Economic Viability of Management Plants of Stryphnodendron adstringens (Mart.) Coville in North of Minas Gerais State (original) (raw)
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EVALUACI�N FINANCIERA Y DE RIESGO DE UNA PLANTACI�N FORESTAL COMERCIAL EN ZIHUATEUTLA, PUEBLA
REVISTA CHAPINGO SERIE CIENCIAS FORESTALES Y DEL AMBIENTE, 2010
El objetivo de este trabajo fue estimar y analizar la rentabilidad y el riesgo de una plantación forestal comercial de la especie bracatinga (Mimosa scabrella B.) en la región de Zihuateutla, Puebla, México, mediante los indicadores de rentabilidad financiera: Valor Actual Neto, Relación Beneficio Costo, Tasa Interna de Rentabilidad, Valor Esperado del Valor Actual Neto y Desviación Estándar del Valor Actual Neto. El horizonte de planeación fue de seis años, y se utilizó una tasa de descuento de 4.7 % y una tasa libre de riesgo de 8.79 %. Para realizar el análisis financiero y de riesgo se pronosticaron los volúmenes esperados de bracatinga a los seis años. Los valores de los indicadores de rentabilidad obtenidos para la plantación fueron: a) Financieros: Valor Actual Neto = $ 26,593.42, Relación Beneficio Costo = 2.32 y Tasa Interna de Rentabilidad = 32.74 %; b) Riesgo: Valor Esperado del Valor Actual Neto = $ 18,825.33 y Desviación Estándar del Valor Actual Neto = $ 3,944.60. De acuerdo con los resultados del estudio, se concluyó que la plantación comercial es rentable y con un riesgo muy pequeño, pues sus costos de producción son muy bajos y tiene altos beneficios.
Journal of Agricultural Science, 2019
This study aimed to analyze economically the forest promotion, forest-saving program installed in the southern half of Rio do Grande do Sul State, Brazil, as an income alternative and potential supplier of raw material in the forest production segment. Cost data were calculated for the total of 269 projects per hectare and divided into Inputs and Services. The revenues were derived from the sale of standing timber at the end of the forest production cycle, not including harvesting costs. For economic analysis, criteria from Net Present Value (NPV), Benefit Cost Ratio (B/C), Internal Rate of Return (IRR), and Equivalent Annual Value (EAV) were used. The interest rate used was 7.0% per year according to the promotion program. The project presents at seven years a NPV of $542.90 and an IRR of 16.0%, showing to be feasible and attractive. The costs and revenues from the year seven planting were analyzed and with addenda at years 8, 9, and 10, demonstrated that greater project profitabil...
An Assessment of Financial and Economic Feasibility of Selected Forest Plantation Species
Sri Lankan Journal of Agricultural Economics, 2011
The forest cover of the country has declined significantly and the remaining natural forests provide valuable environmental services. Since logging reduces the supply of environmental services, alternative sources of timber play an important role in sustainable management of forestlands. Forest plantations are alternatives to logging natural forests for timber and other wood products. The objective of this study is to examine the financial and economic feasibility of selected forest plantation species. According to the study, at a 10% discount rate, Mahogany, Teak, Jak and Eucalyptus result in positive financial NPVs. At higher discount rates, all considered species result in negative financial NPVs. Teak provides the highest financial NPV. In a social context, when environmental services are incorporated, Mahogany, Teak, Jak, Eucalyptus and Pine yield higher economic NPVs at 6% social discount rate. This shows that there is a divergence between financial and economic returns to forest plantations. Therefore, government interventions are necessary to get the private sector involved in plantation forestry.
Tree modeling and economic evaluation of agroforestry systems in Southeastern Brazil
In this study, the authors aimed to apply a consistent, efficient and biologically correct model to estimate growth and yield of the tree component from eucalypt-based agroforestry systems and, through economic indicators, analyze and evaluate its products. The systems were composed by hybrid clones of Eucalyptus spp. in 10 x 4 m spacing, integrated with rice, soybean and pasture. The equation system developed by CLUTTER (1963) was used as the starting point for estimating growth and yield of Eucalyptus wood. The model application resulted in accurate estimates for both basal area and future volume, with adjusted coefficient of determination of 0.908 and 0.956, respectively. The economic criteria used in the analysis were the internal rate of return (IRR), the net present value (NPV), the equivalent annual value (EAV) and the benefitcost ratio (B/C) with discount rates of 6, 8, 10 and 12 %. The agroforestry systems were economically viable considering all studied indicators and disc...
