Short-Rotation Coppice (SRC) agroforestry for charcoal small business in Papua New Guinea

Ian K. NubergUniversity of Adelaide, Australia

Foundation for People and Community Development, Inc.

HOPE worldwide (PNG) People’s Action for Rural Development

Acknowledgements

Brian Gunn Russel Haines and Tony Bartlett

Jessie Abiuda-Mitir, Agnes Sumareke, Maman Tavan, and John Paul

Yati Bun, Israel Bewang, Bazakie Baput, Bonti Krasi, Fletcher Onise, Kafuri Yaro, and Linzon Zamang

Kumani Kuman, Graham Ogle, Vanoa Geno, Titus Tobias, Tom Yale and Alex Aruai

Joseph Pumai, Randall Manapangkec and Agnes Frank

Dessy Kusbandi and Olena Kravchuk Ben Robinson, Rob Brook

Landholders participating in SRC field trials:Patrick Barkri, Yona Mark, Manaka Bore, Barbara Elias, John Eka, Ulkamara Womens Group, and Mt Sinai Bible College Charcoal producer-vendor groups:Apie Welkam Marketing Service, Eety Charcoal Enterprise, Manda Family Group, Wampup Ragin, Yasugau Family Group, Traim Tsol, Gobadik group, Muddy Group, and Komani Charcoal Group

Waghi Valley, Mount Hagen district, Western Highlands Province.Traditionally preferred fuelwood is “Yar”, or Casuarina oligodon

All land and trees are under traditional customary ownership

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Background

Fuelwood market and Garden system

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Roadside fuelwood vendor on temporary site, Port Moresby, National Capital District

Highland sweet-potato / pig garden systems in a complex landscape of use and ownership

Team of fuelwood retailers on permanent site, Mount Hagen, Western Highlands Province

Industrial sector (e.g. tea plantations) also have high fuelwood demand

Background

Research methods to facilitate agroforestry-based small business

• Quantitative and qualitative social research methods to describe the fuelwood economy

• Field, laboratory and consumer trials to evaluate a range of candidate SRC species for their value in fuelwood and charcoal production

• Participatory action research methods to facilitate the establishment charcoal producer-vendor groups

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Lae

Port Moresby

Mt Hagen

Western Highlands

Morobe

West New BritainEast New Britain

NCD

ChimbuEastern

Highlands

AUSTRALIA

IND

ON

EISA

Papua New Guinea: survey regions

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Fuelwood Survey

Fuelwood survey methods• Questionnaire survey of urban and

rural domestic users (n= 3,966) and sellers (n=156)

• Case study monitoring of actual daily fuelwood use over two one-week periods (n=36)

• Semi-structured interviews of commercial and industrial users and institutional stakeholders

(n = 76)

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Determining mass : price relationship of fuelwood on sale

Producing lime from coral and seashells on the Salamaua coast, Morobe Province

Fuelwood Survey

Case-study monitoring of daily fuelwood use

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60

80

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120

Urban (dark solid) and Rural (light broken) Case Studies

Ave

rage

Dai

ly fu

elw

ood

use

(kg/

d)

Fuelwood Survey

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Urban flow of collected fuelwood, district volume in thousands m3 /y, per capita consumption m3 /person/y (red)Rural flow of collected fuelwood, volume in thousands m3 /y , per capita consumption m3 /person/y (green)Flow of fuelwood for sale, value in millions Kina /y (blue)

Fuelwood Survey

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Survey conclusions• Fuelwood use here to stay foreseeable future• Economy is large, informal, simple and flat with few

intermediaries between collector and seller.• Main problems are access to fuelwood and transport to

market• No institutional support but no regulatory barriers or

extra costs• Great opportunity for entrepreneurs to create a more

sophisticated fuelwood supply chain that could deliver sustainably harvested and value-added fuelwood to consumers, especially in urban areas and the commercial sector.

Fuelwood Survey

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Field evaluation of SRC species

• 10 species at 2 spacings in 3 replicated field sites (highland and lowland)

• Farmer-managed woodlots and alley-farm systems

• Laboratory tests of burning quality of wood and charcoal

• Consumer preference • Market performance

Evaluation of SRC species

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Field trial resultsEvaluation of SRC species

rainfall

Median fuelwood volume (m3) for closed spaced (1.5m * 1.0m) woodlot of 500m2

Error bars = Standard Error of MeanValues adjusted to corresponding expected survival rates

Mount Hagen, Highlands site Port Moresby, Lowlands site

Commonly used local species (but does not coppice)

Commonly used local species

67% coppice

95% coppice

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What highlanders think of fast-grown firewoodWe asked some landholders to cook with our fast-grown firewoods which took only 2 years to grow.

We asked them to compare these fast-grown firewoods with the slow-grown firewood they normally collect.

