EX-POST EVALUATION REPORT

ITTO Project PD 69/01 Rev.2 (I)

Improved and Diversified Use of Tropical Plantation Timbers in China to Supplement

Diminishing Supplies from Natural Forests

Prepared for the ITTO

by

Dr. Bipin Behari &

Dike Kari

September 2008

(42-FI-3)

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TABLE OF CONTENTS

Page

Part I EXECUTIVE SUMMARY 5-12

1. Background information about the project 5

2. Purpose of Evaluation 6

3. Scope of Evaluation 6

4. Conclusions of the evaluation: 6-10 4.1 Project Design and Contribution to the Achievement of the General Objective 4.2 Achievement of the Project Outputs and Specific Objectives 4.3 Impact and Relevance of the Project 4.4 Effectiveness of Technology Transfer to Local Communities 4.5 Overall Post-project Situation and Sustainability 4.6 Unexpected Effects and Impacts 4.7 Implementation Efficiency

5. Recommendations 10-12

5.1 Project Design and Outcomes 5.2 Effective Technology Transfer 5.3 Follow-up Actions

PART II MAIN TEXT 13-37

1. Project context 13-30

1.1 Background: Rationale and Objectives 1.2 Outputs and Activities 1.3 Compliance with the ITTO objectives 1.4 Relation to Action Plan and Priorities

2. Evaluation Scope and Focus 30-31 3. Evaluation Methodology 31-32

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4. Findings and Lessons Learnt 32-37

4.1 Project Design and Contribution to the Achievement of General Objective 4.2 Achievement of the Project Outputs and Specific Objectives 4.3 Impact and Relevance of the Project 4.4 Effectiveness of Technology Transfer 4.5 Overall Post-project Situation and Sustainability 4.6 Unexpected Effects and Impacts 4.7 Efficiency of Implementation

PART III: Conclusions and Recommendations 38-42

1. Conclusions 1.1 Specific Observations 1.2 Strengths and Weaknesses 1.3 Recommendations

ANNEX A Itinerary of Travel for the conduct of the Ex-Post Evaluation of PD 69/01 Rev.2 (I) and PD10/00 Rev.2 (I,F)

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Acronyms

CAF : Chinese Academy of Forestry

ITTA : International Tropical Timber Agreement

ITTC : International Tropical Timber Council

ITTO  : International Tropical Timber Organization

ToR : Terms of Reference

LFM : Logical Framework Matrix

E. : Eucalyptus

A. : Acacia

CERDC : China Eucalyptus Research and Development Center

CRIWI : China Research Institute of Wood Industry

CFMD : Centre of Forestry Management & Development

PSC :  Project Steering Committee

PTC :  Project Technical Committee

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PART I EXECUTIVE SUMMARY

1. BACKGROUND INFORMATION ABOUT THE PROJECT The Project 69/01 Rev. 2 (I) “Improved and Diversified Use of Tropical Plantation

Timbers in China to Supplement Diminishing Supplies from Natural Forests” was approved in the 30th Session of International Tropical Timber Council (ITTC) at Cameroon in May, 2001. This project was developed as an output of the pre-project PPD 18/99 Rev. 2 (I) titled “Utilization of tropical plantation timber in the southern part of China” which was implemented between July, 2000 and the December 2000 by the Research Institute of Wood Industry, Chinese Academy of Forestry (CAF). The aim of the project was thus to improve and diversify the use of tropical plantation timbers in the provinces of Guangxi, Guangdong and Hainan, where large-scale plantations of fast-growing species (Eucalyptus species; 0.7 million ha. and Acacia species; 0.2 million ha) were established. The project was focused on research work to develop and adopt an appropriate set of processing techniques for solid wood products such as joinery products, furniture and building components from the existing Eucalyptus and Acacia plantations to promote the production of value-added wood products and wide dissemination of the results. The project proposal was planned to be completed within 48 months.

In addition to the above aim / development objective, this project was also intended to

facilitate the formulation of a key forest management strategy in China to supplement the diminishing supply of timber from the natural forests. The specific objectives include:

To develop and adopt an appropriate set of processing techniques for solid wood products such as joinery products, furniture and building products from the existing eucalyptus and acacia plantations (E.exserta, E. citriodora, E. grandis, E. urophylla X grandis and Acacia mangium); to evaluate the suitability of newly-planted eucalyptus and acacia plantations (E. torelliana, E.pellita, e. cloeziane, E. camaldulensis and A. auriculiformis). These species hold promise for the production of a wide range of solid wood and composite products by conducting a series of studies on their wood properties;

To transfer the technologies and disseminate the scientific knowledge obtained in this project to the relevant public by conducting a series of activities such as a market study, training courses, seminars, brochure release and by demonstrating solid wood products made from plantation timbers in South China.

The intended situation after the project completion was:

Creating awareness about improved processing technologies of eucalyptus and acacia species and their scientific knowledge.

Making available processing technology for producing high value wood

production such as joinery products, furniture and building products from the existing tropical plantation species.

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Utilisation of tropical plantation species as solid wood products to promote the

economic return from tropical plantation resource and its sustainable development and utilization.

The total project budget was US$ 1,321,965 which was contributed by the Government of Japan (US$ 578,815), Government of Australia (US$ 10,000), and Government of China (US$ 733,150).

2. PURPOSE OF EVALUATION

Recognizing the potential value of the lessons learnt from the project, the Committee on Economic and Market Intelligence and the Committee on Forest Industry at their 38th Session in May 2006 in Mexico decided that the Ex-Post Evaluation of the Project PD 69/01 Rev. 2 (I) should be conducted to determine how well the project served its purpose and to draw up lessons and recommendations to improve the implementation of future similar projects.

The evaluation was conducted in such a way as to answer the questions identified in the Ex-post evaluation checklist provided in the ITTO Manual for Project Monitoring, Review and Evaluation.

3. SCOPE OF EVALUATION

The Ex-Post Evaluation of Project PD 69/01 Rev. 2 (I) was undertaken in the 2nd fortnight of June, 2008. This report presents the findings of the evaluation done approximately two (2) years after the completion of the project. The evaluation was done using the combination of personal interviews, interaction with the scientists and project staff and an exhaustive review of the project documents and publications and mainly the visit to China Eucalyptus Research and Development Center (CERDC), Zhanjiang. These all together enhanced the consultants’ understanding of the project details and deepened the analysis / evaluation of the project.

The Ex-post evaluation was conducted as per the detailed Terms of Reference specified in the ITTO Manual for Project Monitoring, Review and Evaluation.

4. CONCLUSIONS OF THE EVALUATION

4.1 Project Design and Contribution to the Achievement of the General Objective

The executing agency – The China Research Institute of Wood Industry (CRIWI) acted as the main body among the Government, local authorities, sector organizations and industry for transferring the project outputs. CRIWI was responsible for the design, execution and reporting of the activities of the project whereas the State Forestry Administration and Chinese Academy of Forestry (CAF) were responsible for the monitoring and evaluation of the project giving necessary support also regarding the organization of study tours and the training courses.

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The pre-project reveled that the main existing species of eucalyptus and acacia plantations raised earlier and currently are E. exserta, E. citriodora, E. grandis, E. urophylla x grandis and Acacia mangium. These plantations can be harvested now and they are mainly used as wood chips production and low-quality packaging products in China. However, according to their size in log diameter, acceptable mechanical properties and pleasing appearance, these existing resources could also be suitable for production of high-value solid wood products. Therefore, the project aimed at the development of the appropriate techniques in sawing and drying suitable for the processing of the above five species. It was also planned to investigate the appropriate techniques for finger-jointed lamination from four eucalyptus species by using existing machines.

The combination of overseas mature technology and local Research and Development with local wood company was an appropriate methodology to develop the technologies for value-added utilizing industry of tropical plantations in China.

The design of the project appears to be quite impressive but the planning is also an

integral component of the overall success of the project. The duration of the project extended by 6 (six) months only which was mainly due to the publications of research results. A matured processing technology for solid wood products from eucalyptus plantations was developed and an attempt was made to disseminate via this project to wood industry for better utilization of tropical plantation resources and thereby promoting the production of value-added wood products. So far as the development of technology for sawing, drying and finger joints are concerned, the research was accomplished in an excellent manner achieving the necessary objectives to that extent.

4.2 Achievement of the Project Outputs and Specific Objectives

All the outputs designed to achieve the project objectives were by and large completed. A package of processing technologies for solid wood products from the existing eucalyptus and acacia plantations, consisting of sawing, drying, finger-jointed lamination and furniture and building products was developed for high efficient utilization of mainly eucalyptus plantations.

A set of scientific evaluation results was established and carried out to assess the

suitability of newly planted eucalyptus and acacia plantations, such as E. urophylla, E.pellita, E. cloeziane, E. tereticornis and Acacia auriculiformis. These species hold promise for the production of a wide range of solid wood and composite products by conducting studies on their wood properties.

A series of designed activities including the two domestic market studies, two training

courses, an international conference, active participation in international exhibition, publication and widely release of handbooks and brochures and demonstration of solid wood products made from tropical plantation timbers in China was implemented to transfer the technologies and disseminate the scientific knowledge obtained in this project to all the stakeholders.

