Socio-Economic Potential of Bur-Flower Tree (Anthocephalus chinensis) (Lam) A. Rich ex Walp. and Investment Opportunity for Forest Plantation

Abstract

The objectives of the study on the socio-economic potential of the Bur-flower tree (Anthoce-phalus chinensis (Lam.) A. Rich ex Walp.) were to determine the current situation of the production and marketing systems, as well as the financial returns from forest plantation investment through sensitivity analysis. The study considered every stage of the integrated enterprise, including seed collection, seedling production (nursery), retailing and wholesaling of seedlings (middle man), plantation management, timber marketing (wood industry) and the end consumer. Stratified sampling by the type of enterprise was employed for data collection.

Results from the study indicated that since the beginning of the 2007, for promotional reasons, the Bur-flower tree (Mai Taku) has been called various names, such as “Mai Taku Yak” “Mai Taku Yai” “Mai Toomluang” “Mai Sakkheiw” and “Mai Mahasedtee”, in several  marketing channels. The use of advertising signs along roadsides was an effective promotional method followed by the e-commerce system. The study found that, 12,318 farmers were growing Mai Taku on their own land, equal to a total of 5,196 hectares (32,473 rai), with total circulating investment of about USD 15.89 million (533.50 million baht). Most investors were educated to the diploma level (medium education) and were classified as being in a medium rich family. The production systems and marketing channels indicated that seed sources, nursery and reforestation were distributed throughout Thailand; the northern region was the main seed source, while the northeastern region was covered with the largest area of the plantations. There was no clear timber purchasing or wood industry center. Financial analysis included net present value (NPV) and benefit cost ratio (B/C), with the interest rate and cutting cycle being 6% and 5 y, respectively. The findings indicated that an investment would be unprofitable for any timber sale-price level lower than USD 51.64 per ton or 1,734 baht per ton. A comparative study of the investment opportunities among five economic species, namely Mai Taku, maize, Para-rubber, sugarcane, cassava and eucalypts, indicated that Mai Taku provided the lowest annual net present value (ANPV). Furthermore, the sensitivity analysis indicated that the investment would be sound at USD 0.03 per seedling (1 baht per seedling) with a break-even point reached if the timber price were over USD 23.82 per ton (800 baht per ton).

Keywords:  bur-flower tree (Mai Taku), socio-economic potential, production system, marketing channel, forest plantation investment