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1437
Assessing the Utilization of Young-age Falcata
[Falcataria moluccana (Miq.) Barneby & J.W. Grimes]
for Veneer Production
Marina A. Alipon1*, Elvina O. Bondad1, Carl Anthony A. Lantican1,
Dennis M. Gilbero2, and Juanito P. Jimenez Jr.1
1Forest Products Research and Development Institute (FPRDI)
Department of Science and Technology (DOST)
College, Laguna 4031 Philippines
2Forest and Wetland Research, Development, and Extension Center
Ecosystems Research and Development Bureau (ERDB)
Department of Environment and Natural Resources (DENR)
Bislig City 8311 Surigao del Sur, Philippines
This paper presents the mechanical properties, veneer recovery including the cost benefits,
of 3-, 5-, and 7-yr-old falcata [Falcataria moluccana (Miq.) Barneby & J. W. Grimes] for
veneer production. Mechanical properties covered modulus of rupture (MOR), stress at the
proportional limit, and modulus of elasticity (MOE) in static bending; compression parallel-
and perpendicular-to-grain; shear; and hardness and toughness. The study was conducted to
evaluate the effects of age on these properties and the cost-benefits of converting the species at
different ages, and to recommend the optimum age and price for the utilization of the species
for veneer production. The experimental materials consisted of six plus-size trees each per age
from superior seeds of known origin in Caraga, Philippines. Standard procedures for testing
the strength properties of timber (ASTM D143-14) were followed. Veneering was conducted
using a spindleless lathe with a fixed setting for each designated veneer thickness output. Gross
veneer recovery was 52% for both 3- and 5-yr-olds and 55% for the 7-yr-old. Net recovery, on
the other hand, was 46% for the 3- and 5-yr-olds while 49% for the 7-yr-old. Utilizing falcata
trees as young as 3-yr-old can generate positive cash flows for veneering plants, making it a
worthwhile investment. However, from the perspective of falcata farmers and plantation owners,
selling at 3-yr-old would be unfavorable considering the low selling price.
Keywords: cost-benefits, mechanical properties, veneer recovery, young-age falcata [Falcataria
moluccana (Miq.) Barneby & J.W. Grimes]
*Corresponding Author: marina.alipon@fprdi.dost.gov.ph
INTRODUCTION
Falcata [Falcataria moluccana (Miq.) Barneby & J. W.
Grimes] is the most utilized industrial tree plantation
species for veneering in the Philippines, specifically
in the Caraga Region (Jimenez et al. 2015). Caraga is
composed of five provinces and six cities and lies on the
northeastern portion of Mindanao. It has a total land area
of 18,846.97 km2, with 71.22% forestland and 28.78%
alienable and disposable land. The region is comprised
of mountainous areas and flat and rolling lands (https://
sites.google.com/a/tesda.gov.ph).
Philippine Journal of Science
150 (6A): 1437-1450, December 2021
ISSN 0031 - 7683
Date Received: 27 Apr 2021
1438
According to the Forest Management Bureau–Department
of Environment and Natural Resources (FMB-DENR),
more than 555,966 m3 of falcata logs in the region were
processed into veneer in 2019, accounting for more than
88% of falcata production in the country. In 2019, the
monthly free-on-board average price for falcata logs
ranged from USD 46.77–95.88/m3 (PHP 2,268.20–
4,650.00/m3) depending on the diameter and log grade
(FMB-DENR 2019).
Falcata logs with a diameter of 25 cm and above are
currently traded at USD 77.32/m3 (PHP 3,750/ m3) in
the Caraga Region (Orgon Wood Industries, pers. comm.,
2021). These larger diameter logs are usually attained after
8 yr and processed into veneer. Veneer recovery at older
ages (8–10 yr) is expected to be higher than at younger
ages (4–7 yr). In the past, only falcata logs 22 yr and above
were processed for veneer due to fuzziness problems
(rough surface) resulting from the use of younger wood.
This problem, however, has been solved in plywood plants
by adjusting lathe settings and frequently replacing dull
blades with sharp ones (Sicad 1987). As a result, 12-yr-old
trees became acceptable for use in the plywood industry.
With the retooling of veneering companies, smaller
diameter logs likewise became viable raw materials for
the smaller rotary lathes (Lapitan and Eusebio 2010).
At 12 yr old, however, the reduced harvesting time for
falcata may still be too long to sustainably meet the raw
material demand of the plywood industry. Shortening the
rotation period by using seedlings from known superior
seeds is seen as a possible solution to this problem.
Processing falcata logs for veneer at still younger ages
may prove to be a profitable option through a proper
understanding of the material’s mechanical properties,
veneer recovery, and cost-benefit analysis.
