Establishment of a Nedun Plantation Company

Abstract of the presentation of 

Udara Senevirathne

Pericopsis mooniana (Nedun) is a perennial tree of family Fabaceae. Nedun is a beautiful tree with dome shaped crown and evergreen foliage. Mature height and dbh of this species are 20-25m and 30-70cm respectively. The trees are usually located in low land wet zone forests. Timber of Pericopsis mooniana takes a very fine polish, cuts clear and turns easily. It has high natural durability. Colour of heart wood is dark brown and sap wood is pale in color. It is good for high class furniture, cabinet work, flooring and ornamental works.

The hypothetical Nedun Plantation Company named Green Tree Plantation Company is an investment company. The company hopes to provide Nedun timber as final product to local market and international market. The business model of the company consists with five steps as firstly Acquiring and Subdividing Land, Establishment, Plantation Management, Harvest and finally Distribute Returns.

Considering suitable growth condition for Nedun trees, a land is selected in Mathugama, Kalutara. It is a barren land due to high soil erosion.The land should be developed using sloping agricultural land technique. Then Gliricidia is used to soil enhancement because it is a Nitrogen fixing and Nutrient recycling tree. Coir dust is applied as mulch.

Nedun seedlings (purchased from FD) are planted in May-June. The planting distance for Nedun is 3.0m × 3.0m such that number of plants per ha is not less than 1110. N.P.K. ratio (9:13:9) fertilizer is added to Nedun plants in first three years and just after PCT at year 7. Two pruning treatments must be done at age 4 and 7. At pre-commercial thinning, 450 trees are removed at 7 years age. At year 13 of Nedun plants, 1st commercial thinning is done to remove 250 trees. This practice cannot be done with Gliricidia. Therefore they are removed before this thinning. After that, the 2nd commercial thinning is done and sold as timber at 20 years age by removing 120-150 trees. Pest and diseases threats are minimal to Nedun plantation. Most of the time leaf eating caterpillars makes damages. There is no severe damage after 3 years of Nedun plant. Therefore contact poisons can be applied within nursery period to first 3 years whenever necessary. There is a minimum threat to occur a forest fire, because this plantation is located in the wet zone. Most of the time surrounding people tend do illicit felling. Therefore the company expects to provide security using two watchers.

Value addition practices to a Nedun plantation are used of a low cost fertilizer mixture, high quality seedling, intercropping, and certification for both the plantations and end products.In SWOT analysis, excellent return of investment and highly experienced management as some strengths, the growing cycle for Nedun is not more aggressive as one of weakness, high market potential as one of opportunity, land invasion and theft and fires and other natural disasters can be mentioned as threats.