Economics of Eucalyptus Private Forests Case study: Nertitei and Zalingei – Central Darfur State – Sudan

ABSTRACT

Economic of Eucalyptus Private Forests

Case Study of Nertitei and Zalingei Localities

In Central Darfur State

This study was conducted during the period 2015 - 2017 in Nertitei and

Zalingei localities purposely, because most of the Eucalyptus private forests of the

central Darfur state found in those two localities.

The overall objective is to study the economic aspects of Eucalyptus private forests

while the specific objectives were include: measuring the costs, production, return

and highlighting the constraints which affect the production processes.

The study population consisted of 101rainfed Eucalyptus private forests,

represented by a sample consist of six forests this sample classified into three

categories according to area as follow; small area category (small size sample) 4feddan. Each category area consists of 2 even age

forests.

The primary data collected by means of field survey observations, personal

interviews, and questionnaire. The sources of the secondary data were the records

and reports of FNC and the relevant institutions, references and internet sites. The

research followed the Descriptive Statistic Method. The social characteristic data

about the owners and the general essential data about the forests were analyzed by

use simple tabulation giving percentages. Excel computer program was used

mainly for production and financial analysis. Specific forms (tables) were used for

costs analysis, production and income as well as the specific equations. Money

time value was considered in form; of future value (FV), present value (PV) and

IV

net present value (NPV). Payback period (PBP) of establishment cost was

calculated for every area category.The profitability for each category (sample) was

evaluated through: Net present value (NPV), Benefit cost ratio (BCR) and Internal

rate of return (IRR).

The most important results concluded in: All the respondents having an

education ranging from Khalwa to University and they have medium or large

family size.The owners established and managed their forests by their self-finance.

The dominant Eucalyptus species in the private forests were Eucalyptus citriodora,

Eucalyptus umbulata and Eucalyptus camaldulensis. The commercial production

type in the private forests was the building poles. The harvest felling system in

those forests was the selection felling system. All the forests started to give

production after four years from the establishment year then continued annually.

The financial analysis revealed that the establishment cost of the small and

medium area categories paid back in the third production year that means after 7

years from the establishment year and for the large category paid back in the

second production year that means after 6 years from establishment year. The

average annual productivity of the private forest was 607 building poles per

feddan. The highest cost of the fixed costs was the land purchase while the highest

costof the variable costs was the harvest cost. NPV of small area category was

6497.49 SDG; the medium area category was 7824.6 SDG and 19606 SDG of

large area category. BCR of the small area category was 1.06; of the medium area

category was 1.12 while BCR of large area category was 1.26. IRR results were as

follow: 37.43% of small area category, 42.98 of medium area category and 44.69

of the large area category, thus all the forests of the three categories were profitable

and economically feasible; the large area category was the most profitable one. The

instable security situation; the expensive government fees and lack of agricultural

financial institutions were the most important constraints. Therefore, the study

recommendations were to build capacity of the owners, technically and financially,

to establish professional associations for the owners and introduce fire wood

production in the production rotation, and to raise the awareness of the decision

makers in the state and localities governments about the environmental and

economic value of the private forests.