Financial analysis of sustained forest management for timber
Forest Ecology and Management, 2003
Sustained management of the Terra Firme Forest in Amazonia is financially analysed for an integrated forest management and timber processing industry. Two scenarios are studied, one with reduced impact logging (RIL) and sparing of reserves without silvicultural follow-up in a 100-year harvesting cycle, and another one inclusive of silviculture after RIL, liberating reserves in a 25-year cycle. Cycle lengths are based on CELOS research in Suriname. Acquisition of land is assumed to be complete at the beginning, the 100-year cycle option needing four times as much land as the 25-year cycle option. A cash flow analysis over a 100-year period for both options with a 8% discount rate shows that the total costs in the land-intensive option (25 years) with silviculture are considerably less than in the land-extensive option; the lower cost of infrastructure, log transportation and land acquisition offset the cost of silviculture. Because the annual revenues from timber sale are the same in both options, the NPVof the intensive option is also much higher. A sensitivity analysis shows that the land-intensive option is expected to give still a positive NPV in less favourable situations. The relatively small forest area in the land-intensive option together with the organisational setting, which includes integration with the processing industry, favours a sustainable development. More intensive management gives signals to settlers that helps prevent their encroachment. In addition, the higher annual increment in this option facilitates a contribution to regional development and makes a larger area available for strict nature reserves.
The objective of this work was to evaluate the economic viability of an agrosilvipastoral system developed for Zona da Mata mountainous areas in Minas Gerais state, Brazil, as well as to compare different options for wood (Eucalyptus grandis and Acacia mangium) commercialization of the second thinning. The data were obtained from a 10 year-old agrosilvipastoral system established in four hectares at Embrapa Gado de Leite station in Coronel Pacheco, MG, Brazil. As evaluation criteria for the economic viability analysis, the adopted methods were the net present value (NPV) and the internal rate of return (IRR), both calculated at 6% interest rate. Despite the small difference, adding value to forest products increased the attractiveness of the proposed system. Considered separately, the agricultural activity was impracticable, whereas the forestry and livestock activities were independently viable. The studied system seems to be equally tolerant to price variations for forest and livestock products, as well as strongly tolerant to variations in production costs.
Financial Analysis of Crop-Livestock-Forestry Systems in Goias, Brazil
Journal of Agricultural Science and Technology B, 2019
Integration system is used to denote practices that combine systematic use of the land and technologies, in which forest species are used in conjunction with herbaceous plants and/or animals respecting a spatial or temporal arrangement. Knowing that this type of production seeks to balance ecological and economic factors, it is important to understand the financial benefits and risks involved in this production. Financial analysis, therefore, acts as an important analysis tool to foster this type of activity. The paper aimed to conduct analysis of investment risk of a crop-livestock-forestry system deployed in Brazil, comparing two different production scenarios, scenario I with 17 ha and scenario II with 25 ha. The risk analysis was performed using the Monte Carlo method and sensitivity analysis (by varying the factors: the discount rate, productivity and price). A cash flow was elaborated based on annual cost and revenues data of the agricultural crops (corn and soybeans), livestock and eucalyptus, using an interest rate of 6% per year. The results indicated that the optimal age for cutting the eucalyptus was at seven years on both scenarios; scenario I had better return on investment using deterministic and probabilistic methods; scenario I presents higher investments risks; there is a negative relation between discount rate and annualized net present value (ANPV); increased productivity of crops provides greater profitability to the system; there has been an increase in the economic viability of the system, as value has been added to the products. Monte Carlo method and the sensitivity analysis showed to be an appropriate tool to analyze the risk of crop-livestock-forestry systems, making it possible to foresee how the project will respond to possible scenarios.
Incorporating locally prevalent extractive uses of a natural habitat into valuation methods may be appropriate in improving the efficacy and objectivity while justifying preservation. The consequences of a change in the marketing structure of medicinal plants caused by forest clearance for a multipurpose hydroelectric project across the river Narmada in the state of Madhya Pradesh was evaluated. Major loss of realizable pharmaceutical value in the submerged zone of a tropical dry deciduous forest upholds the relevance of sustainably managed conservation option over a development option with irreversible changes. Various costs and benefits relevant to the problem are quantified and compared. Multiplicity of benefits and economies of scale associated with in-situ preservation in a local economy offset the net benefits projected in the development option mainly due to shortfalls in targeted benefits and compensatory afforestation.
