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

Abstract

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) <1 feddan, medium area category (medium size sample) 1- 4feddan and large area category (large 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 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.