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Palm Oil Or Rubber


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Me and my lady are in the process to buy a little "summerhouse" up in the mountains outside Chiang Rai. It is 20 rai with 200 lumjaytrees and 600 rubbertrees, about 1 year old and 250 cm high in average.

I was not reflecting about the rubbertrees before but after reading this topic I start to understand there might be som work to be done :o but also some good income starting 6-7 years from now :D .

I might also think of buying land next door if the price is right and then plant more rubbertrees.

So I hope this topic will keep alive and we can exchange experiences.

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I have a 27 hectars agarwood plantation in Cambodia. The plantation consists of 67,500 trees. Can anyone direct me to an agent that buys agarwood trees and resin from Cambodia. I have a buyer from the middle-east who wants to buy the trees, but he wants to include the land with the price for the trees. I don't want to loose my land. I just want to sell my trees. I think he knows that because I don't know the agarwood market, he can do whatever he wants. I would appreciated if anybody can direct me to a buyer or the agarwood trading company to see my trees. Please contact me at: [email protected]

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I have learned that each agarwood tree can sell for $500, however I know that the buyer can sell it for a higher price than that . i wish I know how much more so that I can negotiate with the buyer. One hectar can plant 2500 trees, and you can induce the trees by drilling holes (30- 100) in the tree, put some salt, rust, and bacteria (don't which one) into the hole, to produce agarwood.

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"27 hectars agarwood plantation in Cambodia"

You may need a large squad of Khmer Rouge to guard that lot.

It is still a young plantation, no agarwood yet. I have to pay people to induce the trees to make agarwood. Plus, there is no dealer for agarwood in Cambodia. I don't see how anybody would sell it because of no contacts.

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I think you would have some real problems mixing rubber and oil palm. Better to plant half oil palm and half rubber as per area.

I tend to agree with timber altho I have no experience with either oil palm or rubber I do have experience with coconut and they are usually heavy feeders.

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  • 2 weeks later...

The type of growth needs and management are quite a bit different. Harvesting would also be a pain. The government is wondering why they don't have more people growing oil palm for biodiesel. Is very hard to understand what the policy is. Different ministers seem to have different policies. In both Canada and the United States there are technical advisers in the local agricultural and ranching areas to advise the farmers and ranchers on their needs. I think it sure would be a good return on investment for the government to have something like this to tell the small agricultural producers what the hel_l is going on and how the can increase yields and profits. It would also give the government a forum for communicating with these people.

I tend to agree with timber altho I have no experience with either oil palm or rubber I do have experience with coconut and they are usually heavy feeders.

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Very good topic . A friend of mine just bought about 35 rai near Udon and he planting rubber trees on it . I've been looking at some things myself and for me i would go for palm oil . The amount of people planting rubber trees is alot so prices are not going to be sustained and it takes to 7 year before the first harvest can be made . Next time i'll be a couple of days on the mainland anywhere in a 3 hour range from Suratthani . Nakhon Si Thammarat and so on are all well within tht area and is a perfect region for palm oil . I will go looking for 20 to 40 rai farm and check some prices out . If i can have a income ( in Thailand from the farm ) let's say in 5 years or something like that , i can easily go live there and once every coupleof weeks go on a weekend holiday . I won't be a rich man but together with my savings it will bring me enough to have a good lifestyle . I'm still looking in some other farming things also , like there are durian ( good value but long waiting times ) pineapple ( don't know much about that but i think fast but less profit ) , etc etc .

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The amount of people planting rubber trees is alot so prices are not going to be sustained and it takes to 7 year before the first harvest can be made

Actually, I disagree. Currently most "rubber" products are petroleum products and as the price rises and rises rubber will become a more viable alternative. At this point in time I sincerely doubt there is enough rubber in production to replace even a good percentage of petroleum based products.

Although, you are correct, it does take quite sometime before first harvest for rubber but then that is true for most trees. Even the oil palm takes at least 3 years. Also, one of the benefits of the rubber tree is that after yields decrease the wood is widely used and can be easily sold.

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That is true. The trees are a kind of retirement insurance. The price you get from furniture companies are right now between 100.000 to 150.000 Baht per Rai. It depends on how old the trees are and what size.

I also think there is going to be a shortage of rubber the next twenty years, because India and China are just starting to grow. And their demand for rubber isnt there where it should be. Almost no one is driving a car there in this two countries. But half of the worlds population is living there.

So in my mind the rubber price is going to increase steadily together with oilprice and demand.

Anyone knows the profit of palm-oil per Rai and year? Because I am also interested in alternative incomes. I dont want to stand only on one leg ;-)

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Jathopha gets about one/third the production of Oil Palm but probably requires a lot less management and investment. Although a little more water and nutriants never hurt any plant. You can invest a lot less in capital and the return is quicker. You gain in the start up time a year vrs. 3 to 4 for oil palm and the production life is longer. No matter what you grow check out the availability of water, dig a hole and see what you have for soil. Get a soil assessment done. See what they are growning in the area.