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While most of the outputs and activities have been achieved and good research work has been done, more value added products of acacia could not be developed and the supply chain of acacia wood from the limited plantation base to the processing industries has yet to be formed. Moreover, quality control of solid wood products made from eucalyptus and acacia is poor which needs attention.

4.3 Impact and Relevance of the Project

China has about 2 million ha. of eucalyptus plantations spread over 600 counties of 17 Provinces. The growing stock volume has reached about 17 million cum. Similarly, acacia plantation in China has also increased over the years and it is about 200,000 ha. with an average newly planted area of more than 20,000 ha. per year. Its growing stock is 4 million cum. E. urophylla and its hybrids; E. grandis and its hybrids, E. globulus and Acacia mangium are the main plantation species. Guangdong province has the biggest area of eucalyptus plantations whereas Hainan has the largest track of acacia.

Eucalyptus and acacia plantations in China are widely used for pulp (wood and wood chips) and therefore, the attempt of the project to develop the necessary processing techniques for solid wood products from the existing eucalyptus and acacia plantations is no doubt very much relevant for the country. Moreover, this project further confirms to the Chinese Government’s policy about forestry and forest product industry. The technological aspects are relevant in view of the processing difficulties being focused in case of eucalyptus and acacia.

The major problem faced in processing of eucalyptus wood is high growth stress which is further made worse by smaller diameter logs harvested from younger trees. The considerable distortion occurs in eucalyptus lumber as it passes through, resulting in sawing inaccuracy, distortion in products and loss in both recovery and productivity. Stress releasing suitably is the threshold for wood processing with high recovery based on eucalyptus and acacia characteristics. Wood drying is one of the most important steps in wood processing. This project is very much relevant in view of the development of technology to overcome the wood processing problems in case of eucalyptus and acacia.

A series of studies on suitability of the promising species of eucalyptus and acacia for high value added solid wood products created awareness of the development potential of these tropical plantation species used for high value wood production.

4.4 Effectiveness of Technology Transfer to Local Communities

The transfer of technology through publication of research results, reports, technical reports and papers, training courses, international conference, handbooks and brochures & thereby creating awareness are excellent. But their translation into the field to the rural communities, poor people, farmers, growers and industries is yet to take a reasonable shape.

The Pilot sawing experiment was conducted in Chengda Wood Industry Company and

Qibo forest farm in Nanning for domestic eucalyptus logs and in Yuzhu saw mill in Guangzhou, Guangdong Province for Australian eucalyptus logs. The lumber recovery

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reached to 43% but sawing quality was not up to the mark. The transfer of technology developed through research analysis, pilot wood industry was a good effort but it’s a beginning. It has to reach to the large number of people and the industries for the wider benefit of the stakeholders. Chengda Wood Industry Company in Nanning had technical cooperation with CAF, which was financed by ITTO since 2002 but it was closed subsequently. Otherwise, it would have been the best model to exhibit the transfer of technology regarding the processing of eucalyptus for the manufacture of value added products.

As the training courses and international conferences are one of the very important ways to transfer scientific and technical knowledge, efforts were made to invite people related to tropical plantation timber as many as possible to attend the training courses under this project. Special efforts were made to invite the National / Provincial Government sectors, typical tropical plantation timber companies and forest farms. Considering the acceptability of scientific knowledge by the participants, some basic knowledge about identification and properties of tropical wood and Chinese wood resource and imported wood policy was given at the beginning of each training course. 4.5 Over All Post-Project Situation and Sustainability

This project has attempted successfully and established that some of the fast growing eucalyptus and acacia species have wood properties that are well suited for higher value solid wood products e.g. furniture, joinery, veneer, plywood and laminated lumber. As a result of the successful completion of the research component of the project, a good co-operation has been built up between CRIWI, local authorities and forest industry sector. This relationship may be maintained in continuity to promote the technological and production development derived from the project achievements.

To upgrade the efficiency and competitiveness of tropical plantation industry by adopting a mature technology, the survey, Research and Development and the extension of technology carried out in this project still have large space to continually spread the project effects on public. It is only in the early stage. The demonstration of processing technology, market acceptability of the new technology and the manufacture of new product using the new technology, market study and market promotion, necessary training and demonstration are thus very necessary and important to further promote sustainable plantation resource and industry in China.

4.6 Unexpected Effects and Impacts

The project did not witnessed many unexpected effects and their impacts but publication of papers delayed the completion of the project by 6 (six) months whereas development of technology on acacia was very much limited. Moreover, the transfer of technology developed for eucalyptus could be confined to identified industries only with limited demonstrative effect.

The closure of Chengda Wood Products Company in Nanning which had a technological cooperation with CAF was no doubt an unexpected event which underscored the great efforts of demonstration and transfer of technology by the implementing agency.

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The delay of the visa approval by the Embassy of related countries affected the study tour and caused the postponement. Additionally, the schedule of local market survey was influenced in some degree by the time restrict of local government authorities, industry and trader who assisted market investigation of project group.

4.7 Implementation Efficiency

The project implementing agency with the Project Leader Ms. Jiang Xioamei was found very much effective in its efforts. A number of publications of research results in the form of technical reports, brochures and papers are testament to their herculean efforts for the wider utility of findings of the project results. The most important aspect regarding the successful and effective implementation of the project is that an excellent cooperation exists between the Project Leader, her staff, local Government and all stakeholders, which is a key to its success.

Whatever shortfalls were observed, it was regarding the acacia and non-visible impact

of technology in the market which requires further efforts to carry the message of the good technical achievements in economic terms to the people, industry and other stakeholders.

5. RECOMMENDATIONS

5.1 Project Design and Outcomes

The basic project design was to improve and diversify the utilization of tropical plantation timbers in China to supplement diminishing supplies from natural forests. The project design was accepted by the Government, local authorities, forest industry sector and other stakeholders. The research planning for the development of sawing and drying technology and development of finger-joint technology for value-added products of eucalyptus was excellent, taking the advantage of the knowledge in other countries. The participation of local Government, Wood industry and other stakeholders in the training courses and international conference revealed the active adoption of the output of this project ‘in principle’ by the stakeholders. Well structured project design is a key to success of the project especially when it is largely research oriented. Technical survey, Research and Development, demonstration and documentation well designed in the project could achieve the desired success with the herculean efforts of the project implementing staff. The reasonable project design makes great contributions in achieving the objectives leading towards the success of the project.

The project objectives were in conformity with the Government policy whereas the project outputs were released at many sites both verbally and in black and white. The project activities and the research outputs have been well documented and up dated on the website which is a very effective force to share the information. The market acceptability of the new technology and the new product manufactured using the new technology is the most important factor for project outputs.

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The project executing agency played a key role to advance the project progress by communication among different sectors and involving partners and harmonization of their effective cooperation during the project implementation period.

5.2 Effective Technology Transfer

The organization of the project activities with the splendid coordination and effective management could yield useful results. The responsibilities of every project member were specified at the beginning of the project execution. The project leader was in-charge of making the over all arrangements and management including the detailed work plan and action plan, managing the execution of the activities and preparation of reports.

The transfer of technology so developed for the people and industry for larger benefits required more attention on market research and study including the cost-benefit analysis. The extension activities by way of creating awareness through publications, conference, trainings have made a good beginning in this context.

5.3 Follow-up Actions

The Executing Agency has the strength of good coordination with the scientists, provincial Governments and stakeholders. Therefore, the Executing Agency should immediately pursue an information and education campaign and coordinate with the appropriate stakeholders and the Government official bodies for proper dissemination of research results for wider economic utility.

Likewise, the Executing Agency must take up economic and market research and analysis for the acceptance / transfer of technology to the industries and other stakeholders. Opportunity exists for the demonstration of processing technology as a follow up action of the project for the suitable development and more diversified utilization of tropical plantation resources in China.

The China Eucalyptus Research & Development Centre (CERDC) in Zhanjiang

has superb infrastructural and research facility. It may be assigned further research programmes including transfer of technology which is very important for the success of the project. Much wider transfer and demonstration of processing technology for solid wood products should follow up for the continual production of sustainable and diversified use of tropical plantation resources in China.

Executing Agency, in collaboration with other Provincial Governments and

private industry partners can organize training programmes for the farmers, local leaders towards creating awareness among all the stakeholders. Opportunity exists for growing trees on a longer rotation-length and for long-length harvesting. However, the actual benefit accruing to the people can lead to better demonstrative impact of the project.

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The ITTO should continue to promote increased and further processing of tropical timber from sustainable sources in producing member countries with a view to promote industrialization and thereby increasing the employment opportunities. The continuity of the project by way of second phase or a new project proposal may be visualized on the sustainability of the project and especially when the project executed or demonstrated the technical capacity to sustain the results and undertake or follow up the responsibilities.

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PART – II MAIN TEXT

1. Project context

1.1 Background: Rationale and Objectives This project was aimed to improve and diversify the use of eucalyptus and

acacia plantations in South China by means of development and dissemination of the adequate processing techniques for solid wood products.

