Financial Analysis of Alstonia scholaris (L) R.Br. Refoestation

Abstract

     The main objectives of this study were to determine rate of monetary return from the investment in Alstonia scholaris reforestation at Trad Agro-forestry Research Station, Muang district, Trad province. The financial analysis was undertaken in the plantations with 3 spacing namely 1x1 m, 2x2 m and 4x4 m and with their number of trees per rai were 1,708, 441 and 121, respectively. The given rotations, timber price and discount rates for the financial analysis were 2, 3, 4, 5, 6, 7 and 8 years; 800, 1,000 and 1,200 baht/ton and 4, 6 and 8 percent, respectively. Results of the study indicated that the Alstonia scholaris reforestation with spacing 1x1 and 4x4 m provided B/C and NPV less than 1 and 0 respectively, in every given rotation, selling price and discount rate. Hence, the spacing 1x1 and 4x4 m were inappropriate spacing to be applied for Alstonia scholaris reforestation. While the Alstonia scholaris reforestation with 2x2 m and timber price 1,200 baht/ton, the rotations were at 5, 6 and 7 years provided the highest internal rate of return (IRR) of 5.63, 5.73 and 9.01 percent, respectively. With the same spacing, the rotation and timber price were 7 years and 1,000 and 1,200 baht/ton provided the highest IRR of 4.26 and 9.73 percent respectively; and the rotation and timber price were 8 years, and 1,000 and 1,200 baht/ton provided the highest IRR of 4.78 and 9.45 percent respectively. The relevant problems took place from the reforestation establishment were high density of weeds and low productively of Alstonia scholaris timber. The findings from the study will be a fruitful thing for ones who are interested in Alstonia scholaris reforestation to applied a guide line for their decision making.