Putting rain runoff to good use Energising the Ugandan landscape Giving hope to farmers in Africa’s drylands
Subscription only I s s u e NIssue o.2 0 No. O c t21 obJanuar e r - Deyc-eMarch m b er 22014 013
Building a retirement nest Tree-growing gives a good return on investment
Give unto Caesar ‌
What taxes are commercial tree-growers in Uganda expected to pay?
A truly, multi-purpose African species
The sausage tree is medicinal and produces strong, water-resistant wood for a variety of uses
The transmission poles sector in East Africa Prospects, production, processing, trade and the future
Better Globe Forestry Ltd
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Making Africa greener Better Globe Forestry (BGF) is part of The Better Globe Group from Norway, which focuses on the need to fight poverty through promoting massive tree planting and sustainable agricultural programmes. BGF’s vision is to create secure commercial projects with vital humanitarian and environmental activities and as a result become the biggest tree planting company in the world within 20 years.
Land in Kiambere before planting. Note the omnipresent soil erosion
The mission of BGF is to make Africa a greener, healthier place in which to live and eradicate poverty by focusing on the development of profitable, commercial tree plantations that will deliver environmental as well as humanitarian benefits. Miti magazine is a publication of Better Globe. It is the policy of BGF to, among other things: • Create attractive financial opportunities for present and future investors, Continuously identify and address the needs of employees, suppliers, customers, shareholders, the community at large and any other stakeholders, • Focus on the need to help fight poverty, through promoting massive tree planting • Create and sustain motivation throughout the organisation for meeting its business objectives, • Continuously maintain and review an effective and efficient Quality System which as a minimum satisfies the requirements of the appropriate Quality System standard(s), • Continuously improve the performance of all aspects of the organisation.
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Preparing for planting in Kiambere
The committee of Witu Nyongoro ranch with Rino Solberg and Jean-Paul Deprins
www.betterglobeforestry.com
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Issue No. 21 January - March 2014
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Editorial
24
Scaling the poles trade
Let us look at the utility poles sector
4
News and views
Encouraged by financial gain, young farmer takes to tree-growing By Wanjiru Ciira
Schools’ Green Initiative Challenge
25
Energising the Ugandan landscape To meet its core business of power distribution, Ferdsult has ventured into growing and production of power transmission poles By Diana Ahebwe
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The status of the poles sector
Production, processing and trade in transmission posts in East Africa By Joshua K. Cheboiwo
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Extracts from Kenya Standard - KS 516: 2008
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Giving hope to farmers in Africa’s drylands
Specifications for wood poles for power and telecommunication lines Wood Poles Technical Committee
EverGreen Agriculture can transform the continent’s landscape and food production By Dennis Garrity, Jonathan Muriuki and Miriam Mundia
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What is the future for wooden poles?
30
A truly, multi-purpose African species
Transmission poles are a Ksh 8 billion industry, with demand growing at 10 per cent annually By John Guda
The sausage tree is medicinal and produces strong, water-resistant wood for a variety of uses By Francis Gachathi and Alice Nabatanzi
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A ready and growing market
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Give unto Caesar …
Eucalyptus poles offer great prospects and high revenues for Ugandan growers By Peter Bahizi
What taxes are commercial tree-growers in Uganda expected to pay? By Bob Kazungu
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The go-between in the poles trade
34
Trees for mutual benefits
The role of merchants in the market chain of power transmission posts By Kennedy Masai
How forest plantations support REDD+ and moderate climate change By Nyago Moses
15
Looking to the future
36
Empowering ASAL communities
The options open for smallholders to survive in the pole production chain By Joshua Cheboiwo and Jan Vandenabeele
Affordable rainwater harvesting methods that improve the quality of life in drylands By Nicholas Wasunna
There is strength in numbers Kenyan tree-growers need to pull together under KEFGA By Paul Jacovelli
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Putting rain runoff to good use
A farmer in Ngong is harvesting water for production of high-value crops By Peter Muthigani
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Raising standards high
Uganda is developing a National Standard for responsible forest management for sustainable socio-economic benefits By Ceaser Kimbugwe
22
Preparing a retirement nest
Tree-growing gives a good return on investment while protecting the environment By Diana Ahebwe
On the cover: Transmission poles at the Kenya Power yard in Eldoret, where poles are received from the various treatment plants. (Photo: BGF)
Editorial
Let us look at the utility poles sector
I
n our forestry environment, poles are long, cylindrical, often slender pieces of wood used to support overhead power lines. Poles also support various other public utilities such as thick cables holding many twisted pair, coaxial cables, fibre optic cables, related equipment like transformers and streetlights. These may be referred to as transmission poles, telephone poles, telecommunication poles and others depending on their application. In the case of distribution lines, electrical cable is routed overhead on utility poles as an inexpensive way to keep it insulated from the ground and out of the way of people and vehicles. Most utility poles are made of wood, pressure-treated with some type of preservative for protection against rot, fungi and insects. Utility poles were first used in the mid-19th century in the United States, starting with Samuel Morse who was granted US$ 30,000 to build a 40-mile telegraph line between Baltimore, Maryland and Washington, D.C. Morse began by having a lead-sheathed cable made. After laying seven miles underground, he tested it. He found so many faults with this system that he dug up his cable, stripped off its sheath, bought poles and strung his wires overhead. In Eastern Europe, Russia, and third world countries, many utility poles still carry bare wires mounted on insulators not only along railway lines, but also along roads and sometimes even in urban areas. The traditional wood pole material provides great flexibility during placement of hardware and cable apparatus. Holes are easily drilled to fit the exact hardware needs and requirements. In addition, fasteners such as lags and screws are easily applied to wood structures to support Outside Plant (OSP) apparatus. In Miti issue 21, a number of contributors highlight the opportunities that exist in this growing market. Peter Bahizi has explored the possibilities in the Ugandan market while Diana Ahebwe writes about a successful industry and an individual tree grower. Still from the pearl of Africa, Bob Kazungu dives into the elaborate taxes that tree-growers are expected to pay. Joshua Cheboiwo and Jan Vandenabeele delve into the possible cooperation between firms with similar operations or between enterprises at different levels of the supply chain. Kennedy Masai writes of the merchants that act as a link between growers and the pole treatment plants. John Guda explains the advantages and disadvantages of different types of poles and the market point of view. At a more technical level, Peter Muthigani demonstrates how farmers can put rain runoff to good use, while Nicholas Wasunna explains how rainwater harvesting can be relatively low-cost and therefore affordable by many. Francis Gachathi and Alice Nabatanzi write on the many uses of the sausage tree. Few know better than Moses Nyago how forest plantations support REDD+ and help overcome the challenges of climate change. Wanjiru Ciira went all the way to Malel Village in Uasin Gishu County, Kenya to interview a successful eucalyptus tree-grower. Last but not least, Dennis Garrity, Jonathan Muriuki and Miriam Mundia from the World Agroforestry Centre make us understand how EverGreen Agriculture is one of the pathways to sustainable agriculture in Africa. Enjoy the reading, as we trust you will. Jean-Paul Deprins
Published by:
Chairman of the Editorial Board:
Managing Editor - Kenya
Better Globe Forestry Ltd No. 4, Tabere Crescent, Kileleshwa P.O. Box 823 – 00606 Nairobi, Kenya Tel: + 254 20 434 3435 Mobile: + 254 722 758 745 Email: kenya@mitiafrica.com www.betterglobeforestry.com
Rino Solberg
Wanjiru Ciira
Uganda office: MITI MAGAZINE ® Plot 1908/9, Mitala Rd, Kasanga P.O. Box 22232 Kampala, Uganda Mobile: + 256 775 392 597 Email: uganda@mitiafrica.com www.betterglobeforestry.com
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Editor-in-chief
Technical Editor
Jean-Paul Deprins
Jan Vandenabeele
Editorial Committee - Kenya
Country Director - Uganda Julie Solberg
Joshua Cheboiwo, Francis Gachathi, Keith Harley, Enock Kanyanya, James Kung’u, Rudolf Makhanu, Fridah Mugo, Jackson Mulatya, Mary Njenga, Alex Oduor, Leakey Sonkoyo, Jean-Paul Deprins, Jan Vandenabeele and Wanjiru Ciira
Country Representative - Uganda Diana Ahebwe
Editorial Committee - Uganda
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Miti January - March 2014
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NEWS
Green Initiative Challenge for schools
The launching ceremony of KenGen Foundation’s “Green Initiative Challenge” on November 5, 2013 at Machanga Primary School (Mbeere South). Better Globe Forestry Ltd donated 15,000 seedlings of Melia volkensii. (Photo: BGF)
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etter Globe Forestry supports the Schools’ Green Initiative Challenge sponsored by the Kenya Power Generating Company (KenGen). Through the programme, KenGen has collaborated with schools in Masinga and Mbeere North districts in Embu County, to encourage and enable schools to participate in environment activities. The schools do this by developing small forests and woodlots within their compounds for multiple benefits. The programme aims to raise environmental awareness and enable schools and students to improve their environment through a participatory and rewarding initiative. Participating schools are required to have a designated plot of not less than a quarter of an acre for tree planting. The schools’ woodlots shall be monitored every four months by a team of judges from KenGen and other stakeholders. Final evaluation will be done after two years to determine winners. The final evaluation will be based on growth rate, effort, innovativeness and creativity.
Better Globe Forestry’s Jan Vandenabeele and a pupil plant a ceremonial seedling during the launch. (Photo: BGF)
Letter to the editor
Miti is very informative Thank you for Miti, which is a very informative and well-illustrated magazine. It is essential to increase tree cover in East Africa. In addition to the environmental benefits of planting trees, it makes business sense. Thank you for your efforts to give East Africa increased tree cover and thereby a better future. While travelling in the Middle East some year ago, I came across tree planting initiatives that involved promoting tree seedlings through petrol stations. After all, petrol stations have an incentive to increase tree cover, and they have wonderful networks of outlets to promote seedlings. Could this be done in East Africa, increasing availability of seedlings promoted through petrol stations? Best regards and good luck in promoting trees everywhere. Eirik J. Trondsen Through email
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The views expressed in Miti magazine are the writers’ and do not necessarily reflect the views of Better Globe or TQML. WRITE TO US We welcome feedback on any article you have read in Miti magazine, or on any issue on tree planting, afforestation and related matters. Please include your name, address and telephone number. Letters may be edited for clarity or space. We also invite you to send us any interesting photos you might have. Please send your contributions to: The Editor Miti magazine P.O. Box 823 – 00606 Nairobi, Kenya. Email: kenya@mitiafrica.com OR Miti magazine P.O. Box 22232 Kampala, Uganda. Email: uganda@mitiafrica.com
www.betterglobeforestry.com Miti Magazine-Africa’s Tree Business Magazine
Miti January - March 2014
LEAD THEME
Even as the market for transmission poles continues to expand in East Africa, there is a shortage of suitable trees. This photograph was taken at the Kenya Power yard in Eldoret. (Photo: BGF)
The status of the poles sector Production, processing and trade in transmission posts in East Africa BY JOSHUA K. CHEBOIWO
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ithin the forest sector, the demand for transmission poles has witnessed one of the fastest growths in the last 10 years. As a result, hundreds of farmers and a number of companies have invested heavily in pole production in Kenya. There have been fears that the growth in the treatment capacity may result in oversupply and loss of fortunes. The Kenya Forestry Research Institute (KEFRI) thus decided to carry out studies to evaluate the potential demand for transmission poles in Kenya and trade opportunities in the East African Community. The results of the study indicate that the processing capacity of the transmission poles sector grew from eight plants in 2008 to 17 by 2011. The installed capacity expanded from 480,000 poles to over 1,000,000 in the same period. The combined annual demand for transmission poles by Kenya Power and Lighting Company (KPLC, now Kenya Power – KP) and the Rural Electrification Authority (REA) in 2010 was 480,000. According to Kenya Power projections, energy demand is expected to grow by 25 per cent per year. However, due to limited investment in electricity generation, the annual demand for poles by Kenya Power and REA is likely to expand by less than 10 per cent, to 720,000 by 2015. This may not be sufficient to absorb the expanded production capacity in the treatment sector. By 2011, Tanzania had seven treatment plants in operation, with an annual capacity to treat 345,000 poles, the surplus being exported to Kenya. Uganda has five treatment plants with an annual production capacity of 250,000 pieces, sufficient for the domestic market but also looking at export opportunities in Kenya. Export opportunities in the East Africa region are low due to stagnation in electricity production, which is unlikely to change in the short-term, and to the shortage of raw poles to match installed capacities. However, there are vast opportunities in diversified market niches that include products mixes such as fencing poles, timber seasoning and exploration of emerging markets such as South Sudan.
Miti January - March 2014
Methods and materials The study involved collection of data on production, processing and consumption of transmission poles in East Africa. The data was collected from Kenya Forest Service (KFS), KPLC, REA, Kenya Bureau of Statistics (KBS), Kenya Plant Health Inspectorate Service (KEPHIS), Timsales Ltd, Comply Ltd, and 12 treatment plants.
Electricity generation Kenya
Electricity generation and distribution in Kenya is vested in three institutions: KP, Kenya Electricity Transmission Company (Ketraco) and Kenya Energy Generation Company (Kengen). Table 1 (overleaf) shows the power generation capacity estimates between 2000 and 2008, which was projected to grow from 4,178 MW to 6,460 MW (GOK, 2009). However, the power generation growth was far below the official growth projection of 2,282 MW, as the installed capacity was only 1,412MW (www. kengen, 2011). The dominant sources of power were hydropower (50 per cent), oil (33 per cent) and geothermal (16 per cent). By 2011, according to KPLC, 39 per cent of total households were connected with electricity. The demand for electricity is expected to grow by 10 per cent, according to Vision 2030 projections. The country has almost exhausted its hydropower potential and is now putting more hope on the geothermal sector. The Geothermal Development Corporation (GDC) has outlined ambitious plans for an estimated potential capacity of between 4,000-7,000 MW in the Rift Valley region. The current annual investments in the sector are projected to add between 5 - 50 MW per year. GDC projects that it will need Ksh 88 billion (US$ 1.02 billion) to realise its target of 4,000 MW by 2030. This is unlikely to be achieved, given that the 2,000 MW projected for 2014 was not realised. Kenya has also started to position itself by investing Ksh 3.7 billion
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Table1: Projected power generation capacity (MW) and available power distributed in Kenya (2000-2008) Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
Generation capacity
4,178
4,451
4,685
4,851
5,194
5,547
5,894
6,324
6,460
% change
-
6.5
5.2
3.5
7.0
6.8
6.2
7.3
2.2
Electricity generated
3,366
3,091
3,498
3,654
3,940
4,200
4,407
4,771
5,036
% change
-
-0.8
13.2
4.5
7.8
6.6
4.9
13.6
5.5
Mean 5.6 6.9
Source: GOK (2009). Statistical Abstract, National Bureau of Statistics and KPLC www.kplc.co.ke, 2011
in the construction of power transmission stations and lines to tap into regional power markets. These include the Ethiopian Gibe I-V, whose total capacity is expected to be 3,902 MW. Given that Ethiopian power generation capacity in 2007 was only 840 MW, definitely there will be surplus for sale to power-hungry EAC countries like Kenya. The demand for transmission poles is highly correlated to the power transmission expansion, which depends on the availability of funds to finance power generation and the distribution infrastructure in the country; and as seen above, the power generation in Kenya is highly constrained. The population factor may not influence power distribution directly - a higher population will only lead to increasing unmet demand for power. Based on all this, the growth in the demand for power transmission poles might range from seven to 10 per cent, inclusive of replacements, within the next 10 years.
at Eldoret, and Gilgil Telecommunications Industries (GTI) at Gilgil. The treatment capacity of the two plants was 160,000 power transmission poles per year. By 2005, there were five treatment facilities capable of producing 250,000 treated poles per year (Cheboiwo and Langat, 2006). By 2009, there were eight treatment plants capable of producing 450,000 treated poles per year (Cheboiwo, 2010). However, by January 2011, there were already 17 registered commercial treatment plants in the country (see Table 2). The sector has been undergoing some rapid expansion, fuelled by the high demand for transmission poles by KPLC and REA. Despite such massive expansion of processing capacity, a study in 2010 revealed that most of the plants operated below installed capacity due to a shortage of semi-processed poles and sometimes, delays in delivery of chemicals.