The project was to be implemented under the overall supervision of the

National Forestry Administration and the Ministry of Foreign Trade and Economic Cooperation. As the executing agency of the project, the China Research Institute of Wood Industry, CAF was directly responsible for the management and implementation of the activities of the project. The institute has six departments: Wood properties, Wood-based Panels, Wood Processing, Wood Adhesive and Panel Surface Finishing, Wood Protection, and Machinery and Automation. It was concluded from the pre-project that some new species such as E. urophylla, E. pellita, E. cloeziane, E. tereticornis and A. auriculiformis planted for solid wood production have been introduced recently in China. Currently these new promising species are in the stage of experiment and planted on a very small scale. The field experiments concluded that these newly planted species grow fast and the wood has high density, fine grain, and beautiful figure and colors. This exhibits the great potential of these species for solid wood utilization. However, there is no study on the wood properties of these species and therefore, the public and local policy makers are not sure if these species can be suitable for high value-added solid wood uses. This project therefore, aimed at systematic study of the suitability of these newly planted species as solid wood products to provide a guide if these promising species can be taken as a more suitable future resource for higher value-added solid wood products in China.

In China, the per capita average forest land, forest stock volume and amount of timber consumption account for approximately 15, 11 and 17% of that of the world respectively. The Government of China launched a National Forest Conservation Programme and thus imposed a ban accordingly on timber harvesting in Natural forests in July 1998, which had an overall effect on reducing log production. This project was an attempt to broaden the wide resources and reduce the timber waste to meet the demand of the industries from the available plantations of eucalyptus and acacia in the country. The scientific research was intended to establish that the eucalyptus and acacia plantation timber have very good properties and qualities suitable as solid wood production.

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The Intended direct beneficiaries of the project are the farmers, rural communities, provincial Governments, industries and the policy makers. The project covers Guangxi, Guangdong and Hainan provinces in the southern part of China.

In the first project steering committee meeting held on 19th July, 2002 in Beijing, the following important decisions were taken which provided a good direction and vision to the project for wider utility of research results: Improve proposed market study by engaging an international consultant

Include Shanghai in domestic market study Include two Eucalyptus species (Eucalyptus tereticornis and E. Urophylla) in

the project research due to their potentials and exclude two other eucalyptus species (E. torelliana and E. camaludensis)

The project duration was 48 months but the project was completed in 54

months. The duration of the project was extended by 6 months only, required for the publication of research results and papers. The actual cost of the project after completion was US$ 1,334,322.95. The implementing agency – Research Institute of Wood Industry, Chinese Academy of Forestry (CRIWI-CAF) has got its expenditure audited and the audit report has been submitted to ITTO. 1.2 Outputs and Activities

Following are the most significant achievements of the project towards the

sustainable development and utilization of tropical tree plantation resources in China. The planning of travel schedules lacked the time to cover all the experimental sites. However, the achievements of the activities as specified output-wise are given below:

1.2.1 Output No. 1.1: Appropriate techniques for sawing and drying of E.exserta, E. citriodora, E. grandis, E. urophyllaxgrandis and Acacia mangium by using existing sawing machines and drying facilities.

Achievements: (i) Split and deformation of lumber could be greatly reduced after four (4)

months’ water spraying on logs.

(ii) Suitable sawing strategies were developed for the four species:

Cant sawing for E. citriodora Live sawing for E. exserta Live sawing for E. grandis Around sawing for E. urophyllaxgrandis

(iii) Completed four technical reports and 4 papers and one national

conference.

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(iv) Gained the drying characteristics of four species of eucalyptus and one

species of acacia. Based on the results, the laboratory testing of drying schedules was made out.

(v) Controlled air drying is suggested to pre-dry these tropical plantation

woods to moisture content of 30% and then kiln drying to final moisture content.

(vi) Activities of international consultants were carried out and the

consultant’s report submitted.

(vii) Participation in XXII IUFRO Conference at Brisbane in 2005. 1.2.2 Output No. 2: Appropriate techniques for finger-jointed lamination of E.

exserta, E. citriodora, E. grandis, E. urophylla X grandis and Acacia mangium by using existing machines.

Achievements: (i) International consultants conducted the activities and the reports were

submitted.

(ii) Study tour was conducted to Australia and the report was submitted.

(iii) Completed one technical report and published 8 papers. 1.2.3 Output No. 3: An assessment report on the suitability of newly-planted

promising species: E. torelliance, E.pellita, E. cloeziane, E. camldulensis and Acacia auriculiformis as solid wood products.

Achievements:

(i) Completed 10 reports on the physical and mechanical properties according to Chinese National Standard.

(ii) Two study tours to Brazil and Malaysia were undertaken and the reports were submitted.

(iii) Ten technical reports and three research papers were completed.

1.2.4 Output No. 4: A market study report on the potential application of eucalyptus and acacia plantation timber in the domestic markets Achievements:

(i) The first market study report deals with the supply ability of eucalyptus and acacia wood grown in the tropical area of China, the current status of hardwood utilization in china’s market. The market opportunity competitive ability of related wood products and developing strategy of tropical plantations in China have been described.

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(ii) The second report is purposely oriented to the market analysis for solid

wood products made of Eucalyptus grown in Southern China.

In this way, two market reports on market opportunities of eucalyptus and acacia plantations for solid wood products in China were completed.

1.2.5 Output No. 5: Training course and an international seminar for operators,

technicians and scientists for dissemination of the improved processing technologies and scientific knowledge.

Achievements: (i) Finalized two handbooks for training course materials.

(ii) Two training courses were organized in Guangxi Province (October 13-

15, 2003) and Zhanjiang City of Guangdong Province (November 25-27, 2005) respectively. Total about 65 persons participated in the two training courses.

(iii) The International Conference on “Plantation Eucalyptus: challenge in

products development“,held in Zhangjiang City of Guangdong Province, the People’s Republic of China, on November 28-December 1, 2005. More than 70 representatives from 10 countries participated in this four-day international conference.

1.2.6 Output No. 6: Publication of a brochure to disseminate the findings of this

project to operators, technicians, scientists and officers.

Achievements:

(i) Compiled a brochure on the processing and utilization of Chinese tropical plantation timber based on the project outputs.

(ii) Completed one technical book (in Chinese) disseminating the findings of this project.

(iii) Completed three technical reports in English on the utilization of eucalyptus and acacia.

(iv) Finished three project brochures both in English and Chinese.

(v) Finished a practical technical manual in Chinese for eucalyptus saw

milling and drying techniques before the conduct of the second training course in the second half of 2005.

(vi) Dissemination of the outcomes of the research results through training courses, international conference, internet and mail etc.

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Eucalyptus Nursery at China Eucalyptus Research and Development Center (CERDC), Zhanjiang Photo: Dr. Bipin Behari

Eucalyptus Wood Processing Unit in Zhanjiang. Photo: Dr. Bipin Behari

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1.2.7 Output No. 7: Demonstration of the solid wood products, such as flooring,

furniture and window frame etc. to show the better way to utilize tropical plantation timber. Achievements: (i) Design and manufacture of solid wood products such as flooring,

furniture and window frame etc.

(ii) Besides, the two domestic market studies, two training courses, an international conference, a number of handbooks and brochures, the following three international consultant reports were also completed:

(a) International consultancy report for eucalyptus and acacia lumber

processing

(b) International consultancy report on economic analysis of eucalyptus and acacia plantations for supply of solid wood products in China

(c) International consultancy report on market investigation on the

utilization of tropical plantation woods in China.

1.2.8 Published Technical Reports and Papers:

1. Report on selection of Eucalyptus and Acacia Species for Production of Solid Wood Products in China.

After comprehensive investigation in Guangdong and Guangxi Provinces, the vast majority of these plantations are being managed for the production of pulpwood and the main species are E. urophylla and its hybrids, E. grandis, E. globulus, Acacia mangium, A. crassicarpa and some A. auriculiformis.

It is suggested that genetic improvement of some of the current eucalyptus and acacia species, along with introduction of other species lesser known in China, should be pursued to support development of forest plantations for saw log production. Priority species for this include E. camaldulensis, E. pellita, E. torelliana, E. saligna, E. cloeziana, A. cicinnata, A. melanoxylon and A. dealbata. In combination with appropriate silvicultural practice, there is potential for the right varieties of these species to produce high density, fine grain quality sawn timbers suited for a wide range of applications.

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2. Report of Testing on the Wood Properties from Tropical Plantation

The wood properties (anatomical, chemical and physical & mechanical properties) of the existing eucalyptus and acacia plantations (E. citriodora, E. exserta, E. grandis, E. urophylla x grandis and A. mangium) and newly-planted promising species: E. urophylla, E. pellita, E. cloeziana, E. tereticornis and A. auriculiformis as solid wood products were studied in the report. These data are very useful for assessment on the suitability of existing and newly-planted promising species as solid wood products.

3. Report on Comparison of Growth Stress among 8 Eucalyptus Species

The growth stress of standing trees and fallen logs of 8 Eucalyptus species mentioned above was measured and compared by mean of growth stress meter made by the Institute of Tropical Forest, France at 4 directions (East, West, South and North) and at 5 different heights (0.3m, 1.3m, 3.3m, 5.3m and 7.3m). The data of the growth strains have been treated and analyzed in this report.