According to Japarudin et al. (2020), F. moluccana is
among the better-performing taxa at 6 and 9 yr of age
and is recommended for the Sabah soil classification,
Tanjung Lipat. Ishiguri et al. (2007), on the other hand,
suggested that breeding falcata for wood quality has a
strong potential in optimizing the species’ usefulness.
Krisnawati et al. (2011) reported that falcata plays an
important role in both commercial and traditional farming
systems in several sites in Indonesia, with an acceptable
quality of wood for the panel and plywood industries.
The DENR’s research and development program on
“Establishment of Commercial Plantations and the
Efficient Utilization of the Wood Products in the Caraga
Region” successfully established a 500- ha falcata
plantation in 2011 using certified seeds. The growth and
yield of the resulting trees were better than those of the
existing falcata planted by local farmers from unknown
seed sources. Quality seeds result in faster-growing trees
that can attain a diameter at breast height (DBH) of more
than 25 cm even at 3 yr old. However, the properties of
such trees should be evaluated to establish a sound basis
for optimal log pricing. Optimal pricing would satisfy
both wood sellers and buyers and promote stable trading.
This could lead to the sustained used of certified seeds for
a wide-scale falcata plantations establishment and earlier
harvesting. Thus, the results of this study could provide
plantation owners/farmers and wood processors with the
optimum falcata rotation age that could consequently
result in sustainable raw material supply for the local
plywood industry.
This study was specifically designed to 1) determine the
mechanical properties and veneer recoveries of 3-, 5-,
and 7-yr-old plantation-grown falcata; 2) determine the
cost-benefits of planting and harvesting of falcata at said
ages; and 3) recommend the optimum rotation age and
market price of falcata logs that would satisfy both the
farmers/plantation owners and veneer processing plants.
MATERIALS AND METHODS
Three replicate Facataria moluccana Miq. trees per age
for mechanical properties tests and another three replicate
trees per age for veneer recovery tests were harvested by
the DOST-FPRDI and ERDB-DENR wood collection
team. Table 1 shows the information about the trees and
study sites, while Figure 1 shows the plantations where
the trees were obtained.
For mechanical properties samples, each tree was equally
divided across the length into three bolts (2.5 m each),
which were labeled butt, middle, and top. Two flitches
were quarterly sawn from each bolt. Four sticks (50 mm
each) were obtained from each flitch: two for test in the
green and two in the dry condition.
Another three sets of trees with the same origin and
comparable diameters per age were used for veneering
properties determination.
The sampling scheme used in the study is shown in
Figure 2.
A straight log measuring 4.5 m long starting from the butt
was cut from each sample tree. The log was then bucked
into three 1.5-m long billets for veneering (Figure 3), each
of which was assigned to be peeled to a corresponding
veneer thickness (2.80, 2.20, and 0.85 mm).
Mechanical Properties Determination
Each tree was cut from the stump into three equal portions
(2.5 m long) representing the butt, middle, and top. From
each log portion, a plank 50 mm thick (2 in) was sawn
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1439
Table 1. Information about the sample trees and sites.
Code
age-tree no.
DBH
(cm)
HT No. of
logs
Location Coordinates Source of
seeds
Area
(ha)
Topography/
elevation (masl)
3-1 24.2 10 3 Sitio Sampinit,
Brgy. Malapong,
Buenavista, Agusan
del Norte
8°55' 29.35"N
125°26'17.57"E
Selected plus-
size tree
4 Slightly rolling/ 66
3-2 22.8 10 3
3-3 23 8.5 3
Mean 23.3 9.5
SD 0.76 0.87
5-1 25.6 12 3 Sitio Sampinit,
Brgy. Malapong,
Buenavista, Agusan
del Norte
8°55' 30.24"N
125°26'15.22"E
Selected plus-
size tree
1 Slightly rolling/ 66
5-2 28 15 3
5-3 23.1 12 3
Mean 25.6 13
SD 2.45 1.73
7-1 31 10 3 USEP-Bislig
campus, Brgy.
Maharlika, Bislig
City
8°14' 49.38"N
125°16'22.56"E
Selected plus-
size tree
3 Flat to slightly
rolling/ 106
7-2 26 10 3
7-3 27 11 3
Mean 28.0 10.3
SD 2.65 0.58
Table 1. Continued…
Code age-
tree no.
DBH
(cm)
HT No. of
logs
Silvicultural
treatment Soil composition
pH % OM P(ppm) K (ppm)
3-1 24.2 10 3 Quarterly brushing
and application of
herbicide
6.27 1.2 23 4.75
3-2 22.8 10 3
3-3 23 8.5 3
5-1 25.6 12 3 Quarterly brushing
and application of
herbicide
5.88 1.4 15 302
5-2 28 15 3
5-3 23.1 12 3
7-1 31 10 3 Quarterly brushing
and application of
herbicide
4.58 1.74 1 58.6
7-2 26 10 3
7-3 27 11 3
Figure 1. Photos of 3-, 5- and 7-yr-old falcata plantations.
