Ugandans should mint gold from trees
TREE farming is getting firmly established as an investment venture with enticing medium and long-term returns. Accordingly, the National Forestry Authority (NFA) is encouraging people to invest in the sector.
By Moses Watasa
TREE farming is getting firmly established as an investment venture with enticing medium and long-term returns. Accordingly, the National Forestry Authority (NFA) is encouraging people to invest in the sector.
For instance, forest-adjacent communities remain eligible for further planting concessions on at least 5% of neighbouring forest reserves upon getting planting licences after the on-going review.
NFA is also interesting people with ‘free land’ in tree-farming, a venture in which maintenance costs drop significantly over time. The initial cost of establishing one acre (2.5 hectares) of pine and eucalyptus for example is about sh1.7m while maintenance costs for instance weeding, spraying and pruning reduce to almost zero by the sixth year. Thereafter, apart from preventing fires and possible tree theft, plantations grow naturally until maturity in most parts of Uganda.
The potential of the plantation’s returns appreciates steadily until maturity in about 20 years. At the current prices one acre (2.5 hectares) of pine or eucalyptus would fetch sh10m, 15m and 25m after 10, 15 and 20 years respectively. A farmer who invests sh17m in a 10-acre pine or eucalyptus would rake-in at least sh250m after 20 years.
Communities and individuals around Budongo, Bugoma and Kasana-Kasambya and forest reserves who planted fast-growing species like eucalyptus along boundaries have been amazed at their returns. Some have regretted having planted ‘just a few trees’.
Around Uganda, larger-scale tree farmers are planting trees. Some are beneficiaries of the European-Union supported Saw-Log Production Grant Scheme (SPGS) that aids private tree-farming to plug future gaps in wood produce and ease pressure on forest reserves. Subsidies like these, in a country with fertile soils and a good climate, present immense possibilities.
However, maximising returns from tree-farming requires adherence to some basics central to which is quality seedlings. A number of tree farmers have complained to NFA about their failing crop, years after planting seedlings of suspicious quality from ‘street-side’ sellers with questionable technical credentials. Considering that investing in trees is long-term and calls for discretion, NFA has consistently recommended the National Tree Seed Centre (NTSC) as one of the sources of genuine seedlings.
When planting, the size and depth of pits and tree spacing should be appropriate depending on the species. Adequate spacing gives trees sufficient space and light to grow with straight stems that guarantee high yields. Planting in straight lines eases secondary operations like weeding, pruning and harvesting.
In Uganda, the increasing prices for wood products is largely attributable to high demand, currently out-stripping supply by about 15%.
Unsustainable tree-felling on private land, increasing demand for power transmission poles, fuel-wood needs of a fast-growing population and a run-away construction sector imply that demand and prices for trees and wood products will soar in the next decade.
Beside proceeds from direct sales, tree-farming is set for handsome earnings under the global carbon credits initiative for mitigating climate-change.
Western industrialised countries are offsetting their greenhouse gas emissions by paying for ‘green cover’ in developing countries. In Uganda, the carbon financing scheme has been piloted and a few tree-farmers with a close eye on the proceedings have already pocketed cash.
Our message under NFA’s national tree-planting campaign is: “The best time to plant trees was 20 years ago. The next time is todayâ€. Our theme is trees are for health and wealth. Health because they give us oxygen and wealth because gold is ‘turning green’!
The writer is the public relations manager of the National Forestry Authority
TREE farming is getting firmly established as an investment venture with enticing medium and long-term returns. Accordingly, the National Forestry Authority (NFA) is encouraging people to invest in the sector.
For instance, forest-adjacent communities remain eligible for further planting concessions on at least 5% of neighbouring forest reserves upon getting planting licences after the on-going review.
NFA is also interesting people with ‘free land’ in tree-farming, a venture in which maintenance costs drop significantly over time. The initial cost of establishing one acre (2.5 hectares) of pine and eucalyptus for example is about sh1.7m while maintenance costs for instance weeding, spraying and pruning reduce to almost zero by the sixth year. Thereafter, apart from preventing fires and possible tree theft, plantations grow naturally until maturity in most parts of Uganda.
The potential of the plantation’s returns appreciates steadily until maturity in about 20 years. At the current prices one acre (2.5 hectares) of pine or eucalyptus would fetch sh10m, 15m and 25m after 10, 15 and 20 years respectively. A farmer who invests sh17m in a 10-acre pine or eucalyptus would rake-in at least sh250m after 20 years.
Communities and individuals around Budongo, Bugoma and Kasana-Kasambya and forest reserves who planted fast-growing species like eucalyptus along boundaries have been amazed at their returns. Some have regretted having planted ‘just a few trees’.
Around Uganda, larger-scale tree farmers are planting trees. Some are beneficiaries of the European-Union supported Saw-Log Production Grant Scheme (SPGS) that aids private tree-farming to plug future gaps in wood produce and ease pressure on forest reserves. Subsidies like these, in a country with fertile soils and a good climate, present immense possibilities.
However, maximising returns from tree-farming requires adherence to some basics central to which is quality seedlings. A number of tree farmers have complained to NFA about their failing crop, years after planting seedlings of suspicious quality from ‘street-side’ sellers with questionable technical credentials. Considering that investing in trees is long-term and calls for discretion, NFA has consistently recommended the National Tree Seed Centre (NTSC) as one of the sources of genuine seedlings.
When planting, the size and depth of pits and tree spacing should be appropriate depending on the species. Adequate spacing gives trees sufficient space and light to grow with straight stems that guarantee high yields. Planting in straight lines eases secondary operations like weeding, pruning and harvesting.
In Uganda, the increasing prices for wood products is largely attributable to high demand, currently out-stripping supply by about 15%.
Unsustainable tree-felling on private land, increasing demand for power transmission poles, fuel-wood needs of a fast-growing population and a run-away construction sector imply that demand and prices for trees and wood products will soar in the next decade.
Beside proceeds from direct sales, tree-farming is set for handsome earnings under the global carbon credits initiative for mitigating climate-change.
Western industrialised countries are offsetting their greenhouse gas emissions by paying for ‘green cover’ in developing countries. In Uganda, the carbon financing scheme has been piloted and a few tree-farmers with a close eye on the proceedings have already pocketed cash.
Our message under NFA’s national tree-planting campaign is: “The best time to plant trees was 20 years ago. The next time is todayâ€. Our theme is trees are for health and wealth. Health because they give us oxygen and wealth because gold is ‘turning green’!
The writer is the public relations manager of the National Forestry Authority