Deal #8058 Version 93232 Version 94917
Comment on land area
First contract signed in 1990. The proposed funding will be used for capital expenditure of the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019. In June 2020, The Ministry of Agriculture and Forestry has issued a Certificate of Approval of a Feasibility Study for development of another 60, 000 hectares. The study will be looking at 3 forest production areas in the provinces of Vientiane and Xaiyaboury. [Source: Burapha Company’s website] In March 2022, the company and government of Laos signed the agreement on amendment and increase of the concession area of 60,000 ha in Vientiane province and Xayabouly province to the concession agreement on Industrial Tree Plantation Project in the National Production Forest Areas of Vientiane province that dated 31st of July 2020. [Source: Vientiane Times (Lao language)] In 2020, the Government of Lao PDR granted land concessions to Burapha for 2,000 hectares of β€œunused land” in the National Production Forest Areas in Vientiane province for a 50-year concessional period. This is the first step of Burapha’s 60,000 hectares expansion plan [Source: company website] In 2023: 6,000 ha on production forest area (PFA), 15,000 ha in farmer cooperation agreements, 800 ha company land (bought from other companies), 7 village cooperation agreements (calculated here under assumption with 500 ha each), and 4,000ha concessions in non-PFA. [Source: company interview]
First contract signed in 1990. The proposed funding will be used for capital expenditure of the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019. In June 2020, The Ministry of Agriculture and Forestry has issued a Certificate of Approval of a Feasibility Study for development of another 60, 000 hectares. The study will be looking at 3 forest production areas in the provinces of Vientiane and Xaiyaboury. [Source: Burapha Company’s website] In March 2022, the company and government of Laos signed the agreement on amendment and increase of the concession area of 60,000 ha in Vientiane province and Xayabouly province to the concession agreement on Industrial Tree Plantation Project in the National Production Forest Areas of Vientiane province that dated 31st of July 2020. [Source: Vientiane Times (Lao language)] In 2020, the Government of Lao PDR granted land concessions to Burapha for 2,000 hectares of β€œunused land” in the National Production Forest Areas in Vientiane province for a 50-year concessional period. This is the first step of Burapha’s 60,000 hectares expansion plan [Source: company website] In 2023: 6,000 ha on production forest area (PFA), 15,000 ha in farmer cooperation agreements, 800 ha company land (bought from other companies), 7 village cooperation agreements (calculated here under assumption with 500 ha each), and 4,000ha concessions in non-PFA. [Source: company interview]
Comment on intention of investment
Timber plantation in Agro-Forestry system The company got the funding from FMO (the Dutch Development Bank) for building the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019 [Source: FMO, 2018]. In 2019, UNIQUE Consultants (Germany) was commissioned to steer the company through carbon certification with the Verified Carbon Standard (VCS). The certification process is expected to be completed in 2021 after which Burapha credits can be purchased by companies and organizations looking to offset their carbon footprint. [Source: Company Annual Report 2019] In 2020, about 9,800 ha were part of the carbon offsetting project. There the company also offers intercropping and grating. [Source: VSF registry]. In Hinheub village, the Burapha Agroforestry project contracted local households to clear areas of fallow and bamboo within the concession, with each household then responsible for plantation management (including planting, thinning and maintaining trees) in these areas, with the additional option of intercropping. [Source: Barney et al., 2018]
Timber plantation in Agro-Forestry system The company got the funding from FMO (the Dutch Development Bank) for building the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019 [Source: FMO, 2018]. In 2019, UNIQUE Consultants (Germany) was commissioned to steer the company through carbon certification with the Verified Carbon Standard (VCS). The certification process is expected to be completed in 2021 after which Burapha credits can be purchased by companies and organizations looking to offset their carbon footprint. [Source: Company Annual Report 2019] In 2020, about 9,800 ha were part of the carbon offsetting project. There the company also offers intercropping and grating. [Source: VSF registry]. In Hinheub village, the Burapha Agroforestry project contracted local households to clear areas of fallow and bamboo within the concession, with each household then responsible for plantation management (including planting, thinning and maintaining trees) in these areas, with the additional option of intercropping. [Source: Barney et al., 2018]
Comment on negotiation status
In 2011 Burapha Agro-Forestry was acquired by Silvicapital through their subsidiaries SilviLao AB and Bafco AB. Original contract was signed in 1990.
In 2011 Burapha Agro-Forestry was acquired by Silvicapital through their subsidiaries SilviLao AB and Bafco AB. Original contract was signed in 1990.
Comment on use of produce
After the plywood mill completed, company has started to export to Australia, India and Thailand since June 2021. [Source: Vientiane Times (Lao language)]
After the plywood mill completed, company has started to export to Australia, India and Thailand since June 2021. [Source: Vientiane Times (Lao language)]
Overall comment
