Marketing Potential of Mai Taku (Anthocephalus chinensis) and Investment Feasibility of Forest Plantations

Abstract

     The objective of the study was to investigate the marketing potential of Mai Taku (Bur-flower tree) (Anthocephalus chinensis) and the feasibility of investment in forest plantations. The study considered every stage of the integrated enterprise, starting with seed collection and then nursery seedling production, wholesaling and retailing of seedlings, plantation management, timber markets, wood processing and finally, the consumer. A stratified sampling method was used for data collection by enterprise type. The results indicated that since the beginning of 2007, Mai Taku has been called various names for promotional purposes in various media. The development of an advertising label as part of the process has proven to be an effective method of promotion. To date, 12,318 farmers have planted 5,196 hectares (32,473 rai) of Mai Taku on their own land, amounting to a total investment cost of about USD 15.89 million (533 million baht). Most investors were educated to diploma level and were members of wealthy families. The results of marketing potential analysis indicated that seed sources, nurseries and forest plantations were distributed throughout the entire country, with the northern region being the main seed source and the northeastern region having the largest plantation area. Financial analysis indicated a breakeven point of USD 51.64/ton or 1,734 baht/ton. Based on a comparative study of Mai Taku investment opportunity with five economic plant species, Mai Taku provided the lowest annual net present value. Furthermore, sensitivity analysis indicated that the investment would be profitable with a seedling price of USD 0.03/seedling (1 baht/seedling) and a resultant breakeven point for the timber price of about USD 23.82/ton (800 baht/ton). Thus, based on the current economic situation, Mai Taku plantation should be judged as an unviable project.