Positive
Negative
New road
School
Pagoda
Hospital
Casual work
Given 3ha of land for rubber NGO support, rights training, etc
Gift
Can work for company
Good rice harvest
Training people to plant rubber provincial forestry officials taught people about rights
Can plant soybean
Company lends seeds
Company cleared land for people
Plant rubber
Chamkar taken,
No compensation
House plot and wet rice field taken (in part)
Restricted villagers size, no land for future growth
Resin trees cut
Wildlife and fish affected
Not allowed plant rice (or other crops) on their 3ha
Forest cut
Can’t cut timber for building houses
People threatened
Crop affected/cleared
Cannot clear land for chamkar
Pushed to plant rubber trees
NTFP access restricted
3ha given is too far away or on bad land
People lied to
Spirit forest cut
Not given 3ha of land yet
Must travel to collect fire wood
Confiscation of cart, chainsaw
Cleared community forest area
Wet rice field affected
Rice
Soybean
Sesame
Corn
Rubber
Land not yet cleared
Given to relative
Rented
Sold off
Samrong
Keo Yon
1
1
1
Kong Horn
3*
Keo Met
1
2**
Nao Kiet
1
2**
Hong Hoy
1
1+
Oun Liem
3
Sao Meng Heng
1***
2
Siem Tol
3+
Pou Hol
3
Ronteah
Mean Em
1
1
1
Sao Khoeun
3
Mao Hoeun
3
Yeay Bun
3
Tang Chhoun
3
Ngoun Mi
3
Tum Ar
Bon Chea
1
2
Tiep Team
3
Nat Yon
3
Morm Da
1***
2
Kong Bun
2
1+
Chan Soun
1+
2
Chan Kroeun
3
Pan Chheng
3
Diep Sem
2
1
Seam Yea
3
An Sat
3
Note: * 1 ha of rubber has died.
** Some survived some died.
*** All died.
+ Not grow healthily (not good because
drought and seedlings were too young).
People’s feeling
No. of households
Percentage
Reasons
Do not like
22
66.7
-their land lost to rubber plantation
-it takes too long to get profit
-lack of money
-if plant rubber there is no land for growing rice
-the company grab people’s land
-do not know how to plant and take care of rubber
-compensations not the same amount as Hun Sen said
-the company did not give the 3ha land
-do not know for sure rubber would provide good income.
-causes difficulties in making money and lost income sources
-latex price would be made cheap by the company
-abuse human right
Like
8
24.2
-rubber would provide good income for family.
-want to have prosperity
-the company came here to develop this area
-provides job and gives bean seed to plant
Do not know
2
9.1
Total area of the rubber plantation
Industrial scale (ha) 4,359
Smallholder scale (ha) 929
Total (ha) 5,288
Upland farming in 1998
Total upland cultivation (ha) 6892
Rice yield per hectare (kg/ha/year) 1,0003
Price of unhusked rice (US$/kg) 0.125
The value of 1 hectare of upland cultivation (US$) = Price of unhusked
rice per kg * Rice yield per hectare 125
Resin trees in 1999
Total families 501
Average resin trees owned per family (tree) 2204
Percentage of families used to have resin trees 65%5
Rates of exhaustion of resin trees decrease at 6% every 10 years 6%6
Average income from resin per tree (US$/tree/year) 3.67
Number of resin trees before arrival of rubber plantation = Average resin
trees owned per family * Percentage of families used to have resin
trees * Total families 71,720
Rubber price
Rubber price in Cambodia is constant over the next 30 years (US$/kg) 1
Cost of implementing rubber plantation over the project life (30 years)
Cost spent in each year8 is estimated (see Appendix 8)
