Palm Oil Trees

[WilliamCave]

hello, was offered 15 rai of land, with 7 year old trees. for 60,000 a rai ,,,how much can i get for revenue from it. given every thing average ,

it is in chumphon

thanks

[gotlost]

How many tees per rai do you have and what is palm oil going for at the dealer in your area?

[timber]

How many tees per rai do you have and what is palm oil going for at the dealer in your area?

The word revenue is a bit general. Right now on my wife's land with current prices and

rain fall with fertilizer you would get around 1500 baht per rai gross. But weather changes,

management techniques change, rodents and fertilization. My wife doesn't run the best

ship in town, and I am the last person to know what is happening, but the numbers are

reasonable for right now. Not yesterday or tomorrow. Don't forget someone has to pick

the fruit and get it to market. At seven you are probably through with weeding.

[timber]

Sorry, that was 1500 baht per month

[Mosha]

I recall a discovery programme where they discussed the problems with rats in Malaysia. There is a sub species of the Barn Owl in SE Asia, and they set up nest boxes for them. Very succsessful.

William. One thing to consider is I'm told the tree live 20 years, and not much use after that. Rubber trees have a value when the tapping is done.

Timber. Oh boy I hope your wife doesn't read Thai Visa Should make our meeting interesting.

Edited October 8, 2009 by Mosha

[timber]

Sorry, that was 1500 baht per month

[gregb]

I recall a discovery programme where they discussed the problems with rats in Malaysia. There is a sub species of the Barn Owl in SE Asia, and they set up nest boxes for them. Very succsessful.

William. One thing to consider is I'm told the tree live 20 years, and not much use after that. Rubber trees have a value when the tapping is done.

Rats are a serious problem, especially for younger trees, however by the time the trees are 7 years old they are much less of a serious threat. The rats really like to eat the shoot in the middle of the tree. I have never found anyone that actually raises owls for sale. I'm sure somebody has them, but don't think it is going to be easy to source them or replace them should they decide to leave your land for greener pastures. It's one thing for a large plantation to get them and breed them. It's another thing for you and I, and a small plot of only 15 rai doesn't really give your owls a big hunting ground. However, the standard rat trap cages you can find all over Thailand do the job fairly well, and the advantage is the locals get some good eatin' out of the deal.

The trees can be harvested up to about 25 years, however they are pretty tall at that point. That really more than declining yields is what causes you to cut them and start over. It's true that unlike rubber, about the only use for the wood is to chop it, compost it, and put it back on the land. The reduced rainfall in Thailand does usually allow harvesting up to age 25 or so, unlike the plantations in Malaysia and Indonesia which usually cut at age 20.

Personally, if I had the 900k I could afford to invest and the opportunity, I would take this deal. Oil prices are going up again, and basing your expected revenue off of what people are getting today is not realistic. If oil goes back to $150+ per barrel (which it will if the people espousing economic recovery are to be believed) then you'll be sitting on top of a very valuable resource. In any case, oil prices are rising today, and your projected revenue rises in tandem.

You can always buy a small mill from TinyTech in India and make biodiesel yourself if middlemen don't give you a fair price for the fruit. Selling diesel fuel in small quantities to your friends and neighbours is pretty easy. Sourcing methanol and potassium hydroxide is slightly challenging but far from impossible. Water management can be an issue, but there are solutions for that.

One thing you don't say is the source of the trees. There are ill informed people out there who simply planted seeds they got from their neighbours, and then are shocked when they grow up and are of poor quality. Obviously you want E. guineensis Tenera hybrids, but the exact lineage is also extremely important. Find out all you can about where these trees came from. That more than anything else will affect your revenue, and is the key to being successful.

If the trees check out, I say go for it. Sounds like a good deal.

[PaddyThai]

Very useful and informative post gregb.

Palm oil may be worth considering for a lot of people. I wonder would it be wise to plant Palm oil trees interspesed with other tree types. I'm not too keen on mono-culture for a numebr of reasons.