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Timber Trading and Pricing of Plantation Grown Teak (Tectona grandis Linn.F) in Laos

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Abstract

The market demand and price of teak in Laos vary broadly and depend on several factors. The aim of this study was to assess timber trading and pricing based on a survey of teak buyers. The research investigated teak trading methods, markets and prices paid for particular timber types and quality grades. Three types of teak timber are commonly sold: 24.7% as standing trees, 39.6% as round logs and 35.7% as square logs. The main wood products produced from plantation teak include joinery products, door and window frames, and furniture (57.9%, 26.3% and 15.8% respectively). The end buyers of teak timber in Laos are sawmillers and wood manufacturer. Teak timbers supplied to end buyers from growers via the local traders account for 49.0%, followed by 41.3% by direct supply from teak growers and 9.7% via the local small sawmillers and wood manufacturers. The price of teak timber varies significantly based on four main factors: timber types, log sizes, log quality (grades) and distance from plantation site to road (for standing trees). The round log price of 250US$/m3, based on both log diameter size (D26-30 cm) and log quality grade (A grade), was much lower than the 321US$/m3 amount paid for the same size of round log (D26-30 cm) based on log diameter alone (no grading price). It can be concluded that there is a need to develop a clear system or standard for teak log grading and pricing in Laos.

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Acknowledgement

The authors would express special thanks to anonymous reviewers of this paper for their constructive criticisms, and comments. The authors are grateful for the funding support of the Australian Centre for International Agricultural Research (ACIAR). The authors also would like to thank the Laos Wood Industry and Furniture Association, the Department of Industry and Commerce (DIC) of both Vientiane municipality and Luang Prabang Province for all their kind support and cooperation for this research. A special thanks to the Luang Prabang Teak Program (LPTP) staffs, Mr Bounchan Innavong, Mr Mith and Mr Bounthan for their assistance with fieldwork and data collection.

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Authors and Affiliations

  1. Faculty of Forest Science, National University of Lao PDR (NUOL), P.O.Box 7322, Vientiane, Lao PDR

    Phongxiong Wanneng & Somvang Phimmavong

  2. School of Ecosystem and Forest Sciences, Faculty of Science, The University of Melbourne, Melbourne, Australia

    Phongxiong Wanneng, Barbara Ozarska & Benoit Belleville

  3. School of Agriculture and Food, Faculty of Veterinary and Agricultural Science, The University of Melbourne, Melbourne, Australia

    Brian Davidson

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  1. Phongxiong Wanneng
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  2. Barbara Ozarska
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  3. Somvang Phimmavong
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  4. Benoit Belleville
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  5. Brian Davidson
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Correspondence to Phongxiong Wanneng.

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Wanneng, P., Ozarska, B., Phimmavong, S. et al. Timber Trading and Pricing of Plantation Grown Teak (Tectona grandis Linn.F) in Laos. Small-scale Forestry 20, 569–584 (2021). https://doi.org/10.1007/s11842-021-09481-w

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