Uganda
Table 2: Treatment plants for transmission poles, location and capacities in Kenya
The Ugandan scenario is similar to the Kenyan one. However, Uganda’s critical problem has been stagnant electricity generation that has translated into regular power outages and rationing. Uganda has only been able to connect 10 per cent of households. Studies have shown that the country needs to generate up to 2,000 MW by 2025 to meet its projected demand for electricity against a current installed capacity of 300 MW. Based on the existing scenario, the growth in electricity connections in Uganda will remain modest within the next five to ten years. However, Uganda is endowed with water resources and is currently undertaking various hydropower generation projects. These may generate extra power for distribution within the next 10 years. Another factor to consider is the likely influence of oil deposit exploitation and the possibility of enhanced oil-related electricity generation that will have a knock-on effect on demand for distribution infrastructure.
Tanzania Tanzanian electricity power generation is dominantly hydropower-based, but relatively low at 367 MW by 1998. It is projected to expand by 8 per cent annually to 2,312 by 2025 on condition of sufficient funding (Mwinava et al, 2003). However, the funding for such ambitious expansion has not been realised. This is attested by the fact that by 2011, the Tanzania Electricity Supply Company (Tanesco) could only guarantee 347 MW against a demand of 550 MW, and imports from Uganda and Zambia were required to fill the deficit. Tanzania, like Uganda and Kenya, faces the same problems of high power demand against inadequate generation capacity. Therefore, it is our assumption that within the next five to ten years, the power transmission growth in Tanzania is likely to be modest, translating into low growth of distribution infrastructure and thus low demand for power transmission poles.
Dynamics in pole production and processing in East Africa Kenya
In 2004, there were only two treatment plants - Timber Treatment International (TTI), formerly East African Tannin Extraction Company (EATEC)
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Company
Location
Installed capacity per year
TTI-EATEC
Eldoret
50,000
TTI-EATEC
Londiani
40,000
TELKOM-GTI
Gilgil
72,000
Timsales Ltd
Elburgon
84,000
Comply Ltd
Nakuru
36,000
E A Cabro
Elmenteita
90,000
Typsy Timber Treatment Ltd
Eldoret
72,000
Muringa Holdings Ltd
Limuru
50,000
KUZA Ltd
Kitale
40,000
Central Imenti Cooperative Society
Meru
40,000
Murendat Timber Treatment Ltd
Nakuru
40,000
Kakuzi Ltd
Thika
40,000
Makuyu Timber Treatment Ltd
Maragua
40,000
Rosoga Enterprises Ltd
Molo
75,000
Keystone Treatment Services
Lessos
25,000
TOTAL
794,000
Source: Cheboiwo (2012)
Uganda Uganda has been a net importer of treated poles for power transmission from South Africa and South America for a long time. However, within the last 10 years, the country has become self-sufficient and is currently exploring export markets. Given the projected low expansion of power generation in Uganda, it will remain a net exporter of treated transmission poles within the next 10 years and its expansion will be constrained by competition in key regional markets, specifically Kenya.
Miti January - March 2014
Table 3: Treatment plants for transmission poles, location and capacities in Uganda Company
Location
Capacity per year
New Forests Company
Mityama-Fort Portal
120,000
Busoga Forest Company
Masese-Jinja
50,000
Nile Ply Pole Treatment Plant
Kakoge-Nakasongola
Ferdsult Ltd
Mukono-Kampala
20,000
Uganda Electricity Distribution Company
Kampala
50,000
TOTAL
100,000
340,000
Source: Cheboiwo (2012)
Tanzania With seven pole treatments plants, (Table 4), the country produces treated poles in excess of the existing domestic demand. This explains why Tanzania has remained an exporter of transmission poles to Kenya. Tanzania exports have locked out South Africa from the Kenyan market. The development of the pole sector in Tanzania has been largely due to private sector investment in plantations in southern Tanzania, mostly in the Iringa area. Tanzania will most likely remain a net exporter of treated transmission poles within the next 10 years, mostly to Kenya, but will face competition from both Kenyan and Ugandan plants.
Analysis of the transmission pole market chain in Kenya Studies done by Cheboiwo (2012) in Western Kenya show that the pole treatment sector has attracted many investors in processing plants, financing, transportation, procurement and marketing. The services provided by the investors (including logging, treatment, financing and marketing) take 86-77 per cent of the transmission pole delivery prices to a KPLC yard, leaving tree growers with 14-23 per cent. The entry of many players into the treatment plant business has increased competition in the supply of treated transmission poles. This development is likely to drive prices down by some 40 per cent in the coming years from an average of Ksh 12,000 (US$ 150) to Ksh 7,200 (US$ 90). The price fall can only be checked by the continued shortage of semi-processed poles, availability of export markets and better bargains by tree-growers.
Trends in semi-processed pole prices Chasupply of semi-processed poles (that is, poles cut to size but not yet treated) from plantations and farms in Kenya has been on the increase in the last 10 years due to the expanded growing of eucalyptus in the country. Studies by Cheboiwo (2012) show that the farm gate prices for semiprocessed poles increased by 366 per cent from Ksh 750 in 1999 to Ksh 3,500 per piece by 2012. Table 4: Treatment plants for transmission poles, location and capacities in Tanzania Company
Location
Installed capacity per year
Sheda
Mafinga, Iringa
15,000
Ihembe
Mafinga, Iringa
15,000
Sao Hill Industries
Mafinga, Iringa
160,000
Tanwat
Njombe, Iringa
40,000
Lesheyal
Mufindi, Iringa
30,000
MWPT
Mufindi, Iringa
70,000
Mwijage
Makambako, Iringa
15,000
TOTAL Source: Cheboiwo (2011)
Miti January - March 2014
345,000
The prices have motivated hundreds of farmers and tea estates to invest in commercial growing of Eucalyptus grandis and E. saligna mostly in the Rift Valley, Central and Western Kenya (Cheboiwo, 2012).
Challenges in the sector Challenges range from high cost of material inputs (raw poles and chemicals) to competition from concrete pylons and the large number of treatment plants. The plants and processing capacity have been expanding fast, translating into excess capacity and severe shortage of the raw poles. The increase in E. grandis plantations in the last 10 years will ease that shortage in the next few years. The treatment plants complain of high prices of imported treatment chemicals due to the falling value of the Kenya shilling against the US dollar. High pole prices at farm level have led to harvesting of immature of from fast-growing trees that lack sufficient strength for the intended purpose. Another factor is the entry into the market of concrete pylons, with greater strength and durability. Although the initial production capacity of the concrete pylons stand at less than 6 per cent of the current annual demand for transmission poles, it will squeeze wooden poles out of the market share of the larger sizes as used for intercity transfer grids.
Projected demand for transmission poles in Kenya There are only two major consumers of treated transmission poles in the country, Kenya Power and the Rural Electrification Authority (REA), after TELKOM-Kenya ceased expansion of telegraphic wiring in favour of wireless. The demand for treated poles in 2007/2008 was 700,000, which had fallen to 310,000 pieces for 2008/2009, and started to rise with the entry of REA, pushing the demand to 520,000 pieces in 2010. The fall had been due to clearing of the backlog connection and concentration on new projects and replacements. KPLC consumption and projections are shown in Table 5 overleaf. REA procured from local sources 60,000 pieces in 2008, 67,000 in 2009, some 83,000 in 2010 and projected 113,000 for 2011. REA projected to expand its coverage to at least 4,200 kilometres at an average of 20 poles per kilometre, translating into 84,000 poles in 2012 and expected to increase its coverage by 10 per cent per year within the next five years. Despite the projected fall in transmission pole imports to zero by 2012, imports from Tanzania and Uganda have continued to enter the Kenyan market throughout 2013 for various reasons, notably a government decision to open up the sector for regional competition.
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Fencing posts are also a growing market. The photograph shows part of the fence of Nairobi National Park. (Photo: BGF)
Table 5: KPLC consumption and projected demand for transmission poles 2008-2012 Year
Requirements (poles)
Value in Ksh (billions)
Local supplies
% total
Imports (poles)
% total
2008
300,000
3.45
210,000
70
90,000
30
2009
330,000
4.312
280,500
85
49500
15
2010
363,000
4.960
326,700
90
36,300
10
2011
400,000
5.703
400,00
100
0
0
2012
440,000
6.560
440,000
100
0
0
Table 6: Tender prices for treated poles purchased by KPLC in April 2006 per piece Company/ Size
9m
10m
11m
US$
Ksh
US$
Ksh
US$
Ksh
TTI - Kenya
-
10,800
160
11,520
180
12960
Sao Hill -Tanzania
150
10,800
160
11,520
180
12960
TTP - SA
127.5
9,180
147.2
10,598
170.1
12,247
Source: Ministry of Energy, 2006
Imports of transmission poles in Kenya The dependence of Kenya on imports has been on the decline due to increased local processing capacities. For example, Kenya in 2006 had a deficit of 200,000 transmission poles, valued at Ksh 2 billion (US$ 25 million) that necessitated importation from various countries (Cheboiwo, 2010). To fill the gap, Kenya imported 47,000 pieces estimated at about Ksh 520 million, from a consortium of Tanzanian suppliers lead by Sao Hill. Again in 2007, Kenya imported 150,000 treated transmission poles from Tanzania, South Africa, Brazil and Finland. Similarly, in 2008 Kenya imported 65,316 transmission poles from Tanzania, Uganda and Chile. Table 6 shows the market prices ranging from both local processing plants and imports (Cheboiwo, 2010). The demand for imports into the country will depend on the shortage of raw poles from plantations and farms. There may not be a complete halt in imports but there will be a rapid decline in the next few years. The large pole treatment capacity in the Kenyan market has exceeded the domestic demand and many treatment plants are already exploring export opportunities within the COMESA region. This is because Kenya Power has reduced backlogs in connections. In addition, there might be a
8
shortfall in power generation if the planned investment to increase power generation by 25 per cent per year is not realised.
Conclusions and recommendations The East African countries are facing acute shortages of power generation that cannot meet a fast-growing demand for electricity. Under such conditions, the demand for transmission poles will remain modest at between 7 – 10 per cent per year in the next five to 10 years, despite increased investments in the treatment capacities in the region. Unless the Kenyan geothermal and the Ethiopian Gibe III projects come to fruition, the growth in power generation in the region will remain dismal and be the major constraint to power distribution and demand for treated transmission poles. There has been remarkable investment in commercial eucalyptus plantations in East Africa by both the private and the public sector, targeting production of semi-processed poles. This is likely to ease the current supply shortage in the next 10 years. The trade in treated poles between the EAC countries will reduce drastically given the expanded treatment capacities within each of the member countries. The EAC countries thus need to diversify market opportunities into the wider COMESA region. Unlike other forest products like timber, treated transmission poles have not attracted policy and legal barriers and therefore have greater potential to evolve into competitive marketing systems. Kenya stands to benefit through open trade within EAC countries given its huge existing and projected power generation capacity and installed treatment capacity. (References available on demand) The writer is the Principal Research Officer, Kenya Forestry Research Institute, Londiani Regional Research Centre. Email: jkchemangare@yahoo.com
Miti January - March 2014
Extracts from Kenya Standard - KS 516: 2008 Wood poles for power and telecommunication lines - Specification This Kenya Standard was prepared by the Wood Poles Technical Committee under the guidance of the Civil Engineering Industry Standards Committee, and is in accordance with the Kenya Bureau of Standards.
Some definitions
Defects
Butt: the thick end of a pole. Crook: natural curvature that extends over not more than 2m of the length of a pole. Reverse crook: crook in two directions in one plane. Defective pole: a pole that fails in one or more respects to comply with the requirements of the specification. End check: separation along the grain of the wood and across the growth rings and occurring at the end of a pole. Surface check: separation along the grain of the wood and across the growth rings but not extending to the end of the pole. Ring shake: complete separation of the wood fibres that appears as an arc or a complete circle. It occurs between the growth rings and is a natural defect that may occur in some trees. Knot cluster: group of three or more closely associated knots. Unsound knot: knot which is not solid across the face, usually as a result of decay and/or a knot showing signs of separation from the surrounding wood such that it is unlikely to retain its place. Post treatment defect: defect that has developed after treatment, and that results in the exposure of untreated wood. Sweep: natural curvature that extends over more than 2m of the length of a pole. Reverse sweep: sweep in two directions in one plane.
Poles shall be generally of sound wood, free from decay, insect attack, rot pockets and any damages caused by handling and processing that would affect the strength of the pole. The growth and seasoning defects shall be limited to the requirements as set out below. Knots: the diameter of any single sound knot shall not exceed 1/6 of the circumference and the sum of the diameters of all sound knots in any 500mm portion shall not exceed Âź of the circumference at that average cross-section. Unsound knots: the allowable diameter of any unsound or combined diameters of a group of unsound knots shall not exceed one half of the allowances given for sound knots. Spiral grain: spirality of grain shall not exceed one complete turn when measured over any 6m length of the pole. End check: the number running from the pith to the outer surface of the pole shall not exceed 4. The length shall not exceed 2 times the butt diameter at the butt and 1 times the top diameter at the top. Surface check: the maximum width of any surface check shall not exceed 15mm and the maximum length of any surface check, measured over the distance for which the width of the surface check exceeds 4mm, shall not exceed six times the average diameter of the pole. Ring shakes: the tip shall be free from ring shakes but one ring shake not exceeding 1/3 of the circumference of the butt of the pole shall be permitted at the butt provided that no part exceeds to within 50mm of the periphery.
Felling Trees shall be cut as close as possible to ground level, the end shall be sawn to give a flat section and the branches shall be dressed downflush with the trunk.
Moisture content The average moisture content shall not exceed 25% at time of treatment or at time of measurement of any growth and seasoning defect.
Straightness: A straight line from the centre of the butt to the centre of the tip shall lie entirely within the body of the pole. Poles shall be free from crooks that deviate more than 75mm from straightness in any 2m length.
Species of wood Poles shall be of any species of wood as shown below: Standard or trade name
Scientific name
Other names
Iron bark
Eucalyptus paniculata
Gum or eucalyptus
Spotted gum
Eucalyptus citriodora (Corymbia citriodora) or E. maculata (Corymbia maculata)
Lemon scented gum or eucalyptus Spotted gum or eucalyptus blue gum
Tallow gum
Eucalyptus microcorys
Blue gum
Eucalyptus globulus
Regnans saligna gum
Eucalyptus regnans
Giant gum (mountain ash)
Eucalyptus saligna
Blue gum (saligna gum)
Eucalyptus grandis
River red gum
(Extracted by Jan Vandenabeele)
Miti January - March 2014
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LEAD THEME
What’s the future for wooden poles? Transmission poles are a Ksh 8 billion industry, with demand growing at an annual average of 10 per cent BY JOHN GUDA
T
here are three main types of electricity distribution poles in Kenya, namely: Concrete poles These have been in use since the 1960s in 66kV and 11kV lines in Nairobi. They come either hollow or solid. Steel poles These were in use in the 1960s in Nairobi and Mombasa. They came either as hollow or tubular structures on a steel lattice. Wooden poles These have been in use since the 1920s. Most commonly used species are eucalyptus and pines. Over seven eucalyptus species are approved for use as power distribution poles.
Advantages and disadvantages of each type Concrete and steel poles are relatively expensive and their manufacture comes with environmental degradation of nonrenewable ingredients, e.g. sand and quarry stones. Concrete and steel poles have a comparatively long lifespan, averaging 50 years, compared to 15 - 25 years for a well-treated wooden pole. Installation of concrete and steel poles is very involving and requires special equipment due to their comparative weight. Wooden poles are light, easy to install and come from a renewable resource, and their sustainable use is turning to be a source of livelihood to farmers. Currently in Kenya, usage of concrete poles stands at only 3 per cent, with the rest being wooden poles.
Wooden poles: treatment and preservation Wooden poles need preservation against rot, fungi and insects. The most commonly used preservatives are: Creosote (but there are environmental concerns) Copper chrome arsenic (CCA) oxide. Despite the preservatives, wooden poles decay and have a lifespan of between 15 -25 years depending on climate and soil conditions. In 2004, there were only two treatment plants in Kenya capable of treating the poles - Timber Treatment International (formerly EATEC) and Gilgil Telecoms Industries Ltd (GTI). Today, the installed treatment plants stand at over 18 and the number is growing steadily, an indication of how robust and valuable this industry is. The following are some of the plants so far approved by the main user of wooden poles, Kenya Power, for supply of treated electricity distribution wooden poles: Western region: Timber Treatment International (TTI), Tipsy Wood Preservation, Capital Oasis, Rosoga Investment. Central Rift: Regional Royal Transmission, Timsales, Comply, Cabro (EA), Equip Agencies (former GTI), Muringa Holdings. Mt Kenya region: Kakuzi, Makuyu, Marula and Miti Industries. By the end of 2012, the installed plants had an estimated built-up capacity for producing over 1,000,000 poles annually.