Discount rate (i) 8%
Yield of rubber plantation
Assume that economic period of rubbers (year) (start providing
latex at 7 years old and exhausting at 30 years old) 24
Assume that rubber provides good yield in each year from the
year 7 of harvest to year 309. Appendix 8
2 Tum Ring Commune chief
3 Household survey in Tum Ring, July 2004.
4 Ibid.
5 Ibid.
6 Evans et al., 2003: 68.
7 Ibid: 61.
8 Chup Rubber Company, Cambodia
9 Ibid.
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
Annual average price of SMR 20 (cent/kg)1
209.18
173.54
191.3
224.31
277.9
227.5
204.64
213.07
208.68
202.82
GDP deflators (year 1987 = 100 in Malaysia)2
105.31
103.72
94.76
100.00
103.62
108.24
112.36
116.39
119.20
123.96
GDP Deflators (year 1987 = 1)
1.05
1.04
0.95
1.00
1.04
1.08
1.12
1.16
1.19
1.24
Real price of RSS1(cent/kg)
213.23
181.94
219.95
248.67
299.16
241.80
207.69
194.80
183.65
171.85
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Annual average price of SMR 20 (cent/kg)
293.75
382.6
329.55
271.83
259
226.94
242.52
205.56
285.98
378.97
GDP deflators (year 1987 = 100 in Malaysia)
128.84
133.52
138.43
143.25
155.43
155.50
163.18
158.71
164.45
169.92
GDP Deflators
(year 1987 = 1)
1.29
1.34
1.38
1.43
1.55
1.55
1.63
1.59
1.64
1.70
Real price of
SMR 20 (cent/kg)
228.91
294.80
253.12
194.13
180.50
153.87
160.52
143.22
178.33
235.79
Sources: Malaysian Rubber Exchange and Licensing Board and World Development Indicators.
Estimate real rubber price: first, divide the row ‘GDP deflators (year 1987 = 100 in Malaysia)’ in the above table by 100. Therefore, we have set the value of the deflator for the base year as one (1). Then, divide the row ‘Price of SMR 20 in Malaysia (sent/kg)’ by the row ‘GDP deflator (year 1987 = 1)’. Finally, we receive real rubber prices as shown in the row ‘Real price of RSS1’. Trend in real rubber prices are shown in the graph below.
Year |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1990 |
1991 |
1992 |
1993 |
1994 |
Annual average price of SMR 20 (cent/kg)1 |
209.18 |
173.54 |
191.3 |
224.31 |
277.9 |
227.5 |
204.64 |
213.07 |
208.68 |
202.82 |
293.75 |
Exchange rate in Malaysia2 |
2.34 |
2.48 |
2.58 |
2.52 |
2.62 |
2.71 |
2.70 |
2.75 |
2.55 |
2.57 |
2.62 |
Annual average SMR 20 price (US$) |
0.96 |
0.76 |
0.81 |
0.99 |
1.18 |
0.97 |
0.86 |
0.82 |
0.86 |
0.83 |
1.12 |
Year |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
Jan–Sep 2004 |
|
Annual average price of SMR 20 (cent/kg) |
382.6 |
329.55 |
271.83 |
259 |
226.94 |
242.52 |
205.56 |
285.98 |
378.97 |
|
|
Exchange rate in Malaysia |
2.50 |
2.52 |
2.81 |
3.92 |
3.80 |
3.80 |
3.80 |
3.79 |
3.79 |
|
|
Annual average SMR 20 price (US$) |
1.57 |
1.39 |
0.99 |
0.71 |
0.63 |
0.69 |
0.60 |
0.77 |
1.06 |
1.22 |
|
Annual average Cambodian rubber price (US$)3 |
|
|
|
0.53 |
0.50 |
0.58 |
0.51 |
0.60 |
0.91 |
|
Sources: Malaysian Rubber Exchange and Licensing Board, World Development Indicator and Chup Rubber Company, Cambodia.
