Eucalyptus Plantation Conceptual Proposal
Our journey so far..
- In 2014, we started Eucalyptus plantation in Ayeyarwaddy Delta in a strategic partnership with JK Paper, one of the largest & vertically-integrated Indian paper Group, listed on BSE.
- Total Concession awarded from Ministry of Forestry Tender: 12,500 acres
- Till date, we have planted Eucalyptus on about 2,240 acres with better-than-expected results (as certified by an independent, leading global sector-specialist consulting firm whom we have engaged as a core team member form day 1).
- Plans underway to ramp up plantation investments in our remaining concession area.
- Diversified clones/ species from different origins used for the said 2,240 acres which has provided us with key data-points & first-hand experience to better evaluate the relative pros and cons & suitability of different clone types / origins for the Ayeyarwaddy Delta region.
Pictures of Successful Eucalyptus Plantations (18 months)
Our existing plantation
Why Eucalyptus in Ayeyarwaddy Delta?
- Climate & Soil factors (the high rainfall, Soil PH & acidity levels in the area has proven to be optimal for short rotation, high yielding Eucalyptus plantations)
- Our collective experience & results of existing plantations provide evidence for a strong business case for pulpwood plantations in Ayeyarwaddy Division and a potential Pulp Mill in future.
- Increasing demand for Pulpwood / Wood Chips / Hardwood Pulp in Asia
- According to Ministry of Forestry leadership and experts, Eucalyptus is the preferred forest agricultural product in the said region due to the tree’s ability to act as a defense against flooding. It is a tree that can adopt to varied environment conditions.
- Many companies have experimented with rubber, jatropha and other items in the area with unsatisfactory results.
- We have invested our own resources in this project since 2014.
- Proven track record of successful implementation
- Strong and creditworthy off-taker in the form of our strategic partner – JK Paper Group (rated A / Stable by S&P)
- Compliance with strict Environmental, Social and Ethical Business Practices
- Our team on the ground has learnt valuable lessons and accumulated considerable experience from trial and error of our start-up
- We now feel confident to take this project to the next level strong partnerships with multiaterals and international stakeholders will bring significant synergies.
- BAH to lease up to 30,000 acres for 30 years per below schedule
From the day a share holder deposit in his own name in a 7 years fixed deposit account with any of the three following banks. The share holder will get 1% on his investment amount as his profit every month regularly up to 7 years.
- KBZ Bank
- AYA Bank
- YOMA Bank
Facts & Assumption
|Number of Trees per acre||Between 800 and 825||Optimal as per our experience|
|Number of years before a tree can be harvested||Maximum 7 years||Examples from China, Vietnam and based on our existing plantations progress.|
|Average cost of preparations, planting and maintenance over 7 years horizon before optimal harvesting stage||US $ 1.004 per acre||Actual cost from our existing operations. Cost overrun buffers taken into account.|
|Total number of times a given tree can be harvested||Maximum three times||Examples from China and Vietnam. Standard norm.|
|Yield||Between 70 and 100 MT per acre||Based on our existing plantation’s progress and empirical data from regional countries using similar species / clones|
|Cost of harvesting and transport||US $ 23 per GMT||Conservatively forecasted|
|Current minimum wholesale FOB price of typical Eucalyptus cargo in Myanmar||Between US $ 50 & 55 per GMT||Current market price|