First plantation was already established in 1990. In 2011 Burapha Agro-Forestry was acquired by Silvicapital through their subsidiaries SilviLao AB and Bafco AB. After the acquisition Burapha’s objective is to build a timber plantation asset in Laos large enough to be the core wood supplier for a major industrial operation. The next expansion phase is to establish an additional 11,000 ha and reach 15,000 ha of Eucalyptus plantations. They are envisioning to build a midsize pulp mill. [Source: company website] On the agroforestry scheme: Intercropping is allowed for the first 1-2 years. Cattle grazing in years 3-7. After seven years, the trees are harvested and a new cycle starts. Intercropping: In the earlier stages of Burapha plantations with intercropping scheme, the company did not focus on degraded land but also cut down healthy vegetation. Cutting and then burning made the soil fertile for the crop planted between the eucalyptus rows. The first year of the plantation was particulary attractive for smallholders because they got direct payments for any labor they provide for the company AND they made a profit from the rice (or other intercrop). Since the company switched to degraded land only, however, the soil is not fertile enough for the (inter)crop. People lost interest in intercropping in consequence. Leakage: people who still do slash and burn ag., moved on to healthier forests, when the eucalyptus plantation got established. Grazing: Grazing cows and other animals is financially not attractive for most people. The daily wage is 80- 250 K LAK per day based on the type of work. On the lowest rate on 20 working days, this makes 1.6 mio. LAK in a month. A cow raised over two years, can be sold for merely 2-3 mio LAK. There is also strong wage competition by Chinese projects (incl. infrastructure projects).
First plantation was already established in 1990. In 2011 Burapha Agro-Forestry was acquired by Silvicapital through their subsidiaries SilviLao AB and Bafco AB. After the acquisition Burapha’s objective is to build a timber plantation asset in Laos large enough to be the core wood supplier for a major industrial operation. The next expansion phase is to establish an additional 11,000 ha and reach 15,000 ha of Eucalyptus plantations. They are envisioning to build a midsize pulp mill. [Source: company website] On the agroforestry scheme: Intercropping is allowed for the first 1-2 years. Cattle grazing in years 3-7. After seven years, the trees are harvested and a new cycle starts. Intercropping: In the earlier stages of Burapha plantations with intercropping scheme, the company did not focus on degraded land but also cut down healthy vegetation. Cutting and then burning made the soil fertile for the crop planted between the eucalyptus rows. The first year of the plantation was particulary attractive for smallholders because they got direct payments for any labor they provide for the company AND they made a profit from the rice (or other intercrop). Since the company switched to degraded land only, however, the soil is not fertile enough for the (inter)crop. People lost interest in intercropping in consequence. Leakage: people who still do slash and burn ag., moved on to healthier forests, when the eucalyptus plantation got established. Grazing: Grazing cows and other animals is financially not attractive for most people. The daily wage is 80- 250 K LAK per day based on the type of work. On the lowest rate on 20 working days, this makes 1.6 mio. LAK in a month. A cow raised over two years, can be sold for merely 2-3 mio LAK. There is also strong wage competition by Chinese projects (incl. infrastructure projects).
Fully updated
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Comment on data source
The news states that The Ministry of Agriculture and Forestry have issued a Certificate of Approval of Feasibility Study for development of another 60 000 hectares.
The news states that The Ministry of Agriculture and Forestry have issued a Certificate of Approval of Feasibility Study for development of another 60 000 hectares. Data source pdf and link no longer available as of October 2024

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Publication title
BURAPHA AGRO-FORESTRY CO. LTD
Date
2018-05-25

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Comment on data source
The source mentions that In 2014, Ministry of Agriculture and Forestry (MAF) said that the way the company contracted local people to plant the trees on state land, notably on conservation forest, contravenes relevant laws (it expanded over the land use rights had been granted to the company). In the proposal company submitted to provincial authorities to plant eucalyptus on more than 4,000 hectares in partnership with local people, MAF said 2,157 hectares out of the proposed area were conservation forest that must not be given.
The source mentions that In 2014, Ministry of Agriculture and Forestry (MAF) said that the way the company contracted local people to plant the trees on state land, notably on conservation forest, contravenes relevant laws (it expanded over the land use rights had been granted to the company). In the proposal company submitted to provincial authorities to plant eucalyptus on more than 4,000 hectares in partnership with local people, MAF said 2,157 hectares out of the proposed area were conservation forest that must not be given. No link found online as of October 2024

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Comment on data source
Written in Laotian
Written in Laotian no link available as of October 2024

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Publication title
News on company FS 2020
The Department of Forestry approved the economic analysis of participatory forestry techniques on an area of ​​60 thousand hectares of Bualapha Company.
Organisation
Actionpro

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