4. Report on the Machining Properties of 3 Eucalyptus Species

Complete testing for machining and painting properties of E. urophylla x grandis, E. exserta, and E. citriodora plantation wood were carried out, which will provide theoretic base and some useful technical information. Juglans cathayensis, the materials commonly used for domestic solid wood furniture production was used as comparative specimen. Machining properties testing was mainly based on ASTM D1666-87 standards and also combined internal practical situation. Six items, which are planning, sanding, shaping, boring, mortising and turning were studied. The machining defects have been identified and distinguished.

Through integrative analysis and evaluation on all data and information of the above-mentioned experiments, it can be believed that the eucalyptus and acacia plantation woods have very good properties and qualities suitable for solid wood production.

5. Report on Pilot sawing of Eucalyptus logs in Southern China

The Pilot sawing experiments were conducted in Nanning and Gunagzhou for domestic eucalyptus and Australian eucalyptus logs respectively. The sawing technology applied was not suitable for eucalyptus logs in local sawmill. Many existent problems were pointed out and it revealed that local sawing technology was needed to be improved for better utilization of resources. The quality of domestic eucalyptus logs was good, and a small amount of logs were sawn in local sawmill, the lumber recovery was reached to 43% but sawing quality was bad. The logs’ quality from Australia was not so good, many pipes inside the logs, and checks in log surface and end, the logs

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were degraded by aging and transportation. The Yuzhu sawmill was improved according to Australian experts’ direction, and the target dimension lumber recovery was about 20%. Therefore, there is large scope for sawing technology to be improved in China.

6. Report on Preliminary Study of Pre-drying on Four Species of Tropical Plantation Woods in China

Because of heavier growth stress and high green moisture content, the four tropical plantation species were usually difficult to be dried with all kinds of drying defects and long drying time. To solve these problems, many kinds of pre-drying methods were commonly used. In this research, air seasoning was used for pre-drying these tropical plantation woods. Results showed: the main drying defects in pre-drying tests on four tropical plantation species were short-narrow end-surface checks; small surface checks and some degrees of warp and cup deformations. The drying defect grade of A. mangium was smaller than other three species; to all four species, the drying defects of pre-drying from initial moisture content to 20% were more severe than from initial moisture content to 40%.

It is therefore, suggested that using common air-seasoning as pre-drying method, pre-drying these tropical plantation species from initial moisture content to around 40% is reasonable in practice, no need to pre-dry them to moisture content of 20%.

7. Report on Study on the processing of Finger-Jointed Lumber

Finger-joints from four species of Eucalyptus E. citriodora, E. exserta, E. urophylla x grandis, E. grandis, were prepared by using two kinds of adhesive, PVAc and API, to get the optimum processing conditions, and analyze effect the performance of finger-joints with different density samples, different combination methods, different finger profiles and different finger type etc.

8. Reports on Market Opportunities of Eucalyptus and Acacia Plantations for Solid Wood Products in China

The first report deals with the supply ability of eucalyptus and acacia wood grown in the tropical area of China and the current status of hardwood utilization in China’s market. Based on this, the competitive ability of related wood products has been evaluated. An attempt has been made to describe the market opportunity and developing strategy of tropical plantations starting from the situation of eucalyptus and acacia wood for solid wood products in the homogeneity market.

The second report is purposely oriented to the market analysis for solid wood products made of Eucalyptus grown in Southern China. It projected a huge market potential for solid wood utilization in China.

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9. Study tour report: “The Future of Tropical Plantations for Wood Products in Malaysia”

According to the work plan, a study tour group visited Malaysia from August 16 to August 30, 2002 to get awareness on the current situation of tropical plantation and its application. This study tour was organised by Forest Research Institute, Malaysia. The members of the Study tour group visited institutions, forestry administrative organizations, trading agencies and mills in Malaysia.

10. Study tour report: “Sustainable Silviculture and Utilisation of Eucalyptus Plantation for Solid Wood Products in Brazil”

According to the work schedule of the project, a study tour group visited Brazilian Research Institutes, universities and companies from October 19 to November 2, 2002 to study silviculture, management and processing fields of eucalyptus plantation; to understand and learn the successful experience in resources’ assessment, utilization and processing techniques of eucalyptus plantation timber.

11. Study tour report “Wood Processing of Eucalyptus Plantation in Australia”

Based on the work schedule of the Project, a study tour group visited Australian National Research Institute, University and Companies from Sept. 8 to Sept. 18, 2003 to study the silviculture, processing, research and training fields focused on Eucalyptus plantations, to understand and learn their successful experiences.

Eucalyptus in Australia has been widely used in manufacturing furniture as well as other value-added products since it has a pleasing appearance and possesses acceptable mechanical properties. In south China, Eucalyptus plantations have been established in large area since 1990’s. But in China, the occurrence of the defects arising from sawing and drying makes it difficult to get high-quality Eucalyptus products. The study tour to Australia resulted into the following recommendations which helped the Executing Agency:

(a) Extending the practical technology of Eucalyptus processing

Sawmilling and drying are the 2 typical keys for Eucalyptus processing

technology, some of these are not with high cost, but so effective to get high quality Eucalyptus timber, e.g., suitable storing and pre-drying. These technologies should be introduced and extended more to Eucalyptus processing and mill, especially small-scale enterprises.

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(b) Strengthening the research aiming at Eucalyptus characteristic

Stress releasing suitably is the threshold for wood processing with high

recovery based on Eucalyptus characteristic. Top research needs to be conducted and strengthened aiming at stress releasing with less deformation. Microwave treatment and line-bar carriage are the 2 main examples of useful technologies to make stress be released better.

(c) Developing Eucalyptus-suited products with high value

Old style furniture is a kind of end-use products based on better

hardness and high strength from solid Eucalyptus wood, which is a kind of high value products in the market. ‘Old style’ can also make Eucalyptus with more additional value. Thus, more Eucalyptus-suited products are still needed to be developed and shown in the market soon.

(d) Training practical operating skills to end-use Eucalyptus utilization

Practical operating skills are important to make full use of Eucalyptus

wood, e.g., furniture making and wood house constructing. Training courses can have more people with better skills step by step and provide them more jobs from the society.

12. Reports of Attending XXII IUFRO World Congress

According to the project work plan, a group of project staff attended the XXII IUFRO Congress in Brisbane, Australia from 8-13 August, 2005. Two presentations based on the outputs of the project were made at the congress; studied and visited the advanced experiments and technology on processing and utilization for Eucalyptus plantation in Australia after congress. A detailed report to this effect was also prepared.

13. Report on the international conference on “Plantation Eucalyptus: Challenge in Product Development”

In terms of the project document, an International conference on

‘Plantation Eucalyptus: Challenge in Products Development’ was held in Zhangjiang city of Guangdong Province, the People’s Republic of China, on November 28-December 1, 2005.

This international conference, an important associated activity of the

project, was organized by China Forest Research Institute of Wood Industry (CRIWI), together with the China Eucalyptus Research Center (CERC) in Zhanjiang. 70 representatives from 10 countries participated in this 4-day international conference. Four invited speakers from India, Malaysia, Cambodia and Myanmar gave the presentations of their country report respectively. Additionally, twenty-five other representatives from six countries gave their oral

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presentations. There were fourteen oral presentations in the session of silviculture and wood quality; eight oral presentation in sawing and drying; five oral presentations in solid wood and wood-based panel products; four oral presentations in the session of wood engineering and markets. There was a detailed deliberation on forestry management, wood trade, wood industry and research & education.

One-day visit to Leizhou Forestry Bureau and South China Experiment

Nursery and three wood products company was also arranged for the participants of International Conference, in order to get more detailed and specific information of eucalyptus plantation in China.

Prof. Gary Waugh from Australia and Mr. Jukka Tissari from Finland

gave their keynote addresses respectively as the International consultant of ITTO. Mr. Jukka Tissari made a detailed presentation on forest products market research in China highlighting the consumption and import of logs and sawn timber, challenges for China’s plantation wood supply expansion and case studies of Mazhang Wood Products Plan and Leizhou Forest Products Industry in Zhanjiang city. The main Recommendations of this international conference and the two international consultants were:

Improve efficiency in eucalyptus growing, harvesting and handling:

(a) Harvesting and transportation efficiency (b) Log yard improvements for handling efficiently larger volumes of smaller

logs and resulting residues and waste.