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The first steps for preparing an electricity distribution pole Felling and skidding (moving) to a stacking area, which should be accessible for ease of loading and transportation. Stacking to allow for seasoning (drying) to about 28 per cent moisture content and then transporting to treatment plant. Open-air seasoning takes between four to six months. Loading is next. Manual loading is dangerous and time-consuming since each pole weighs over 300kg; a mechanized process is preferred. Further stacking is necessary to bring the pre-treatment moisture content to 25 per cent. There are a few plants with accelerated kiln drying to shorten this process. Kiln drying is energy consuming and expensive.
Minimum size for electricity distribution wooden poles Kenya Power, the main user of wooden poles, requires the following minimum size: Length – 10 metres. The length can go up to 18 metres, with 10 and 11 metres being the most common. Top diameter - 160 millimetres. Ground line diameter (measured 1.8 metres from the butt end) - 202 millimetres.
Past, current and future demand for electricity distribution poles Past usage Year
Requirement Cost (Ksh billion)
Local supply
Import
Concrete
2008/9
300,000
3.45
210,000
90,000
3,237
2009/10
330,000
4.312
280,500
49,500
8,021
2010/11
363,000
4.96
326,700
36,300
5,275
2011/12
400,000
5.703
320,000
80,000
16,329
2012/13
500,000
7.56
350,000
150,000
14,446
Estimated future demand Year
Requirement Cost (Ksh Local Import *** Concrete billion) * supply **
2013/14
550,000
8.0
412,000
138,000
15,000
2014/15
600,000
9.0
450,500
150,000
15,000
2015/16
660,000
10.0
495,000
165,000
15,000
2016/17
720,000
11.0
540,000
180,000
15,000
2017/18
800,000
12.0
600,000
200,000
15,000
*Estimate **Provisional at 75% ***Provisional at 25%
Miti January - March 2014
A concrete pole. Currently in Kenya, usage of concrete poles stands at only 3 per cent. (Photo: John Guda)
Species and pricing The species mainly used for poles are Eucalyptus grandis, Eucalyptus saligna and pine species. Fast growing eucalyptus clones are boosting supply as they mature faster (and a bigger percentage is straight). The average age of trees used for electricity distribution poles is about 10 years, and these have been found to have sufficient strength and treatable sapwood as per the Kenya Standard (KS 516). The trees should be straight with sufficient taper. The plantation should be accessible by trucks and proximity to a treatment plant increases chances of better prices. The higher the available quantity, the higher the price per pole. There are no set prices and negotiations are based on the willing buyer willing seller concept. However, prices range from Ksh 2,000 to Ksh 4,500 per standing tree, based on the above factors. Kenya Power buys treated poles on average at Ksh 12,000 per pole, delivered to their stores.
A steel pole. These were in use in the 1960s in Nairobi and Mombasa. (Photo: John Guda)
or CCA oxide. The cycle takes about three and a quarter hours. Afterwards, poles are tested for adequate chemical penetration through physical examination of core borings or cross-sections. Chemical retention can only be tested in a laboratory, so quality control is process-oriented and most treatment plants have invested in spectrometric analysers for this purpose. Modern treatment plants are highly automated and computerised, and require little manual input.
Wooden poles are light, easy to install and are a source of livelihood for farmers. (Photo: John Guda)
However, farmers need to ensure they have planted the right species from the right seeds (improved!) or clones, and should seek professional advice regularly for their areas. They also need to ensure they have applied the right spacing based on the target market, e.g. timber, firewood, fencing posts and power distribution poles. Harvesting should be done when one has a ready market for the poles. Importantly, farmers should ensure good stacking after felling. This helps to prevent bending during seasoning.
Outlook Transmission poles are a good investment. Today in Kenya, this is a Ksh 8 billion industry, and growing. Demand is there – growing at an annual average of 10 per cent.
The writer is Manager - Safety, Health & Environment, Kenya Power & Lighting Company Limited Email:jguda@kplc.co.ke
Quality control The treatment process includes ensuring that the pre-treatment moisture content is not more than 25 per cent. Tree branches are trimmed, flush to the surface, and the poles are graded according to length, tip diameter and theoretical ground line diameter. Both ends are fitted with gang nails or a binding strip to stop end-splits. Poles are then pressure treated with either creosote
Miti January - March 2014
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LEAD THEME
A pole treatment cylinder at Busoga Forest Company in Jinja. (Photo: BGF)
A ready and growing market Eucalyptus poles offer great prospects and high revenues for Ugandan growers BY PETER BAHIZI
N
ew and great opportunities are emerging in the eucalyptus poles market in Uganda. For a start there are now five operational pole treatment plants spread across the country. It means a secured ready market for eucalyptus farmers. This presents an opportunity not only today but also in future, taking into account government plans for rural electification and the increasing demand from neighbouring countries. So why not join the business by planting trees! The five pole treatment plants are: Busoga Forest Company’s pole treatment plant in Jinja; Nile Ply’s pole treatment plant in Nakasongola; New Forest’s pole treatment plant in Mityana; Ferdsult’s pole treatment plant in Mukono; and Uganda Electricity Distribution Company Ltd (UEDCL) pole treatment plant in Kampala. Prices of poles are going up steadily, offering great prospects and higher revenues for eucalyptus growers, and the future seems very bright. Demand for eucalyptus poles has gone up as treatment plants consume the existing eucalyptus stands. The current treatment plants are consuming an average of 400 hectares per annum against the less than 1,500 hectares of standing eucalyptus crop. Given the existing stock, there is a serious and urgent need for private investors to plant eucalyptus. If the pole treatment plants were to operate at full capacity, the current stock would last the country less than three years. Pole treatment plants are very particular about the quality of poles they buy from farmers. The treatment plants specify the minimum length and diameter of the poles they buy. To achieve the desired specifications, farmers need to adhere to appropriate silvicultural practices.
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Table 1: Size requirements for the Ugandan eucalyptus pole market Pole length Required Required minimum Maximum base length (m) top diameter (cm) diameter (cm) (m) 9 10 17 - 18 21 10 11 18 – 19.6 24 11 12 19.5 - 21 25 12 13 21 – 22 27 14 15 22 – 23 29 Other specifications include; Straightness: The poles should have less than 5cm deviation from a straight line. The poles should have few dead knots. Less than 1 cm deep mechanical injury on the pole. Table 2: Current retail prices for treated and untreated eucalyptus poles for different sizes Size (m)
Price (Seasoned ) (Ush)
Price (Treated) (US$)
10
165,000
160
11
200,000
185
12
255,000
214
14
292,500
284
(Source: SPGS) *US$ =Ush 2,500 as on February 11, 2014
Miti January - March 2014
Figure 1: Price trend for untreated eucalyptus poles
Figure 2: Prices for the different untreated and treated eucalyptus poles in Uganda
(Source: SPGS)
(Source: SPGS)
Table 2 shows the current prices for seasoned poles and the selling prices for treated poles as reported by the different pole treatment plant operators. Figure 1 shows the price trends of the eucalyptus poles in Uganda over the past few years as reported by the different pole treatment plant operators.
A constant price was observed. This was attributed to the tendering process by the Uganda Electricity Distribution Company Limited (UEDCL) where the purchase and the sale price stand for a given year.
PORTABLE SAWMILLS
The writer is a Senior Plantation Officer, Sawlog Production Grant Scheme (SPGS) Email:peterb@sawlog.ug
速
Distributor for Burundi, Ethiopia, Kenya, Rwanda, Tanzania & Uganda:
EQUATORIAL WOOD PROJECTS LTD Nairobi I Kenya
Ph: +254 700 930 696 Email: info@equatorial-wood.com I Website: www.lucasmill.com Miti January - March 2014
13
LEAD THEME
The go-between in the poles trade The role of merchants in the market chain of power transmission posts BY KENNEDY MASAI
S
ince the Kenya government started rapid expansion of electricity distribution in the country, there has been a high demand for transmission poles. As a result, many players came in to try to meet the required demand for both the Rural Electrification Authority (REA) and Kenya Power and Lighting Company (KPLC). Initially, the business was reserved for treatment plants to source, treat and supply the poles. They sourced poles in large quantities mainly from Kenya Forestry Service (KFS), Kenya Forestry Research Institute (KEFRI), tea estates and other large private plantations. Due to depletion of these plantations and the increasing demand for poles, the treatment plants engaged other players to supply them with raw poles to bridge the shortfall. In other words, treatment plants needed nimble operators to search for poles where the treatment plants could not source these profitably because of quantities and logistics. For instance, the other players can go as low as buying one pole from a farmer, something a treatment plant is not able to do because of overheads. This opened up a new business opportunity that involved searching for suitable trees in rural areas, harvesting, assembling and transporting them for sale at the treatment plant yard. This was the birth of merchants in the business chain. To put the operation in perspective, a typical pole merchant is able to supply about 120 poles per month. It is essentially a cash operation, where they have to take small bank loans to fund the hiring of brokers, loaders, a chainsaw operator and an assistant, tractor driver and turn men, a lorry, and the purchase of the trees. The cash requirement is a significant bottleneck as banks charge high interest rates – 15 to 17 per cent. As such, pole merchants operate on small profit margins.
General roles of merchants Merchants play an important role in the transmission pole chain. They offer an immediate market for farmers, thus providing quick financial solutions to farmers. They deliver quality poles to treatment plants given their knowledge of required specifications and experience in the operations. They link treatment plants to larger plantations
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that are beyond the broker’s financial ability. They in fact pass valuable information through detailed knowledge of the countryside. They advise farmers on better forest management practices.
Specific activities Merchants’ specific activities include: Seeking out quality poles. They use intermediaries, informers and brokers for this. Assessing the quality of poles before harvesting. Doing the initial survey of an area where trees are growing and determining the possibility of harvesting poles. Verifying ownership of the trees. Primary price negotiation to ascertain financial requirement. Final confirmation of the number of good poles. Agreement and payment for the good poles. Harvesting, which includes felling, sizing and skidding. Transportation – loading and obtaining the required movement permits.
Challenges Merchants face a number of challenges, including: Wrong information about the source, number and quality of poles. Fraud, where they end up paying others apart from the real owners of the trees. Poor terrain that increases skidding costs. Bad weather, especially rain, which hampers transport.
High transportation costs especially for hired trucks. High capital requirement for starting up and running the business. KFS regulations. The permit acquisition process is challenging and sometimes causes delay. Rejection of poles at the treatment plant. Some treatment plants buy “rejected” poles at throwaway prices, treat and sell the same as good poles. Sizes of poles to be supplied. Sometimes, the treatment plant may not require some specific sizes of poles, thus affecting field grading.
Conclusion Merchants play a crucial role in the transmission pole supply chain. They are intermediaries between farmers and pole treatment plants and need to be appreciated for this. The business is low-margin, and a change in market dynamics, for instance lower prices for poles, would threaten the survival of the operators.
Way forward Merchants, like the wood treatment plants, should form an association in order to speak out on the state of the industry. Their voice needs to be heard, especially on pricing of trees, which needs to take account of related handling costs. The writer is a pole merchant. Email: kennedy.masai@yahoo.com
Miti January - March 2014
LEAD THEME
Looking to the future The options open to smallholders to ensure their survival in the pole production chain BY JOSHUA CHEBOIWO AND JAN VANDENABEELE
T
ree growing in western Kenya is emerging from a subsistence activity into a semi-commercial forestry business. As such, the business needs to be supported by access to guaranteed markets and technical assistance. It is essentially a private sector initiative, where profit is the main driver, although the government plays a role through institutions like the Kenya Forest Service (KFS) and the Kenya Forestry Research Institute (KEFRI), which provide relevant information to farmers. Pole production has been expanding steadily over the last 10 years, based on competitive land use principles, meaning that farmers have realised that growing trees can be more profitable than growing maize or dairy farming. More treatment plants have been established, with greater capacity to handle trees. The growers and processors form a forestry business link that revolves around efficient supply and delivery from the farms to the plants. However, individual growers have not been able to command economies of scale to enhance their bargaining power, and collective action at that level does not exist. The farm forestry sector players include the growers, small-scale entrepreneurs and forestbased businesses that need to be linked through some efficient operational engagements. Medium- and large-scale growers who can supply large volumes of the required pole quality, regularly, will in the end marginalise smallholders unable to organise themselves. In the short run, limited availability of land for large tree plantations means that industries have to work with smallholders, but it is in the interest of industries to deal with big volumes to reduce their overheads.
Promotion of market linkages There can be cooperation between firms with similar operations - horizontal integration - or between enterprises at different levels of the supply chain - vertical integration. The link between smallholder growers and treatment plants is then a vertical integration. However, smallholder growers in general are subsistence or semi-subsistence farmers,
Miti January - March 2014
usually producing a variety of commodities. They will not cultivate unless they know they can sell, while traders and processors will not invest unless they are assured of a constant supply of a product that can keep them in profitable business. A contract that links the smallholder to the processing business offers a potential solution to this situation. Contracts constitute an important form of cooperation that can mitigate the weak bargaining position of scattered individual smallholders. Smallholder producers are also characterised by seasonality in production and inter-year variability in output that cause price variability and unstable farm incomes. Therefore, access to guaranteed markets can reduce this price uncertainty and motivate producers to increase volumes and take measures to stabilise production. Cooperation between smallholder tree-
growers and industrial processors can overcome these limitations, through arrangements like advance payments for contracted produce, and guaranteed prices. It is in the interest of everybody that the existing smallholders transition from subsistence volumes to commercially oriented production.
Potential market linkages To evaluate the potential viable market linkages for smallholder tree-growers in western Kenya, KEFRI undertook a study that involved key players in the transmission pole market chain. Various theoretical market linkage models were considered and put to the test, based on practical experience and financial viability. The results were discussed in three stakeholder workshops in Eldoret, Kapsabet and Koru. Where possible, the model is illustrated with a successful experience.
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1. THE PRIMARY MARKET MODEL: FARMER — TREATMENT PLANT This is where tree-growers decide to sell their mature poles straight to treatment plants or any other forestry business. The arrangement may involve the growers harvesting and delivering the products themselves, or through a contracted agent or relevant forestry business. It also presumes that prices and costs remain constant for the specific operations.
Advantages Less risk if operations like selection, harvesting and transport are undertaken by the forestry business. Less expensive to smallholders. More reliable because no agents are required.
Disadvantages In a highly standardised business like transmission poles with stringent specifications, it is risky for a smallholder to carry out the operations and to deliver, due to high rejection rates. The farmers have inadequate skills and equipment to select, fell, log, handle and transport the poles to the treatment plants. Individual farmers do not always have enough poles to fill a vehicle(s).
Viability The assumptions are that the farmer has invested in 1 hectare of Eucalyptus grandis, with a spacing of 3 x 3m and an initial stock of 1,100 trees. At the age of 8 - 9 years, 30 per cent of the stock is not up to specifications for poles because of deformities and defects, and 70 per cent or 770 trees can be sold. Costs are based on standard experiences in the field, and current prevailing prices in the market. The farmer makes up to Ksh 2 million per hectare (see Table 1).
Example: Project Grow This is a successful tree-farming scheme in South Africa, run by SAPPI, a major South African forestry company specialising in paper production from tree fibre pulp. The scheme incorporates subsistence farmers with access to 1 – 20 hectares of land. SAPPI, the Gencor Development Fund and the Kwazulu Department of Agriculture and Forestry launched the project in 1983. The scheme now involves 4,500 farmers, owning 19,200 hectares of land, with farms mostly located within 100km of SAPPI’s pulp mill. The farmers currently produce 5.6 per cent of SAPPI’s intake of pulpwood (185,000 tonnes of timber per year).
Key to the success has been the availability of technical advice, free seedlings, financial assistance in the form of interest-free loans covering farming costs and annual maintenance, to be discounted from payment at clear felling, and a guaranteed market. The growers must sell their timber to SAPPI, by contract, and the timber must comply with stated mill specifications. The price is negotiated and corresponds to prevailing market rates. There are monthly Project Grow meetings and all notices to the growers are delivered personally by the company or at the meetings. Kenya has a good example in the fresh vegetable export market, with vegetables being produced to international standards by smallholders, and supported by the Horticultural Development Authority (HCDA).
