Industrial Tree Plantation (ITP) – Industry Strategic Science and Technology Plans (ISPs) Platform

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Industrial Tree Plantation (ITP)

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Industrial Tree Plantation (ITP) Industry Profile

Industrial tree plantations (ITP), as defined by the Department of Environment and Natural Resources, are lands planted mainly for timber producing species, primarily to supply the raw materials requirements of existing or proposed wood processing plants and related industries. The Philippine wood industry had its “golden era” during the 1980s, but extraction of wood from natural forests has been regulated and eventually banned which stifled the development of the industry. Currently, Mindanao, especially the Caraga Region or famously known as the “Timber Corridor”, has been developing their ITP industry. DENR reported that the Philippines produces 1 million cubic meters of lumber annually, but the demand is 5 million cubic meters. This leads to the importation of lumber.

Wood processors, farmers, seedlings providers, traders, furniture makers, and other end-users are the various stakeholders benefiting from wood processing. Two of the most widely planted species in ITP are Falcata (Falcataria moluccana [Miq.]) and Yemane (Gmelina arborea). Falcata is primarily used for veneer and plywood manufacturing, poles, pulp, paper, furniture, wood crafts, and wood-based kitchen utensils. It is also used as a substitute for premium tree species. On the other hand, Yemane is a source of raw materials for the furniture industry, and can be used for pulpwood production.

Problems in the Industry

The problems in the ITP industry include insufficient sources of certified seed sources, and quality planting materials; low field survival rate because of the absence of management intervention after field planting; less to none interventions on the use of wood wastes for other high value products; and incomplete information on supply and demand for ITP. While the Industrial Tree Plantation Center stated the following issues faced by ITP:

insufficient system for the production of quality planting materials
insufficient information on the identification/optimization of technologies for the control of diseases (such as gall rust, pink canker, stem borer, etc.)
low productivity due to wood effects
lack of new technologies for value-added products
limited satellite laboratories
conflicting/overlapping policies
lack of livelihood programs and marketing system

