The Government of Lao PDR strongly supports the development of a sophisticated wood processing industry, as expressed in the Forestry Strategy to 2020 and the Agricultural Master Plan (2011-2015). A recent Prime Minister Order (No. 15/PM/2016) specifies that all types of wood must be turned into finished products that meet defined standards before they can be exported. The implementation of this O
rder will require strong support to wood processing enterprises through capacity building, training and product development. The wood manufacturing industries in Laos are in their infancy compared to those in neighbouring countries. There is already some 215,00 ha of planted teak, eucalyptus and acacia for which there are limited markets, and the wood processing sector has not yet adopted new processing technologies that are widely used in Vietnam and China. Research and development is needed to support the development of new processing capability and a range of Engineered Wood Products (EWPs) that can be produced from small diameter timbers. Specific skills and knowledge are lacking on the processing of wood for appearance, structural and housing construction purposes and on enhancing termite and decay resistance in the timber products. Further research is needed on aspects of the timber value chain between the plantation and processing industry to ensure efficient supply of wood resources and provide necessary information to support business cases for the investment in new processing facilities. Two previous ACIAR projects: FST/2005/100 “Value-adding to Lao PDR plantation timber products” (2007-11) and FST/2010/012 “Enhancing Key Elements of Value Chains for Plantation-Grown Wood in Lao PDR” (2012-16) have enhanced knowledge and capacity in wood science and processing and identified policy and administrative issues that impede the development of an efficient and competitive smallholder plantation sector and wood processing industries in Laos. There are opportunities to utilize the smallholder plantation grown wood to produce a range of appearance and structural EWPs for the rapidly growing markets related to construction, furnishing and joinery activities in Laos and the region. In parallel, the Australian industry is still facing major challenges in adding value to underutilised plantation resources, such as low grade pine and hardwoods grown for fibre. The goal of the current proposal is to assist the Lao and Australian forestry sectors to seize these opportunities. Aim and objectives
The aim of the project is to support the development of innovative wood processing industries to enhance markets for planted timber resources within Lao PDR and Australia. Identify the key elements of the policy, governance and administrative environment that constrain the development of plantation forests and value chains in Lao PDR, and other constraints to improving plantation value chains, and develop strategies for engaging with this environment and improving plantation value chains.
2. Develop and adapt innovative technologies for the production of high performance EWPs, based on veneer and laminated solid wood from small diameter logs, and also composite products based on wood and other materials.
3. Improve capacity, in both Lao PDR and Australia, with respect to value chain analysis and the development and production of EWPs based on veneer, laminated solid wood and other composite materials. The methodology involves value chain analysis, with targeted research activities to address identified constraints and inefficiencies. Research on the development of novel EWPs will be conducted in partnership with private sector businesses. End of project outcomes: These include:
• Policy makers and investors utilising knowledge on timber value chains, farmer decision making processes, and extent, nature and availability of teak plantation resources.
• Appropriate support and governance mechanisms, including farmer partnerships, enabling barriers to investment by SMEs, including market access and certification, to be addressed.
• Novel EWPs based on veneer, solid wood and other materials available for adoption by Lao and Australian wood processing companies.
• Participating companies begin to produce the new EWPs commercially, and then others are motivated to join.
• Lao PDR has a much more vibrant tertiary education sector relevant to EWPs, and is sought out by industry for advice and assistance.
• Project stakeholders utilising enhanced capacity to enable efficient production of value added wood products in Laos. Project impact pathways and benefits
The project’s approach involves conducting participatory research on timber value chains and product development as well as building the capacity of researchers and industry stakeholders in the production of EWPs. The research results are to be disseminated to plantation growers, participating private sector companies and relevant government authorities, including policy makers, to facilitate adoption and support for enhanced log sales and industry development. The expected impacts include:
• An improved policy, regulatory and administrative environment for appropriate plantation development, more efficient value chains, and the expansion of an internationally competitive Laos PDR forest industry.
• The Lao forest industry becomes larger, more diverse and profitable, and benefiting from production of EWPs for domestic markets.
• Australian wood processing industry expands through the production of innovative EWPs.
• Improved livelihoods of plantation growers, and greater and more secure opportunities for employment in the plantation wood processing sector. Key partnerships
The project will be led by the University of Melbourne, in collaboration with Australian partners, DAF Queensland, the Australian National University and Griffith University. The principal partners in Lao PDR will be the National University of Laos (Faculty of Forestry, Faculty of Engineering and Faculty of Architecture), Laos National Wood Products Association, Lao Furniture Association, Luang Prabang Teak Program, the Ministry of Agriculture and Forestry, Ministry of Industry and Commerce, Ministry of Science and Technology and private enterprises. Australian industry members will be selected through the Engineered Wood Products Association of Australasia.