Year
Upland farming (ha)
Value of land per ha (US$)
The value of land (US$)
Number of resin trees
Annual income of resin tree (US$)
The value of resin tree
Total benefit
Discount rate
2001
689
125
86,125
71,720
3.6
258,192
344,317
8%
2002
689
125
86,125
71,720
3.6
258,192
344,317
2003
689
125
86,125
71,720
3.6
258,192
344,317
2004
689
125
86,125
71,720
3.6
258,192
344,317
2005
689
125
86,125
71,720
3.6
258,192
344,317
2006
689
125
86,125
71,720
3.6
258,192
344,317
2007
689
125
86,125
71,720
3.6
258,192
344,317
2008
689
125
86,125
71,720
3.6
258,192
344,317
2009
689
125
86,125
71,720
3.6
258,192
344,317
2010
689
125
86,125
71,720
3.6
258,192
344,317
2011
689
125
86,125
71,720
3.6
258,192
344,317
2012
689
125
86,125
67,417
3.6
242,700
328,825
2013
689
125
86,125
67,417
3.6
242,700
328,825
2014
689
125
86,125
67,417
3.6
242,700
328,825
2015
689
125
86,125
67,417
3.6
242,700
328,825
2016
689
125
86,125
67,417
3.6
242,700
328,825
2017
689
125
86,125
67,417
3.6
242,700
328,825
2018
689
125
86,125
67,417
3.6
242,700
328,825
2019
689
125
86,125
67,417
3.6
242,700
328,825
2020
689
125
86,125
67,417
3.6
242,700
328,825
2021
689
125
86,125
67,417
3.6
242,700
328,825
2022
689
125
86,125
63,372
3.6
228,138
314,263
2023
689
125
86,125
63,372
3.6
228,138
314,263
2024
689
125
86,125
63,372
3.6
228,138
314,263
2025
689
125
86,125
63,372
3.6
228,138
314,263
2026
689
125
86,125
63,372
3.6
228,138
314,263
2027
689
125
86,125
63,372
3.6
228,138
314,263
2028
689
125
86,125
63,372
3.6
228,138
314,263
2029
689
125
86,125
63,372
3.6
228,138
314,263
2030
689
125
86,125
63,372
3.6
228,138
314,263
2031
689
125
86,125
63,372
3.6
228,138
314,263
4,129,148
NPV1
- From the household survey, 65% of families used to have resin trees. Before the rubber plantation there were 501families. So, we
assume that families used to own resin trees = 65%*501 families = 326 families.
- Average resin trees per family 220 trees. Thus, total resin trees in Tum Ring: 220 trees*326 = 71,720 trees.
- Income from a resin tree is US$3.6 per year and rate of resin trees stop proving resin is 6% in every 10 years. Therefore, annual
incomes from resin trees in the first 10 years are US$3.6*71720 = US$258,192; in the second ten years
US$3.6*67,417 = US$242,700; and the third ten years are US$3.6*63,372 = US$228,138.
- The value of upland cultivation: one hectare of land worth * total area of upland cultivation = 689*US$125 = US$86,125.
Year
Age of rubber tree
Costs of rubber per ha (US$)
Total costs of rubber in 5288ha (US$)
Rubber yield
(kg/ha)
Rubber price (US$)
Benefits of rubber
(US$)
Net flow (US$)
Discount rate
2001
0
345
1,824,360
-
(1,824,360)
8%
2002
1
664
3,511,232
-
(3,511,232)
2003
2
368
1,945,984
-
(1,945,984)
2004
3
276
1,459,488
-
(1,459,488)
2005
4
253
1,337,864
-
(1,337,864)
2006
5
207
1,094,616
-
(1,094,616)
2007
6
207
1,094,616
-
(1,094,616)
2008
7
480
2,538,240
300
1.00
1,586,400
(951,840)
2009
8
600
3,172,800
500
1.00
2,644,000
(528,800)
2010
9
750
3,966,000
750
1.00
3,966,000
-
2011
10
900
4,759,200
1,000
1.00
5,288,000
528,800
2012
11
910
4,812,080
1,200
1.00
6,345,600
1,533,520
2013
12
910
4,812,080
1,250
1.00
6,610,000
1,797,920
2014
13
940
4,970,720
1,600
1.00
8,460,800
3,490,080
2015
14
950
5,023,600
1,750
1.00
9,254,000
4,230,400
2016
15
960
5,076,480
1,800
1.00
9,518,400
4,441,920
2017
16
1,000
5,288,000
2,000
1.00
10,576,000
5,288,000
2018
17
1,000
5,288,000
2,100
1.00
11,104,800
5,816,800
2019
18
1,000
5,288,000
2,100
1.00
11,104,800
5,816,800
2020
19
920
4,864,960
1,300
1.00
6,874,400
2,009,440
2023
22
910
4,812,080
