Fulfilling Eucalyptus raw materials for pulp and paper production plants

Eucalyptus is one of the major species used for pulp and paper industry. As industries develop, the need for Eucalyptus supply increases. However, there are challenges plantation companies must specifically determining eucalyptus market price potential risks in eucalyptus plantation and how eucalyptus plantation impacts the surrounding environment.. Stakeholders on eucalyptus supply chain have risks which have to be mitigated. The eucalyptus seedling and developer and the supplier hold crucial role in providing good quality eucalyptus raw material for pulp and paper production plants. This research is conducted to explore on ways to mitigate each stakeholders risk, challenges plantation companies face in fulfilling eucalyptus raw material for pulp and paper production plants. There are four stakeholders in eucalyptus supply chain: eucalyptus seedling developer and seller, supplier, distribution centre and pulp and paper production plants. Some of the major risk stakeholders are facing in eucalyptus supply chain are: early cut of eucalyptus trees, farmers’ lack of understanding on growing eucalyptus properly, small stem size, fluctuating eucalyptus wood price and low stock quantity. Some of the minor risk stakeholders are facing: earthquake, over fertilization, overwatering, cold climate, and plant setting. There are four methods used to determine eucalyptus pricing: cost-based pricing, customer-based pricing, competition-based pricing, and statutory pricing. Eucalyptus consume high amount of water which can cause dry areas around eucalyptus plantation area and low groundwater reservoir.