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YIELD AND ECONOMICS OF GROWING EUCALYPTUS CAMALDULENSIS BY SMALLHOLDER FARMERS OF AMHARA REGION , ETHIOPIA
By Asaye Asnake
Population growth and land scarcity has severely strained the land resources of Ethiopia , particularly in Amhara region. As major effects of this strain, forests have been declining in size (deforestation) and quality (degradation) mainly during the last century. Gondar Zuria district in northwestern Amhara is one of the main areas where many farmers have been planting eucalyptus woodlots on a significant portion of their arable land in response to forest degradation.
This area was considered to be suitable for expanding private tree planting for several reasons. A fuelwood project operated in the area for more than 10 years, during which period farmers received tree seedlings and gained knowledge on tree planting; the area was extremely short of fuel and construction wood, forcing the farmer to grow and expand eucalyptus; there was good access to market and roads.
The study aimed to explore the establishment and management practices, growth performance and financial returns of growing Eucalyptus camaldulensis woodlots by smallholder farmers of the Amhara region compared with agricultural crop production. Woodlot owners were selected and interviewed to describe the establishment and management practices adopted for eucalyptus woodlots. Growth or volume data were collected by taking sample plots randomly based on three site conditions (best, medium and poor), two common planting densities (10 000 and 20 000 trees/ha) and three widely used rotation periods (4, 5 and 6 years). Production costs and prices for eucalyptus and agricultural crops were assessed, analysed and compared.
Most farmers (85%) in the study area planted eucalyptus to meet their own demand for construction material (85% of the respondents) and fuelwood (73%), and to generate cash income from the sale of poles (75%). On average, a farmer allocated 13% of the land to growing eucalyptus. The woodlot area varied considerably among farmers: between 0.01 and 1 ha. Some farmers did not have any woodlots because of land shortage or insecure access.
The type of plantation and number of trees planted varied as well. Most farmers planted in farm woodlots (70%), followed by planting within the homestead (17.5%) and on field boundaries (12.5%).
The study showed that farmers with eucalyptus woodlots had a much better standard of living than farmers without woodlots. They could fulfil the household's demand of fuel and construction wood, were able to send their children to school and bought medicine when needed. These farm families were well fed and dressed, and lived in tin-roofed instead of grass-roofed houses. Besides fulfilling household needs, these farmers could invest in other business sectors as well, such as buying more livestock (sheep, goats, cows) for breeding.
All farmers, both with and without woodlots, perceived shortage of land as the main constraint. Other setbacks mentioned were related to land tenure (30%) and a fall in the market price of poles (mentioned by 15% of the farmers).
Ploughing for site preparation, the use of furrows to plant seedlings, clean weeding, hoeing, fencing and guarding by the family appeared to be the best tree establishment and management practices for survival of seedlings and volume production. A planting density of 20 000 trees per ha proved to be the most effective management option in best and medium sites: a volume production of 112 to 361m 3 per ha in a rotation period of 6 years, compared with 92 to 210m 3 per ha for 10 000 trees per ha.
The financial returns of eucalyptus woodlots were compared with teff and sorghum, the common and widely grown agricultural crops in the area, for best and medium site conditions at the rotation age of five years. The financial analysis confirmed that growing Eucalyptus camaldulensis woodlots in both planting densities and all site conditions was financially profitable. The Net Present Value (NPV) at optimal rotation age (5 years) on best sites were $2945/ha for eucalyptus woodlot, $760/ha for teff and $753/ha for sorghum. In this case the NPV for eucalyptus woodlot was almost four times that for teff and sorghum.
The sensitivity analysis indicated that the financial return is highly sensitive to price, yield, interest rate and distance of woodlots from the main road, but that the establishment and management cost had little impact on financial return. Woodlots located far from the roadside resulted in a lower price for the poles, which reduced the financial return by 41 to 59% compared to woodlots near the road.
Farmers with woodlots near the road have a better bargaining position and were able to sell the poles at a higher price than farmers with woodlots far from the road. Therefore, farmers wishing to grow eucalyptus for cash should take into account access to the market and thus the distance from the plot to the main road when planning a woodlot. Growing eucalyptus will reach a break-even point with teff and sorghum at a certain distance from the road, where the lower financial return will be similar to that of the main food crops.
Nevertheless, the results showed that growing Eucalyptus camaldulensis woodlots in both planting densities and at all site conditions remains profitable under a wide range of uncertainties. In general, farmers in the study area are satisfied with growing eucalyptus because it makes farm households self-sufficient in fuel and construction wood; it is an important source of cash income, about 26% of the total family income; the woodlot is used as a means of saving and security; and the labour input is low compared to growing crops. The data on the distribution of seedlings showed that eucalyptus plantings by individual farmers have been increasing since 1992.
Tree farming in the Amhara region has thus become an important component in ensuring household food security and increasing the cash income of a large majority of farmers, with direct positive effects on poverty reduction (Millennium Development Goal No. 1), children's education (No. 2), and family health (Nos 4, 5 and 6).
Contact:
Asaye Asnake
PO Box 1125 , Gondar , Ethiopia
Email: asayehukun@yahoo.com