1,250
1.00
6,610,000
1,797,920
2021
20
910
4,812,080
1,200
1.00
6,345,600
1,533,520
2022
21
910
4,812,080
1,200
1.00
6,345,600
1,533,520
2024
23
910
4,812,080
1,200
1.00
6,345,600
1,533,520
2025
24
900
4,759,200
1,100
1.00
5,816,800
1,057,600
2026
25
900
4,759,200
1,100
1.00
5,816,800
1,057,600
2027
26
900
4,759,200
1,000
1.00
5,288,000
528,800
2028
27
900
4,759,200
1,100
1.00
5,816,800
1,057,600
2029
28
1,200
6,345,600
3,000
1.00
15,864,000
9,518,400
2030
29
1,400
7,403,200
3,000
1.00
15,864,000
8,460,800
2031
30
2,100
11,104,800
3,000
1.00
15,864,000
4,759,200
41,252,094
45,110,857
3,858,763.00
PV( C2)
PV(B2)
NPV2
The NPV1 curve is generated from the net present value of upland cultivation and forests resources (in option 1) over the period of 80 years. The graph below shows that the NPV1 curve is approaching around US$4.8 million in the long term. Therefore, we can assume that the benefits of option 1 that have been forgone forever are US$4.8 million. In other words, these are the opportunity costs that have gone for the rubber plantation (option 2). This opportunity costs is internalized into the cost of option 2 in the analysis in order to compute the net of social benefits of the rubber plantation.
1. Head of household’s name, age and sex?
2. How many members in your family?
3. How long have you lived here? Where did you live before?
4. What is your most important activity now? Next and next?
5. Now what kind of land do you have? Fill in the table.
Kind of land
Size
Land quality
Land title document
Paddies rice
Chamkar
Rubber plantation
House plot
Others
Total
6. What are your important livelihood activities in 2003? Fill in the table.
Crop
Size
Amount harvested
Place (in/outside the land 3ha)
Short of rice period
Low/ upland
Period can plant further
Rice
Crop
Size
Amount harvested
Place (in/outside the land 3ha)
Amount sold
Price
Planting cost
Period can plant further
Soy beans
Mung beans
Sesame
Corn
Peanuts
Others
7. What other sources of incomes did you have?
8. What kind of land did you own 5 years ago (before rubber plantation)?
(If interviewee came to live after rubber plantation established skip to Q10)
Kind of land
Size of land
Land quality
Land title document
Paddies rice
Chamkar
House plot
Others
Total
9. What is your most important livelihood activity in five past years? Next and next?
Crop
Size
Period of shifting
Short of rice period
Low/upland
Rice
NTFPs
No. of trees
No. of time collected/
month
Amount collected/time
Money made per time
Collected resin tree
Others
10. What compensation did you get when the company took your land? Do you have any documents showing the compensation agreement and the price the company gave you? Does the company have any documents? Did you sign or thumbprint any document? Do you know what the document said?
11. Did you receive the 3ha land? (If did not receive? Why? When will you receive? And skip to Q13)
12. How do you use the 3ha land? What do you plant? How is the quality? Did you sell? To whom? How many ha? How much per ha? Why? What did you use the money for? How do you get land for your farming? Do you rent it? To whom? How many? How much per ha?
13.Do you or does anyone have a job with company?
14.Do you think rubber will be good source of income? Do you know the price of rubber? Has anyone ever told you the price? How much do you think you will get off 1 hectare of rubber? Are they guaranteeing to buy it? At what price?
15.Does company guarantee to buy? How much per kg?
16.Are you satisfied with what the company is doing here?