Should know what you are getting into before you plan a harse site. There are some good recommendations from ranchers and farm oriented people in the Issan section.

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Yep , i know that you must check what can be grown and the best way is with local farmers . I know a couple of people allready from Nakhon S...... and i will go with them to check the land and soil and possible plots for sale . I know a lot of people from Isaan region but that is not really the place where i want to live ( tooo far away ) . I'm looking for something with good yields and not too much work ( or possible done by a Thai farmer giving a 50/50 or 60/40 profit) .

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Once established rubber is probably the crop with the least headaches and management once established, but that is seven years or so. Rubber can benefit from fertilizer and additional water. Oil palm is very hungry and thirsty. Oil palm has to come into its own sometime. Besides bio-diesel there are many many products that can be produced from oil palm. You can make your own biodiesel with little cost. When I said there was some good information on the Issan page I mean that good management techniques are applicable to any site. One has to, I think, deal with the local farmers with a arm's length view. I have seem some atrocious management of plantations and crops down south. One should remember that the government doesn't have a very good educational system for farmers and ranchers. Most of what they know is from word of mouth or their fathers. Which may be good or maybe not so good. I have seen some very good management also.

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China No.3 Oil Producer Moves Into Biodiesel With M'sian Firm

By Tham Choy Lin

BEIJING, July 24 (Bernama) -- China's third largest oil company, China National Offshore Oil Corp (CNOOC) has inked a memorandum of understanding (MoU) with a Malaysian firm to develop palm oil-based biodiesel in a shift towards renewable energy sources.

The pact was signed between its subsidiary, CNOOC Oil Base Group Ltd, with Bio Sweet Sdn Bhd which specialises in biotech and palm diesel research and development, here Monday.

Under the MoU, CNOOC will build a plant in Hainan Island in 12 months with a capacity of 120,000 tonnes. It will also set up a joint venture called CNOOC (Malaysia) Biofuel Sdn Bhd with a view of a listing in Malaysia eventually, Bio Sweet Sdn Bhd managing director A.K. Liew said.

Chin has suggested that CNOOC consider building production facilities in Malaysia which can currently produce 60,000 tonnes of oil palm-based biodiesel that meets European standards.

Malaysia has also developed a winter version of the fuel for use in cold weather.

Chin said the Malaysian government has decided to set aside 6 million tonnes of its existing 15 million tonnes annual output for the biodiesel industry which has gained greater momentum in the wake of rising crude petroleum prices.

Malaysia, the world's largest palm oil producer, has embarked on developing Envo Diesel, biofuel of five percent processed palm oil and 95 percent petroleum diesel to be introduced next year for government vehicles.

-- BERNAMA

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In the Bangkok post on Monday July 31, 2006

"Communities or individuals seeking to make B100 fuel for commercial sale can register and obtain the formula until the end of September at the department's provincial offices, according to director-general Phanich pongpirodom. Suited specifically for farm machinery and low-speed diesel engines, it will be price at 22-2 baht per litre, compared with nearly 28 baht for petroleum diesel."

They are looking to make B100 fuel from palm nuts, jatropha or 100% waste vegetable oil

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Isn't anyone going to mention that rubber trees are highly toxic and that no animals or birds live in rubber plantations? Thanks to the rubber industry, lowland jungles across the planet have been cut down to make plantations.

Don't any of you well-wishers care at all about the environment? geez...

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  • 3 weeks later...

Galong Thanks for the information. If you were around 1000 years ago the world would be without problems. I am sure I have sinned in my life and would appreciate a list of what I should do and should not do. I think you follow the phrase [/b] I think you were sucessful in your message as it has been a long time without any input.

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  • 3 weeks later...

Hi everybody,

My wife owns some lands in Isan which have been used as rice fields for years.

She recently told me that she would like to plant rubber trees on 2 of her fields (16 Rai each).

Considering that these 2 fields are located at the edge of small villages, and referring to GALONG post, I'd like to know if there is any problem in using them for rubber trees ?

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I would think that you may have two problems to look into. One is too much water and the other is not enough Rubber likes lots of water but well drained sites. Look at the drainage layout. You may need a soil test. Being old rice fields they my need a nutrient booser, but then if you are planting need to apply anyhow. Just nice to know what should be applied in way of fertilizer.

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I would think that you may have two problems to look into. One is too much water and the other is not enough Rubber likes lots of water but well drained sites. Look at the drainage layout. You may need a soil test. Being old rice fields they my need a nutrient booser, but then if you are planting need to apply anyhow. Just nice to know what should be applied in way of fertilizer.

Hi Timber,

Thanks for your answer.

We indeed intend to rearrange the layout of those lands and I think that the water shouldn't be a problem. In fact, they have been organized in order to retain the water during the rainy season but they can be flattened out easily, at reasonable cost, in order to allow a better drainage.

On the other hand, my wife says that drilling some wells shouldn't be a problem in this area.

Regarding the soil, we will follow your advise and have it tested.

Do you know any good lab in Roi-Et or Maha Sarakham area ?

Thanks again.

