I am planting 638 per rai for a total of approx 280 rai. I'm kinda worried I might not get it done before the raining season ends.

I'm also trying to build a few reservoirs north and south of the property with approx 16 rai. The reservoir is in planning stages for now.

I won't make a visit till this december...for sure then, i will have many pictures to share.

Sok

[Amsterdam]

Hello all,

I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

Amsterdam, the figures you quote is giving a return of 20k per annum per rai.

If those sort of returns were available from eucalypt you would see 90% of rural Thailand under eucalyptus plantation.

800 trees per rai is about 1.5m spacing both ways, it could be done but the growth rate would be abysmal and the fertilizer cost to get them to grow at all would not be cost effective. As well this leaves no access for maintenance or harvesting,so everything would have to be done by hand at greater cost.

Trellis planting (1.5 m) is usually with rows 2-3m apart which only gives 340-520 trees per rai.

Reasoning would indicate that if as your figures suggest ,eucalyptus would return 100-300% higher profit than most other crops , what the outcome would be.

I have seen a few times where harvesting crews tell you they will be back in 4 years to give you 12-13k per rai for your timber but when they turn up in 4 years they offer 8-9k per rai.

Look in on a yard selling nice straight 4 year old scaffolding poles for 75-80baht each and not to forget that price includes their harvesting,transportation and profit margin gives you an idea of what you will ultimately receive, whether it is by per tree or per tonne for wood chips.

Thank you for the info. This makes me think that it might be better to stick to Rice. Looking at your figure of a return after 4 years of about 8K per rai. I think with today's prices after all expenses I should be able to clear 2K per rai a year with rice and that is similar to the trees.

Cheers

Amsterdam

[thaipak]

Hello all,

[/size]I recently had a discussion with a copal of farang about eucalyptus plantation. The main consensus was that you can plant about 8000 trees on 10 rai of land and then after about 4 years you can sell the trees for about THB 100= THB 800.000. Once the trees have been cut they will regrow up to 3 times. The discussion went a bit further that if you use 20 rai and only harvest 5 rai a year you could have a steady income of THB 400.000 a year for 12 years.

I am wondering what other people think about this? Are these figures possible?

Cheers

Amsterdam

Amsterdam, the figures you quote is giving a return of 20k per annum per rai.

If those sort of returns were available from eucalypt you would see 90% of rural Thailand under eucalyptus plantation.

800 trees per rai is about 1.5m spacing both ways, it could be done but the growth rate would be abysmal and the fertilizer cost to get them to grow at all would not be cost effective. As well this leaves no access for maintenance or harvesting,so everything would have to be done by hand at greater cost.

Trellis planting (1.5 m) is usually with rows 2-3m apart which only gives 340-520 trees per rai.

Reasoning would indicate that if as your figures suggest ,eucalyptus would return 100-300% higher profit than most other crops , what the outcome would be.

I have seen a few times where harvesting crews tell you they will be back in 4 years to give you 12-13k per rai for your timber but when they turn up in 4 years they offer 8-9k per rai.

Look in on a yard selling nice straight 4 year old scaffolding poles for 75-80baht each and not to forget that price includes their harvesting,transportation and profit margin gives you an idea of what you will ultimately receive, whether it is by per tree or per tonne for wood chips.

Thank you for the info. This makes me think that it might be better to stick to Rice. Looking at your figure of a return after 4 years of about 8K per rai. I think with today's prices after all expenses I should be able to clear 2K per rai a year with rice and that is similar to the trees.

Cheers

Amsterdam

Amsterdam, I have some info that might help you.

1- Planting this tree will effect the land but there are treatment for this.

2- If you work in collabration with Siam Cement or AA paper group they can help from start to finish.

3- As for rice if u r taking care of the growing rotation u may get a good return. I mean after u harvest rice and grow second crop such as tobaco it will give u better return. Again there are companies helping you do that.

[ozzydom]

Amsterdam,with current and projected prices for rice you would do much better than 2k nett per rai,plus if water is available then a summer crop of rice would give a very nice annual return as the yield from dry season plantings is greater.

I personally would plant Hom Mali with certified seed and if your are prepared to dry and store your harvest for a few months even better returns are available.

Sticky rice ex paddy usually demands a higher initial price but after a few months jasmine usually surpasses it as buyers try to fill export orders.

As with all crops,good management and best farm practices is the key to good returns,soil analysis ,adjustment of deficiencies and good soil preparation after elimination of weeds and your half way there.

[FrangipaniGal]

hi, my father in law is also thinking of planting eucalyptus trees, we have about 20 rai of land but mostly like only use abt 4-5 rai of it, will this be a good investments? its not sumthing they want to make it a main income source its just do not want to waste the land spaces that we have.

His land in in Konburi and neibouring land had already planted the trees.