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1440
across the center (quarter-sawn). Subsequently, the planks
were further sawn into standard-size samples (Table 2).
Two samples each per mechanical property were taken
for the green-condition tests and another set of samples
for the dry-condition tests.
The green condition samples were soaked in water to
retain their original moisture content (MC) before being
tested. The dry condition samples, on the other hand,
were first air-dried under ordinary room and conditioned
further in a temperature-humidity controlled room set at
28 °C dry bulb temperature, 23 °C wet bulb temperature,
and 65% relative humidity designed to give 12% MC
at equilibrium. A moisture sample was cut from every
specimen immediately after the test, and the MC was
determined by the standard oven-drying method.
Figure 2. Sampling scheme for the mechanical properties tests.
Figure 3. Sampling scheme for the veneer recovery test.
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1441
Table 2. Dimensions of specimens for the various tests.
Mechanical properties Dimensions
(mm)
Loading rate
(mm/min)
Static bending (SB) 25 x 25 x 400 1.3
Compression parallel to
grain (C //)
25 x 25 x 100 0.30
Compression perpendicular
to grain (CꞱ)
50 x 50 x 150 0.30
Shear (S) 50 x 50 x 60 0.6
Hardness (H) 50 x 50 x 150 6.0
Toughness (To) 20 x 20 x 280
Except for toughness where the United States Forest
Products Laboratory type testing machine was used, all
mechanical properties were tested using the Shimadzu
Universal Testing Machine (Model UH 300kNX, 300kN
load capacity).
The tests followed the standard procedure of the American
Society for Testing Materials Designation: D143-14
(Table 2).
Experimental Design
Mechanical properties data were statistically analyzed
using two-factorial in a complete randomized design.
Veneering of Falcata Billets
Prior to veneering, billets were rounded up using a
spindleless lathe to obtain cylindrical samples. The round-
up recovery (RR) was computed by taking the ratio of the
rounded volume (Vr) and initial volume (Vi) of the log
multiplied by 100%. The formula is shown in Equation 1:
(1)
Veneering was conducted using the spindleless lathe
for each designated veneer thickness output based on
established settings of the Orgon Wood Industries (Butuan
City, Philippines). A diagram of the peeling in cross-
sectional view is shown in Figure 4, while actual veneering
is shown in Figure 5. The lathe settings used for veneering
the billets to the indicated thickness are shown in Table 3.
Figure 4. Spindleless peeling of billet [source: McGavin (2017) in Leggate et al. (2017), ACIAR MN182,
with permission].
Figure 5. Veneering using spindleless lathe (left: continuous veneer ribbon; right: rotating billet).
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1442
Veneer Recovery
Veneer recovery was computed using the green veneer
recovery (GNR) and gross veneer recovery (GSR) of
McGavin et al.’s formulas (2014) (Equations 2 and 3).
Net recovery (NR) is given in Equation 4:
(2)
where:
GTmean is the average green veneer thickness (m),
GW is the green veneer width (m) perpendicular to the
grain (as measured prior to clipping and excluding any
major defects, e.g. wane or undersize thickness that are
present at the beginning or end of the veneer ribbon),
L is the veneer length (m) parallel to the grain, and
V is the billet volume (m3);
(3)
where:
DTmean is the average dry veneer thickness (m),
GRW is the width (m) of dry veneer (perpendicular to the
grain) that meets the grade requirements,
L is the veneer length (m) parallel to the grain, and
V is the billet volume (m3);
(4)
where:
GSR is the gross recovery and the constant is the trimming
factor.
Economic Analysis
The net present value (NPV) and internal rate of return
(IRR) were the economic indicators used. The formula of
the NPV (PCAARRD-DOST 2007) is shown in Equations
5 and 6:
(5)
where:
Rt is the revenue in year t,
Ct is the cost in a year,
i is the interest rate or the discount factor, and
t is any year within the rotation.
(6)
Empirical prediction modeling was not formulated due to
the nature of the data used in the research design. Instead,
volume estimations were derived from the model used by
Alipon et al. (2016). It computed tree volume as a function
of the average log end diameter (D) and length (L). The
tree volume equation model is shown in Equation 7:
(7)
where:
V is the tree volume in m3,
D is the average diameter of big and small end logs, and
L is the length (m).
Economic analysis was conducted using the United
Nations Industrial Development Organization (UNIDO)
industrial feasibility manual by Behrens and Hawranek
(1991). Two points of view in utilizing young falcata
were considered: 1) that of plantation owners and 2) that
of veneer producers.
Following UNIDO guidelines, all the cost elements were
considered to compute for the total production costs.
The cost elements included direct materials, direct labor,
direct manufacturing overhead, and the corresponding
depreciation costs. Operating expenses were also added to
the total production costs, which included administrative
(indirect salaries, office supplies, office utilities, deliveries,
etc.), selling expenses (marketing costs), as well as repairs
and maintenance. The usual project evaluation financial
indicators were obtained – namely, NPV and IRR.
