A Decision–Support Tool to Inform Coconut Log Procurement and Veneer Manufacturing Location Decisions in Fiji

Abstract

Coconut plantations throughout the Asia–Pacific region are generally characterised by the presence of low-productivity senile palms over the age of 60, which have negative impacts on farming communities, coconut processors, and the wider economy. In Fiji, despite numerous senile coconut replacement programs, 60% of coconut palms are considered senile. The purpose of this study is to provide preliminary estimates of the financial viability of a market-based approach to senile coconut palm replacement in Fiji by utilising the palms as a feedstock, for the manufacture of rotary peeled veneer, along with plantation pine and mahogany. A mathematical model capable of supporting deterministic and stochastic dynamic optimisation was developed with an objective function to maximise the gross margin of marketable veneer manufacture per hour (GMpz) by procuring the optimal allocation of logs throughout the landscape. The majority of facility location and log processing scale scenarios evaluated found that utilising large volumes of senile coconut palms for the manufacture of veneer was optimal, whilst veneering mills situated near the coconut plantations in Vanua Levu were found to maximise GMpz. Overall, the results indicate that a coconut veneer and engineered wood product (EWP) value chain could present a financially viable opportunity to support large-scale senile coconut palm replacement in Fiji.