2. THE SECONDARY MARKET MODEL: FARMER — MERCHANT — TREATMENT PLANT This arrangement involves intermediaries such as merchants that link the grower to the processing business. The merchants buy the logs at a cheaper price, and sell at a relatively higher price to cover their costs and realise a profit. They buy the standing trees at their cost, and cover all the operations up to the sale to the treatment plant. The farmer does not incur costs, except in the growing of the trees.
Advantages
Table 1: Farmer income per hectare of woodlot in Uasin Gishu for model 1 ITEM
QUANTITY
UNIT PRICE (KSH)
TOTAL PRICE (KSH)
1
Income
Sales
770
3,500
2
Costs
Establishment and management
Subtotal
Balance or net undiscounted income
3
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Permits Transport Loading and off-loading Felling Debarking Sizing and drying Other general expenses
2,695,000
100,000 1,500 616,000 20,000 10,000 22,000 10,000 11,500 791,000 1,904,000
The agent can negotiate better prices per tree, which partly flow back to the grower, at competitive market rates. The model is profitable in the short-term. The grower does not incur costs as these are taken up by the merchant. The merchant bears the logging and marketing costs and risks. Larger spread of benefits as more growers are reached, notably those with smaller stocks (woodlots/individual trees).
Disadvantages Less profitable in the end for the grower. Only suitable in conditions where farmers have limited information on the market. Open to sudden price changes dictated by the treated transmission pole market.
Viability The assumptions are the same as in model 1.
Miti January - March 2014
Table 2: Farmer income per hectare of woodlot in Uasin Gishu for model 2 ITEM
QUANTITY
UNIT PRICE (Ksh) TOTALPRICE(Ksh)
1 Income
770
1,500
1,155,000
100,000
-
-
-
1,055,000
Sales
2 Costs
Establishment and management Permits Transport Loading and offloading Felling Debarking Sizing and drying Other general expenses Subtotal
Balance or net undiscounted 3 income
100,000
The average farm gate price is Ksh 1,500 per pole, covering an existing range of Ksh 1,200 - 2,000. It is noteworthy that merchants are in business throughout the year, as opposed to smallholders, and as such are preferred by treatment plants. The farmer makes Ksh 1 million per hectare (Table 2). If the proposed Kenya Power purchase price for poles goes down by 30 per cent, farmer incomes will be reduced and profit margins squeezed. Farmers with fewer than 10 -20 poles risk being cut off from the market. In the end, this might happen anyway, with economies of scale dictating a redesign of supply networks, and well-to-do farmers investing in land purchase to increase their productive capacity.
3. THE CROSS-CUTTING MODEL: FARMERS INVESTING IN PROCESSING PLANTS This model, where farmers organise themselves and invest in industrial processing, could not be tested in the field because it does not exist in Kenya. Currently, the establishment cost of a medium-sized treatment plant, including purchase and installation of cylinders, chemicals, land and infrastructure, staff and operational costs, is in excess of Ksh 20 million. This is out of reach for many farmers, although the example of NCT Forestry Cooperative in South Africa shows it can be done. The crosscutting model presumes the following: The tree-growers have strong producer and marketing associations with common business objectives. The tree-growers associations have sufficient funds to cover purchase of machinery and associated operational costs. The forests to be harvested meet the capacity requirements of the processing facility. The farmer and associations can organise finances to cover harvesting, transport and processing costs.
Advantages The farmers will get the best pricing for their produce as the savings of the integrated approach are passed on to them. The model is likely to be profitable in the end.
Miti January - March 2014
It is relatively less expensive to the tree-growers as the association takes up the costs. It is less risky to the tree-growers as the association takes the logging and marketing risks.
Disadvantages The model is expensive due to the high initial costs for machinery and associated installation and operational costs. It has to rely on professional managerial, record-keeping, accounts and marketing services. It requires tree-growers to be informed on various tasks within the market chain to enable full participation in various decision-making processes. It requires favourable policies and legislation for collective management and decision-making entities.
Example: NTC Forestry Cooperative Ltd This cooperative was started in 1949 in Natal Province (now Natal Kwazulu), South Africa, by 28 black wattle (Acacia mearnsii) growers who wanted better prices for their wattle bark through collective bargaining. Together they controlled 8,000 hectares, and members bought one share for every acre of wattle they owned. A share certificate of one of the founding members on the cooperative’s website shows that the farmer owned 25 acres. Today, the cooperative has 2,000 members, representing 300,000 hectares, which is 21 per cent of afforested land in South Africa. The cooperative has three chipping mills, and offers marketing, logistics, harvesting, tree-farming, silviculture, technology transfer, tree improvement and mapping services. It is a private undertaking, with no government involvement. The farmers made it through strong leadership with tough negotiating skills. Another factor was continuous emphasis on quality, translating into the establishment of an extension service to push correct practices for quality seedlings, management and products. Other core values are professionalism and good corporate governance; communication at all levels and a clear strategy based on good analysis of information.
Summary and recommendations There are prospects for contract supply agreements between private tree growers and major forestry businesses in western Kenya. However, the generally small land holdings limit the capacity of growers to produce sufficient quantities. The industry itself is not willing to engage in long-term contracts because of the long production cycle of the poles, the changing market dynamics and the family management structures on land and land use that create uncertainties on the ability of the growers to oblige with contractual agreements. The forest businesses are however willing to enter into short-term supply contracts with farmers with mature trees to harvest. The future of merchants is uncertain. As more medium-scale growers enter the market and industries cut down on costs by investing in more costefficient logging and skidding equipment, they will by-pass intermediaries. Small subsistence tree-growers are now served through merchants, but in the future might be squeezed out of the market. Farmers in western Kenya have not organised into bigger units like cooperatives, although initiatives like the Kenya Forest Growers Association (KEFGA... see article on page 18) might fill this gap. Joshua Cheboiwo is Principal Research Officer, Kenya Forestry Research Institute, Londiani Regional Research Centre. Email: jkchemangare@yahoo.com
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COMMERCIAL TREE-GROWING An excellent six-year-old eucalypt (GC clones) stand around Kilifi, established under the Komaza project. (Photo: Paul Jacovelli)
There is strength in numbers To realise full benefits, Kenyan tree-growers need to pull together under the Kenya Forest Growers Association BY PAUL JACOVELLI
W
hen Gatsby Charitable Foundation (GCF) invited me to Kenya to advise on how they might support the commercial forestry sector, I jumped at the opportunity. Having worked with the private sector in commercial forestry in a number of countries in East and southern Africa, I was keen to see how Kenya compared and whether there were lessons to be learned from elsewhere that could help develop the sector. It would be fair to say that I have been pleasantly surprised by what I have seen so far in my travels around the country. I have spent time visiting many small growers (and some not so small) in areas as different as the fertile highlands of the Rift Valley and the more marginal, hot and dry coastal areas around Kilifi. In between, I met with tree-growers around Machakos and Nakuru. The scale of tree planting by private growers is very impressive; with the hybrid, eucalypt clones in particular now being widely planted throughout the country. These plantations are
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already starting to provide much-needed poles and wood fuel. The enthusiasm of all the tree-growers I met was infectious and without exception, they were always eager to hear advice on how to maximise their investments. There are many silvicultural “tweaks” that could make an enormous difference for many investors in plantations but more about these in a future article. All the growers openly shared thoughts on problems they faced - from pests to lack of a market for their products. In addition, they told me repeatedly that they needed a strong association to represent their interests. With the words of these growers still ringing in my ears, there were two highly relevant meetings held in Nairobi in January 2014. The first was a meeting of independent, private forest growers organised by the Kenya Forest Growers Association (KEFGA) on January 28, at which there was an impressive turnout. Participants at the meeting made a strong case for giving
commercial forestry a much higher priority in Kenya. They backed their case with some sobering statistics. James Foster, GCF’s Africa Programme Director, summarised the initial findings from a recent study undertaken by Pricewaterhouse Coopers (PwC) for GCF. To realise Kenya’s vision for 2030 of 10 per cent forest cover, 150,000 hectares per year would need to be planted. This is based on the best available data for supply and demand. Only 25 per cent of the current sustainable supply is from commercial (plantation) forestry, with the deficit being met from natural forests and imports. The message was clear: commercial forestry is an essential element to meet the demand. The PwC study went further and analysed the impact the growth in commercial forestry, at the required scale, would have on Kenya, compared to the current situation. The answer was staggering and should be enough to influence politicians and
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policy makers. The socio-economic impact - in terms of contribution to GDP, rural employment, direct taxation and carbon sequestration - would be huge. Whilst the commercial forest sector including the processing industry - could contribute enormously to Kenya’s developmental goals, it was emphasised that this will only happen with better support to the sector. The right policy and legislative environment that encourage private sector investment need to be in place. In addition, there should be a functioning set of market institutions that support such an expansion of new planting. These institutions include commercial nurseries, applied research, practical training and professional extension support to growers. Participants were encouraged to hear from Gideon Gathara, the Conservation Secretary in the Ministry of Environment, that the government was intending to provide incentives to expand commercial tree plantations. On January 29, KEFGA organised a smaller meeting that focussed on the organisation. The KEFGA Steering Group discussed in detail the issues affecting their members and came up with some interesting ideas on how the organisation could step up to the mark and meet the needs of private growers. The priority was clearly markets and the group wanted to explore the possibility of setting up a co-operative to market members’ trees collectively. Other priorities that emerged were the need to identify better financial support for tree growers, better access to information on all
aspects of commercial forestry, improved plant supply (and quality) and research support into the current pests of eucalypts. Over the coming months, GCF will be assisting KEFGA to assess and develop plans for the future. The idea of a growers’ association in Kenya is not new. KEFGA was founded in 2007 but has relied on voluntary support from its committee and core members. The Chairman of KEFGA, Humphrey Njoroge, admitted that to attract more members, the organisation must start to deliver services. Growers associations in other countries
provide some useful pointers to the way forward, bearing in mind though that the situation in each country is different. One of the key roles of a private growers’ association is lobbying for wider recognition and better support from government. This support could be in the form of finance, extension services, training and information, as well as creating a more level playing field for private growers when it comes to market access. Other important roles for growers’ associations could be collective bargaining for inputs such as chemicals (fertilisers, herbicides and pesticides), improved seed importation, tools and equipment. An active association should also represent the concerns of its members in relevant bodies and institutions that could influence areas of interest. The great challenge is for KEFGA to become self-financing as soon as possible and to do this, it must develop a clear business outlook. It would appear that the timing is right now for KEFGA to emerge from the shadows and really make an impact in the sector. To succeed, KEFGA will need the collective goodwill and support of its members. There will be interesting and challenging times ahead, but the potential is clearly there and the foundations have already been laid. NB. Please note that the ideas in this article are those of the writer and do not necessarily represent those of GCF. The writer is a forestry consultant Email: pjacovelli@gmail.com
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FOREST MANAGEMENT
Construction poles. Tracking systems under a forest certification scheme will help in tax compliance and provide a level playing field for stakeholders in the forest products value chains. (Photo: BGF)
Raising standards high Uganda is developing a National Standard for responsible forest management for sustainable socio-economic benefits BY CEASER KIMBUGWE
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n 1990, the area of natural forests and woodlands in Uganda was estimated at 4.9 million hectares, representing 24 per cent of the land area (National Forest Policy, 2002). However, as of 2005, this area had reduced to just over 3.6 million hectares or 18 per cent of the land area (National Forest Authority, 2009). Hence, within a period of 15 years, the forest cover had reduced by some 1.3 million hectares (or a loss of 27 per cent). The highest loss of forest cover was registered on private forests, (approximately 1.2 million hectares, representing a loss of 33.5 per cent over the 15 years). But even within the protected areas (PAs)1 there was a significant loss of 168,000 hectares (about 11.4 per cent), being highest in CFRs (124,000 hectares), followed by the wildlife conservation areas (43,000 hectares) and local forest reserves (417 hectares). Protected Areas include forest reserves, national parks and wildlife reserves
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Uganda is a signatory to the United Nations Non-legally Binding Instrument on All Types of Forests (2008). The Instrument encourages the private sector, civil society organisations and forest owners to develop, promote and implement instruments, such as voluntary certification systems or other appropriate mechanisms, to develop and promote forest products from sustainably managed forests. This was in line with the Uganda National Forestry Policy which had been in existence since 2001.
Why a National Standard? The Constitution of the Republic of Uganda (1995) sets the tone for sustainable management of natural resources. The objectives that deal with the environment commit the state to manage the utilisation of the natural resources of Uganda “… in such a way as to meet the development and environmental needs of present and future
generations of Ugandans” (National Objectives and Directive Principle of State Policy No. XXVII). Accordingly, through the National Forestry Policy (MWLE, 20012) the Government commits itself to “develop codes of conduct and standards, and the development of criteria and indicators that can be applied to forest certification” (Policy Statements No. 1 on Forestry on Government Land, and No. 2 on Forestry on Private Land) The draft revised National Forest Plan (NFP) for 2011/12 – 2021/12 (FSSD, 20113), provides for development of the national standard as follows: “…forest management standards composed of criteria and indicators which have been agreed by consensus of all stakeholders will be MWLE, 2001. Uganda Forestry Policy, 2001. Ministry of Water, Lands and Environment, Kampala 3 FSSD, 2011. Draft National Forest Plan 2011/12 – 2021/22. Ministry of Water and Environment, Forestry Sector Support Department, April 2011, Kampala 2
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developed and implemented. The quality of the standard will also meet internationally accepted principles of SFM…” “…Uganda will undertake forest certification using the phased approach within the framework of the Forest Stewardship Council (FSC)…” Therefore, the national policy and legal framework is supportive of development of a national standard that will lead to internationally acceptable forest certification. However, the actions needed to take forward forest certification as a tool for SFM have not been implemented 10 years after the Forestry Policy was promulgated. It is important that a nationally agreed standard, which is also internationally acceptable, is put in place to guide progress in responsible forest management. The Standard is the scale against which progress in achieving responsible forest management by each forest owner, forest manager, and forest product processor, among others, will be measured. For purposes of marketing some forest products4 and gaining international credibility, it is important that the National Standard measures up to international best forest management practices. The FSC Standard was chosen as benchmark for Uganda’s National Standard, because FSC understands the forest management conditions in Africa better than the other schemes: Until 2004, when Programme for the Endorsement of Forest Certification Scheme (PEFC)5 started operating in Gabon, FSC has been the only scheme, operating in Africa since it started in 1993. FSC is getting even more responsive to the varied African situations with its newly established African Regional Office (FSC Africa) based in Ghana. Therefore, the standard development process in Uganda follows the FSC Principles and Criteria, and its guidance on how to develop FSC national standards. This involves domesticating FSC International Generic Indicators for the Principles and Criteria (standards) set to measure responsible forest management. Ideally, the standard defines and will be a measure for the whole Chain of Custody for forest products in terms of adherence to FSC Principles and Criteria. Since the FSC Certification Scheme has been chosen as the vehicle for operationalising the national policy strategies above, it was necessary for the country to constitute a Standards Development Group (SDG) in keeping with FSC Possible products include timber/sawlogs, charcoal, bee products, ecotourism, carbon, water catchment services, and poles. 5 PEFC was established by national organizations representing a wide range of interests to promote SFM, especially among small forest managers in Europe. 4
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requirements. The national standards can be developed by a Standards Development Group (SDG) which is recognised by FSC. The SDG was constituted after consultations with a wide range of stakeholders in the forestry sector, and endorsed in a national workshop that brought together stakeholders in the forestry sector on 31 January 2012. The SDG was subsequently approved by the FSC and officially launched on 4 September 2012.
Progress towards development of a National standard With support from DANIDA, WWF-UCO is spearheading the process to develop a national standard for certification in Uganda. Environmental Alert as contract holder with WWF-UCO partly coordinates the implementation a project on developing capacity for forest certification in Uganda under the auspices of the Uganda Forestry Working Group (UFWG). In its Process Requirements for the Development and Maintenance of National Forest Stewardship Standards (2009), FSC has given guidance on how national standards should be developed. The guidance “…aims to provide a clear basis by which proposals and work plans for the development of Forest Stewardship Standards may be evaluated and implemented for compliance with FSC international requirements...” The standard development process goes through a series of steps that are continuously and rigorously appraised by FSC.