Develop processing technologies:

(c) Sawing technology suitable for eucalyptus juvenile wood (d) Drying technology and training of operators for eucalyptus sawmills (e) Preservative treatment technology

Develop processing efficiency:

(f) Management training for better production planning (g) Sawmill lay-outs and operational efficiency (h) Labour productivity up-grade through training and organization

Develop plantation products marketing in the export and domestic markets:

(i) Promote eucalyptus and acacia in exports of solid wood through

certification (j) Correct misunderstandings about eucalyptus and acacia wood in the

domestic markets: create a label of “higher performance at a lower cost” (k) Create a marketing strategy for products made of fast-growing plantation

woods

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Demonstrate the economic case for eucalyptus in solid wood products: (l) Compare generation of added value between processing industries, and

value yields per hectare between solid wood industries and pulp & paper (m) Assess the wood-paying capabilities of various product industries for

eucalyptus roundwood

Main Published Papers:

1. Summary of Adhesives for Use of Laminated Lumber of Eucalyptus 2. Study Tour Report: Situation of Utilisation of Eucalyptus Wood in Dalian

Chengda Company in China 3. Study on Gluing Process and Gluability of E. citriodora & E. exserta

Wood 4. Some study about processing of Glued Laminated Timber 5. Preliminary research on bonding properties of 6 kinds of plantation wood 6. Research on Gluing Performance of Poor-bonding Plantation Wood

Industry 7. Effect of Type of Aqeous Polymer Isocyanante on Bonding of Plantation

Wood 8. Research on the Gluability of 4 plantation grown Eucalyptus species 9. Research Status and Developing Trends of Finger-jointed Lumber 10. Comparative study of MOE on three methods of non-destructive test

forecasting 4 kinds of lumber 11. Study on the processing of the finger-jointed lumber of eucalyptus

1.2.9 Training Courses and Consultant Reports:

1. First Training Course:

In terms of the project document and the requirement of ITTO, the first

training course was held in Nanning Hotel of Guangxi Province, the People’s Republic of China, on October 13-15, 2003. 35 persons participated in the first training course. All the trainees, involved in forestry management, wood trade, wood industry and research field, came from 15 different organizations in four provinces including Guangxi, Guangdong, Hainan and Fujian.

During this two-day training course, eight presentations were made: Selection of new eucalyptus for solid wood utilization; Wood properties and utilization of eucalyptus; Felling and sawing of eucalyptus timber; Drying technologies of eucalyptus plantation wood; Machining properties evaluation for eucalyptus plantation; Gluing properties and technology of eucalyptus plantation; Some practical problems to eucalyptus solid wood utilisation; and Eucalyptus products market in China.

The detailed discussions and deliberations took place which was mainly

focused on how to develop and expand the value-added utilization of eucalyptus plantations in China.

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2. Second Training Course:

The second training course on the utilization of eucalyptus was held in Zhanjiang City of Guangdong Province, the People’s Republic of China, on November 25-27, 2005. 30 persons participated in this training course. All trainees, involved in forestry management, wood trade, wood industry and research field came from 15 different organizations in four provinces including Guangxi, Guangdong, Hainan and Fujian.

During this two-day training course, eight presentations were made on

the selection of new eucalyptus species, eucalyptus wood properties, processing and utilization of eucalyptus plantation and eucalyptus products market. The important suggestions by the trainees and trainers including the experts from Australia are summarized as follows:

a) A long term contacts with the project group is expected by means

of e-mail etc. to get the most updated information of both domestic and overseas, related to the eucalyptus wood processing or utilization, as well as other market information.

b) There exists a big potential in eucalyptus sawing-techniques

improvement in South China. CRIWI needs to develop an improved capability in sawing research which is a real weak step in the South China wood processing chain.

c) There is a desperate need to step up efforts in technology

transfer, by demonstration the utilization of the eucalyptus wood to all the wood industry in China, and even in the countries of South-East Asia.

d) A follow up ITTO project to transfer demonstration and broaden

the knowledge of utilization of eucalyptus wood is expected. It will be good if the industries are also involved.

3. Participation in Exhibitions:

The project group participated in two international exhibitions: Shanghai International Wood Machine and Furniture Fittings and Materials and Wood Products Exhibition during February 15 – 19, 2002-2005; and Beijing International Wood Machine and Furniture Fittings and Materials and Wood Products Exhibitions during March 3-7, 2002-2005. In these two exhibitions, ITTO policies and preliminary project outputs were introduced to the participants and information about international and domestic wood market was obtained simultaneously.

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4. Consultant Final Report: International Consultancy for Eucalyptus and Acacia lumber processing

This consultancy was carried out by Prof. Gary Waugh, from Melbourne

University, Australia as wood processing consultant in November and December, 2004. The consultancy consisted of:

Reviewing research activities and reports carried out by CRIWI

under ITTO Project PD 69/01 Assisting and advising CRIWI staff with eucalyptus sawing trials Assisting CRIWI to put in place an international forum for

eucalyptus processing for late 2005 Providing presentations at CRIWI and forest products research

centres on eucalyptus solid wood processing developments.

The consultancy consisted of a visit to CRIWI and other China research institutions in November / December 2004 and the consequential preparation of this report. The review of eucalyptus research activities found a few shortcomings, particularly in the scope of presentations of some of the report. While this does need addressing, the rigor applied to experimental techniques does provide an excellent base to move forward. There was also some excellent work carried out, particularly in reviewing market opportunities for eucalyptus wood and on the application of adhesives for fabrication of laminated products.

The key Recommendations in the consultancy report are:

a) CRIWI needs to develop an improved capacity in sawing research. This is one stage of the processing chain where there are real weaknesses in both research and industrial capacity in China.

b) Opportunities exist to expand research with veneer products, both

for appearance and engineering end-uses. c) There is a desperate need to step up efforts in technology

transfer, particularly in the sawmilling sector (swing, drying and wood machining), which lags far behind the further processing industries in both operational efficiencies and technology uptake.

d) There is a real opportunity for CRIWI to take a more positive

international role in attracting industrial research. It is one of the strongest, best equipped forest products laboratories in the world, with a highly competent research team and needs to adopt broader international marketing strategies to ensure it retains this position.

e) Market research should also look at opportunities for eucalyptus

wood for veneer and structural / engineering end-uses and also investigate the impact that forest certification could have on international markets.

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f) Opportunities for growing trees on a longer rotation length and for

long-length harvesting. This may assist in reducing end-splitting in sawlogs and veneer billets and would give the opportunity for sawing longer-length products for structural uses.

5. Consultant Final Report: A Consultancy Report on Economic

Analysis of Eucalyptus and Acacia Plantations for Supply of Solid Wood Products in China

This is the report of international consultancy work carried out by Prof.

Your Yeo-Chang for the project under the Terms of Reference agreed between the Executive agency and the consultant. The consultant accomplished the following tasks:

a) Gathering information on solid wood market of eucalyptus / acacia as

well as similar wood species. b) Giving an advice after reviewing a series of research report, c) Participating in visiting correlative market and mills, d) Assisting national expert in identifying marketing strategy, and e) Preparing the technical report involving in economic analysis to improve

the economic aspects of the project work/ impacts and its submission.

Prof. Youn from South Korea visited the China Research Institute of Wood Industry, Chinese Academy of Forestry in Beijing and the project field sites located in Nanning city in Guangxi Province during the period from 13-22 April, 2005. He also visited forest plantations established by two forest enterprises namely, Guangxi Dong Men Forest Farm Guangxi Gaofeng Forest Farm, and Guangxi Green Morning Science Co., Ltd.

6. Consultant Final Report: Market Investigation on the Utilisation of Tropical Plantation Woods in China

This consultancy was carried out by Mr. Jukka Tapani TISSARI, Senior Consultant – Head of Business Intelligence and Market Research from Savcor Indufor Oy, Helsinki, Finland from 19-30th November, 2005 in Beijing and Zhanjiang. This consultancy included the following main jobs:

a) Gathering information on solid wood market of eucalyptus / acacia as well as similar wood species;

b) Giving an advice after reviewing the first phase domestic market research report,

c) Participating in visiting correlative market and mills; d) Assisting national expert in identifying marketing strategy; and e) Preparing the technical report at the end of this assignment specifying

the findings and recommendations, especially on the second phase domestic market research.

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The consultant elaborated the China’s consumption and import of logs and sawn timber specifying the main challenges for China’s plantation wood supply expansion. He also explained the case studies of Mazhang Wood Products Plan and Leizhou Forest Products Industry in Zhanjiang City. Very little market or processing information was made available on acacia that explains why it plays a minor role in this report. A key bottleneck is the lacking supply chain from the limited plantation base to the processing industries. China should, however, follow closely the new developments in its neighboring countries including Malaysia and Australia.

Besides making a number of Recommendations in his repot, the Consultant made a detailed presentation at the International Conference on ‘Plantation Eucalyptus: Challenge in Product Development’. Eucalyptus plantation development and transformation into solid wood products is in its early phases in China. It could offer at least a partial solution for Southern China’s large-scale wood manufacturing industries to improve their self-sufficiency and innovate for new business models. Those are needed under current resource constraints and globalization of wood products and furniture trade.

1.3 Compliance with the ITTO Objectives

The project contributed successfully towards achieving the following ITTO objectives as set out in Article 1 of the International Tropical Timber Agreement (ITTA, 1994):

(c) To contribute to the processing and sustainable development; (f) To promote and support research and development with a view to

improve forest management and efficiency of wood utilization as well as increasing the capacity to conserve and enhance other forest value in timber producing tropical forests;

(i) To promote increased and further processing of tropical timber from

sustainable sources in producing member countries with a view to promote their industrialization and thereby increasing their employment opportunities;

(l) To encourage members to develop National policies aimed at

sustainable utilization and conservation of timber producing forests and their genetic resources and at maintaining the ecological balances in the regions concerned, in the context of tropical timber trade;

(m) To promote to access to technologies and technical cooperation to

implement the objectives.