Policies and Programs

Industrial Tree Plantation Policies

Policy Type	Policy Number	Policy Year	Congress	Policy Title	Policy Description	Policy Objective	Policy Link	Commodity	Classification	info_encoder_stamp	info_date_stamp	filepath
Order	DENR Administrative Order No. 01	1989	Null	Revised Regulations And Guidelines Governing The Establishment And Development Of Industrial Tree Plantations	Pursuant to PD 705, as amended by PD 1559, and Executive Order No. 725 dated September 1, 1981, and in line with the policy of Government of ensuring the sustainable productivity if forest lands, and in recognition of its role as a tool to economic recovery and national security, regulations and guidelines governing the establishment and development of ITPs are hereby promulgated.	Sec. 2. Policies and Objectives The policies and objectives of Government on the establishment and development of industrial tree plantations shall be: 2.1 To accelerate the revegetation of the country’s open, denuded, brushland and inadequately stocked areas in order to supply the raw material requirements of wood-based and related industries, and energy-generating facilities; 2.2 To provide the incentives to interested and deserving applicants for the establishment and development of industrial tree plantations; and 2.3 To improve and maintain a desirable forest ecosystem.	https://apidb.denr.gov.ph/infores/uploads/policy/1989/DAO1989-01.pdf	Industrial Tree Plantation	Null	Jeff	11/22/2024	C:\Users\trist\Documents\Formatting\Output\Industrial_Tree_Plantation_2024-11-22_processed.xlsx
Order	DENR Administrative Order No. 41	1987	Null	Interim Rules Governing The Issuance Of Lease Agreement On Industrial Tree Plantations, Tree Farms and Agro-Forest Farms	Pending the comprehensive review of existing rules and regulations governing the establishment and development of Industrial Tree Plantation (ITP). Tree Farms (TF) and Agro-Forest Farms (AFF) with the end in view of setting new set rules directed towards encouraging more qualified person to engage in ITP. TF and AFF, interim rules are hereby promulgated for the information and guidance of all concerned.	This order aims to provide interim rules governing the issuance of lease agreement on industrial tree plantations, tree farms and agro-forest farms.	https://www.officialgazette.gov.ph/1984/04/18/proclamation-no-2351-s-1984/	Industrial Tree Plantation	Null	Jeff	11/22/2024	C:\Users\trist\Documents\Formatting\Output\Industrial_Tree_Plantation_2024-11-22_processed.xlsx
Proclamation	Proclamation No. 2351, s. 1984	1984	Null	Proclaiming The Establishment Of A Forest Reservation Within The Province Of Tarlac For Industrial Tree Plantation And Tree Farming Purposes	WHEREAS, it is likewise a declared policy of the State to harness and utilize our forest lands towards national productivity and the advancement of science, technology and the public welfare; WHEREAS, the provincial government and the various municipalities of Tarlac have identified certain denuded or inadequately timbered areas and brushlands in said province, which are suitable for the establishment of industrial tree plantations and tree farms; WHEREAS, the establishment of an agro-forest reservation in the aforesaid identified areas in Tarlac shall support the national forest renewal programs of Government, enhance our forest technology, and encourage public participation in income generating agro-forest activities in line with the Kilusang Sariling Sikap Program. WHEREAS, it has been determined that the identified denuded, inadequately timbered and brushland areas in the Municipality of Tarlac, Province of Tarlac shall produce optimum benefits to, and shall enhance the development and progress of, the Province of Tarlac and the nation when such areas are established as a forest reservation devoted to industrial tree plantation and tree-farming purposes;	This proclamation aims to establish a forest reservation within the province of Tarlac for industrial tree plantation and tree farming purposes.	https://www.officialgazette.gov.ph/1984/04/18/proclamation-no-2351-s-1984/	Industrial Tree Plantation	Null	Jeff	11/22/2024	C:\Users\trist\Documents\Formatting\Output\Industrial_Tree_Plantation_2024-11-22_processed.xlsx
Order	Executive Order No. 725	1981	Null	Facilitating The Establishment Of Industrial Tree Plantations	SECTION 1. The establishment of Industrial Tree Plantations (ITP) in open, denuded, brushland and inadequately stocked areas is hereby mandated for immediate implementation as one of the priority projects of the Government. SEC. 2. In accordance with P.D. No. 1559 which provides for the establishment, development and maintenance of forest tree plantations, the Minister of Natural Resources, through the Bureau of Forest Development (BFD), shall, with the assistance of the licensees, accelerate the identification and delimitation of suitable areas within timber concessions for reforestation and conversion into industrial tree plantation; PROVIDED, that existing timber license holders shall be given a period of six (6) months from the date of promulgation of the rules and regulations mentioned in Paragraph 13 hereof: (a) to apply for an ITP lease agreement over areas under Paragraph 1 hereof suitable for growing trees, but not exceeding 30% of the total TLA area; or (b) to undertake implementation of an approved 7-year reforestation plan, or (c) to do both (a) and (b); PROVIDED, FURTHER, That timber license holders shall, in total compliance of reforestation requirements as imposed by existing letters of instruction, rules and regulations, submit to the Bureau of Forest Development within the same period, a new seven-year reforestation program to reforest with dipterocarp, premium, and/or fast-growing species, all open, denuded, brushland, and inadequately stocked areas which are not converted into ITP, which shall be immediately implemented after its approval by the BFD. SEC. 3. For the development and operation of the ITP, the timber license holder may form a new corporation with other investors. The timber license holder shall warrant the development and implementation of the ITP in accordance with the provisions of the ITP Lease Agreement. Should the corporation fail to carry out the development of such plantation within the period specified in such lease agreement, the timber license holder shall lose any rights that he may have in such license, and such shall be considered revoked.	This Executive Order aims to establish Indusrial Tree Plantations to intensify and accelerate Forest Ecosystem Management.	https://www.officialgazette.gov.ph/1981/09/09/executive-order-no-725-s-1981/	Industrial Tree Plantation	Null	Jeff	11/22/2024	C:\Users\trist\Documents\Formatting\Output\Industrial_Tree_Plantation_2024-11-22_processed.xlsx

ISP for Industrial Tree Plantation (ITP)

The ISP on ITP has come up with strategies that will focus on improvement of variable yield and good quality. It aims to increase yield per hectare (m3/ha), establish sustainable income for ITP dependent tree farmers in the countryside, and reduce log importation with the increased plantation-sourced timber for the domestic market.

Strategic R&D

Strategic R&D is DOST-PCAARRD’s banner program comprising all R&D activities that are intended to
generate outputs geared towards maximum economic and social benefits

Genetic diversity and structure of Gmelina arborea Roxb. and Falcataria moluccana (Miq.) Barneby & J.W. Grimes plantations in the Philippines based on microsatellites

This study assessed the genetic diversity and ascertained the genetic structure of all currently available propagated materials of the two...