RESULTS AND DISCUSSION
Mechanical Properties
Table 4 shows the mechanical properties of 3-, 5- and
7-yr-old falcata in green and dry conditions (12% MC).
Although the mechanical property values generally
increased from 3 to 7 yr, these values all fell under “low”
strength (Class 5). The classification was based on the
system of classification devised by Forest Products
Research and Industries Development Commission
Table 3. Spindleless lathe settings per veneer thickness output using
the established settings of Orgon Wood Industries.
Fixed spindleless
lathe settings
Veneer thickness output
0.85 mm 2.20 mm 2.80 mm
Blade height 36 mm 144 mm 144 mm
Blade opening 1 mm 2.50 mm 3.0 mm
Blade angle 19° 19° 19°
Thickness gear 68 teeth 40 teeth 50 teeth
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1443
(FORPRIDECOM 1980), now DOST-FPRDI, as shown
in Table 5. The recommended end-use of the species
is the same regardless of age, viz. for veneer and low
construction purposes where strength and hardness are
not critical requirements.
Studies show that 4-yr-old falcata trees can already be
profitably harvested for lumber conversion provided
they have attained at least 16 cm DBH (Alipon et
al. 2016). Despite the significant increase in some
mechanical properties from 4 to 8 yr old, there was also
no improvement in the samples’ mechanical properties
classification – all fall under Class 5 similar to the 3-,
5- and 7- yr-old trees in this study. Similarly, in 12-yr-old
falcata trees collected from Region 2, Luzon Province,
Philippines, the strength class also falls under Class 5
(Tamolang et al. 1989).
Tables 6 and 7 show the analysis of variance (ANOVA)
on the trees’ mechanical properties in green (MC ranged
from 205–222%) and at dry (12% MC) conditions.
Variations on the effects of age (A), height (H), and
interactions between A x H were not significant except on
the effect of age on compression perpendicular-to-grain,
hardness (side and end), and toughness. At 12% MC, the
sources of variations were also not significant except for
the effect of age on shear and interactions between A x
H on MOR, stress at proportional limit, and compression
parallel-to-grain.
Generally, the results indicate that there is not a statistically
significant difference between the mechanical properties
of 3-, 5- and 7-yr-old falcata trees. This conforms to the
study of Listyanto (2018), where no significant differences
(P-value > 0.05) on MOR and MOE were obtained among
5-, 7-, and 9-yr-old falcata. As in this study, the sample
wood is likewise recommended for light construction
purposes. However, from the average values of strength
properties at 12% MC, the MOR of 5-, 7- and 9-yr-olds
were higher (536–541kg-cm2 or 52.5–53 MPa) than those
of the 3-, 5-, and 7-yr-old falcata in this study (Table 4).
On the other hand, the effect of height on the 3-, 5-, and
7-yr-old trees was also not significant, indicating similar
uses of the timber regardless of its logs’ length.
Veneer Recovery Obtained from Billets Per Tree Age
Figure 6 shows the % recovery for different types of
recovery at various stages of veneer processing per age
level and veneer thickness, while Figure 7 shows the %
mean recovery at various stages of veneer processing from
the three age levels.
Rounded veneer recovery (RR) ranged from 79.7–
90.0% with very minimal differences for all the veneer
Table 4. Mean mechanical properties of 3-, 5-, and 7-yr-old falcata in green and at 12% MC condition.
Property
Unit MC Age (yr)
357
MOR MPa Green 22.8 26.1 27.4
12% 34.5 33.7 35.5
Stress at proportional limit MPa Green 10.4 12.2 11.6
12% 14.0 15.8 13.9
MOE GPa Green 3.69 4.46 4.33
12% 4.67 4.38 4.82
Compression parallel-to-grain MPa Green 12.5 12.6 13.0
12% 18.9 18.5 21.6
Compression perpendicular-to-grain MPa Green 1.31 1.47 1.94
!2% 2.38 2.02 2.84
Shear MPa Green 2.81 2.97 3.03
12% 4.17 3.64 4.83
Hardness (side) kN Green 0.91 0.94 1.22
12% 1.24 0.89 0.99
Hardness (end) kN Green 1.49 1.49 1.78
12% 2.20 1.87 2.24
Toughness J/spec Green 8.76 9.10 13.55
12% 11.40 9.10 11.76
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1444
Table 5. Strength classification of Philippine timber species (DOST-FPRDI).