17.What assistance does the company give you? Do they train you how to grow rubber? Do they visit you and give you advice? Can you go and ask them for advice? Have you ever done this?
18.Do you have cows or buffalos? Is there a problem with your cows or buffalos eating the rubber? What company reaction?
19.Do you think it is harder or easier for you to make a living now compared with 5 years ago?
20.How will you make your living in the future?
21.Was there plenty of wildlife in the forest around your village 10 years ago, 5 years ago? Now has this changed? Why?
22.Do you have any comments or questions?
1. How many families in the village?
2. How many families did not receive the 3ha land? And why?
3. Has any family received an official land title for their 3 ha yet? Have you heard when they might receive a title?
4. Can new couples receive the 3ha land? When? If not what will they do?
5. Are there families who have already sold their land? How many families?
6. Why do you think they sell their land? What did they do with the money?
7. How much did people get compensated for chamkar land that the company took? How many families did not receive compensation?
Is the compensation the same as what was promised?
8. Are there any documents that show the company compensated people and the price they paid? Do you or the villagers have them?
Does the commune chief have them? Does the company have them? Did you of the villagers ever sign or thumbprint any documents?
9. Does the company provide training to villagers on rubber plantation? If yes, how many times? What do they train, for how long?
How many trainers and extension worker do they have?
10.Have the villagers ever requested training? What did the company say?
11.What other assistance does the company give?
12.Can you tell me what the main activities are that make up the livelihoods of the people in this village? Were any of these different 5 or 10 years ago?
13.Is there problem with villagers’ cows or buffalos eating the rubber? What company reaction?
14.Have outsiders come to live in the village? When did they arrive?
15.Have there been any problems or good things with outsiders coming into the village?
16.Have villagers here moved to clear forest or live in other area? If yes, where did they go? Why did they move there?
17. Do you think people are relying on exploiting forest resources and wildlife to make up for the chamkar land they lost?
18.What is your assessment of the family scale rubber plantation in promoting rubber plantation to reduce poverty in your village? How is this development different from what you imagined or different from what you were told before it started?
19.Do you think rubber will be good source of income? Do you know the price of rubber? Has anyone ever told you the price? Has the company told the villagers?
20.How much latex and money do you think 3 hectares of rubber will produce? Is the company guaranteeing to buy it? At what price?
21.Do you have any comments on the family scale rubber plantation? What should have been done? Do you think it could be a good thing to do in other places?
22.How can things be changed now so that it is better in the future?
1. How many families in the commune?
2. How many people have moved to the commune from outside of the commune in the last 5 years?
3. Where did most of them come from? Why did they move here?
4. How many families did not yet receive the 3ha land? Why?
5. Did all of the people in this village get compensation for the land they gave up to the company? How much? If all people were not compensated why not? Did the company get people to sign or thumbprint or sign documents when they paid the compensation money?
6. Do know why villagers sell their land back to the company? How many families already sold?
7. Where do villagers receive land for chamkar after selling their land?
8. Is there displacement of villagers to other communes? If yes, how many families?
9. How much do you think villagers know about growing rubber?
10.How many staff does the company have that are helping villagers to learn about rubber?
11.Is there a problem with villagers’ cows or buffalos eating the rubber? What company reaction?
12.How much do you think people are relying on exploiting forest resources and wildlife to make up for the chamkar land they lost?
13.What is your assessment of the family scale rubber plantation in promoting rubber plantation to reduce poverty? Will be good source of income? Do you know the price of rubber? Has anyone ever told you? Has the company told the villagers? How much latex and money do you think 3 hectares of rubber will produce? Is the company guaranteeing to buy it? At what price?
14.What ideas do you have to improve things now so that the rubber development will be better for people and better for reducing poverty in the future?
1. What are your organization’s roles and responsibilities in land and forest issues in Tum Ring?
2. What is your organization plan to development community forestry?
3. What have been changes/results of your organization so far?
4. What is your organization planning in future?
5. Do you know why people sell their land back to the company?
6. Do you know where they get land for their chamkar?
7. Is there clearing forest in other areas in forest concession?
8. What is your assessment of the family scale rubber plantation in promoting rubber plantation to reduce poverty in Tum Ring?
