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Sale of substantial Eucalyptus trees Investment
villageseer
#21 Posted : Monday, June 25, 2012 3:32:11 PM
Rank: New-farer

Joined: 6/14/2011
Posts: 82
Kaigangio wrote:
@ villageseer,

you see village the first mistake you made when planting those trees is not knowing who will buy them poles...

KPLC and REA do not buy raw (untreated) poles...

my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).

Also check another treatment site just about 2km from Kekopey township on your way to nakuru.

...hope that will help.


kaigangio
Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province.

I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC.

This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?)

Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00

But what we never reckoned at that time and even now was the kind of resistance we would face from the existing Cartel that had for years controlled this market and with assistance of top management of these two firms. Made of a minimum of 4 to 6 major companies in energy industry, these guys are quite ruthless.

Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them.

So Kagaingio, I hope with that little background , you would be able to see what sometimes you have to go through when you are faced with an almost monopolistic and cut-throat type of business.



villageseer
#22 Posted : Monday, June 25, 2012 3:35:02 PM
Rank: New-farer

Joined: 6/14/2011
Posts: 82
villageseer wrote:
Kaigangio wrote:
@ villageseer,

you see village the first mistake you made when planting those trees is not knowing who will buy them poles...

KPLC and REA do not buy raw (untreated) poles...

my advice...go to GTI (Gilgil Telecommunications Institute, formerly owned by KPTC) in Gilgil town, Marura Power poles treatment factory (about 8km from sagana town on your way to nairobi).

Also check another treatment site just about 2km from Kekopey township on your way to nakuru.

...hope that will help.


kaiganjo
Thanks for your advise,but I can assure you I did thorough homework when I came to learn about the new venture that had recently at that time (2003) being introduced in the country for smallholder farmers who could alternatively invest in tree planting as subsitute of already pathetic situation of existing cash crops products(Coffee & Tea) in Central Province.

I can assure you those of us who took the risk did thorough research of the existing markets, locally and internationally . We knew the value of the Kenya market of treated transmission wood poles at that time was around 4 billion shilling annually (estimated to be around Ksh 7 billion now). And in most cases the KPLC had to import the product from Europe, Far East, South Africa and our neighbouring countries - Uganda, Tanzania and DRC.

This new hybrid seedlings (clones Eucalyptus seedling that would reach its maturity within a period of 5-7 years for the transmission poles instead of the conventional trees that takes 15-20 years to mature) was being imported from South Africa, through collaboration of Kenya ( KEFRI -under Kenya Biotechnology Programme Trust) and South Africa governments( through a South Africa multinational paper company that owned thousand acres of forest plantations for its paper mills) and funded by a British organization known as Gatsby Trust and US'ISSSA(Remember the Bananas tissue technology of JKUAT?)

Anyway, from outset we knew that there was a big demand of the product and even there was and still even today publication depicting of what you would make from planting these trees from KEFRI people. Their publication stated that after three years of planting their seelings , you could fetch an average of Ksh3,000 per tree in selling it as telephone pole to Kenya Post AND Telecommunication. And if you wait for 5 years, you could sell it KPLC at least for a minimum of Ksh10,000.00

But what we didn't know was the kind of resistance we would face from the Cartel that had for years controlled this market. Made of a minimum of 4 to 6 major companies in energy industry, these guys are ruthless.

Even after the Parliement in 2008 or 2009 had passed a motion that KPLC should initially source their transmission poles locally before venturing internatinally, the management did totally ignored this, and even after its Board of Directors also, passed a resolution of the same in 2009, and even after KEFRI through its Biotechnology Programme Project had organized the farmers as Forest Growers Association - that could negotiate for them as legal entity in putting a bid at KPLC or Rural Electrification. And even after both of them (KPLC &REA) had invited the organization to put an EOI Tender in January 2010, that they could be able to supply them treated poles. After submitting our collective Bid as an organization and led by KEFRI, the tender was opened in March 18th 2010 and that was the last time we had from them.

So Kagaingio, I hope with that little background , you would be able to see what sometomes you have to go through when you are faced with an almost monopolistic and cut-throat type of business.




digitek1
#23 Posted : Monday, June 25, 2012 4:53:42 PM
Rank: Veteran

Joined: 2/3/2010
Posts: 1,797
Location: Kenya
@villageseer

Other than getting the market and time it takes, what were the input costs for the 8years
I may be wrong..but then I could be right
villageseer
#24 Posted : Tuesday, June 26, 2012 1:11:02 PM
Rank: New-farer

Joined: 6/14/2011
Posts: 82
digitek1 wrote:
@villageseer

Other than getting the market and time it takes, what were the input costs for the 8years


Actual cost initially would be the preparation of the piece of the land you intend to plant seedlings - Meaning slashing the bushes if the selected piece of land had been idle for some time, or making sure the soil is tended well from weeds.

Then you need to take a soil-sample of the area to KEFRI or KARI for analysis and recommendation.

This will give them the idea(s) of the types of the species of eucalyptus tree that would do well in your particular land. For Example, the area I had earmarked for this project being above 1000M above Sea level - Does exremely well with Eucalyptus E'grandis specie type, which within 5 years period the trees would almost be matured for harvest.

And an acre would take 1,000 pieces of seedlings.
While for the dry like Kajiado would only accommodate less than 600 trees per acre and of totally different species of the eucalyptus clone species.

NB,
You also have to be very careful on where you buy your species from. There are many conmen,and even former scientists at KARI and KEFRI who even have large plants-nurseries and usually claimed that they are"agents" of KEFRI.

Be also warned that what they sell although in the first 3 years you can't tell the difference of it and that of Biotech Trust - In its third or fourth years it will start to manifest a total hybrid of shrinking and withering type of a tree !

The initial cost of buying these high placed clones trees was Ksh7.00 per each seedling. Add the cost of transportation to your intended place.

The cost of digging holes,applying fertilizer and planting. the cost of at least trimming the plant in the first 3 years. Fighting termites from eating your new plant by applying pestcides.

AND THEN praying to your MAKER that there would be enough rain to sustain your seedlings in the first 6 months of planting.

In my case, I had planted 35,000 seedlings and only 8 to 10,000 did survived the drought of 2004.
Lolest!
#25 Posted : Friday, October 26, 2012 7:46:14 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
@Seer, how did it go? What price did you fetch?
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
mawinder
#26 Posted : Saturday, October 27, 2012 5:34:12 PM
Rank: Elder

Joined: 4/30/2008
Posts: 6,029
Saw an advert from RURAL ELECTRICIFICATION AUTHORITY inviting farmers with eucalyptus poles.
alfred
#27 Posted : Monday, November 12, 2012 1:06:44 PM
Rank: Hello

Joined: 11/12/2012
Posts: 1
Hi, Kindly send me your Contacts; My Email is alfmarindi@gmail.com. Thank you
254.co.ke
#28 Posted : Monday, November 19, 2012 8:47:44 AM
Rank: Member

Joined: 11/17/2006
Posts: 143
Anyone with contacts of that MARURA TREATMENT PLANT in Sagana, cant seem to find their contacts on the web.
kiriita
#29 Posted : Friday, April 12, 2013 11:10:26 AM
Rank: Member

Joined: 4/20/2008
Posts: 437
@villageseer, did you eventually sell the trees?
kariska
#30 Posted : Monday, June 17, 2013 11:33:36 AM
Rank: Hello

Joined: 6/17/2013
Posts: 1
@villageseer, did u eventually sold out the tress? from your experience would you advice one to try the investment? i have some 5 acre idle land and i am evaluating the investment options!
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