Minimum strength limit values
MC Class 1 (C1) Class 2 (C2) Class 3 (C3) Class 4 (C4) Class 5 (C5)
MOR (MPa) Green
12%
78.4
126
61.8
98
49
78.4
39.2
61.8
30.9
49.0
MOE (GPa) Green
12%
12.7
15.7
9.80
11.8
7.55
9.31
5.88
7.16
4.51
5.49
Compression parallel-to-grain (MPa) Green
12%
39.2
63.7
29.9
49.0
23.0
37.7
18.1
29.4
13.7
22.6
Compression perpendicular-to-grain (MPa) Green
12%
8.82
13.2
5.49
8.82
3.48
5.69
2.21
3.68
1.37
2.40
Shear (MPa) Green
12%
9.80
13.7
7.84
10.8
6.18
8.33
4.90
6.37
3.92
4.90
Relative density Green
12%
0.67
0.71
0.54
0.58
0.45
0.48
0.37
0.39
0.30
0.32
Class 1 (high strength) – for heavy-duty construction; Class 2 (moderately high strength) – for moderately heavy construction; Class 3 (medium strength) – for medium
construction; Class 4 (moderately low strength) – for the production of pulp and paper, wood carving and sculpture, conventional furniture, Venetian blind, crates, form
wood, shingles, and matchwoods; Class 5 – (low strength) – for light construction where strength, hardness, and durability are not critical requirements such as core
veneers, wallboards, pencil slats, sash, and panel cores.
Table 7. ANOVA on the mechanical properties of falcata at 12% MC at different ages and heights.
Source of variance DF MOR (MPa)
Stress at
proportional
limit
(MPa)
MOE (GPa)
Compression
parallel-to- grain
(MPa)
Compression
perpendicular
-to-grain (MPa)
MS F-value MS F-value MS F-value MS F-value MS F-value
Age
2
14.6 0.16ns 20.0 0.52ns 0.89 1.09ns 50.8 2.85ns 3.10 2.08ns
Height
2
6.47 0.07ns 1.52 0.04ns 0.09 0.11ns 6.64 0.37ns 1.00 0.67ns
Age x Height
4
269.0 2.95* 119.6 3.13* 0.91 1.11ns 48.4 2.72* 2.91 1.95ns
Error 45 91.0 38.3 0.81 17.8 1.49
Total 53
Table 6. ANOVA on the mechanical properties of falcata in green condition at different ages and heights.
Source of
variance
DF MOR
(MPa)
Stress at
proportional
limit
(MPa)
MOE
(GPa)
Compression
parallel-to-
grain (MPa)
Compression
perpendicular
-to-grain (MPa)
MS F-
value
MS F-
value
MS F-
value
MS F-
value
MS F-
value
Age (A)
2
100.5 2.98n
s
14.3 0.94ns 3.03 3.07n
s
1.45 0.2n
s
1.92 8.52**
Height (H)
2
36.0 1.07n
s
18.3 1.20n
s
0.01 0.01n
s
4.71 0.79n
s
0.45 1.98n
s
A x H
4
7.59 0.22n
s
9.21 0.61 0.08 0.08n
s
3.82 0.64n
s
0.15 0.68n
s
Error 45 33.8 15.2 0.99 5.99 0.23
Total 53
Source of variance DF Shear (MPa) Hardness side (kN) Hardness end (kN) Toughness (Joule/specimen)
MS F-Value MS F-
Value
MS F-
Value
MS F-Value
Age (A) 2 0.23 0.90ns 0.53 4.06* 0.50 4.13* 128.7 12.0**
Height (H) 2 0.36 1.41ns 0.37 2.89ns 0.15 1.28ns 14.4 1.34ns
A x H 4 0.02 0.08ns 0.08 0.60ns 0.01 0.06ns 5.31 0.49ns
Error 45 0.26 0.13 10.7
Total 53
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1445
Source of variance DF Shear
(MPa) Hardness Side (kN) Hardness End (kN) Toughness
(Joule/specimen)
MS F-value MS F-value MS F-value MS F-value
Age 2 6.40 8.52** 0.56 3.19ns 0.76 2.18ns 37.2 0.91ns
Height 2 0.23 0.31ns 0.01 0.07ns 0.07 0.20ns 45.8 1.12ns
Age x Height 4 0.07 0.10ns 0.28 1.60ns 0.36 1.04ns 13.5 0.33ns
Error 45 0.75 0.17 0.35 41.0
Total 53
Figure 6. % veneer recovery at various stages of veneer processing per tree age and veneer thickness (RR – rounded
recovery, GNR – green veneer recovery, GSR – gross veneer recovery, NR – net veneer recovery).
Figure 7. % mean recovery at various stages of veneer processing per tree age (RR – rounded recovery, GNR –
green veneer recovery, GSR – gross veneer recovery, NR – net veneer recovery).
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1446
thicknesses produced (Figure 6). This is because the tree
samples in the three age levels overlapped in their diameter
measurements. They were chosen from the study because
they were the biggest trees in their age class in the site
where they were obtained.
