Financial Analysis of Eucalyptus camaldulensis Growing on Paddy Field Embankment at Phra Nakhon Si Ayutthaya Province

Abstract

The objective of this study was to compare the financial return between two patterns of Eucalyptus camaldulensis plantings on a paddy embankment—namely, single row planting and alternate double rows with both patterns having a distance between trees in each row of 1 and 1.5 meters, respectively. The study employed a designed questionnaire to interview the sampled tree growers. The data included annual reforestation cost, rice planting cost starting from the first year until the harvesting year, yield of rice, and the price of Eucalyptus camaldulensis timber and rice as well measurements of the tree diameter at breast height (DBH) and total height. Thus, the volume and weight were computed for the yield of Eucalyptus camaldulensis per rai of paddy field under each planting pattern. Results of the financial analysis were composed of benefit-cost ratio (B/C), net present value (NPV), and internal rate of return (IRR) with assumed interest rates of 6, 8, 10, and 12%. Two rotations of 3 and 4 years were modeled.

The results of the study indicated that an investment in Eucalyptus camaldulensis reforestation using either of the two planting patterns was a sound enterprise. Moreover the alternate double row planting with a rotation of 3 years and an interest rate 8% provided the highest financial return with values for B/C, NPV, and IRR of 1.70  7, and 724.91 baht per rai and 9.42%, respectively.

Keywords: eucalypt, financial return, paddy embankment