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The research and development were carried out by the executing agency in an excellent manner towards the improvement of forest management and efficiency of wood utilization. Considerable efforts were made to increase the capacity of stakeholders to promote the industrialization through an increased access to technologies and technical co-operation. Herculean efforts were made to create awareness through the publication of technical reports, brochures, training and exhibitions etc. Such efforts will also guide and encourage the policy makers and other stakeholders towards the sustainable utilization and conservation of timber producing forests and their genetic resources.

All the above indicated ITTO objectives as per ITTA, 1994 (c), (f), (i), (l) and (m)

were by and large achieved except the scope for export earnings from such research experiments and motivating efforts. The transfer of technology, market study and economic analysis have to cast visible and reasonable impact. Therefore, the project has successfully achieved ITTO Objectives 2000 so far as sustainable management of forests is concerned whereas its trade development and transparency are the follow up actions.

1.4 Relation to Action Plan and Priorities

This project was consistent with the organisation’s priorities in the field of ‘Forest Industry’ in the ITTO Yokohama Action Plan (2002-2006) as follows:- Forest Industry

Goal 1: Promote increased and further processing of tropical timber

from sustainable sources 3. Commission and publish analytical studies in the field of tropical timber

processing to identify and quantify the final use of processed wood products and to identify critical knowledge and information gaps.

5. Encourage members and assist them, where appropriate, to:

Clarify the benefits of downstream processing for creating or producing high-value, internationally competitive products;

Formulate research and development proposals which assist with the

piloting and commercialization of new processing and manufacturing technologies;

Organise workshops/ seminars on the use of new and / or improved

techniques and technology, including increased further processing; and

Undertake sector-wide training needs analyses; development of

training strategies, training facilities and course curricula; preparation of training manuals; and delivery of training courses.

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Goal 2: Improve industry’s efficiency of processing and utilization of tropical timber from sustainable sources

1. Develop, publish and disseminate information on increasing utilization

efficiency and the reduction of losses and waste throughout the production chain.

2. Facilitate and encourage industrial demonstration projects addressing

increased production and utilization efficiency, and the competitiveness of the tropical timber industry.

7. Promote increased awareness and utilization of existing information on

wood properties and end-use requirements.

8. Encourage members and assist them, where appropriate, to: Create and publicize industrial demonstration projects on, for

example: efficient and socially sound community-based forest industries;

Formulate research and development of proposals that assist with

the piloting and commercialization of improved and / or innovative utilization methodologies.

 

2. Evaluation Scope and Focus

The primary purpose of this evaluation was to provide a concise diagnosis to pinpoint the successful and unsuccessful outcomes, the reasons for successes and failures, and the project’s contribution towards the achievement of ITTO’s Objective 2000 and to draw lessons that could be used to improve future similar projects.

Following are the specific Terms of Reference (ToR) for the Ex-Post Evaluation that guided the evaluation of the project:

(i) To provide a concise diagnosis of the project so as to point out the successful and unsuccessful outcomes of the project, the reasons for successes and failures, and the contribution of the project towards the achievement of ITTO Objective 2000, and to draw lessons that can be used to improve similar projects in future.

(ii) To assess the project’s design and contribution to the achievement of their respective objectives.

(iii) To assess the achievement of the project’s outputs and specific objectives. (iv) To evaluate the impact and relevance of the project, detailing their impact on

development and specific objectives as stated in the project documents. (v) To determine the effectiveness of technology transfer to target groups.

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(vi) To assess the overall post-project situation for the project, including the conditions of their intended direct or indirect beneficiaries.

(vii) To define and assess unexpected effects and impacts, either harmful or

beneficial, and present the reasons for their occurrences. (viii) To analyze and assess implementation efficiency, including the technical,

financial and managerial aspects. (ix) To assess the overall sustainability of the project after completion, and include

appropriate recommendations to safeguard the continuing of their positive impacts, and enhance utilization of the technologies and other results developed by the project.

(x) Taking into account the results of the evaluation, make an overall assessment

of the project’s relative success or failure, to summarize the key lessons learnt; and identify any issues or problems which should be taken into account in designing and implementing similar projects in future.

(xi) To asses the overall cost of the project with original budget provisions, and

their respective linkage with the overall results. (xii) To prepare the evaluation report in accordance with the references for the

Project Evaluation Report, as contained in the ITTO Manual for Project Monitoring, Review and Evaluation.

(xiii) To assess the projects’ contribution to the relevant ITTA objectives (1994) and

relevant ITTO Action Plan.

3. Evaluation Methodology

The evaluation was carried out approximately two years after the completion of the project. As an initial step, familiarization with the project, logical framework and its picture of success was done by revisiting the project objectives, intended beneficiaries and outcomes and how these linked with the higher order objectives of ITTO. The Logical Framework Matrix (LFM) was used to a reasonable extent in this evaluation.

The reference documents dispatched by ITTO included the proposal (or project document), monitoring reports, completion report, audit report and ITTO Manual for Project Evaluation, Review and Monitoring. These all helped in the evaluation. The necessary technical reports, consultant reports and publications etc. were provided by the executing agency on the first day of the evaluation meeting.

The evaluation was done using the combination of personal interviews, visits to

experimental sites, visit to some factories and an exhaustive review of the project documents, technical reports, consultant reports and publications. The visits to the China Eucalyptus Research and Development Center (CERDC), Zhanjiang in Guangdong Province was very useful. Visits to the Nursery, eucalyptus plantations of CERDC, Solid wood produced for exhibitions, Wood Cheeps Field of Leizhou Forest Bureau; Veneer plant, flake board and plywood factory and Mazhang furniture factory

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etc. as well as discussions with some of the direct and indirect beneficiaries of the project further enhanced the consultants’ understanding of the project details and deepened the analysis/ evaluation of the project. The discussion and interaction with the scientists of CERDC gave a detailed picture of eucalyptus in China and the multifarious efforts of the centre in this respect. The detailed programme of the Ex-Post evaluation of the two ITTO projects taken together PD 69/01 Rev. 2 (I) and PD 10/00 Rev. 2 (I, F) is given in Annexure.

4. Findings and Lessons Learnt

4.1 Project Design and Contribution to the Achievement of General Objective The project area covered Guangxi, Guangdong and Hainan Provinces in the Southern part of China. The project implementing agency researched on the sawing, drying and gluing technologies and thereby assessed the adoption ability of tropical plantation species of eucalyptus and acacia for solid wood utilization. It is apparent to form a common concept that the utilization of young and fast grown tropical plantation species such as eucalyptus and acacia as higher value solid wood products will provide a much higher economic returns, which in turn has a major influence on the development of sustainable tropical forest management in China. CRIWI through its credible technology and experience potential established that it has a capacity to assist local industry to be able to better processing and better position eucalyptus products in both domestic and global markets. The organization of the project activities with the splendid coordination and effective management could yield useful research results. The publication of research results through technical reports is remarkable.

Since, the project activities were spread over a number of cities and counties under different provinces, development of good co-ordination and understanding with field staff, officers / officials of concerned Provinces, scientists and staff of CERDC is very important and key to the success of the project.

The definition of the problem about the lack of appropriate processing

technology for the existing tropical plantation resources was very correct. The chosen route – through both overseas mature technology and local Research & development with local wood company was also appropriate. The identification of the problem about insufficient scientific knowledge on the wood properties and the suitability for solid wood products for the promising eucalyptus and acacia plantation species newly-planted for solid wood production was very correct as well. The chosen alternative route - through both distribution of scientific knowledge derived from the project and evaluation results on wood properties and the suitability for solid wood products of newly-planted plantation species through technical reports, handbooks, brochures, consultant reports, training courses and international conference etc., was also very much encouraging.

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4.2 Achievement of the Project Outputs and Specific Objectives

Specific Objective 1: To develop and adopt an appropriate set of processing techniques for solid wood products such as joinery products, furniture and building products from the existing eucalyptus and acacia plantations (E.exserta, E. citriodora, E. grandis, E. urophylla X grandis and Acacia mangium); to evaluate the suitability of newly-planted eucalyptus and acacia plantations (E. torelliana, E.pellita, e. cloeziane, E. camaldulensis and A. auriculiformis). These species hold promise for the production of a wide range of solid wood and composite products by conducting a series of studies on their wood properties;

Specific Objective 2: To transfer the technologies and disseminate the scientific knowledge obtained in this project to the relevant public by conducting a series of activities such as a market study, training courses, seminars, brochure release and by demonstrating solid wood products made from plantation timbers in South China.

The following reported outputs were found completed and discussed with the

Project staff in relation to the above two specific objectives:-

Appropriate techniques for sawing and drying of E.exserta, E. citriodora, E. grandis, E. urophyllaxgrandis and Acacia mangium by using existing sawing machines and drying facilities.

Appropriate techniques for finger-jointed lamination of E. exserta, E.

citriodora, E. grandis, E. urophylla X grandis and Acacia mangium by using existing machines.

An assessment report on the suitability of newly-planted promising

species: E. torelliance, E.pellita, E. cloeziane, E. camldulensis and Acacia auriculiformis as solid wood products.