GNR, GSR, and NR, on the other hand, were generally
higher for the 2.2- and 2.8-mm thicknesses than the 0.85
mm because of the big difference in the diameter of the
two end sections. Billets assigned to produce 0.85-mm-
thick veneer had a larger diameter as they came from the
butt portion. This corresponds with the findings of Luo
et al. (2013), where they confirmed the importance of
determining veneer recoveries from bottom (butt) logs
particularly sweep and taper. According to them, lower
logs proved inferior for veneer recovery and veneer value
because of taper and sweep.
The three veneer thicknesses are among the four
thicknesses commonly produced/used by veneer and
plywood manufacturers in the Philippines, including
the 3.50 mm. The 2.20, 2.80, and 3.50 mm are generally
used as core and crossband, while the 0.85 mm is used
as outerply. The assignment of a specific thickness to the
different parts of the log was based on the manufacturers’
practice of using the bottom of the log (having a bigger
diameter and minimal knots) for outerply veneer, with the
rest of the log for core and crossband veneer.
Regardless of the thickness (Figure 7), RR was almost
equal (83.9–85.3%) for the three age levels. Upon
veneering, GNR was 57.5, 61.6, and 64.9% for the 3-, 5-
and 7-yr-old samples, respectively, while GSR was 51.7,
52.3, and 54.8%, and NR was 45.8, 46.3, and 48.6%. This
implies that the 3-yr-old trees can readily be harvested for
veneering so that there is no need to increase the harvest
age. The veneering quality and bond strength of plywood
from these three age levels will be reported separately.
In a study by Dobner et al. (2013) using Pinus taeda
L., veneer recovery for 25–29.9 cm diameter logs was
only 43.4%. It was not mentioned, however, whether
the researchers used a spindleless lathe. McGavin et al.
(2014) employed a spindleless veneer lathe in rotary
peeling six commercially important species of trees in
Australia. GSR ranged from 54–65% with a mean of about
60% from various log diameters ranging from 15.6–28.9
cm. The slightly lower recovery rate in the present study
may be attributed to a certain degree of log sweep and
tree tapering.
Veneer grading was conducted based on Orgon’s Wood
Industry standard (project cooperator) and was included
in the computation of the GSR recovery (Equation 3). The
focus of this paper is more on determining the economics
of harvesting younger age plus-size falcata trees for
economic analysis
Plantation profitability. A fundamental notion in forestry
and forest management, in general, is the determination
of the most viable time to harvest a forest stand. This can
be referred to as the economically optimum rotation or
the time when the maximum income from forest stands
is reached (Posavec et al. 2011). For this research, the
economic calculations were limited to the age levels (3-,
5-, and 7-yr-old) studied.
Following Plotkowski et al. (2016), the NPV and the IRR
were used in selecting the best forest rotation age. NPV is
considered the most straightforward discounted cash flow
measure as it provides the accumulated present values of
both revenues and costs over a given project period (e.g.
rotation age). On the other hand, the IRR refers to the
discount rate wherein the NPV is equal to zero (0). As a
rule of thumb, the higher the IRR compared to the existing
project discount rate, the more favorable it is.
Profitability of young falcata. Diameters per age group
were obtained from Casinillo and Garcia (1991). An
interview with a falcata plantation owner was conducted
and Natividad et al.’s. (2018) report was used to collect
information on costs and business enabling environment
from planting up to harvesting. These are essential ground
data coming from actual tree farming practices.
Shown in Table 8 are the assumptions used for the
economic analysis. Market prices of tree stand largely
depend on the tree diameter. Kurinobu et al. (2007)
reported that Falcataria moluccana in 3- to 5-yr-old stands
growing in state-owned plantations in Kediri (East Java)
have a mean diameter of 11.3–18.7 cm (maximum of 25.8
cm) and mean height of 11.7–20.5 m (maximum of 23.5
m). According to Krisnawati et al. (2011), the diameter of
4-yr-old and younger trees in Ciamis (West Java) ranges
from 3.4–16 cm (maximum of 36.0 cm).
From the Paper Industries Corporation of the Philippines
(PICOP) Handbook (1991), a 7-yr-old tree has an average
diameter of 22.50 cm priced at USD 41.24/m3 (PHP
2,000.00/m3). On the other hand, a 3-yr-old tree stand
can reach an average diameter of 12.80 cm and can be
sold at USD 37.11/m3 (PHP 1,800.00/ m3). Lastly, 5-yr-
old trees can grow up to 18.60 cm and can also be sold
at USD 37.11/m3.
According to the project cooperator, prices change
depending on the demand. Japarudin et al. (2020)
reported that the growth performance of F. moluccana is
24.9 m3 ha–1 y–1 (over the 9-yr assessment period) and
that the provenances from the Solomon Islands perform
well across ages but are not significantly different from
PICOP-sourced material.
As a reference for this study, Table 9 shows the price
quotation for each tree diameter class provided by a trader,
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1447
Table 9. Price quotation for falcata from Caraga.
