Profitability assessment of plantation forestry in Paidha town council, Zombo district.

Abstract

The major aim of this study was to assess the profitability of plantation forestry production in Paidha town council, Zombo district. The objectives of the study were to; characterize the farmers engaged in plantation forestry in Paidha town council, Zombo district, assess the costs and benefits involved in plantation forestry production and assess the factors that contribute to the profitability of plantation forestry production. The study adopted a crossectional approach with a sample size of 65 respondents. The results indicated that majority of the respondents (74%) were male with majority (63%) having a household size of 5-10 members , with 55% attaining primary education, most of them having a tree growing experience of above 15 years justified by the largest population (43%) falling in the age 45-60 years. Majority (74%) had a land holding size of 1-4 acres with 55% owning plantations of 1-5acres and 55% attaining primary education (majority). the dominant average monthly income of the respondents (43%) was shs.100,000-300,000 The predominant tree species grown (58%) was eucalyptus with timber identified as the major purpose for growing these trees (70.8%). Through a combination of return on investment and gross profit margin analysis this research study evaluated the profitability of plantation forestry operations in Paidha town council Zombo district, with four revenue streams identified; Timber production, the highest revenue earner (shs. 52,500,000) generated a 90.8% gross profit margin followed by wood and charcoal (shs.24,000,000) with 84.8% profit margin whereas recreational activities (shs. 18,000,000) and poles (shs.3,000,000) being the third and fourth revenue stream with gross profit margins of 73.1% and 45.6% respectively. Findings also indicate that profitability in plantation forestry is influenced by factors such as tree species selection, management practices, market dynamics, and policy frameworks. The implications of this research study therefore extends to various stakeholders including investors, policymakers, forest managers, and local communities. Insights from this study can also help inform decision making processes related to land use planning, investment prioritization, and policy development aimed at promoting profitable and sustainable plantation forestry practices. Furthermore, the study points out the need for collaborative and innovative approaches to address the many challenges facing the forestry sector in achieving both economic and environmental objective.