A market study report on the potential application of eucalyptus and

acacia plantation timber in the domestic markets.

Training courses and an international seminar for operators, technicians and scientists for dissemination of the improved processing technologies and scientific knowledge.

Publication of a brochure to disseminate the findings of this project to

operators, technicians, scientists and officers.

Demonstration of the solid wood products such as flooring, furniture and window frame etc. to show the better way to utilize tropical plantation timber.

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Involvement of the Provincial Governments, scientists and staff of CERDC,

Zhanjiang and other stakeholders in the implementation of the Project proved quite useful as component activities under the above outputs could be shared with good co-ordination leading towards the success of the project.

All the research results and findings have been well documented in the form of technical reports, papers etc. The efforts made for documenting research results, their analysis and publications for creating awareness are remarkable. But only one thing less appreciated was that such documents must have crossed the limit of the country i.e. some research results and papers must have been published in international journals / periodicals also. Moreover, economic and market studies and analysis are required for the acceptance / transfer of technology to the industry, farmers and other stakeholders. 4.3 Impact and Relevance of the Project

The relevance of the project is further clear from its activities of creating awareness and dissemination of research results for the development of wood processing technology in respect of eucalyptus and acacia species.

There are mainly four difficulties in processing and utilizing the eucalyptus wood:

(a) eucalyptus that contain crisp heart at most have high growth strain and its logs are easily to crack so that it is difficult to saw

(b) eucalyptus shows great deformation, surface split and serious crimple when drying

(c) some species have bad stability in use process along with mutative climate and environment, and

(d) diameter of eucalyptus tree is commonly small and juvenile wood is comparatively large, and sapwood is mostly not rotten resistant.

The processing technology for solid wood products from the existing eucalyptus

plantations was developed to contribute to China tropical wood industry. The great potential of using tropical plantation for high value added solid wood products was accepted by local people and appreciated by policy makers.

The major target beneficiaries of the project are the private timber companies,

State owned Forest Farms (about 65% of proportion) and private owners (about 35%) of tropical plantation trees. There has appeared a growing interest in manufacturing high value-added products from eucalyptus plantation for the better economic returns, because of the decrease of chip price and demand pressure resulting from protecting the natural forests. The project has no doubt helped the beneficiaries to learn about the success and failures they have committed by using obsolete technology and to realize the better technology to be adopted to upgrade the efficiency and competitiveness of the tropical plantation industry in China.

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4.4 Effectiveness of Technology Transfer The project technical achievements are divided into the following three parts:

(a) the assessment of the properties of eucalyptus wood of main species, (b) the drying and sawing techniques of eucalyptus timbers, and (c) the finger-joint technique for value-added eucalyptus products. The major research work and the development of technology were confined

largely to eucalyptus in comparison to acacia.

The training courses and international conference made good efforts to understand the international technology and attain knowledge and thereby disseminating to the local industries and other stakeholders. This also gave an opportunity for further strengthening of Research and Development in the filed of improving and diversifying the use of tropical plantation timber in China.

Main private timber companies such as the Pingxiang Timber Processing Factory in Guangxi Province and the Zhanjiang Eucalyptus Timber Processing Factory in Guangdong province were added at the time of second revision of the project to facilitate the promotion of processing technologies for plantation timbers in southern China but they could not disseminate the research results at the appropriate level. CRIWI can play a leading role through an increased effort in sawing technology and technology transfer in a dramatically lifting what is seen by the consultant also as the weakest link in wood processing industry in China.

Eucalyptus plantation development and transformation into solid wood products

is in its early phase in China. The project would no doubt offer at least partial solution for southern China’s large scale wood manufacturing industries to improve their self-sufficiency and innovate for new business models. The small volume of eucalyptus and acacia wood for solid wood products could not effect on the market. The necessary efforts in continuity regarding the transfer of technology through demonstration of the utilization of eucalyptus and acacia wood can go a long way in having a desired impact.

4.5 Overall Post-project Situation and Sustainability

The evaluation of the project was done two years after the completion of the project and it was established successfully that some of the fast growing eucalyptus and acacia species have suitable wood properties for high value solid wood products. The necessary sawing technology, drying and gluing technology were studied, researched and applied for their successful applications on eucalyptus species. The experiences gained in Brazil, Australia and Malaysia were also experimented in this context. The pilot sawing experiments were conducted in Chengda Wood Industry Company and Qibo forest farm in Nanning for domestic eucalyptus logs and in Yuzhu

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saw mill in Guangzhou, Guangdong Province for Australian eucalyptus logs. It was also found that the eucalyptus utilization as solid woods is better than acacia due to better wood properties, density and colour.

To upgrade the efficiency and competitiveness of tropical plantation industry by

adopting a mature technology, the survey, Research and Development and the extension of technology carried out in this project still have large space to continually spread the project effects on public and stakeholders. It is only in the early stage. The demonstration of processing technology for the sustainable development an utilization of tropical plantation resources in China may also be a follow up action.

The Chinese Government policy on the restriction of natural forests virtually resulted in more silviculture and high value-added use of tropical plantation timber. This will continue to promote the development of tropical plantation industry. Such a Government policy further provided a good basis for the development of the project with its objectives to promote improved and diversified use of tropical plantation timbers. It will continue to be very much instrumental for the sustainability of the project in future.

This project brought the project staff, local authority, forest industry sector, Provincial Governments, research and development organizations like CERDC closer in achieving the outputs of the project and organizing the training courses etc. The demonstration and training plan can go ahead with the same team spirit and co-operation to promote the technology and production development derived from the project achievements. 4.6 Unexpected Effects and Impacts

The project did not witness many unexpected effects but publication of papers delayed the completion of the project by 6 (six) months. Moreover, the development of technology was confined to eucalyptus and similarly the transfer of technology was confined to limited industries having very limited demonstrative effect. Chengda Wood Industry Company in Nanning had technical co-operation with CAF but its subsequent closure was a great blow to the efforts of demonstration and transfer of technology.

The involvement of industries for carrying out the successful research, experiments for the demonstrative effect of the transfer of technology must be done very carefully as it has far reaching impact. The low volume of eucalyptus and acacia wood and their products could not have reasonable effect on the market. 4.7 Efficiency of Implementation

The State Forestry Administration and CAF were responsible for the monitoring and evaluation of the project, giving necessary support at the Government level. As the major project partner, China Eucalyptus Research & Development Centre

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(CERDC) was in-charge of co-arranging the training courses and international conference, providing the data of tropical plantation resources and industry and presenting in the training courses and workshop etc. CERDC provided necessary and excellent support for the project. It is an excellent research center with superb infrastructural facilities. It has good research capacity and large quantity of tissue culture raised seedlings of eucalyptus for large scale plantations.

Centre of Forestry Management & Development (CFMD) of the Guangxi Forestry Bureau was responsible for providing the necessary data of local tropical plantation resources and industry, and gathering the forestry centre and factories involved in tropical plantations to attend the training courses and international conference and coordinating the market investigation.

Hainan Chengda Wood Products Company was responsible for the coordination in the pilot trials, designing and processing of some part of solid wood demonstration. Dongen Forest Farm, Guangxi and Guangxi University were responsible for the supply of the trial materials and assist to arranging the training courses.

Necessary and excellent support provided by each project partner is the key

factor to better implementing the project activities and its success.

During the project implementation, 5 (five) Project Steering Committee (PSC) meetings including representatives from ITTO, Chinese Ministry of Commerce, State Forestry Administration, CAF, Executing Agency and project partners and 5 Project Technical Committee (PTC) meetings consisting of participants of executive agency and consultants were held in July, 2002, October, 2003, June, 2004, May, 2005 and April, 2006, to monitor and evaluate quality of project implementing and planning. Qualified and effective recommendations and comments from PTC and PSC meeting provided good quality control for project activities and outputs.

The most important aspect regarding the successful and effective

implementation of the project is the excellent co-operation and the team spirit. Whatever shortfalls were observed, it was regarding the acacia and non-visible impact of technology in the market. However, opportunity exists for the demonstration of processing technology as a follow up action of the project for the suitable development and more diversified utilization of tropical plantation resources in China.

    

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PART - III Conclusions and Recommendations

1. Conclusions

1.1 Specific Observations

Some of the important specific observations in the whole evaluation of the outputs, activities and their achievements are as follows:-

(i) The research work and publication of technical reports are excellent. (ii) The project implementing agency has researched on the sawing, drying,

and gluing technologies and thereby assessed the adaption ability of tropical plantation species of eucalyptus and acacia for solid wood utilization.

(iii) With the properties of fast growing, high density and beautiful grain,

eucalyptus provides a favorable perspective of wood processing and utilization.

(iv) At some places in the completion report, conclusions were drawn by

executing agency without analysis / survey after the completion of the project while making its comparison with pre-project scenario.

(v) More value added products of acacia have not been developed. (vi) Acacia wood is rarely used. Its supply chain from the limited plantation

base (200,000 ha.) to the processing industries has yet to be formed. (vii) Even acacia finger-jointed panels are not seen in the market because of

its lower log price. (viii) Very little market or processing information is available on acacia. (ix) Quality control of solid wood products made from eucalyptus and acacia

is poor which needs attention. (x) One of the verifiable indicator in the project document was that wood

industry productivity will be raised by 5%, which is yet to be seen in the context of this project.