Diameter Price/m3USD
16–18 cm 1,800.00 37.11
20–24 cm 2,000.00 41.24
26–28 cm 3,300.00 68.04
30–38 cm 3,900.00 80.41
40–48 cm 4,200.00 86.60
50–58 cm 4,300.00 88.66
≥ 60 cm 4,400.00 90.72
Source: tree trader (04 Dec 2019)
Table 8. Assumptions for falcata economic rotation (year 2020).
Assumptions 3-yr- old 5-yr-old 7-yr-old
Average diameter (cm) 12.80 cm 18.60 cm 22.50 cm
Harvestable no. of trees/ha 800 800 800
Estimated volume/ha (m3) 72.06 260.85 477.13
Price/m3 (USD) 37.11 37.11 41.24
Discount factor 12.00% 12.00% 12.00%
Source: actual data collection and computation (USD 1 = PHP 48.50)
dated 04 Dec 2019. The per hectare cost requirements for
developing a falcata plantation are provided in Table 10.
After obtaining the cost requirements, nancial
feasibility can now be computed to assess the most
viable economic rotation for falcata farmers. Given the
pricing assumptions and estimated harvestable volume
per age level, estimated prots, NPVs, and IRRs were
calculated (Table 11).
According to the Orgon Wood Company, 10- and 12-
yr-old falcata logs can attain diameters of 26–30 cm or
even bigger and sell at USD 61.86–80.41 (PHP 3,300.00–
3,900.00/log). On the other hand, compared to the 3- to
7-yr-old logs (< 24 cm diameter) can only be sold at USD
41.24 (PHP 2,000.00) at most. Thus, some tree producers
may opt to harvests their logs at 10–12 yr old, should they
want higher profits (see Appendix Tables I–III).
Falcata Veneer Profitability
The profitability of establishing a veneer production
plant using young (3-, 5-, and 7-yr-old) falcata logs was
analyzed. The daily production costs were tabulated
and compared across the three age levels (Table 12).
Considering the cost of wood materials, the younger ages
(3- and 5-yr-old) had the lowest daily production cost due
to their lower buying price.
Table 10. Cost requirements for falcata plantation establishment.
Activities Period Requirement
Specifications site
preparation
Year 0
Planting (labor) 834 seedlings for a 4 m x
3 m spacing at USD 0.02
(PHP 1.00)/planting
Seedlings 1,000 seedlings/ha at USD
0.12 (PHP 6.00)/seedling
Staking
Fertilizer 20 kg/ha at USD 0.515
(PHP 25.00)/kg complete
fertilizer
Maintenance Year 1
Herbicide 1 gal/ha, every 3 mo
at USD 24.74 (PHP
1,200.00)/gal
Maintenance (labor) 1 worker, 2 d every 3
mo at USD 10.31 (PHP
500.00)/day
Administration,
supervision, and
maintenance (until
harvesting)
Year 2
Weeding (labor) 1 worker, 2 d every 3
mo at USD 7.22 (PHP
350.00)/d
Cutting Harvested volume at USD
8.25 (PHP 400.00)/m3
Hauling Harvested volume at USD
8.25/m3 35 m3 truckload
Trucking capacity USD 515.46 (PHP
25,000.00)/truckload
Source: Natividad et al. (2018) and interview with a falcata farmer (2019).
The 3- and 5-yr-old logs at diameters of 12.80 and 18.60
cm, respectively, can be bought at USD 37.11 (PHP
1,800.00) per m3, while 7-yr-old logs (22.50 cm) can be
bought at USD 41.24 (PHP 2,000.00).
The summary of investment indicators for 3-, 5-, and 7-yr-
old falcata veneers is shown in Table 13. Aside from the
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1448
Table 13. Summary of investment indicators, 3-, 5-, and 7-yr-old
falcata veneers.
3-yr-old 5-yr-old 7-yr-old
% veneer
recovery (GSR) 52% 52% 55%
Log buying price
per m3 (USD) 37.11 37.11 41.24
Veneer selling
price (USD) 1.48 1.48 1.48
Ave. monthly net
income (USD) 17,631.12 17,631.12 16,302.33
NPV (USD) 1,157,224.19 1,157,224.19 1,058,514.83
IRR 106.27% 106.27% 97.68%
Return on
investment 101.83% 101.83% 93.28%
Payback period
(yr) 0.94 0.94 1.02
USD 1 = PHP 48.50
Table 12. Summary of daily direct veneer production costs, 3-, 5-, and 7 yr-old falcata veneers.
