Farm Forestry for the Market: Some Aspects of Financial Evaluation of Rural Woodlots in Tanzania

Abstract

Wood is the most used primary form of energy in developing countries,
and most of it is collected free from the wild, thus causing deforestation
and its attendant environmental problems. l11e only possible way to
conserve natura1 forests and woodlands in developing countries such as
Tanzania, is by producing wood from planted woodlands. Sustainability in
the production of wood from planted woodlands will be achieved only if the
woodlands are financially viable. This paper dwells on the fInancial
parameters needing to be considered to produce wood profItably in rural
woodlots, taking into account problems which can be encountered in exante
fInancial evaluations.