(xi) Invited speakers from other countries for international conference need to

be carefully chosen giving emphasis to their expertise or the working experience in the concerned field.

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(xii) After a research experiment when a result is arrived at, on the basis of

data and its statistical analysis, the reasoning for arriving at such a result need to be specified.

(xiii) China Eucalyptus Research and Development Center (CERDC),

Zhanjiang is an excellent research centre with superb infrastructural facility. It has a good research capacity which can be more vividly utilized.

1.2 Strengths and Weaknesses

The major strengths of the project are:

(i) The implementing agency and the project leader have formed a very good team for conducting the research.

(ii) The capacity exists for conducting research and publication of research

results. (iii) For sustainability, the CAF is committed for necessary technological and

financial support. (iv) Industries are available for making experiments in consultation with the

scientists. (v) Potential market is available for eucalyptus and acacia solid wood

products. (vi) Sufficient plantations of eucalyptus and acacia are available for the

utilization of the developed technology to meet the domestic market demand.

(vii) The necessary infrastructure for research in the form of laboratory test

etc. is available. (viii) The favourable Government policy to promote diversified use of tropical

plantation timbers. The major weaknesses are:

(i) Economic and market studies, research and analysis were not given

adequate attention for the acceptance/transfer of technology to the industries, farmers and other stakeholders.

(ii) More value added products of acacia have not been developed.

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(iii) The lack of demand-supply analysis of Eucalyptus and acacia before and after the project, could not specify the project impact assessment more lucidly.

(iv) New developments in wood processing technology in the neighbouring

countries need to be seen while developing and transferring the technology to the stakeholders.

(v) Non-existence of a native tropical plantation solid wood marketing

strategy across a variety of complementary products. (vi) The selection of pilot factory for conducting experiments regarding

transfer of technology for demonstration would have been better if on the basis of care and share approach.

1.3 Recommendations

Following are some of the most important lessons learnt from the implementation and outputs and from the outcomes of the project that must be carefully considered while planning and supporting similar projects in future:

1) Well structured project design is a key to the success of the project. 2) Through the integrative analysis and evaluation on all data and

information of the series of experiments conducted, it is established that Eucalyptus and Acacia plantation woods have good properties and qualities suitable for solid wood production.

3) Opportunity exists for the demonstration of processing technology as a

follow up action of the project for the suitable development and more diversified utilization of tropical plantation resources in China.

4) New developments in wood processing technology need to be looked in

the neighboring countries also. 5) Opportunity exists for growing trees on a longer rotation-length and for

long-length harvesting. This may assist in reducing end-splitting in sawlogs and veneer billets and would give the opportunity for sawing longer-length products for structural uses.

6) Market and market study need to be strengthened to promote the

sustainable development of tropical plantation/industry. 7) Need to develop a native tropical plantation solid woods’ marketing

strategy across a variety of complementary products.

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8) Market research should also look at opportunities for Eucalyptus wood for veneer and structural/engineering end-uses and also investigate the impact that forest certification could have on international markets.

9) The need to ensure compatibility between export trade expansion and

sustainable forest resource utilization gives justification to certification of forest management, chain-of-custody and the related labeling of wood products.

10) Plantation of a species by farmers or growers depends on many factors

but the predominant one is the quick economic return which needs to be duly addressed.

11) This project has more space to continually spread the project effects on

public. The small volume of eucalyptus and acacia wood for solid wood products could not effect on the market. More and more emphasis may be given to value-added wood utilization.

12) More and more Eucalyptus suited products are required to be developed

and displayed in the market. 13) In the technical reports and research papers, sufficient references may

be given from other countries in the discussion and analysis context. Moreover, technical / research papers need to be published in international journals / periodicals for wider utility and impact.

14) The demand-supply analysis of Eucalyptus and acacia vis-à-vis the

development of technology and adoption by industry need to be analyzed for proper project impact assessment.

15) The China Eucalyptus Research and Development Center (CERDC) in

Zhanjiang has superb infrastructural and research facility. It may be assigned further research programmes including transfer of technology which is very important for the success of the project. Much wider transfer and demonstration of processing technology for solid wood products should follow up for the continual production of sustainable and diversified use of tropical plantation resources in China.

16) The continuity of the project by way of second phase or a new project

proposal must be visualized on the sustainability of the project and especially when the project executed or demonstrated the technical capacity to sustain the results and undertake or follow up the responsibilities.

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17) Where project beneficiaries are identified, it is also necessary to make clear as to how they would actual get the benefit. The actual benefit accruing to the people can lead to better demonstrative impact of the project.

18) While conducting a research project, detailed literature surveys from

other countries must also be done with the focus on research, which helps in better analysis and dissemination of results in lesser efforts and time.

19) The involvement of stakeholders right from the beginning is the

testament to the success of the project. 20) For projects focusing on training and capacity building, the project

proposal should be supported by needs assessment, clarifications of curricula or training modules and specific targets to be trained etc.

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PROGRAMME OF EX-POST EVALUATION OF THE ITTO PROJECTS PD 69/01 Rev. 1 (I) AND ITTO PD 10/00 Rev. 2 (I, F) IN CHINA

Date Place Issue

16.6.2008 (Monday)

Beijing Dr. Bipin Behari reached Xiangshan Hotel, Beijing, China. Brief awareness talk regarding programme and domestic visits

17.6.2008 (Tuesday)

CRIWI (Research Institute of Wood Industry), Beijing

(a) 9:00 open meeting in Room No. 315 of CRIWI Toastmaster: Prof. Dr. Lu Jianxiong, Deputy Director, CRIWI Exchange of views / remarks

(b) Reviewed the draft schedule of ex-post evaluation Brief introduction through powerpoint presentation on completion of the ITTO PD 10/00 (I) project by Prof. Fu Maoyi, Project Leader

(c) Brief introduction through powerpoint presentation on completion of the ITTO PD 69/01 (I) project by Prof. Jiang Xiaomei, Professor

(d) Afternoon

All achievements (outputs) including reports and published book & handbook were received and some issues were clarified.

(e) Desk review of project information and documents for both projects and discussion

18.6.2008 (Wednesday)

RISF, Fuyang Zhejiang province,

Guangning, Guangdong

province

From Beijing to Fuyang (Flight No.CA 1509) Departure time: 8:00 Arrival time: 11:00 (Fuyang) Afternoon: visited LIDA Bamboo Processing Co. Ltd. (Hangzhou)

19.6.2008 (Thursday)

From Fuyang to Guangning: (Flight No. CA 1727) Departure time: 8:55 Arrival time: 11:00 (Guangzhou) 3-hour driving to Guangning Visited bamboo experimental sites at Gushui, Guangning. Discussions with project leader and his staff / team.

20.6.2008 (Friday)

Visited bamboo plantations (Experimental areas) at Rogou, Gunagning and near Guangning Forestry Research Institute. 3-hour driving back to Guangzhou in the afternoon From Guangzhou to Zhanjiang (Flight No.CZ 3325) Departure time: 17:10 Arrival time: 18:20

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Date Place Issue 21.6.2008 (Saturday)

CERDC, Zhanjiang, Guangdong province

Visited to the ITTO PD 69/01 (I) project site (China Eucalyptus Research & Development Center) (CERDC), Zhanjiang, Guangdong, Field visit of Eucalyptus plantation forest and plant Visited: a) Nursery b) Eucalypt Plantation (1-6 year , including E. grandis

X urophylla, E. urophylla and E. torelliana) in Zhanjiang-Southern Seedling Base, and

c) Solid products produced by ITTO PD 69/01 (I) Project for exhibition

d) Wood Cheeps Field of Leizhou Forest Bureau; e) Veneer plant and Plywood factory; and f) Eucalypt Plantation (1-6 year , including E. grandis

X urophylla, E. urophylla and E. pellita) 22.6.2008 (Sunday)

Visited: (a) Veneer plant and flakeboard factory and (b) Mazhang furniture factory

23.6.2008 (Monday)

Come back to Beijing From Zhanjiang to Guangzhou Flight No. CZ3324 Departure time: 07:50 Arrival time: 09:00 From Guangzhou to Beijing Flight No. CZ345 Departure time: 10:00 Arrival time: 13:30

24.6.2008 (Tuesday)

CRIWI, Beijing Preparation of draft evaluation report for ITTO PD 10/00 (I) project

25.6.2008 (Wednesday)

CRIWI , Beijing (a) Preparation of draft evaluation report for ITTO PD 69/01 (I) project

(b) Presentation of Ex-Post Evaluation observations regarding both the projects in Chinese Academy of Forestry and discussions

26.6.2008 (Thursday)

CRIWI, Beijing (a) Review of the draft report by Dr. Bipin Behari & Mr. Dike Kari

(b) Discussed and made comments on the draft report Prepared the draft outline for final report by Dr. Bipin Behari & Mr. Dike Kari

27.6.2008 (Friday)

Beijing Finished the work of ex-post evaluation Departure from Beijing