Items of expenditure 3-yr-old (USD) 5-yr-old (USD) 7-yr-old (USD)
Wood materials 1,713.15 1,713.15 1,799.59
Direct labor cost 428.87 428.87 428.87
Fuela41.24 41.24 41.24
Electricityb383.26 383.26 378.18
Tapec59.79 59.79 59.79
Biomassd144.33 144.33 144.33
Depreciatione31.74 31.74 31.74
Total 2,802.38 2,802.38 2,883.73
aFuel: 25 L, USD 0.82/L
bElectricity: USD 0.21/KwH
cTape: 15 pieces, USD 1.86/tape
dBiomass: 7 tons, USD 20.62/ton
eDepreciation: 15 yr straight-line depreciation, 280 operating days/yr
USD 1 = PHP 48.50
Table 11. Summary of financial indicators.
3-yr- old 5-yr- old 7-yr- old
Estimated profit/loss –253.94 409.11 2,562.81
NPV –264.99 26.89 781.63
IRR –12.40% 13.46% 30.31%
NPV and IRR, return of investment and payback period
were also calculated to provide a more comprehensive
investment comparison.
Veneers produced from the three age levels can generate
positive 15-yr investment returns. Among the three, 5-yr-
old logs used for core veneer production can generate the
highest NPV, although with a similar IRR to 3-yr-old logs.
The initial investment for the three veneer options can also
be recovered, as shown in the payback period, in less than
a year of operation. Projected monthly net incomes were
also enticing for prospective investors. Generally, utilizing
young falcata logs for core veneer production is financially
viable from the perspective of veneer producers.
The sample trees had large diameters; hence, returns were
optimistic. This was considering that the market value
of falcata logs was based on tree diameter; the larger
diameter, the higher the market price. Thus, based on these
findings, these plus-size trees will be recommended for a
wide-scale plantation establishment and harvesting will
be three years of age.
Sensitivity Analysis
Considering the opportunity to use short rotation trees and
the differing economic goals of the two industry players,
the projected financial indicators for specific log prices
were summarized (Table 14). For simplicity, only the
prices for the 3-yr-old logs were analyzed.
From the summary table, the favorable log price would
start at USD 49.48. Selling 3-yr-old falcata at this price
point would result in positive NPVs and IRRs for both
tree farmers and veneer producers. It is worth noting,
though, that the investment decision would still depend on
the risk appetite of an investor. Even though the financial
indicators show that veneer producers have favorable
outcomes when buying falcata logs at USD 49.48, they
may still opt not to buy, considering their investment and
goals.
Philippine Journal of Science
Vol. 150 No. 6A, December 2021
Alipon et al.: Assessing the Utilization of Young
Falcata for Veneer Production
1449
Table 14. Summary of financial indicators at different 3-yr-old falcata log prices.
Selling/buying prices
(USD)
Tree farmer Veneer producer
NPV (USD) IRR NPV (USD) IRR
37.11 –264.99 –25.40% 1,157,224.19 106.27%
41.24 –132.79 –3.84% 926,266.23 86.41%
45.36 –0.60 11.94% 695,308.26 67.37%
49.48 131.60 24.71% 464,350.30 49.04%
53.61 263.79 35.60% 233,392.33 31.12%
57.73 395.99 45.17% 2,434.37 12.22%
CONCLUSIONS AND
RECOMMENDATIONS
Results confirmed that regardless of age (3-, 5-, or 7-yr-
old), the mechanical properties classification of t h e
falcata samples is the same: all fall under “low class”
(C5). Thus, t he recommended end-uses of the species
are the same regardless of age, viz. for veneer and low
construction purposes where strength and hardness are
not critical requirements. As delaying harvesting will not
significantly improve the trees’ strength properties, falcata
even at 3-yr-old can already be cut for veneer production.
Falcata growth can be accelerated through silvicultural
treatments and by infusing other genetic materials into
these certified seeds. Plantation establishment trials in
other sites may also be conducted to validate the data on
volume and wood quality.
Results showed that it is technically feasible to harvest
for veneer production the 3-, 5-, and 7-yr-old falcata
trees, which grew from certified seeds. The favorable log
price would start at USD 49.48 (PHP 2,400.00). Selling
3-yr-old falcata logs at this price point would result in
positive NPVs and IRRs for both tree farmers and veneer
producers. The investment decision, of course, would still
depend on the investor’s risk appetite. Although veneer
producers can have favorable outcomes from buying
falcata logs at this price, they may still opt out considering
their business goals. The findings of this study can be used
to optimize log pricing and arrive at a market equilibrium
that will satisfy both log sellers and buyers.
ACKNOWLEDGMENTS
The authors extend their sincerest thanks to the Department
of Science and Technology Grants-in-Aid Program and the
Philippine Council for Agriculture, Aquatic, and Natural
Resources Research and Development for providing
project funds. The Orgon Wood Industries is also
acknowledged for allowing the project team to conduct
veneering of the falcata billets in their factory, as well
as Engr. Gil Sapin and Mr. Ramon Dimapilis for their
assistance in the preparation and testing of mechanical
properties samples.
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