Early Growth Performance and Genetic Diversity of Falcataria moluccana (Miq.) Barneby & J.W. Grimes Progeny Trial in the Philippines

Low timber production of Falcata (Falcataria moluccana (Miq.) Barneby & J.W. Grimes) plantations in the Philippines can be attributed to...

Anatomical, Physical, Mechanical and Veneering Properties of Falcata [Falcataria moluccana (Miq.) Barneby & J W. Grimes.] and Yemane (Gmelina arborea Roxb.)

The results of the study showed that it is technically feasible to harvest for veneer production the 3, 5, and...

Germplasm Conservation and DNA Marking of Selected Priority Industrial Tree Plantation Species

This study generally aims to identify, capture and preserve the remaining wild population of Eucalyptus deglupta, Casuarina equisetifolia and Endospermum...

Greenhouse Gas (GHG) Inventory of Industrial Tree Plantation (ITP) Production Chain in CARAGA Region, Mindanao

A GHG inventory study was conducted for Industrial Tree Plantation (ITP) production chain in Caraga Region. GHG emissions from ITP...

Juvenile Variations in Forest Genetic Materials of Seedlings of Falcata (Falcataria moluccana (Miq.)) Barneby & J.W. Grimes. and Yemane (Gmelina arborea Roxb.)

In general, the project aimed to fast-track genetic characterization of forest genetic materials of Falcata (Falcataria moluccana (Miq.) Barneby &...

Bioplastics from ITPs: Production, Characterization and Potential Application

This study dealt on the extraction and characterization of lignin from three Industrial Tree Plantation Species (ITPS) namely: Falcata (Falcataria...

Products, equipment, and protocols or process innovations developed to improve productivity, efficiency,
quality, and profitability in the agriculture and aquatic industries, and to achieve sustainable
utilization and management of natural resources

Geodatabase of Industrial Tree Plantations in Caraga Region using Remote Sensing and GIS

This project aims to develop a geo-database of ITPs. Specifically, to map the species types, location and extent of ITPs by applying machine learning techniques to available RS datasets; to...

Seed Tracking and Information Database System

This study aims to develop protocol on the improvement of quality seeds produced by the Mindanao Tree Seed Center (MTSC), through different seed quality enhancement treatments. The center aims to...

Technology transfer initiatives ensure that the outputs of R&D and innovations are transformed
into viable and applicable technologies that help intended users

S&T Community-based Yemane Farms in the Province of Isabela

The establishment of the STCBF will serve as a model for the establishment of ITP in Region 2 with Yemane (Gmelina arborea Roxb.) as main commodity. It aims to increase...

Capacity building efforts of DOST-PCAARRD seek to develop and enhance the R&D capabilities of researchers
and academic or research institutions through graduate assistantships & non-degree trainings
and development and/or upgrading of research facilities

Infrastructure Development

Manpower Development

Policy Research & Advocacy

Analysis of policy concerns and advocacy of science-informed policies ensures that the AANR policy environment is conducive for S&T development
and investments

Challenges and Recommendations in the Industrial Tree Plantations (ITP)

To enable the ITP industry to realize its significant economic contributions particularly in providing employment and increasing rural incomes, the challenges in the supply chain must be attended to. On the policy issues, the following are advocated:

To protect the interest of the WPPs and tree farmers, there is a need to review DMO 99-20 and EO 23 and provide a consistent policy in the marketing of cut logs. There is also a need to promote a rewarding environment for the wood industry players with legitimate transactions.
To deter illegal practices, implementation protocols of related policies have to be reviewed for standardization purposes and an effective control system has to be devised. Reforms should include intensive information dissemination to tree farmers, intensive education of DENR employees who are tasked to implement policies, and more transparent guidelines to establish ITP farms and harvest trees.
To improve transparency in the supply chain, guidelines for contract tree farming must be formulated. There is a need to catalyze a coordinated response plan to managing the problems in the wood industry to strengthen existing wood industry organizations and farmer groups. Contract tree farming can help farmers have stable incomes by reducing production risks and ensuring a steady demand of logs from wood processing firms.

Reference:

Jamora, N. (2018). Challenges and Recommendations in the Industrial Tree Plantations. Los Baños, Laguna, Philippines: Philippine Council for Agriculture, Aquatic and Natural Resources – (Policy Brief)

PCAARRD's Industry Strategic Science and Technology Programs