9. What are your opinions or recommendations on the family scale rubber plantation program?
10.Can you say something about the level of illegal logging activities in the Tum Ring and Mean Rith areas? Is it worse or same as before? Who is involved? Is anything being done about it? What can be done about it? Have you seen any difference since the Hun Sen declarations last month? Do you think villagers will start to confiscate and destroy chainsaws as he suggests in the declaration?
Appendix 14 Tum Ring Rubber Company Interview Guide
1. How many people are here as full-time employees?
2. How many of those people originally came from Tum Ring commune?
3. Where do workers mostly come from? What do the workers get paid? Do you have a training scheme for your workers so they can
improve their skills and their pay? Are there any villagers on this training scheme?
4. What assistance are you providing to villagers so they can grow rubber? Do they receive training, if so how often?
5. How many workers per hectare do you require while the trees are small and when the trees are full grown?
6. What problems have you encountered in land clearing and in planting rubber trees?
7. What is the cost per hectare of clearing, planting and looking after the trees until they reach production? Can you say what you
spend per hectare on fertilizer, labor? What are your biggest costs?
8. Does the company plant any cash crops themselves to offset the costs of production before the trees start producing? Or is it
villagers or workers? Who gains income from its harvest? What do you or they plant and how much do you or they earn per hectare
per year? Have the cash crops grown well and produced returns as expected?
9. Can you say what the total costs are for of a rubber development this size?
10.What percentage extra cost do you think the smallholder rubber part of the project adds – supplying trees, training, etc.?
11.When do you expect to get your first harvest? How many tons of latex do you expect to get this first year? How many tons do you expect to get after the 3rd year of production?
12.How many tons of latex do you expect to get when the plantation reaches full production?
13.What is the present price of latex? What is the long term outlook for latex? Do you think the price will increase or decrease, why?
14.Did you/are you planning to compensate for villagers’ old chamkar and resin trees that were cut in preparing the land for the plantation?
15. What are the criteria in providing the 3ha land? Are there families did not receive it? How many families?
16.Will families who are distributed 3ha get land titles? Do you know when? Will people have to pay for these?
17.Do you try to hire local people or is it better to hire already skilled workers?
18.What is most technically difficult to learn for new people in growing rubber?
19.How will the villagers’ harvest be collected? How will the company collect the latex from the villagers and for how much? Will you guarantee to buy all of the latex produced? What price are you guaranteeing to buy at right now?
20.How much do you expect villagers to make from harvesting their 3ha plantation after approximately 10 years?
21.Is there any plan to help the villagers during the years before they get a harvest but when they are no longer able to grow soybeans? What is the plan?
22.How long can villagers plant beans in between rubber trees?
23.Do you have pilot farmers? How many? How did you select these?
24.Do you buy back the plantations of people who do not want them? Can they sell them to others? Are plantation workers buying land off the villagers?
25.Why are villagers selling their 3ha land? Do you know what other livelihoods there are around here that people can do if they sell their land?
26.When do you think the rubber factory will be built? How many workers will be required? Is it mainly skilled workers required?
27.How do you think the family scale rubber plantation part of this project is going now? And in the future? Is it possible to implement in this commune? If yes, how? Is there anything that you think needs to be changed or improved?
28.Do have any comments or questions?
1. Could you please estimate costs of rubber per ha in each year? Please fill in the table below.
Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
16 |
17 |
18 |
19 |
20 |
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. At what age of rubber can the company start harvesting latex?
3. What are benefits of rubber per ha since it starts to provide and exhausts latex?
Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
16 |
17 |
18 |
19 |
20 |
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. What is the current rubber price? What prices of rubber depend on?
5. Where does the company sell rubber productions?
6. How many kind of rubber quality do you sell? What are the prices of each quality?
Figure
10 Map
of Tum Ring commune
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