Economic Feasibility of an Eucalyptus Agroforestry System in Brazil

Souza, Álvaro Nogueira de; Ângelo, Humberto; Joaquim, Maísa Santos; Souza, Sandro Nogueira de; Belknap, John Edward

doi:10.5772/33619

Cited by 4 publications

(5 citation statements)

References 6 publications

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“…This result is in accordance with the work of Bramucci [26], Dias et al [27], Rezende and Oliveira [28], Soares [29], Souza et al [21], Souza et al [24] and Wilcken et al [30], where the eucalyptus cut occurs on average between seven and 12 years.…”

Section: Cash Flowsupporting

confidence: 92%

“…Thus, to calculate the NPV and ANPV, make possible the determination of the eucalyptus cutting year, as well as the scenario that presented higher profitability (Table 6). As in studies by Souza et al [24], Arco-Verde [25] and Bramucci [23], in the first three years of production, the annual balance is negative, showing that costs are higher than revenues. From the 4th year onwards, there is a positive cash flow.…”

Section: Cash Flowsupporting

confidence: 55%

“…As observed in the simulations made with product productivities, in the analysis made with price variations, forest and livestock activity also have a greater influence on the ANPV of the project, that is, the economic viability of the system depends more on these activities than on the activities (soy and maize). Souza et al [24] found the same results when applying the methodology of sensitivity analysis in an agroforestry in Minas Gerais.…”

Section: Sensitivity Analysismentioning

confidence: 60%

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Financial Analysis of Crop-Livestock-Forestry Systems in Goias, Brazil

Araújo¹,

Souza²,

Joaquim³

et al. 2019

JAST-B

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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.

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Section: Cash Flowsupporting

confidence: 92%

Section: Cash Flowsupporting

confidence: 55%

Section: Sensitivity Analysismentioning

confidence: 60%

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Financial Analysis of Crop-Livestock-Forestry Systems in Goias, Brazil

Araújo¹,

Souza²,

Joaquim³

et al. 2019

JAST-B

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“…Besides, this tree grows well on extinct sites in public forest areas and village forest areas for fuelwood and agroforestry intendeds. Eucalyptus tree species showed a positive net return in agroforestry practices where other crop species revealed a more return than the monocropping systems (De Souza et al, 2012). Several findings were achieved on the overall productivity analysis of jackfruit, pineapple, lemon and banana-based agroforestry (Hasan et al, 2008;Kibria and Saha, 2011), mango based agroforestry (Rana, 2017), lemon based agroforestry (Raihan, 2018), akashmoni, jackfruit and litchi based agroforestry (Akter et al, 2020) systems practiced in private or participatory programs in the Madhupur tract revealed that the agroforestry practice to be beneficial in terms of benefitcost ratio analysis.…”

Section: Introductionmentioning

confidence: 99%

Assessment of economic profitability and soil nutrient status of Eucalyptus and Gamar based agroforestry practices in the Madhupur Sal forest of Bangladesh

