Quantifying financial returns from commercial forestry research trials in the Zululand Region of KwaZulu-Natal

Seboa, Dannyboy (2018-03)

Thesis (MScFor)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT: South African plantation production is depended on a limited land resource. This limitation in land drives the goal of increasing production from the same land area. There is however a growing necessity for the justification of additional investments made towards intensive forest management practices. Thus, intensive forest management practices should maximize production yields at a reduced cost per hectare. This study investigated site-specific financial returns of research field trials conducted at the ICFR. These trials included: (i) Site-Potential focusing on site specific fertiliser recommendations (FR), (ii) Forest management focusing on residue management (RM), vegetation and coppice management (VCM) and Eucalyptus regeneration (ER). According to the ICFR, these are the relevant research areas to address key challenges facing the South African forestry industry. The studied research trials where located in the Zululand region of KwaZulu-Natal. The region predominantly consists of Eucalyptus grandis, Eucalyptus grandis hybrids and other Eucalyptus species. The area is further considered to be highly productive for Eucalyptus grandis hybrids and clones. Reported research findings were collected using a Meta-analyses Framework as an extractive tool. Thereafter, financial returns were determined using generic discounted cash-flow (DCF) models, which was followed by a sensitivity analyses to test results from the DCF models. Due to insufficient information presented from the Meta-analyses framework for ER research trials a cost comparison study was initiated on them. The results from this study showed financial returns in FR research trials ranging from R49 201 and R273 524 ha-1 based on Land Expectation Values (LEVs) and 10 to 29% in Internal Rate of Returns (IRRs), the financial gains did differ per site. However, for mid-rotation FR research trials there were no financial gains. Financial returns for RM research trials declined through successive rotations, this could possibly be caused by soil compaction and the specific residue management techniques. Lastly, the financial returns for VCM research trials (vegetation management) and coppice management research trial returns were highly depended on cost-effective coppice reduction techniques. Based on the results, the generic DCF model developed was successful in quantifying site-specific financial returns of three (FR, RM and VCM) of the four studied research fields.

AFRIKAANSE OPSOMMING: Suid Afrikaanse plantasie produksie is afhanklik van beprekte grondbronne. Hierdie beperking in grond dryf die doelwit om produksie van dieselfde landarea the verhoog. Daar is egter ‘n groeiende vereiste om die ekstra beleggings in intensiewe bosbestuur praktye te regverdig. Dus moet intensiewe bosbestuur praktyke opbrengste verhoog teen ‘n verlaagde koste per hektaar. Hierdie studie ondersoek groeiplek spesifieke finansiele opbrengste van navorsingsvelde wat deur die ICFR ondersoek is. Hierdie velde sluit in: (i) Groeiplek potensiaal met ‘n fokus op groeiplek spesifieke kunsmis aanbevelings (FR), (ii) Bosbestuur met ‘n fokus op bosafval bestuur (RM), (iii) Plantegroei en stomploot bestuur (VCM) en, (iv) Eucalyptus regenerasie (ER). Volgens die ICFR is hierdie die mees relevante navorsingsvelde om die sleutel uitdagings in die Suid Afrikaanse bosbou bedryf aan te spreek. Die navorsingsproewe wat bestudeer is geleë in die Zululand streek van KwaZulu-Natal. Die streek bestaan hoofsaaklik uit Eucalyptus grandis, Eucalyptus grandis hibriede en ande Eucalyptus spesies. Die area word beskou as hoogs produktief vir E. grandis hibriede en klone. Gerapporteerde navoringsbevindings is versamel met die gebruik van ‘n Meta-analise Raamwerk as ‘n data-ontginnende metode. Hierna is finansiele opbrengste bepaal met die gebruik van generiese Verdiskonteerde Kontantvloei (VK) modelle, gevolg deur ‘n sensitiwiteitsontleding om die resultate van die VK te toets. Weens onvoldoende inligting vanaf die Meta-analise Raamwerk vir die ER proewe is ‘n kostevergelykende studie gedoen daarop. Die resultate van die studie toon dat finansiele opbrengste in FR proewe wissel van R 49 201 tot R 273 524 ha-1, gebasseer op Land Verwagtingswaarde (LEV) en tussen 10 en 29% vir Interne Renteverdienste (IRR). Die finansiele opbrengste het verskil per groeiplek. Die finansiele opbrengste vir RM proewe verminder gedurende opeenvolgende rotasies en kan moontlik wees weens grondkompaksie en die spesifieke bosafval bestuursmetodes. Laastens was die finansiele opbrengste vir VCM proewe (plantegroei bestuur) en stomploot bestuur proewe hoogs afhanklik van koste effektiewe stomploot verminderingstegnieke. Volgens die resultate was die ontwikkelde generiese VK model suksesvol in die kwantifisering van groeiplek spesifieke finansiele opbrengste vir drie (FR, RM en VCM) van die vier navorsingsvelde.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103896
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