The main aims of this study are to assess the economic viability and identify the optimal management regimes of eucalypt forests within the framework of an outgrower scheme, at Minas Gerais State, Brazil. Outgrower schemes are partnership contracts that encourage smallholders/farmers to consider reforestation in addition to their agricultural crops. The company provides inputs and seedlings for planting in exchange for the exclusive right of timber purchase at harvest time. The cash flows of tree growers and forest company are evaluated using the Net Present Value and Average Production Cost for the project, with and without the outgrower scheme. The management regimes are evaluated by Linear Programming (LP), the objective function of which is to maximize the Equivalent Annuity (EA) of 144 farms with outgrower schemes. There has been an increase in the profitability of tree growers enrolled in the program for an economic radius of 160 km, showing the importance of incentives for eucalyptus plantations in small and medium farms. By LP, 10 management prescriptions common to the 144 farms were selected. It was observed that 15% of the 144 outgrower schemes analyzed did not have an economical prescription. A 10% reduction in the current wood price would increase this amount to 39%. Furthermore, with discriminant analysis of the 10 selected management prescriptions, it was possible to create a classification rule for new partnership contracts, with a 80% success rate.
Advances in Forestry Science, 2021
Currently, public and private resources are directed towards the development of Research and Development (R&D) projects in the Brazilian forestry area. But, many times, such investments are used only as corporate advertising, without the knowledge of their real return, underestimating the importance of R&D in the development of organizations in this sector. Hence the importance of studies that seek to evaluate investment returns and how profitable they are for society and for technological innovation. The objective of this study was to evaluate the possible economic return of R&D in the Brazilian Forest Sector, in particular, its effects on increasing the productivity of Pinus and Eucalyptus stands. Through the publications of the Statistical Yearbook of the Brazilian Association of Planted Forest Producers (ABRAF) it was possible to understand the relationship between investments in R&D, planted area and annual current wood productivity, using an indicator that related Investments and Revenue in the R&D of organizations Brazilian forestry companies of this Association. It can be inferred that for every R$ 1.00 invested in R&D projects, an average return of R$ 15.02 is obtained in such organizations. It was also concluded that the marginal gains in annual wood productivity correlated positively and significantly with investments in R&D (r = 0.43). Thus, investments in R&D made by silvicultural organizations translate into an economic return for them, as well as that their absence can stagnate the increase in wood productivity. Retorno econômico dos investimentos em pesquisa e desenvolvimento (P&D) em plantações de Pinus e Eucalyptus no Brasil RESUMO: Atualmente, são direcionados recursos públicos e privados para desenvolvimento de projetos de Pesquisa e Desenvolvimento (P&D) na área de silvicultura brasileira. Mas, muitas vezes, tais investimentos são utilizados apenas como propaganda corporativa, sem o conhecimento do seu real retorno, subvalorizando-se a importância da P&D no desenvolvimento das organizações deste setor. Daí a importância de estudos que procurem avaliar os retornos dos investimentos e o quanto são proveitosos para a sociedade e para inovação tecnológica. O objetivo deste estudo foi avaliar o possível retorno econômico da P&D no Setor Florestal Brasileiro, em especial, seus efeitos no aumento da produtividade dos povoamentos de Pinus e eucalipto. Através das publicações do Anuário Estatístico da Associação Brasileira de Produtores de Florestas Plantadas (ABRAF) foi possível entender a relação entre investimentos em P&D, área plantada e produtividade de madeira corrente anual, usando-se um indicador que relacionou Investimentos e Receitas na P&D das organizações florestais brasileiras desta Associação. Pode-se inferir que a cada R$1,00 investido em projetos de P&D, obtém-se um retorno médio de R$15,02 em tais organizações. Também se concluiu que os ganhos marginais de produtividade (anuais) de madeira correlacionaram-se positivamente e significativamente com os investimentos em P&D (r = 0,43). Assim, os investimentos em P&D realizados pelas organizações silviculturais se traduzem em retorno econômico para as mesmas, bem como que a ausência deles pode estagnar o aumento da produtividade de madeira.