The objectives of the Business Plan (BP) is to describe the TTGAU engagement in wood trade for a period of 4 ½ years (July 2018 – December 2022). The BP is a road map for the Union (i.e. TTGAU) in developing its engagement in the forest value chains. It is also a document showing partners the feasibility in investing in development of the Union, especially when it comes to its role in facilitation of the tree growers’ marketing of their products.
Tree growers are members of the Tree Growers’ Associations (TGA), which then form the TTGAU. The TTGAU’s reason for existence derives from the value addition that the organisation delivers to its members and the tree growers. Therefore, the philosophy in the Union’s engagement in wood trade is to operate a business that is beneficial to tree growers in form of access to markets and increased profitability from tree growing (i.e. competitive stumpage prices) at the same time as providing the Union and TGAs with income to sustainable run the services in wood trade as well as potential other services. Therefore, the objective of TTGAU’s engagement in wood trade is not profit maximisation but enhancing tree growers’ returns at harvest of their woods. This is also visible in the benefit sharing arrangements proposed in this Business Plan.
The business plan defines TTGAU engagement in the pine sawn timber and eucalyptus transmission poles value chains. The dynamics in the forest sector and related value chains is recognised, with new products emerging (e.g. Eucalyptus veneer, Eucalyptus sawn timber, bio-energy from alternative sources). Therefore, it is recommended that the business plan is reviewed in mid of its implementation, including assessment of product mix to target in wood trade engagement as well as the potential for investment in processing equipment.
