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University of Khartoum (2012)

Analysis of some Financial and Institutional Aspects of Production and Marketing of Firewood from Acacia seyal Plantations in Wad El Basheir Forest Reserve, Al Gadarif State, Sudan

Mohamed, Suliman Yusif

Titre : Analysis of some Financial and Institutional Aspects of Production and Marketing of Firewood from Acacia seyal Plantations in Wad El Basheir Forest Reserve, Al Gadarif State, Sudan

Auteur : Mohamed, Suliman Yusif

Université de soutenance : University of Khartoum

Grade : Master of Science (MS) in Forestry 2012

Résumé
Study was conducted to highlight institutional factors that influence the production and marketing, and to examine financial profitability of firewood produced from Acacia seyal plantations at Wad El Bashier Forest Reserve in Al Gadarif State, Sudan. Growth and yield data were collected in 2010 through temporary sample plots while market and institutional data were collected through questionnaires targeted key informants from Forests National Corporation, Trade Union of firewood producers and traders, and commercial banks, in addition to secondary sources of data. Profitability was assessed under current forest management regime and existing production relationships using Net Present Value (NPV) as decision criterion first for a single 20-year rotation and second for a perpetual series of like rotations. To test the sensitivity of the profitability of firewood production reduction of discount rate, increase price per cubic meter of wood at harvest and adoption of commercial thinning were made. The study showed that several institutional factors limit the production and marketing of firewood. Taxes, Zakat, market and administration fees are contributing to relatively high production and marketing cost. The results also showed that the financial NPV (SD.G./feddan, at 12% annual profit margin) of firewood production from Acacia seyal plantation managed for a single rotation of 20 years at current practice is negative. Except for compartment 8 the NPV remained negative even with adoption of two thinnings at ages 6 and 10. The results indicated that increasing of price from SDG 52 to 60 per cubic meter at harvest does not show positive outcome. The reduction of annual profit margin to 7% converted NPV of most compartments to positive value. NPV (SDG/feddan) at 12% and 7% profit margin for a perpetual series of like rotations of Acacia seyal managed for firewood production were -35.7 and 125.4, respectively. The study concluded that the relative low wood volume and high production cost per unit area of existing crop are important factors that explain the low returns from the production of firewood.

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