Initial activities have included Formation of a Standards Development Group with 21 members belonging to Economic, Environment and Social chambers. A Communication Plan and Guideline for SDG operating procedures have also been developed to further ensure successful implementation of the project. A capacity building training for SDG members was conducted for knowledge creation among SDG members in order to adequately guide the standard development process. Development of a zero draft standard to guide stakeholder consultations at national and sub-national levels. SDG Uganda is currently conducting subnational consultations across the country to create more awareness among stakeholders about the standard but also seek their input to the zero draft.
Next steps Carry out more consultations with all stakeholders in the country including “special interest groups” like the workers’ union
and the forest dependent ethnic minorities, among others. Hold engagement meetings with government institutions, line ministries and the private sector. Undertake massive multimedia awareness campaigns at national and sub-national levels.
What happens after the standard has been developed? SDG Uganda shall submit the final draft of the standard to FSC for approval. Once approved, the Standard will be tested within selected forest management units in Uganda that are pursuing forest certification. After successful testing, the Standard, which is voluntary, will start operating in Uganda to replace the current standards set by the existing foreign based forest certification bodies.
Potential benefits For companies: Enhance public image and become the business partner of choice. Improve/diversify market access, (internal and external). Profitability - higher prices, premiums from niche markets. Sustain forest resource base, sustain business. Contribute to forest management. For government: Improve tracking systems, tax compliance and government revenues. Edge out illegal timber and forest products from the market. Conserve biological diversity, water resources, and fragile ecosystems through improved forest resources management. Sustain source of forest products and increase forest retention/cover. For communities: Improve benefits, incomes and fairness in trade. Assure continued livelihood support for forest dependent communities. Increase access rights to areas of special interest. Together, we can conserve our forests for today and generations to come but at the same time accrue sustainable socio-economic benefits from this natural resource to improve our livelihoods. Protect the forests and support forest certification in Uganda! The writer is Programme Officer, Environment and Natural Resources Environmental Alert, Kampala Email: po.naturalresources@envalert.org / kaycea333@gmail.com
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SUCCESSFUL TREE-GROWER
Preparing a retirement nest Tree-growing gives a good return on investment while protecting the environment BY DIANA AHEBWE
D
r Godfrey Bahiigwa holds a PhD in Agricultural Economics from the University of Missouri-Columbia, USA. He is a professional economic policy researcher, currently working with the International Food Policy Research Institute (IFPRI) as Head of the institute’s Eastern and Southern Africa Regional Office (ESARO) based in Addis Ababa, Ethiopia. He has accumulated 10 years of experience in plantation establishment and management in Mubende District, Uganda. Three things motivated Dr Bahiigwa to plant trees. “First, I wanted to ensure that I would have enough money to send my children to good universities because by that time, I will be close to retirement, having had children late in life,” he says. Secondly, he wanted to be comfortable after his retirement. Thirdly, in 2004, few investment opportunities in Uganda offered a good return. Today, there are many attractive investments and investors have more choices than before. Using his savings, Dr Bahiigwa started by acquiring 300 acres (120 hectares) of private land in Mubende, close to Kasana Kasambya Central Forest Reserve. He subsequently acquired an additional 300 acres of private land next to his original land. Later still, the National Forest Authority (NFA) offered him a lease on 50 hectares of the Central Forest Reserve, again next to his private land. Dr Bahiigwa took the initiative to educate himself about tree-growing by visiting NFA offices in Mubende and the National Tree Seed Centre in Namanve. Later, he learnt about the Sawlog Production Grant Scheme (SPGS), with its attractive grants for tree-growers. Right from the start, Dr Bahiigwa decided to raise his own seedlings. To this end, he rented premises close to his acquired land to construct his tree nursery. Species planted In September 2004, Dr Bahiigwa started his plantation establishment by planting Pinus caribaea var hondurensis (PCH). He did the first thinning at five years, selling most of the thinned trees to timber traders from Kampala at Ush 400,000 a lorry-load. He could not sell some of the smaller thinned stems and left these in the
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plantation to rot. His first and second crops, totalling about 50 hectares, are due for the second thinning in 2014. In the first six years, Dr Bahiigwa planted only PCH, with seeds from Australia obtained through NFA. Later, he procured seed through SPGS, and in the last two years through the Uganda Timber Growers’ Association (UTGA), of which he is a member. In 2010, Dr Bahiigwa learnt about the fastgrowing clonal eucalyptus and planted his first crop in March 2011. “At three years, that crop is very impressive,” he says. By January 2014, he had planted 250 hectares of PCH, and about 50 hectares of clonal eucalyptus. On average, he plants 30 hectares per season and plants twice a year. He employs 80 90 people during the peak season (for planting), but on average, he has 70 workers permanently at the site.
Source of seedlings and seeds For all the pines Dr Bahiigwa planted, he sourced the seed from either Australia or Brazil. Each season, he would sow either one or two kilograms of seeds (80,000 seedlings). For the first two seasons of planting clonal eucalyptus, he obtained the plantlets from the Gatsby Trust nursery in Kyembogo, Fort Portal, Kabarole District. In the first and second seasons of 2013, he sourced the clonal plantlets from a private nursery in Mityana District, which was closer to his plantation than Fort Portal. Ecological details of the planting area Mubende District has two planting seasons – March to May and September to November. The area has an annual average rainfall of 1000 to 1250mm and medium annual temperatures ranging from 17.2 to 29o Celcius. “The area where I have planted is favourable for both pines and eucalyptus, with no major diseases affecting either species,” says Dr Bahiigwa.
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Success in commercial forestry A number of factors have made Dr Bahiigwa one of the most successful tree-growers in Uganda. “I am totally dedicated to my investment and have grown to love forestry,” he says. Secondly, he has a committed and loyal manager with whom he works closely to plan the activities in the plantation. Dr Bahiigwa takes advice from the manager, who is on the ground all the time. Dr Bahiigwa also pays his workers in full and on time, thus earning their trust and confidence. Dr Bahiigwa has received a great deal of technical advice and support from NFA, SPGS and UTGA through training, seminars and field visits. Lastly, he says, he has been lucky that for the last 10 years he has been employed, and therefore has had resources to meet the operational costs of the plantation. Challenges encountered The main challenge is the constant worry of a forest fire breaking out in his plantation, especially during the dry months of December to March and July to August. To minimise this, Dr Bahiigwa has established a fire-line around the whole plantation, as well as firebreaks between different blocks. During the dry months, workers patrol the plantation constantly. Dr Bahiigwa has also established and maintained good relations with the surrounding community. Another challenge Dr Bahiigwa faces is shortage of labour during the peak planting and harvesting seasons. “I have to compete with food crop growers who pay higher daily rates. As such, my casual workers find it more attractive to work outside the plantation,” he says. “Therefore, there is a temporary labour migration from my plantation to the community.” Future plans “Even though the trees are not yet mature, I have started thinking about the best way to earn the highest return from my investment,” says Dr Bahiigwa. He will either sell logs to timber dealers from Kampala or convert the logs into timber and sell it. He will decide which way to go later this year when he does the second thinning of the first 50 hectares. Dr Bahiigwa has planted trees on all the land that he had acquired. If he can procure more land, either privately or from NFA in one of the Central Forest Reserves that are available for commercial forest establishment, he is willing to continue planting. Advice to potential investors “We learn by doing. One should not be
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discouraged by initial setbacks,” he says. “They happened to me, but I overcame them and anyone can.” He says that starting is always challenging no matter how much information one gets. “It is important to care for your investment by dedicating enough time to supervise all the activities,” says Dr Bahiigwa. He advises investors to make friends with their employees, as without workers and their goodwill, one cannot make money. He also advises tree-growers to have good relations with their neighbours. “I would like to encourage all Ugandans
who have idle land to plant trees. They are a good investment and they protect your land from encroachers,” says Dr Bahiigwa. “In addition, trees are good for our environment.” He encourages NFA to allocate idle Central Forest Reserve (CFR) land to proven planters who still want to grow more trees. That way, the CFRs are protected from encroachers and the objective of forest establishment is achieved. The writer is the Miti magazine Country Representative – Uganda Email: diana@mitiafrica.com
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SUCCESSFUL TREE-GROWER
Scaling the poles trade Encouraged by financial gain, young farmer takes to tree-growing BY WANJIRU CIIRA
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t 34 years of age, Zephaniah Kurgat, a civil engineer by training, is a successful tree-grower. The resident of Malel Village, Kapsaret Location, Kapsaret Division, Wareng District of Uasin Gishu County, has put two and a half acres, out of his 15-acre piece of land, under eucalyptus (Eucalyptus grandis). Mr Kurgat bought 1,300 seedlings from the Tree Biotechnology Programme (TBP) in Karura, Nairobi, in 2002, on advice from the Kenya Forest Service (KFS). TBP obtained the original germ plasm from South Africa, where it was bred by Mundi Forests for pulp production, but it is said that the resulting poles pass the required strength tests set by the national standards (KS 516: Wood poles for power and telecommunication linesspecification). Mr Kurgat planted the seedlings at 2.5 x 2m spacing, as directed by KFS. Some of the seedlings died and he replanted 500 the following year. To cut on establishment costs, Mr Kurgat planted the trees together with maize, which turned out fine, as Eldoret is a known maize-growing area. Therefore, Mr Kurgat ended up with a fine eucalyptus stand of 2.5 acres (1 hectare). Nine years after planting, that is, in 2011, Mr Kurgat harvested 550 trees and sold them at Ksh 3,000 per tree, to Timber Treatment International - TTI. This earned him Ksh 1.65 million, which he used to pay school fees for his siblings, and to buy some dairy cattle. Calculated at yearly basis, the income comes to Ksh 183,000 per year per hectare or Ksh 73,000 per acre. Naturally, the eucalypt stumps started coppicing, at several sprouts per stump. Mr Kurgat left the sprouts until 2013, and then thinned them down to one or two sprouts per stump. The resulting small sticks were used for
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fencing, and the remaining sprouts will grow into new trees again. Now, two years after the first selective felling, previously spared trees have grown big enough to be sold. Mr Kurgat hopes to sell another 600 trees, with pole size ranging between 10 and 12 metres in length. Demand for poles is high. “Every month, a number of prospective buyers come to see me,” says Mr Kurgat. In selecting a buyer, Mr Kurgat takes into account the price offered per tree, the felling skills of the chainsaw operator and the payment period. As prices stood at the time of the interview, he was hoping to get Ksh 5,000 per tree.
It is important to engage the services of a skilled chainsaw operator, since the trees selected for felling are within the stand. An unskilled operator could damage the stems of neighbouring trees, reducing their value considerably. Apart from the trees that Mr Kurgat planted, he also tends black wattle trees (Acacia mearnsii) that he sells for charcoal and fencing. And the best part – black wattle grows wild in this part of Kenya. Farmers just need to tend to the trees. This spontaneous germination of black wattle seedlings is due to the presence of seeds in the soil, probably from trees planted by the East African Tannin Extract Company (EATEC) years ago. The seeds remain viable for up to 50 or even 80 years. Their germination is probably stimulated by light, after ploughing to plant a crop like maize. Fire also stimulates their germination. The rest of Mr Kurgat’s farm is under grass for his dairy cattle. He has a few head of cattle, and produces some 20 litres of milk per day, which he sells at Ksh 40 a litre. Apart from trees and cattle, Uasin Gishu farmers also grow maize. However, for commercial gain, Mr Kurgat chooses to grow trees. He explains that he can get 20 bags of maize from an acre of land. If he sells these at Ksh 2,000 a bag, he would get Ksh 40,000. “This is before you take into account fertiliser, labour and other inputs,” he adds. This is less than he earns from eucalyptus trees, as illustrated by the figures above. The writer is the Managing Editor, Miti magazine. Email: wanjiru@mitiafrica.com
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SUCCESSFUL INDUSTRY
Energising the Ugandan landscape To meet its core business of power distribution, Ferdsult has ventured into growing and production of power transmission poles BY DIANA AHEBWE
F
erdsult Group of Companies is a power delivery and implementation company, which started operations in 1999. With a home base in Uganda and focus on developing countries, the company has since created a niche market and strong presence in the field of power distribution and prepaid energy technology. The company distributes power in areas verified by the Rural Electrification Agency, a government body involved in connecting power to rural areas. Districts that have benefited from Ferdsult include Kihihi Kanungu, Kibaale Kyenjojo, Kamwenge, Mutukula and Rakai, among others. In 2004 when the company had established itself fully in power distribution, it experienced a shortfall in transmission poles. The demand for poles was high while the supply of quality poles was low, just as it is today. The company continued to expand and ventured into commercial afforestation to support the main core business of electricity supply. The company has grown considerably since
then, and now has more than five projects operating in different districts. It employs more than 500 people - both skilled and unskilled. Venture in tree planting Ferdsult started tree planting as a business in Lugazi in 2003, with 20 hectares of eucalyptus. The trees were harvested in 2011, treated and used as transmission poles in the company projects. After harvesting and with support from the Sawlog Production Grant Scheme (SPGS), the company acquired more land for large-scale tree planting. This would also supply raw material for the pole treatment plant. Ferdsult was one of the first clients to receive technical training and financial support from SPGS. The company acquired land in several districts, namely, Gombe, Rakai, Kome and Mpigi and planted pine and eucalyptus. The plantations are between two and eight years old now. Ferdsult obtained the first pine and eucalyptus seedlings from the National Tree Seed Centre, and these were not always of good quality. Later,
when SPGS came into existence, Ferdsult learnt about improved seed that would give commercial gains within a short time. The company started buying seedlings from recommended nurseries while trials on clones were being done at the National Forestry Research Institute. The first clones that Ferdsult planted were Grandis-Urophylla (GUs) from clonal nurseries in Mityana. The clones turned out to be so impressive that Ferdsult acquired more and has planted clones to date. Ferdsult planted other GUs from nurseries established by the Uganda Gatsby Trust in Fort Portal. Meanwhile, SPGS established a clonal plantation in Lugazi, on land owned by Ferdsult, and used it as a demonstration site for farmers. As demand for clones went up, Ferdsult Engineering Services established a nursery of clones in Lugazi, Mukono District, mainly for their own planting. Currently, the eucalyptus clone nursery has a capacity of about 200,000 seedlings per planting season and plans to expand it are under way. After Ferdsult plants trees in all designated areas, the nursery will remain entirely commercial to serve other clients. Currently, Ferdsult has 119 hectares of Pinus caribea, which is seven to eight years old; 34.9 hectares of GU clones; and 13.6 hectares of Eucalyptus grandis; all in Lugazi (Mukono District). The company also has 35 hectares of Eucalyptus grandis and six hectares of Pinus caribea in Gomba district; and 16.6 hectares of GUs in Kome, also in Mukono District. In total, the company has planted 125 hectares of pines and 100.1 hectares of eucalypts. Silvicultural practices Ferdsult has implemented proper silvicultural practices as recommended by SPGS. The company sells pine thinnings to small furniture makers in the Katwe and Ndeeba suburbs, as well as big buyers like Nile Ply. Lately, Ferdsult has obtained a band sawmill to convert thinnings into timber efficiently and the company is considering hiring another machine to keep up with the prevailing high demand for
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timber. The company sells eucalyptus thinnings as poles both to small and big buyers like Nile Ply. The poles fetch Ush 500,000 - 800,000 (approximately Ksh 16,700 - 26,700) per 10 tonnes, depending on the size. Challenges in plantation management Grazers, animal keepers and squatters present a challenge to Ferdsult. To resolve the issue, the company plans to involve the local communities in the protection of the plantations. The company has managed the challenge of fire by maintaining fire-lines and forest roads in the plantations. Communities around the plantation have been stealing newly planted seedlings to plant on their farms. In addition, the community once uprooted over two hectares of eucalyptus seedlings, just a day after they were planted. Benefits The biggest benefit is that on maturity of its plantations, Ferdsult Engineering Services Ltd can harvest the poles for use by the company’s pole treatment plants and hence have a secure supply of quality poles. Secondly, the clone nursery will serve other tree-growers who are investing in commercial tree-growing. This will help to meet the growing demand for wood products for home, industry and construction, as well as achieving economic development of the company. The pole treatment plants Ferdsult has two treatment plants. The first one, worth US$ 2.5 million, was established in 2010 in Lugazi. In 2011, the company installed another pole treatment plant of higher capacity, worth
US$ 2.5 million, also in Lugazi. Both plants have a combined production capacity of 180,000 treated wooden electricity poles per annum. Ferdsult buys raw poles, mainly Eucalyptus grandis, from individual farmers after the company’s experts inspect a plantation. The company only buys selected trees unlike others who buy the complete standing stock. Clones are rarely used as transmission poles because they grow fast and reach pole size while the tissues are still juvenile. The market for treated poles is mainly local because of the scarcity of poles in the country. “We cannot produce enough for our own use and for export, maybe in future,” says Primah Ninsiima, the pole plant manager. Some of the clients who buy treated poles from Ferdsult are Tullow Uganda Operations (Pty) Ltd, Blanca, Haso Engineers, Tetra Technical Services and even individuals who buy a single pole. The amount Ferdsult pays for a pole depends
on size, transport cost and treatment. For example, for a 12m x 200mm pole, the company pays Ush 200,000 in Lugazi. If it is still in the field (stump value), the company will pay Ush 70,000 - 80,000, depending on accessibility of the area. After treatment, Ferdsult sells each pole at US$ 220. The company also sells off-cuts for fencing but this market is limited because clients can get these cheaply on the black market. However, often, these cheap off-cuts are simply painted black to resemble treatment with creosote. The main challenge the treatment plants face is limited supply of poles. In addition, available raw materials are difficult to access due to distance or terrain of the plantations. “We are contemplating importing raw materials, that is, eucalyptus from the DRC, but this will be after calculating the costs and benefits,” says Mr Ninsiima. Success and future plans Ferdsult owes its success to determination and planning, where one project supports others. The company has not only planted trees but has ventured into poultry-rearing and fish-farming. It has 30,000 chickens, giving 800 trays of eggs per day. The poles used for construction of the chicken houses were thinnings from the plantation. Within five years, Ferdsult hopes to complete planting trees on the remaining 256 hectares of their land. They also plan to acquire more land, to establish enough plantations to satisfy the capacity of the treatment plants. They are also constructing ecotourism sites within the plantations in Busoke, Mukono District and in Kome Island. The writer is the Miti magazine Country Representative – Uganda, Email: diana@mitiafrica.com
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Miti January - March 2014
AGROFORESTRY William Munyao inspects the spread of roots of Gliricidia sepium in Kibwezi to ensure the tree is not competing with crops. (Photo: ICRAF)
Giving hope to farmers in Africa’s drylands EverGreen Agriculture can transform the continent’s landscape and food production BY DENNIS GARRITY, JONATHAN MURIUKI AND MIRIAM MUNDIA
K
ibwezi, a town known for its heat, dryness and dust, is located in Makueni County, in the Eastern Province of Kenya. By 2011, four planting seasons had come and gone without a drop of rain, leaving the residents of the area beyond despair and close to starvation. In a desperate bid to turn their situation around, some residents had purchased mineral fertiliser in an attempt to improve their crop yields. When harvest time came, however, these farmers produced even less than the others did, as the last remaining moisture was absorbed from the soil by the fertilisers, making it difficult for plant root hairs to absorb water, and leaving the land completely dry. William Munyao, a farmer in Masongaleni, Kibwezi, was one of those who lived this story. In 2011, a desperate Mr Munyao, commonly referred to as Willy, heard of fertiliser trees that could be planted in croplands. The trees provided the needed shade to the surrounding crops, fixed nitrogen into the soil and provided fodder for
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animals and firewood for domestic use. Fertiliser trees were among technologies being showcased in Kibwezi by ICRAF1 and its partners as part of an innovative approach to farming in the drylands, dubbed EverGreen Agriculture. Willy also saw Zai Pits, a technology that collects and concentrates the valuable water around plants. These small pits are filled with manure, mixed with top soil and soon attract termites. Using their tunnels, the insects transport nutrients from deep layers of the soil to the top. With nothing to lose, Willy was among the first farmers to try out the Zai Pit technologies and planting Gliricidia, a fertiliser tree species, on his farm. Within two years, his green farm stood ICRAF stands for The International Centre for Research in Agroforestry, known by the brand name, World Agroforestry Centre. The Centre headquarters are in Nairobi, Kenya, and its mission is to generate science-based knowledge about the diverse roles that trees play in agricultural landscapes, and to use its research to advance policies and practices, and their implementation, that benefit the poor and the environment.