Bud

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Bud,

I would go to the farming section in the main forum and ask. There are knowledgeble people from around that area that can better answer that question. There should be some agricaltural agency that can help you. I have found that there will be some guy in the basement that is ignored by most that will be more than happy to give you all the information you want. Best of luck.

Do you know any good lab in Roi-Et or Maha Sarakham area ?

Thanks again.

Bud

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  • 2 weeks later...

I copied this from http://www.jatropha.de/Thailand/index.htm

Being in the south Jathropha isn't comparible with Palm Oil as far as productivity, but there are a lot of advantages to using it as a hedge or areas where the ground conditions aren't favorable to Palm Oil Production. Thailand is interested in it for the less productive sites in the north and east. There would be applications in the south when everyone gets more serious about bio-diesel. It doesn't take much of a hedge to grow enough fruit to fuel your car. Mind you maybe a rai or two.

facilitated by D1 and financed by DEPARTMENT OF TRADE AND INDUSTRY, DTI, UNITED KINGDOM;

Executive summary of the study:

This report is the result of an integrated approach to the potentials that may be delivered from the cultivation of Jatropha Curcas L in Thailand, in support of the Kingdoms Bio Diesel fuel security policies. It has been performed at the request of the DEDE (Government of Thailand Department of Energy Efficiency) and sponsored by the Government of UK DTi (Department of Trade and Industry). D1 Oils Plc has facilitated the process of reporting with the assistance of various educational institutions, government of Thailand ministries and departments, The Bank of Agriculture and Agricultural Communities, and the Thai Federation of Industry.

The opinion expressed in the report is that under well-managed circumstances the massive cultivation of Jatropha Curcas L in Thailand will have social, economic and environmental benefits for the country; contributing to both fuel and food security.

The report outlines pro poverty reduction policies that will have a positive influence upon agricultural communities, technology transfer, banking service build up in rural locations and inclusion with both middle level and executive industry/enterprise activities. Further, the report illustrates that rural communities may be viewed as major contributors to the fuel economy of the Kingdom; and that a system of agricultural extension to industry process’s should be established that embraces an end to end solution for the harvest values of Jatropha Curcas L, inclusive of the deliver of Bio Diesel and additional value added products at a sustainable level.

The North East of Thailand has been assessed as the most desirable location for a Jatropha Curcas L Agriculture to Bio Diesel and for a “value adding” industry platform. Additional areas of Thailand have been evaluated for Jatropha Curcas L Agriculture and discovered to be suitable.

In order to achieve the goals of the Government of Thailand for the production of Bio Diesel there is a need for the systematic and scientific propagation of Jatropha Curcas L for an extended period. This agricultural extension should be carried out on public land under the supervision of a variety of interlinked government and international departments. Cultivators and cultivation areas will need to be registered and linked into forward bank planning activities that embrace the Kyoto Protocols Clean Development Mechanism, as this will give rise to the acquisition of Carbon Credits when fuel substitution is established.

The report illustrates that there is a comprehensive need for collaborative development policy that embraces decentralised agricultural extension and decentralised Bio Diesel production to market. The complete solution requires the establishing of partnership between the National Agricultural Extension Services, Bank of Agriculture and Agricultural Communities, The National Petroleum Marketing Group PTT and an end to end commercial development solutions provider for JCL Agriculture to Industry, possessed of the ability to promote agricultural extension, decentralised Bio Diesel production to market, and to accommodate new value adding industry for the processing of JCL biological residues.

It is anticipated that the report may be used to form a template for the ASEAN regions desire to promote fuel security programs from the cultivation of Jatropha Curcas. It is observed that the policies that have been adopted by Thailand are frequently complimented within the ASEAN community; the process of research has illustrated that there is a high degree of policy synergy between the neighbouring countries of Thailand. This synergy is reflected most within the over arching policies of the GMS (Greater Mekong Sub region) as related to the promotion of economic corridors linking Thailand with Myanmar (Burma), Cambodia, Vietnam, Laos and the Southern provinces of the PRC.

Various parties to establish policy initiatives and support collaborative business planning strategies that will lead to comprehensive decentralised JCL Agriculture to Industry programs throughout the ASEAN region 2006-2012; designed to meet and exceed the bio diesel targets of the national governments, may use the report.

--------------------------------------------------------------------------------

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My wife has about 4 Rai to use in Pakphanang. However the water quality is poor and she tells me that rubber will not grow, but palm will. Nobody in the area seems to plant much for growing, but they do have a lot of ponds with crabs in. Her cousin who lives in my wifes house down there already has a pond with crabs in. The area is very low lying between there and the coast, which may explain the water quality. I don't want to farm crabs and would like to diversify what the family does. So if not palm what other options could we have?

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Mosha

You might find out what the problem is with the water quality. Get it tested. Maybe too much salt. Check out the drainage. Palm can stand some flooding, but not a lot. Get the soil tested for salt. Maybe there is some ocean flooding from time to time. Would suggest seeing what you have before making decisons. How intensive do you want to get. 4 rai isn't much and lends itself to something intensive.

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