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Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu

One of the issues in forest management was the implementation of the Malaysian Criteria and Indicators (MC&I). This would increase the cost of forest harvesting (timber harvesting) and affect the concessionaire’s profit. The study was framed to study the options of forest harvesting “with su...

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Main Author: Mat, Salleh
Format: Thesis
Language:English
English
Published: 2006
Online Access:http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf
http://psasir.upm.edu.my/id/eprint/198/
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spelling my.upm.eprints.1982013-05-27T06:46:27Z http://psasir.upm.edu.my/id/eprint/198/ Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu Mat, Salleh One of the issues in forest management was the implementation of the Malaysian Criteria and Indicators (MC&I). This would increase the cost of forest harvesting (timber harvesting) and affect the concessionaire’s profit. The study was framed to study the options of forest harvesting “with sustainable forest management (wSFM)” and “without sustainable forest management (woSFM)”. The benefit and cost (BCA) analysis was used to determine the difference in benefit between the option wSFM and the option woSFM of a long-term forest concession. The results of the study show that the costs of forest harvesting with sustainable forest management were higher than those without sustainable forest management by a total of 44.36% or RM2,418.22/ha (RM86.34/m3). The average harvesting costs of non-timber forest products (NTFPs) such as bamboo and rattan were RM302.62/ha and RM77.23/ha respectively. In wSFM, costs increased by about 49.55% for the concessionaire and 28.20% for the logging contractor. The net benefit or net present value (NPV) of wSFM (timber + bamboo + rattan) was 38.09% lower compared with woSFM (timber only). In wSFM, compared with woSFM, the concessionaire lost a benefit of about 7.00%, the logging contractor gained an additional benefit of 6.00% and the government 1.00%. The total benefit gained with sustainable forest management was less compared with that without sustainable forest management, timber harvesting with sustainable forest management was profitable. Forest harvesting with and without sustainable forest management was viable at 10% interest rate in 60 years cutting cycle. The concessionaire received the highest net benefit compared with the logging contractor and the government in forest harvesting with and without SFM 2006-03 Thesis NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf Mat, Salleh (2006) Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu. Masters thesis, Universiti Putra Malaysia. English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description One of the issues in forest management was the implementation of the Malaysian Criteria and Indicators (MC&I). This would increase the cost of forest harvesting (timber harvesting) and affect the concessionaire’s profit. The study was framed to study the options of forest harvesting “with sustainable forest management (wSFM)” and “without sustainable forest management (woSFM)”. The benefit and cost (BCA) analysis was used to determine the difference in benefit between the option wSFM and the option woSFM of a long-term forest concession. The results of the study show that the costs of forest harvesting with sustainable forest management were higher than those without sustainable forest management by a total of 44.36% or RM2,418.22/ha (RM86.34/m3). The average harvesting costs of non-timber forest products (NTFPs) such as bamboo and rattan were RM302.62/ha and RM77.23/ha respectively. In wSFM, costs increased by about 49.55% for the concessionaire and 28.20% for the logging contractor. The net benefit or net present value (NPV) of wSFM (timber + bamboo + rattan) was 38.09% lower compared with woSFM (timber only). In wSFM, compared with woSFM, the concessionaire lost a benefit of about 7.00%, the logging contractor gained an additional benefit of 6.00% and the government 1.00%. The total benefit gained with sustainable forest management was less compared with that without sustainable forest management, timber harvesting with sustainable forest management was profitable. Forest harvesting with and without sustainable forest management was viable at 10% interest rate in 60 years cutting cycle. The concessionaire received the highest net benefit compared with the logging contractor and the government in forest harvesting with and without SFM
format Thesis
author Mat, Salleh
spellingShingle Mat, Salleh
Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
author_facet Mat, Salleh
author_sort Mat, Salleh
title Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
title_short Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
title_full Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
title_fullStr Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
title_full_unstemmed Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
title_sort financial feasibility of timber harvesting under conventional and sustainable forest management in a timber concession in terengganu
publishDate 2006
url http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf
http://psasir.upm.edu.my/id/eprint/198/
_version_ 1643821759959400448
score 13.211869

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