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out from the surrounding dryland, with healthy maize crops and blossoming fruit trees, all of which he attributes to EverGreen Agriculture. Such transformation stories are what African agriculture needs. Thirty per cent of the African population (300 million people) struggle with hunger daily. Food production per head continues to decline, as cereal yields in the continent have remained stagnant since the 1960s, unlike most other places in the world. With Africa’s population predicted to grow by over 50 per cent to 1.8 billion by 2050, the continent’s food production will come under even greater pressure. Science-based solutions that build on local knowledge and are truly accessible and affordable to smallholder farmers will be the only way to ensure agricultural growth can occur, while preventing further degradation of valuable soil and water resources. This is especially important for the African drylands, which have seen little investment by both public and private sector organisations.
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Kenyan farmers living in drylands allow co-existence of trees with crops on their farms. This is an example from Eastern Province in Kenya, where Melia volkensii and other tree species are managed, while food production takes place under their canopy. (Photo: Flore Depreneuf, PROFOR, World Bank)
As Africa’s population grows, the size of individual land holdings is decreasing at an alarming rate in many countries. The pressure on farmers to produce more food means farmers can no longer afford fallow periods in which farmland is allowed to rest and regenerate. Without adequate fertilisation or soil replenishment, resultant land degradation has led to low yields, persistent poverty and widespread malnutrition. Policy makers at local, national, regional and global levels are grappling with possible solutions to deal with the challenge of increased food production, while sustaining a productive natural resource base. The Food and Agriculture Organization of the United Nations (FAO) recently proposed a policy makers’ guide for the sustainable intensification of smallholder crop production dubbed Save and Grow. Following closely, The Montpellier Panel (2013), a high-level think-tank on African agriculture, has proposed sustainable intensification as the way to achieve increased food production in the continent. The good news is that there are initiatives in the continent that can lead to implementation of these policies. Thousands of smallholder farmers in Kenya as well as around the continent are applying the principles of Evergreen Agriculture and by extension shifting to farming systems that are restoring exhausted soils and dramatically increasing crop yields. What is EverGreen Agriculture? EverGreen Agriculture provides one such pathway to the sustainable intensification of agriculture. Put simply, EverGreen Agriculture is the integration of particularly selected tree species into the fields of annual food crops and
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Dry season grazing in Kenya’s Eastern Province. Livestock can be compatible with EverGreen Agriculture as long as the animals are not allowed to damage the trees. The choice of livestock needs to be considered carefully. For example, sheep are less destructive than goats… (Photo: Jan Vandenabeele)
livestock systems, to sustain a green cover on the land throughout the year. Depending on the species of trees selected, benefits can include improved soil health and moisture, food, fodder, fuel, medicine, fibre and additional sources of household income. A number of tree species have the ability to become in-field “fertiliser factories”, through nitrogen fixation and nutrient cycling. In addition, all trees increase carbon storage above and below ground, thus contributing to carbon sequestration and moderating climate change. Because of these multiple benefits, increasing the number of trees on farm naturally intensifies the resistance of the farming system to climate changes. Farmers can practise three types of EverGreen Agriculture depending on the mode of tree regeneration and the associated agronomic practice. These are: conservation agriculture with trees (CAWT), conventional agriculture with trees , and farmer managed natural regeneration of trees (FMNR). Farmer-managed natural regeneration (FMNR) is arguably one of the most successful land regeneration approaches in the drylands of Africa. It has become a catalyst for largescale people-led environmental restoration. Communities and individuals are benefiting through its impact on poverty alleviation, enhanced food security and development of government structures. Even though FMNR is not very popular in Kenya yet, smallholder farmers in the drylands especially have traditionally employed some aspects of the practice. Its promising results in
countries such as Niger have however sparked great interest in Kenya. The practice rejuvenated more than three million hectares of arid land in Niger, where conventional methods of reforestation had failed in the past. In the drylands of Kenya such as Kibwezi, FMNR provides the foundations for regenerating degraded agricultural land. The method can be applied anywhere, because it requires few or no inputs, and minimal training. FMNR involves selecting and pruning stems regenerating from stumps of previously felled but still living trees. The method has lost value in the eyes of farmers over the years as development agents promoted exotic tree species and improved regeneration methods. Farmers began to see the tree stumps in their farms as weeds and would slash and burn them during land preparation, before sowing food crops. This resulted in an apparently barren landscape for most of the time, especially in the drylands, with few mature trees due to the low success rates in establishing the preferred exotic species. To the casual observer, the land appeared to be turning to desert and many concluded that trees had been eradicated and that the only way to reverse the problem was through planting new trees. FMNR has the potential to change this. The key benefit of this method is sustainability; it involves very little investment to keep it going. Conservation agriculture with trees (CAWT) is seen as the ideal EverGreen Agriculture practice. It essentially combines the application of conservation agriculture (CA) principles with establishment of nitrogen-fixing fertiliser trees and shrubs in croplands.
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A family in their farm in Eastern Province, Kenya. The farm is the site an ICRAF sponsored field experiment. The acacia in front is a two-year-old Faidherbia albida, while to the right of the man one can distinguish some branches of Gliricidia sepium, a droughtresistant small tree that is good for soil fertility and fodder for livestock. (Photo: Chester Kalinda)
Such trees and shrubs include Faidherbia albida (previously known as Acacia albida) and other species such as Gliricidia sepium and Tephrosia species. The three main principles of CA are that: soil should be disturbed as little as possible, the soil should be covered in organic matter in the form of crops, crop residue and trees or bushes compatible with crops, and farmers should rotate and diversify their crops, making particular use of leguminous crops such as cowpeas and beans, as well as cover crops and trees that replenish soil fertility during the off-season. Willy has adopted the CAWT practice in his farm in Kibwezi. A key benefit of incorporating trees in CA is that the woody annuals and perennials such as Gliricidia and Tephrosia cover the crop field after harvest, manufacturing organic nitrogen fertiliser and suppressing weeds, therefore cutting down on manual labour during the dry season. The natural processes of soil improvement and moisture capture are restored and crop yields increase as growing seasons become longer. This can allow harvest during years when rainfall is less than expected or allow planting of an additional crop in good rain years. While CAWT research may be recent, it is only the concept of integrating CA principles with trees in farmlands that is new. Research on the integration of new fertiliser tree practices into conventional cropping systems has been going on in Africa from as far back as the 1980s. Tree species such as Sesbania, Gliricidia sepum and Tephrosia improve soil fertility by drawing nitrogen from the air and transferring it to the soil through their roots and leaf litter.
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Evergreen indeed. The coppices in the foreground, as well as the small trees at the back, are all Gliricidia sepium, able to withstand severe drought. They will stay green and can be used as livestock fodder when almost everything else has dried. (Photo: Chester Kalinda)
Producing maize, sorghum and millet under these agro forests has also been shown to increase drought resilience dramatically in dry years, due to positive soil moisture regimes and a better microclimate. Trials reveal an increase in rain use efficiency of up to 380 per cent where maize was intercropped with fertiliser trees. Movement towards widespread adoption Despite the above-mentioned successes, CAWT has still not been adopted widely on the African continent. Currently, Faidherbia trees are found on less than 2 per cent of Africa’s maize area, and on less than 13 per cent of its sorghum and millet area. The EverGreen Agriculture programme coordinated by ICRAF is working to empower nursery operators, development workers and farmers to enable them to support the spread of these technologies. Further research is required to build the knowledge base on appropriate tree species for different biophysical and socioeconomic contexts. The seed and seedling supply systems need to be further enhanced to ensure that farmers can access these species easily for wide-scale planting. The particular niches, planting patterns and management practices of these tree species in farms also need to be explored further by taking lessons from the experiences of those already using them. Development workers, extension officers and nursery operators need to be trained to supply quality advice and planting materials to farmers. Key elements for scaling up of this programme would be to build value chains that connect farmers to markets and, as a result, build incentives for increased production. Policy and
institutional frameworks that provide incentives for testing natural fertilisation methods that substitute for mineral fertilisers are also necessary. EverGreen Agriculture can therefore offer solutions to African governments that are struggling to meet budget deficits and sustainability challenges arising from well meant, but expensive fertiliser and other farm input subsidy programmes. Many of these activities are under way. The EverGreen Agriculture Partnership is already working with national governments, donors, farmer groups, researchers, NGOs, educational institutions and the private sector to prepare the ground for the spread of EverGreen Agriculture practices. Through this partnership, knowledge generation, information sharing and capacity building activities are under way, and the momentum is growing for an EverGreen Agriculture to emerge worldwide. For further information, please visit http:// evergreenagriculture.net/ Dennis Garrity is Drylands Ambassador, United Nations Convention to Combat Desertification (UNCCD) and Senior Fellow, World Agroforestry Centre Email: d.garrity@cgiar.org Jonathan Muriuki is Evergreen Agriculture SubUnit Leader, ICRAF Email: j.muriuki@cgiar.org Miriam Mundia is Communications Assistant, ICRAF Email: m.mundia@cgiar.org
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TREE SPECIES
A truly, multi-purpose African species The sausage tree is medicinal and produces strong water-resistant wood for a variety of uses BY FRANCIS GACHATHI AND ALICE NABATANZI
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igelia africana (synonym K. aethiopum), commonly known as the sausage tree, is a semi-deciduous tree with a rounded crown, growing to a height of 18m on riverbanks. However, in open woodlands, it grows much shorter, with a spreading low crown. The species is recognised easily due to its spectacular, large sausage-shaped fruits hanging from its branches. The bark is grey-brown in colour, smooth at first, but rough and flaking in patches on older trees. The leaves are compound, in groups of three at the ends of the branches, usually with 5 to 11 very rough leaflets. The dark maroon flowers with yellow veins hang on long stalks. They are shaped like an upturned trumpet and have an unpleasant smell, most notable at night. Bats and hawk-moths pollinate the flowers. The unusual grey, sausage-shaped fruits – which give the tree its common name – hang from rope-like long stalks. They can reach over a metre in length and weigh as much as 10kg. The fruit pulp within the thin skin is firm and very fibrous,
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containing numerous hard seeds, released only when the fruit rots on the ground, the hanging stalks often remaining prominent on the tree. The sausage tree is truly African. The generic name Kigelia comes from the Mozambican Bantu name for the sausage tree, “kigeli-keia” and africana means from Africa. The genus Kigelia has one species and occurs throughout tropical Africa from Eritrea to Chad; south to South Africa, and west to Senegal and Namibia. It is classified under the flowering plants family Bignoniaceae, which include trees with showy flowers such as the Nandi flame (Spathodea campanulata), the jacaranda (Jacaranda mimosifolia) and the Nile tulip tree or siala (Markhamia lutea). In Kenya, the sausage tree is known by over 20 local names, an indication of the tree’s importance and value to communities throughout its geographic range. It occurs from the coast to the highlands in open woodland and riverine vegetation, up to 1,850 metres above sea level (masl). Recorded local names for the tree include mobwoka (Giriama); muatine (Kamba); muratina
(Kikuyu); ratuinet (Kipsigis); kumufungu (Bukusu); rotio (Marakwet); murantina (Meru); ratinuet (Nandi); bogh (Orma); mbwoka (Pokomo); rotin (Pokot); muun (Rendille); imombi (Samburu); bukuraal (Somali); mwengea (Swahili); mwaisina (Taita); mukisha (Taveta); muthigu (Tharaka) and edot (Turkana). Traditional and modern uses The sausage tree is sacred to many communities in Africa and has a wide variety of uses in traditional African and Western medicine. The Luo and Luhya bury a fruit to represent the body of a person believed to be dead. Among some communities, it is believed that hanging the fruit of Kigelia around dwellings will ward off evil spirits, violent storms, whirlwind and lightning. For these reasons, the species is often protected on farmlands when other trees are cut down. Traditionally in Africa, the plant is used to treat the effects of childbirth, relieves an inflamed spleen and has anti-inflammatory properties. Children with measles are bathed with beer made from the fruit extract. The fruits have
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antibacterial properties and are used to treat ulcers, sores, snakebite, acne, boils, syphilis, fungal infections and rheumatism. People drink a decoction from the root to treat gastro-intestinal problems, while the leaf extract treats wounds. Ash from roasted leaves is mixed with honey for treating high blood pressure. A decoction made from the tree’s bark is taken for relief from headaches, rheumatism and for treating epilepsy and sexually transmitted diseases. A decoction from the leaves is used to treat malaria. The tree’s fresh fruit is poisonous to humans and should not be eaten. However, other mammals including baboons, bush pigs, giraffes, elephants, hippos and porcupines eat it. Still, mature baked fruits are split into half longitudinally, the soft inner tissue and seeds cleaned out in hot water and used to ferment and flavour traditional beer. Lactating women in various parts of sub-Saharan Africa eat the leaves, as this is believed to enhance the volume and quality of breast milk. In the cosmetic industry, extracts from the fruit are used in making a skin anti-ageing ointment. In addition, the anti-microbial properties of the fruit make it suitable for treatment of eczema and psoriasis. The boiled fruits produce a red dye, the roots a yellow dye while the tannin-rich fruit pulp yields a black dye. Marketing potential Today, Kigelia is among African trees with great marketing potential. The pale brown or yellowish wood from the tree is exceptionally strong and waterresistant, very useful for making dugout canoes, oars and watering troughs. It is also used for making beehives, boxes, drums, stools, yokes, tool handles, mortars and various utensils and tools. The wood is also carved into mousetraps and toys while weapons like bows are made from branches. The wood also makes good fuel. Because of its decorative flowers and amazing fruits, Kigelia is widely planted as an ornamental tree in urban areas in warm, tropical regions. Planting sites should however be selected carefully, as the falling fruit can cause serious injury to people, and considerable damage to vehicles parked under the tree. It is suitable for planting along riverbanks. Considering the many medicinal purposes for which it is used, there is enormous scope for future research of Kigelia africana, and further pharmacological investigation is warranted.
