ORIGINAL PAPER
Profit sharing and agroforestry: a theoretical study of potential conflicts
in managing illegal logging risk in tropical forests
Yuki Kubo
1
&
Joung-Hun Lee
2
&
Takahiro Fujiwara
3
&
Ratih Madya Septiana
4
&
Yoh Iwasa
5
Received: 20 October 2017 / Accepted: 20 May 2018
#
Springer Science+Business Media B.V., part of Springer Nature 2018
Abstract
Partnership programs have gained importance in forestry management. In Indonesia, profit sharing and agroforestry are examples
of partnership programs between forest managers and local communities. In this paper, we analyze potential conflicts among
participants in these programs. First, we derive a recursive formula to determine the future value of a compartment of plantation to
the society, which includes both the forest owner and the local community. While trees are young, the land is also used for
agriculture, which is an agroforestry program. When there is a high rate of future discounting and a high rate of natural
disturbances, the society may find it profitable to continue the agricultural use of the land. Second, we calculate the profit for
the forest owner and the local community separately. To prevent illegal logging, the owner shares a fraction of the profit obtained
by selling logs with the local people, which is a profit-sharing program. Illegal logging greatly reduces the profit for the forest
owner, especially when trees are tall. Illegal logging of old cohorts is harmful to the local people as well. In contrast, illegal
logging of young cohorts provides profit to the local people because they will be hired to replant young trees. Our analysis shows
an Boverlooking period^ in which a conflict of interest exists between the forest owner and the local community. We indicate that
the overlooking period can be mitigated by coordination of the shared profit and the wage for the workers.
Keywords Plantation
.
Timing of tree harvest
.
Dynamic programing
.
Illegal logging
.
Social forestry
Introduction
In 2010, the world’s total forested area was just over 4 billion
hectares. The total area of planted forest was 264 million hect-
ares, or 6.6% of the whole forested area (FAO 2010). Planted
forests play a significant role in the global and regional econo-
mies to secure industrial round wood and wood fuel (Jurgensen
et al. 2014). Foresters plant and grow young trees in plantations.
When the trees reach a sufficient size, the foresters harvest them
and sell them for profit. The vacant space is used for replanting.
This rotation cycle takes many years. For example, subtropical
eucalyptus takes 8 to 25 years and traditional teak plantations
take 40 to 80 years to mature (Evans and Turnbull 2004).
Plantation owners usually divide the plantation areas for tree
cohorts of different ages to realize an annual profit from the
planted trees. There is no profit from a cohort when the trees
are young. Therefore, especially for a small-scale plantation, it
is important at the time of planting to estimate how much profit
the planted trees will produce in the future.
Indonesian forests consist of state forests and private forests.
The state forests are classified into three groups according to
their functions: production forests, conservation forests, and
protection forests (FAO 2005). Production forests are mainly
found in Java and are managed by the state-owned company,
Perum Perhutani. In Java, teak planting was introduced 400 to
600 years ago (Pandey and Brown 2000) and covers very large
areas to support high-value timber production that is used for
* Yuki Kubo
yukikubo@kyudai.jp
1
Department of Biology, Graduate School of Systems Life Sciences,
Kyushu University, 774 Motooka, Nishi-ku, Fukuoka 819-0395,
Japan
2
Institute of Decision Science for Sustainable Society, Kyushu
University, 774 Motooka, Nishi-ku, Fukuoka 819-0395, Japan
3
Department of Agro-environmental Sciences, Faculty of Agriculture,
Kyushu University, 6-10-1 Hakozaki, Higashi-ku,
Fukuoka 812-8581, Japan
4
Department of Forest Management, Faculty of Forestry, Universitas
Gadjah Mada, Jl. Agro no.1, Bulaksumur, Yogyakarta 55281,
Indonesia
5
Department of Biology, Faculty of Science, Kyushu University, 774
Motooka, Nishi-ku, Fukuoka 819-0395, Japan
Theoretical Ecology
https://doi.org/10.1007/s12080-018-0381-4
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