Hasan¹,

Karim²

2020

JAFE

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The study was carried out in the Madhupur Sal forest of Bangladesh to assess the economic profitability and soil nutrient status of Eucalyptus and Gamar based agroforestry practices based on the data from July 2017 to September 2018. Four different agroforestry practices viz. Eucalyptus-Akashmoni-Teak-Papaya-Ginger-Pineapple-Banana, Eucalyptus-Akashmoni-Turmeric-Banana, Gamar-Akashmoni-Acacia hybrid-Goraneem-Pineapple-Papaya-Banana and Gamar-Akashmoni-Acacia hybrid-Kalomegh along with their non-agroforestry practices (NAFPs) (except tree) having 0.2 ha plot area were selected through literature review, focus group discussion and practical observation. In order to calculate the economic profitability of respective agroforestry practices as well as NAFPs, data related to incurred cost, gross return, net return from tree and crop components, soil samples for chemical analysis were collected from each plot. The benefit-cost ratio (BCR) and land equivalent ratio (LER) for each of the selected agroforestry practices were determined. The results of the study showed that all the selected agroforestry practices were more profitable than their NAFPs. The net return, BCR, and LER (707110 Tk/ha, 3.87 and 1.76, respectively) indicated that the Eucalyptus-Akashmoni-Teak-Papaya-Ginger-Banana-Pineapple based agroforestry practice was economically more profitable followed by Gamar-Akashmoni-Acacia hybrid-Goraneem-Pineapple-Papaya-Banana, Eucalyptus-Akashmoni-Turmeric-Banana, and Gamar-Akashmoni-Acacia hybrid-Kalomegh based agroforestry practices. Moreover, soil nutrient status like organic matter (%), total N (%), available P (ppm) and exchangeable K (meq/100g soil) of all of the selected agroforestry practices were mostly higher than their non-agroforestry practices. Therefore, it can be concluded that agroforestry practices are economically more profitable than the cultivation of their sole cropping systems which also helps to reduce the use of chemical fertilizer.

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“…Pinto & Rodigheri (2001) studied the mixed planting of tree species in southern Brazil and reported positive wood volume, tree survival, height and diameter at breast height (DBH) results of four Brazilian species: Libidibia ferrea, Handroanthus impetiginosus, Handroanthus albus and Peltophorum dubium. Souza et al (2012) also demonstrated a profitable system composed of clones of the natural hybrid of Eucalyptus urophylla x Eucalyptus camaldulensis and livestock fed with Urochloa. Lana et al (2016) studied the influence of Zeyheria tuberculosa (native) and Eucalyptus grandis (exotic) trees on soil fertility in a silvopastoral system that had been established for decades in the Brazilian savannah biome and concluded that E. grandis plantations accounted for most of the litter composition in this silvopastoral system.…”

Section: Introductionmentioning

confidence: 99%

Comparison between growth performance in two silvopastoral systems comprising trees, short-lived perennial shrub, a forage, and livestock)

Longui

Justo

Amorim

et al. 2021

RSD

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We aim to determine the growth performance of two 20-year-old silvopastoral systems comprising two timber trees, a palm tree), a short-lived perennial shrub, a forage and livestock; and to investigate fibre features and certain physical and mechanical properties of two timber trees (Myracrodruon urundeuva and Peltophorum dubium) in two plantation systems. The first system is called MP with two timber trees and the second one is called MPS with two timbers and a palm tree. The studied systems showed that it was possible to successfully combine fast-growing species, animals, forage and woody tree species, with a production cycle of more than 50 years of different goods and services (e.g., ornamentals, palm hearts, landscaping, fruits, seeds, bee pasture, meat, and wood). The height, diameter and volume for M. urundeuva trees in the MP system were greater than in the MPS system, whereas no difference between the systems was observed for P. dubium. By comparison, the growth and volume in P. dubium were greater than in M. urundeuva. For wood properties, it was shown that both systems can be used successfully, but the MPS system performed better than the MP system, in the aim of wood production of high mechanical strength and calorific value. In addition, the MPS intercropping system can yield more goods and services than the MP system, both systems bring returns with short-term (bean seed, forage, pasture), medium-term (forage, palm products, pasture, wood), and long-term (wood) financial returns.

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Economic Feasibility of an Eucalyptus Agroforestry System in Brazil

Abstract: Tree varieties can include recent reforestation pastures, lumber grade trees, fruit trees, forage trees, windbreaks, pastureland, shade trees, and trees to provide conservation and soil improvement in pastures (Santos, 1990).

Cited by 4 publications

References 6 publications

Financial Analysis of Crop-Livestock-Forestry Systems in Goias, Brazil

Financial Analysis of Crop-Livestock-Forestry Systems in Goias, Brazil

Assessment of economic profitability and soil nutrient status of Eucalyptus and Gamar based agroforestry practices in the Madhupur Sal forest of Bangladesh

Comparison between growth performance in two silvopastoral systems comprising trees, short-lived perennial shrub, a forage, and livestock)

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