Fruits of the sausage tree.
A beehive made out of a hollowed trunk of the sausage tree.
Francis Gachathi is Principal Research Officer, Kenya Forestry Research Institute (KEFRI) Email: gachathif@yahoo.com Alice Nabatanzi is Assistant Lecturer, Department of Biological Sciences (Botany Unit), School of Biosciences Makerere University Email: alice2nabatanzi@gmail.com
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Flowers of the sausage tree. (All photos - Francis Gachathi)
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COMMERCIAL TREE-GROWING
A member of the Timber Volume Verification team of the Ministry of Water and Environment counts the pieces and dimensions of timber on a truck. The timber is destined for Kampala from Kabaale. (Photo: Bob Kazungu)
Give unto Caesar‌ Which taxes are commercial tree-growers in Uganda expected to pay? BY BOB KAZUNGU
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ommercial and medium-scale treecultivation is a growing business in Uganda. Pine and eucalyptus are the most widespread species grown commercially in the country and most of the seed is imported from Brazil, Australia, South Africa and Fiji. Only 24 per cent of the estimated 50,000 hectares of trees established by both the government (National Forest Authority - NFA) and the private sector is more than 10 years of age, meaning that no harvesting of mature pine is expected before 10 years. However, the pulp industry has received thinnings from these plantations and a few timber pieces (mainly 3 x 2 and 4 x 3 dimensions) have been used for construction. Taxation of forest products Uganda imposes a full range of forest charges, including charges on industrial round-wood, wood fuel, processed products and non-wood forest products. The charges are a mixture of: volume-based production fees (royalty fees and others), ad valorem (according to value) taxes like the 30 per cent and 15 per cent of the value of roundwood transported; and
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simple flat rate fees for permits to produce, trade and transport products, e.g. the Forest Produce Movement Permit. In most cases, the charges paid are believed to be well below the true market value of these products. For example, charges for wood production in Uganda are classified into timber royalties, forest produce fees and licence fees. The levels of these charges are contained in the Forest Produce Fees and Licence Order 2000 (Government of Uganda, 2000). These charges are levied on both plantation and natural forests and have been adopted for private forests in recent years to create harmony. Timber royalty is charged based on volume (in cubic metres) of roundwood taken by sawmillers and pit sawyers. The rate charged per cubic metre is based on the value of the different timber species and their demand. These charges are currently grouped into three classes, with Class 1 representing the species with the most value and highest demand; followed by Class 2 and Class 3. Class 1 is further subdivided into Class A and Class B. For example, Entandrophragma utile, which is a Class 1A species, would cost Ush 100,000/m3, as compared to Cupressus lusitanica, which is Class 2 and would cost Ush 45,000/m3. In addition to timber royalty, sawmillers and
pit sawyers also pay an annual registration fee of Ush 1,400,000 and Ush 350,000 respectively for their forest concessions. This also caters for those who intend to do thinning operations. In 2000, when these fees were gazetted, sawmills consuming an average of 2,300 - 4,200 cubic metres of wood per year were awarded a concession of five years. Sawmills consuming 500 - 2,300 cubic metres received a concession of two years and handsaws were awarded a oneyear concession. On paying registration fees, the sawmiller or pit sawyer is issued with a licence describing the area of operations, the products that may be taken, the annual allowable cut (AAC) and species that may be harvested, and the minimum cutting diameter for each species, etc. Currently, due to lack of sufficient data on the available stock, discussions are under way to license based on volume rather than the annual allocations, even as the industry waits for a comprehensive assessment of the current stock. The licence is issued for harvesting only; management of the forest remains the domain of the responsible bodies. There are also timber grading fees (payable per cubic metre of sawn wood), contained in the Forest Produce Fees and Licences Order 2000. However, the fees are not charged at present
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because the grading of timbers is not common practice under the current management. There is also a felling fee of Ush 4,500 per tree. Forestry Sector Support Department staff, in consultation with others inside and outside the Department, determine forest charges. The last revision of forest charges took place in 2000. Field staff of the respective Local Government Forestry Services Units collect forest revenue. Since the ban of timber harvesting in March 2012, there have been significant changes and improvements to the systems of collecting and monitoring charges. These changes include: the development of a database of forest revenue collection; better systems for measuring production including instituting a database in each district forestry service for computing volume traded, pre-payment of some charges like the registration fees of sawmillers and pit sawyers, and the tree planting levies per movement permit issued for facilitating tree activities in the communities. This latter fee varies from district to district depending on the decisions of the respective district councils and the use of a mobile task force to monitor and capture illegal production. However, collection of these fees is undermined by poor terms and conditions of employment for field-staff, which lead to low staff morale, poor performance and in some cases, suspected collusion and corruption. Taxation regimes of forestry products in Uganda follow a specific guideline. Usually tax is on the value added products, both at primary, secondary and tertiary levels of value addition. Except for royalty fees charged for the use of government reserve land for tree planting (ground rent), there is no tax on land on which trees are planted by private landowners. The ground rent ranges from Ush 22,300 to 6,600 per hectare, varying from one Central Forest Reserve (CFR) sector to another and depending on distance from the nearest town. The nearer to town, the more expensive. For example, reserves in the central districts of Luwero and Nakasongola are more costly than
those in the northern Uganda district of Lamwo. Permission to harvest timber must be sought and guidelines to this effect are available at the Forest Sector Support Department (FSSD). If timber is to be transported from one district to another for sale, the party involved must pay for a Forest Produce Movement Permit (FPMP) at 1 per cent of the value of the product hauled. This is in addition to the 30 per cent charged on the value of the timbers to be traded. The private sector has complained strongly about this latter charge, to the extent that some local governments have suspended it, as provided for under the Local Government Act, but use rather ad-hoc computations, depending on the species. This is stipulated in the Statutory Instrument No. 16 of 2000 and applies to all, whether the trees are on private land or from the reserves. The levies on transport of thinnings vary from district to district, with some districts not charging any fees, while others like Nakasongola (Central Uganda) charge Ush 20,000 per truck. There are other unregistered fees accruing from the transactions. For example, if roundwood volume is procured from a private forest owner, the buyer and seller enter into an agreement and a standard form is available, prepared by FSSD to ensure that the government has a clear chain of custody. However, timber hauled from within the local governments does not have to pay for a FPMP, but harvesting must be done by a licensed harvester. Trade in the open market or designated timber sheds depends on local market dynamics
Example of taxation on importation of timber worth Ush 68.4 million Type of tax Import Duty VAT Withholding Tax TOTAL
Value 6% of CIF 18% of (CIF + ID + ED) 6% of CIF
Ush 3,888,000 12,363,840 3,888,000 20,139,840
and a trade licence is paid to the respective urban or town authorities. Export of timber was banned in 1987 and is still not allowed except where value has been added beyond primary processing (sawing). There is, however, a re-export tax on imported and then exported wood. Importation of timber and other wood products is subject to customs laws. For example, if timber is imported from the Democratic Republic of the Congo, three taxes are levied: Import duty at 6 per cent (for COMESA partner states) of the CIF value at the border point. Value added tax (VAT) at 18 per cent of the sum of the CIF plus import duty and excise duty. Withholding tax at 6 per cent of the customs value or CIF. The Table below shows an example of taxes paid for importing 450m3 of tropical hardwood into Uganda, with the importer paying US$ 60 per cubic metre. The customs value is US$ 60 by 450, equivalent to Ush 60 x 450 x 2,400 (1 US$ approx. Ush 2,400) or Ush 68.4 million. No excise duty is paid. The Ministry of Water and Environment and other partners have initiated a process to revise the taxation regimes and fees structure for the internal trade in timber and other forestry products. This will ensure that some of the fees and levies are harmonised. Commercial tree-growers should approach the Forestry Sector Support Department at the Ministry of Water and Environment to get a clearer picture of the taxation issues relating to trade in forestry products and services. The Uganda Timber Growers Association has made some strides in advocating for a fair taxation regime for timber products. The writer is a Policy and Planning Specialist at the Forestry Sector Support Department, Ministry of Water and Environment, Kampala, Uganda Email: bob.kazungu@mwe.go.ug
CIF – Cost Insurance and Freight; ID – Import Duty; ED – Excise Duty
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FORESTRY UPDATES
Trees for mutual benefit How forest plantations support REDD+ and moderate climate change BY NYAGO MOSES
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AO’s forest review “The Global Forest Resources Assessment 2010”, estimated that worldwide, between 2000 and 2010, some 13 million hectares of forest disappeared every year. This is alarming and a challenge of global proportions. It is responsible for a whopping 15 - 20 per cent of all global greenhouse gas emissions today, thus giving rise to the world’s biggest development challenge - climate change! How can planting trees help to overcome this challenge? A large percentage of the forest mentioned above is disappearing due to slash-and-burn agriculture, charcoal production and timber. In Uganda, 80 per cent of the population earns a living through slash-and-burn agriculture. Charcoal is the main source of energy for the middle and lower classes. Finally, most of the timber in Uganda comes from the Democratic Republic of the Congo (DRC). These days in Uganda, it is a sign of wealth to have wooden window frames, doors and gates! To stop this negative trend, the Uganda government is going REDD. Reducing Emissions from Deforestation and Degradation (REDD) is one of the significant global climate change mitigation strategies. The ability of forests to absorb carbon naturally from the atmosphere is a cheap and appropriate way to contribute to climate change mitigation. REDD+ is therefore premised on this analogy through proposing provision of an economic incentive to forest owners to manage their forests in such a manner that the forests remain standing with their biodiversity and carbon stored in them. By planting trees and creating plantations, we can reduce pressure on native forests. (REDD+ is a further development of REDD where sustainable forest plantations are catered for.) Uganda is one of the early movers in embracing REDD+ to contribute primarily to global climate change mitigation. The country is supported by the World Bank’s Forest Carbon Partnership Facility to develop and implement a REDD+ readiness strategy. By implementing REDD+, Uganda will be qualified to receive financial incentives based on carbon credits. Complementary work is being carried out by
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civil society organisations (CSOs) through citizen awareness raising, advocacy and research. In addition, CSOs are designing REDD+ pilot demonstration projects such as the MurchisonSemliki REDD+ project being developed by Northern Albertine Rift Conservation Group (NARCG), in collaboration with central and local government institutions. According to Uganda’s RPP, 2011, the disappearance rate of natural forests in Uganda stands at approximately 88,000 hectares per year, and is mostly due to slash-and-burn agriculture, charcoal production, firewood and illegal and
unsustainable timber harvesting. Against this trend, the area of rigorously managed plantation forests in Uganda is also increasing (See Table 1). However, the helpfulness of REDD+ in Uganda will lie so much on the capacity of the country to curb illegal/unsustainable logging and supply of illegal timber on the market as well as moving agricultural practices away from slashand-burn. Whereas the primary objective of REDD+ is climate change mitigation, REDD+ also ensures conservation and enhancement of carbon stocks as well sustainable forest management. The
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benefits of REDD+ may be noticeable not only in the carbon storage payments but also in the provision of other ecosystem services like clean water, air and biodiversity conservation by natural forests. In Uganda, like in many African countries, natural forests are in part being depleted for timber and firewood. The most promising alternative supply of timber and firewood to reduce the pressure of illegal logging in natural forests is certainly plantation forestry, often with exotic tree species. Although forest plantations do absorb carbon, they can contribute to REDD+ only when planted on marginal lands with originally lower carbon concentrations. It is thus important to consider the history of the land that is to be planted. Uganda has vast areas of bare hilltops and marginal land with no natural forests and not suitable for agriculture. Converting these lands into forest plantations as opposed to converting agriculturally productive, naturally forested and degraded forestlands can have significant benefits for society and REDD+ advancement in the country. It constitutes a big opportunity to both satisfy the demand for timber and withdraw carbon from the atmosphere in the end. In this situation, no deforestation takes place and these biologically less appreciated areas turn into productive lands. While this strategy can be useful in advancing REDD+ and protecting natural forests in Uganda, it has to be backed by policy reforms that strengthen protection of natural forests (public or private) from conversion to forest plantations. There is also a need for incentives that encourage commercial tree-growers to develop bare hilltops and marginal land. Private sector involvement in forestry, mainly plantation forestry, has been quite successful and growing in Uganda. This has led to the need to ensure that sector players adhere to the principles of sustainable forest management and that they
supply legal and certified forest products to the market. Currently, civil society and commercial tree -growers, in collaboration with the government, including the Uganda National Bureau of Standards, are working on a voluntary national standard for responsible management of forests in Uganda. This will be an adoption of the Forest Stewardship Council (FSC) international standard. Once complete and with all stakeholders consulted, the national standard will provide a yardstick for Responsible Forest Management in Uganda, and a level of excellence that forest owners (of natural or plantation forests) should strive to achieve, even if they are not working for forest certification. In my view, once the national standard is complete and operationalised, it will generate key lessons and experiences that will guide in Uganda’s REDD+ strategy development. Free prior and informed consent (FPIC), now an important part of REDD+, is embedded in international law and stresses the right of indigenous peoples and local communities
Table 1: Forest Cover Changes in Uganda, 1990 - 2005 Total Forest Cover (ha) Forest Type
1990
2005
Plantations softwoods
16,383
18,741
Tropical Moist Forest (normal)
651,110
577,487
Tropical Moist Forest (low stocked)
273,062
215,162
Woodlands
3,974,509
2,777,998
Source: National Forestry Authority National Biomass Study Draft Report, 2009
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to give or withhold their consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use. Both the REDD+ mechanism and the forest plantation industry have the potential to affect positively and negatively the livelihoods and social wellbeing of people in the areas where they might be implemented. Uganda’s REDD+ programme, which is still developing and closely following international obligations, stresses the need for respect of FPIC and the Murchison-Semliki REDD+ pilot project has developed FPIC protocols. These initiatives of making sure that FPIC is respected could provide very good lessons and experiences to the forest plantation industry in Uganda. REDD+ and the plantation forestry industry can offer a good platform for mitigation of climate change while providing social, ecological, and financial benefits to all stakeholders. However, for both initiatives to be mutually supportive and successful in Uganda, there is a need for a locally adapted regulatory and policy framework that takes into account the multifaceted ecosystem, social and economic dynamics. Proper siting of forest plantations, restoration of previously natural forests with indigenous tree species, awareness raising, respect of FPIC, forest law enforcement and governance, and forest certification are all essential for the effective and successful planning and implementation of REDD+ and forest plantation projects. The writer is a carbon specialist at Wildlife Conservation Society, Kampala, Uganda Email: mnyango@wcs.org
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WATER MANAGEMENT
Empowering ASAL communities Affordable rainwater harvesting methods that improve the quality of life in drylands BY NICHOLAS WASUNNA
A
s the impact of climate change becomes apparent on the livelihoods of vulnerable communities in Kenya, rainwater harvesting has become a key focus in addressing the well-being of these communities. Rainwater harvesting ensures that children in particular, are healthy and food-secure. To ensure sustainable development, as opposed to the traditional “emergency” approaches to climate related disasters, communities need to adopt long-term measures. This equips them to bounce back better against climate shock or man-made disasters. The most vulnerable communities in Kenya are found in the arid and semi-arid lands ( ASAL) that make up 83 per cent of Kenya, with Oduor et al (Miti magazine April – June 2013 issue) estimating a total of 307.7 billion cubic metres of rainfall in these locations. The larger ASAL counties receive more rainfall compared to the smaller ones, but the amount received per unit area varies. This therefore requires that appropriate infrastructure is put in place to capture and store water for domestic and commercial use. It calls for rethinking the long-held view of Kenya as a highly water-stressed country with very limited sources of water. It should make us analyse how much water is being stored, where, how, by whom and for what purposes. World Vision Kenya (WVK) is a Christian relief, development and advocacy organisation dedicated to working with children, families and communities to overcome poverty and injustice. The organisation has focused on climate change adaptation strategies that seek to ensure communities are prepared for, respond and recover from climatic shocks. Baarkads An example of addressing resilience to climatic shock through effective rainwater harvesting is the World Vision baarkad project in Laismais, Marsabit County. The project seeks to improve water harvesting and water storage facilities to enable year-round water availability for animals and crops. The baarkad was introduced as a suitable underground water harvesting structure. The baarkad is a farm pond, lined with a conventional dam liner (UVresistant) to prevent seepage.