This is what they said for each of the 7 trees we gave them

Eucalyptus grandis• less smoke• better heat, long burning• coals last the same• easy to split and use

Eucalyptus robusta• slightly smokier• very good heat, long burning• coals die quicker• remove bark before use

Eucalyptus pellita• smoke the same• not as hot or long burning• coals die quicker• not good for starting fire

Leucaena• smoke the same• not as hot or long burning• coals die quicker• very good to start fire

Calliandra• much less smoke• not as hot or long burning• coals die quicker• very good to start fire

Local Yar• smoke same• heat same• coals same• easy to split and use

Indonesian Yar• slightly smokier• better heat, long burning• coals last long• difficult to split

Evaluation of SRC species

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Comparison of estimated gross returns and return to labour of SRC, coffee and sweet potato crops

Alternatives to SRC SRC-Firewood SRC-Poles SRC-Charcoal

Sweet potato Coffea arabica E.grandis E.robusta E.robusta E.grandis

E.robusta

Gross Return Kina/ha 7 200 4 050 7 297 6 265 2 330 5 212

Labour Inputs persondays/ha 350 275 170 170 150 220

Return to Labour Kina/person/d 21 15 43 37 16 24

US$/person/d 9.77 6.98 20.00 17.21 7.44 11.16

CommentCompetition;

difficult transport

Ready cash, women work,

men get money

Maybe market resistance due to appearance

Side-line market

(Nuberg et al, 2014)Notes: Sweet potato and Coffee values from Table 5.20.1 in ‘Food and Agriculture in PNG’ Bourke et al

(2009) with update from Bourke pers.com. 20 Feb. 2013.SRC Firewood and pole gross margin based on volume and pole length data of 1.5 m x 1.0 m spacing; Price is conservatively set at 70% of surveyed firewood prices and pole value in Mt Hagen;SRC Labour inputs estimated as: ground preparation 60; planting 30; weeding in first year 20; harvest and prepare for market firewood 60, poles 40, charcoal 110. SRC Charcoal gross return and return to labour based on volumes and charcoal business plan prepared by Manapangkec (2012)1.00 Kina = 0.465 USD exchange rate at 2 April 2013

Evaluation of SRC species

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Charcoal producer-vendor method• Advertise for participants• Training activities in:

– Small business planning– Charcoal production– Charcoal stove construction– Nursery techniques for SRC species

• Action research– Groups develop own business plan and

group structure– Guidance with microcredit loans– Monitoring and guidance of group progress

• Promotion of charcoal concept• Semi-Structured interviews in community

development sector to survey existing models of collective business engagement (n=41)

A U S T R A L I A N C E N T R E F O R I N T E R N AT I O N A L A G R I C U LT U R A L R E S E A R C H U N I V E R S I T Y O F A D E L A I D E PA P U A N E W G U I N E A F O R E S T R E S E A R C H I N S T I T U T E

Charcoal business modelsMt Hagen ‘Lead Charcoal Producer’ Model

Lae ‘Charcoal Wantok’ Model

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Conclusions

• Inter-Disciplinary approach essential for complex problems

• Facilitation of small-business requires: – long term commitment– training and support across whole value-chain– respect and adaptation for regional cultural

differences • Need for formal recognition and support by

national and provincial governments

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Core quantitative dimensions of fuelwood economy as determined by questionnaire surveys of domestic users, sellers and case study monitoring

Regions of fuelwood stress surveyedURBAN RURAL

National Capital District

Lae, Morobe

Mt HagenWestern Highlands

Lae,Morobe

HighlandsWestern & Eastern,

Chimbu

Population 254,158 78,692 27,877 40,486 150,916

Sample size 1,868 558 247 285 996% sample using fuelwood (FW) over past 12 months 73 90 87 98 100% FW user population buying over last 2 week 24 27 47 7 4Average spent over 2 weeks in USD

$9.06 $10.04 $9.48 $12.83 $11.20

Gender equity index for fuelwood collection ** 1.0 0.9 0.6 1.1 0.9Gender equity index for fuelwood purchase 1.0 0.7 0.7 0.5 0.5% FW users who have planted trees in past 2 years 44 25 54 83 96% FW users experienced conflict over access to FW 48 40 58 51 61-88% FW sellers with access to land to grow trees 86 39 88 39 89Average price PGK / kg for FW on sale 0.30 0.49 1.15 0.58 0.33Average (max) distance in km sellers source their FW 10 (25) 3 (5) 6 (30) 3 (5) 23 (40)% domestic FW users also using FW commercially 26 58% domestic FW users also selling fuelwood 3 10% for whom FW more difficult to access over past 2 y 65 41Daily household fuelwood use Recalled data from domestic user surveys, kg/d 9.6 10.6 5.6 8.9 21.1Daily monitoring case study households over 2 weeks

Number of households monitored 13 23Average daily fuelwood use, kg/d 11.1 32.5Median daily fuelwood use, kg/d 11.6 27.3

** Gender equity index = ratio of the relative proportion of instances of female activity in relation to the region sample size, to instances of male activity. Within a region, if men and women share the load equally in collecting and buying fuelwood, i.e. a 1:1 ratio, then the index = 1.0 . If there are more instances of men’s activity then index <1, if women more active >1. A change in 0.1 units of the index reflects a change in 10% of the regional population.

Fuelwood Survey