Technical and financial feasibility of almaciga plantation development in Governor Generoso, Davao Oriental, Philippines

Daniel Chica; Lawrence Amada; Margaret Calderon

Daniel P. Chica College of Forestry and Natural Resources, University of the Philippines Los Baños, College, Laguna, Philippines
Lawrence Adolph M. Amada Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños, College, Laguna, Philippines
Margaret M. Calderon Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños, College, Laguna, Philippines

Keywords: Agathis philippinensis, Manila copal, resin, site-species suitability

Abstract

Almaciga (Agathis philippinensis Warb.) is a tree species indigenous to the Philippines that produces Manila copal, a resin used to manufacture paints and varnishes. It is classified as vulnerable by the International Union for Conservation of Nature (IUCN) and the Department of Environment and Natural Resources (DENR) through DENR Administrative Order No. 2017–11 (DENR 2017). Almaciga resin tapping is an important means of livelihood for some indigenous peoples. It is currently sourced from natural forests and developing plantations can improve its conservation status by lessening the resin extraction intensity from natural stands and at the same time help meet the increasing demand. This paper evaluates the financial and technical feasibility of developing almaciga plantations in Governor Generoso, Davao Oriental, Philippines. Using primary and secondary data, the technical aspect was evaluated based on land suitability and the availability of plantation development technology, while the financial feasibility considered the costs and revenues of developing almaciga plantations. Sensitivity analysis was also conducted. The suitability map shows about 3,768 ha suitable for almaciga plantation in the area. At a 10% discount rate, the NPV is PhP 160,233.40 ha–1 and the BCR is 4.75, while the IRR is 19%, indicating that the plantation is financially profitable. The sensitivity analysis revealed that the financial viability of almaciga plantation is more sensitive to a resin price decrease than to an increase in establishment cost. This plantation may be less appealing to the private sector as tapping can begin when the trees are about 21 years old. Thus, the study recommends that the government lead the development of almaciga plantations as a reforestation or plantation species in areas where it is suitable.