A baakard with a plastic liner and a greenhouse. (Photo: WorldVision)
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A baakard with a roof as an additional catchment and a runoff conveyor in front. (Photo: WorldVision)
An initial survey is conducted to determine the flow of water to be harvested on the ground surface, and a site for the baarkad is determined. The construction of a baarkad involves excavating the pond and lining it according to the preferred dimension. In addition, a silt trap of two chambers and a V-notch provided on the separation walling and fitted with a 4-inch PVC pipe is required. Further, due to high transpiration rates experienced in ASAL, roofing the baarkad reduces losses due to transpiration. Baarkads can be up-scaled by incorporating a micro–irrigation system, for example, drip irrigation. Baarkads can also be used to supply water to a greenhouse for growing horticultural crops like tomatoes, kales, cabbages and others as an alternative livelihood to pastoralism or to enhance health and diversify income (see photo below).
Treadle pump irrigation, using water from a baakard for tomato growing in a greenhouse in Marsabit County. (Photo: WorldVision)
Miti January - March 2014
The baarkads range in size. An average sized one measuring 8.4m by 6.3m by 2m, has been found convenient for an average eight-member family. This size holds 105m3 of water and is sufficient for domestic and livestock needs. It would cost approximately US$ 6,000. Since 2011, World Vision Kenya has supported the construction of 20 baarkads. The baarkard allows for water collection within the household and water rights managed within the family. This is in contrast to communitybased water systems, which, while largely successful, present management, control, ownership and sustainability challenges. Rock catchments A rock catchment is a rocky outcrop developed to harness and channel rainwater runoff into a storage structure. Under this technique, rainwater runoff gravitates into a reservoir through long lines of stone gutters mortared onto the rock surface. Water from the catchment reservoirs is eventually piped into closed storage tanks to avoid and prevent possible contamination and evaporation. World Vision seeks to integrate water harvesting through rock catchments. The community needs to combine this with the use of household treatment methods such as aqua tabs, pur sachets and boiling to improve the quality of water. Sensitising the communities is done in collaboration with the Ministry of Health through community health workers, while World Vision supports construction of water harvesting structures from existing rocks. Rock catchment technology has improved water availability among pastoralist communities in an inexpensive and sustainable way. Large rocky outcrops that over the years were considered wasted land are now useful rainwater-harvesting facilities (see photo below). Mortar gutters are developed on the rock surface to channel water into reservoir tanks from where the beneficiaries collect clean water through outlet taps fitted into each tank. The catchment area is fenced off to restrict access to the rock surface so as to reduce possible contamination of the water. Evidence suggests that an effective rock catchment can collect up to 90 per cent of the rainwater falling on its surface. A rock catchment collecting
Rock catchment with traditional water collection method. (Photo: WorldVision)
approximately 100m3 with an installed tank costs approximately US$ 15,000. However, the actual cost would increase depending on the amount of water the rock catchment can collect and the number of tanks to be constructed to disburse the water. World Vision Kenya has installed over seven rock catchments since 2012. As with all forms of technology, there are challenges in utilising these rainwater harvesting methods. A key challenge is how communities consider the importance of clean water over that of availability of water. Based on education levels, exposure, history and the upbringing of the end-user, water filtration systems can be seen as unnecessary processes and therefore storage and filtration is not prioritised (see photo above). In addition, the potential of replicating these water harvesting methods in many locations is significant, but funding is limited due to political will and poor decision-making. Key decision-makers need to realise that clean drinking water is a key component of human health and therefore should be prioritised. A healthy nation becomes a wealthy nation through productive human capital. In conclusion, rainwater harvesting can be relatively low-cost and therefore affordable by many. World Vision calls on national and county leaders to realise the potential of rainwater harvesting through investment in appropriate micro and macro catchment infrastructure. These should be included in such mechanisms as the County Integrated Development Plans with corresponding budgets. Appropriate rainwater harvesting structures are essential in improving resilience of households and communities and have proven to be an effective approach to addressing the realities of climate change. The writer is the Programme Development and Grants Acquisition (PDGA) Director at World Vision Kenya and the Chair of the ASAL Alliance Email: nicholas_wasunna@wvi.org
Rock catchment for rainwater harvesting in Marsabit County, with storage tanks installed. (Photo: WorldVision)
Miti January - March 2014
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WATER MANAGEMENT
Putting rain runoff to good use A farmer in Ngong is harvesting water for production of high-value crops BY PETER MUTHIGANI
K
enya has a total land area of 58.26 million hectares out of which only 11.65 million hectares (20 per cent) receive medium to high rainfall. The rest is arid and semi-arid. Out of the medium to high rainfall areas, about 7 million hectares are used for agricultural production. Based on matching mean flood flows and 80 per cent dependable monthly flow, irrigation potential with no-water-storage irrigation is estimated at 539,000 hectares. With the adoption of water harvesting and storage technologies, this irrigation potential could be increased by a further 800,000 hectares, to 1.3 million hectares. The water harvested would otherwise have been lost as run-off. This water could be harvested, stored and utilised to increase crop production, and hence food security. Kenya Vision 2030: First Medium Term Plan (MTP) 2008-2012 indicated that the government was to develop two multi-purpose dams with a total storage capacity of 2.4 billion cubic metres along Rivers Nzoia and Nyando. An additional 24 medium-sized multi-purpose dams with a total capacity of 2 billion cubic metres would be constructed to supply water for domestic, livestock and irrigation use in arid and semi-arid lands (ASAL). These include Bunyunyu, Munyu, Londiani, Itare, Upper Narok, Chemesusu, Kiserian, Yatta, Kitui, Mwingi Thwake, Rare, Thiba, Umma, Rumuruti, Badasa, Archers’ Post, Awasi, Kora, Ndarugu, Mwachi, Ruiru A, Siyoi and Nyahururu. These dams are at different stages of implementation with Kiserian Dam, which has a capacity of 1.2 trillion litres (1.2 billion m3) having been commissioned in March 2013. There are many small-scale water harvesting systems built at community level and by individual investors and farmers throughout the country. Such investments can be seen in large estates such as the Del Monte pineapple farm, tea and coffee estates. Small-scale water harvesting systems built by individual farmers supply water for livestock and irrigation. Such water harvesting systems that store seasonal flood water from seasonal streams are either excavated manually or by use of heavy machinery. The government supports such effort by subsidising the cost of hire of bulldozers from the government Agricultural Machinery Services (AMS) stations. Specific context Water harvesting by farmers is known as agricultural water management (AWM) and is a deliberate action designed to optimise the availability and utilisation of water for agriculture. One such farm where deliberate water harvesting for crop production has been undertaken is Ngong Veg Farm. Ngong Veg Farm is in Kajiado District in the mainly semi-arid pipeline area
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of Kiserian, within Kajiado County. The drainage system in the vicinity of Ngong Veg Farm is characterised by numerous seasonal river beds that drain into the Athi River. These river beds carry a lot of flood water during the rainy season and have resulted in loss of life and property as they catch road users off-guard during high flood flows, especially when there are no rains along the KiserianIsinya road. Determining water harvesting potential Most seasonal streams carry a lot of water during the rainy seasons as they drain large areas with no trees or grass cover to check flow and cause some infiltration. The catchment area for the Ngong Veg reservoir is characterised by similar lack of vegetation. The catchment area was estimated through hydrological modelling for the intake site and established to have an area of 15.6 km2 and a catchment length of 9.4 km (see Table 1). Table 1: Characteristics of the Ngong Veg water reservoir catchment area Item
Characteristics
Catchment area (square metres)
15,680,790
Vegetation
Grass with Sparse shrubs
Slope
Uncovered surface, gently sloping terrain
Annual total rainfall (mm)
808.9
Soil types
Phaeozems
Catchment run off coefficient
0.3
Mean annual minimum temperature
13.6oC
Mean annual maximum temperature
25.7oC
Longest flow path
9.4 km
For a catchment area of A m2 receiving R monthly rainfall, the yield Y is calculated as follows:Y = f x A x R m3/month 1000 Where f = catchment run-off coefficient typical values A = Catchment area in square metres R = Monthly rainfall in mm (Source: Ministry of water and irrigation, 2005: Design manual for water supply in Kenya.)
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Table 2: Run off generated by seasonal river Month
Rainfall (mm)
Runoff (m3)
Jan
73.9
347,643
Feb
48.8
229,567
Mar
89.2
419,618
Apr
119.9
564,038
May
129.4
608,728
Jun
15.8
74,327
Jul
14.5
68,211
Aug
29.8
140,186
Sep
21.3
100,200
Oct
36.2
170,293
Nov
151
710,340
Dec
79.1
372,105
Total
808.9
3,805,256
From Table 2, it can be seen that the runoff generated in the catchment is greatest in November followed by runoff generated in May. This is the water considered for harvesting and storage in the Ngong Veg Farm reservoir. Without it, the farmland would either be rain-fed or rely on rather saline water from a borehole. Without the use of expensive reverse osmosis, such water is quite difficult to manage for long-term irrigation on clay soils. This could lead to unreliable crop yields and to the ruining of the soils and making the farm unusable for cultivation. Capturing and harnessing the floodwater from one of the seasonal streams of the area was the key to a profitable venture, although at a relatively high initial investment. Dam construction Cactus Analysis and Management Services (Cactus) a local consultancy firm, conducted the feasibility study for the reservoir, did a detailed survey, designed and supervised the construction, and initially managed the farm. Cactus used the short rains for design and determining the levels of the farm reservoir. The reservoir, which is actually an enhanced natural waterpan, entailed: The construction of a semi-oval earth dam wall, 5.2m high at the highest point (photo 1); A 50m wide spill-way reinforced with 2x1x1m double-twist hexagonal mesh Maccaferri gabion boxes, set at maximum reported flood level; A 15m wide and 70m long water inlet channel with similar gabion box side walls, set at zero gradient to allow sediment settlement; A total of 9 flood-controlled flap inlet gates (photo 2), and The intake works (also built of these gabions - photo 3). The particular intake design with flap/swing gates was considered because of the unpredictable behaviour of spate floods. The gates can open and close any time of the day or night without human intervention. The reservoir walls are built all around with a matching core trench to impervious layer, while the reservoir bottom was scraped of soil and stones, down to the rock; all intended to increase and maximise the water storage capacity. The flap gates open when the pressure on the outside of the gates is higher than on the inside. If the water level or pressure of the reservoir inside of the gates is higher than the outside (the riverbed), then the gates stay closed. One barrier keeps off large debris, while a second one keeps off small debris; allowing the flap/swing gates to be free of material that could obstruct them and stop them closing when water in the reservoir is higher than stream flood level. Stream bank erosion protection of a total of 380m, both upstream and downstream of the reservoir, was made using the same gabion boxes designed and aligned to take off pressure from the banks (photo 1 and 3).
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Photo 1: An aerial photo of the Ngong Veg Farm reservoir taken in April 2008 during construction. Erosion control gabions can be seen along the stream bank in the foreground. Note the surrounding dam wall “on top of the land�. (Photo: Peter Muthigani)
Photo 2: The intake with its nine flap gates, seen from the reservoir side during construction. The second debris barrier is just upstream of the gates. (Photo: Peter Muthigani)
Photo 3: The inlet channel seen during construction (inlet at the left). (Photo: Peter Muthigani) The excavation and dam construction works required three bulldozers, two excavators and five tipper lorries. After excavation, the reservoir floor was carpeted with a 1ft layer of clay to seal it against seepage, which is a frequent occurrence in this volcanic area through fissures. The construction works, including the pump house and the intake works, lasted from June 2007 to April 2008. The top of the gates is set at 0.45m above the maximum reported and observed flood level, while the spillway is set at the maximum flood level. The embankment is built 1.75m above the spill way to ensure that the dam wall will never be submerged. Without the swing gates, the water would flow into the reservoir and flow back when the stream flood level drops.
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Photo 4: Flood flow in the seasonal river. (Photo: Peter Muthigani)
Photo 6: The writer in the fertigation house, with the filters (right), the Galileo fertijet unit (left) and the fertiliser mixing tanks in the middle. (Photo: BGF)
The storage capacity of the reservoir without the gates would be approximately 78,000 m3 of floodwater. By incorporating the flap gates that are automatically operated by water, the total storage is increased by approximately 42,000m3 to 120,000m3. When it rains Photo 4 shows a flood flow in the stream, with the first debris barrier on the left, and a weir built of gabions to slow the water. The flood flow raises the level of water in the inlet channel level to 0.25m, required to open the flap gates. The porous non-rigid weir structure was designed to allow fast-flowing, instantaneous spate flows (that drag stones, sand and soil along the bed) to exact minimum pressure on the structure while causing a build-up in water level on the structures upstream. A 1m square opening was provided at the bottom at bed level of the weir to allow the soils to flow downstream without causing siltation in the pool formed. When the reservoir is at full capacity, the swing gates are held firmly in place by the water in the reservoir, because this pressure is higher than the pressure outside. The gates hang on a bar at their upper side, which allows them to swing to the left if the outside water pressure is high enough. When this pressure subsides, they fall back into their vertical resting position, closing the reservoir (photo 5). Vegetable production The water is supplied from the reservoir by two submersible pumps. The operation of the pumps as well as the distribution and application of water in the different farm blocks is computerised. Fertiliser is injected into the water before distribution and application as desired. The irrigated farm is divided into eight blocks, each being further subdivided into 0.30-hectare plots.
Photo 7: Snow peas with boundary planting of maize for protection from the wind. (Photo: BGF) The reservoir water is brown and loaded with sediment, as can be expected from runoff. To use in a drip irrigation system, the water needs a strong filtration unit, which is provided by filters that are back-washed automatically every two hours during pumping (photo 6). Apart from the dam, further investment included construction of the water filtration and fertigation unit, farm offices, laying of mains, distribution, lateral and drip lines, and the on-farm grading and charcoal cooler unit. Overall, the work started in 2006 and was completed in 2009. Ngong Veg Farm produces vegetables for export, including French beans, sugar snaps and snow peas (photo 7). Maize is grown as a windbreak along the block boundaries and is consumed locally, while stalks are used as fodder for the few dairy animals on the farm. The first crop of French beans was planted in August 2010. A weekly planting schedule of 0.30ha has been maintained to ensure daily harvesting from Monday to Saturday. Production is year-round and weekly harvesting is ensured through the staggered planting schedule. This operation gives jobs to a variable work force of 40 - 50 people, out of which some 30 are women, employed for harvesting. The crop is graded onfarm and stored in crates to be collected by the exporter. Where produce is not collected the same day, it is stored in the charcoal cooler that is able to attain an indoor temperature of 6-70C, with an outside temperature of 26oC. The writer is the Managing Director of Cactus Analysis and Management Services Ltd. Email: muthiganip@gmail.com
Photo 5: The reservoir at full capacity. (Photo: Peter Muthigani)
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