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
Subjects:	Logging - Terengganu - Economic aspects - Case studies
Online Access:	http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf
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id	my-upm-ir.198
record_format	uketd_dc
spelling	my-upm-ir.1982013-05-27T06:46:27Z Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu 2006-03 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 Logging - Terengganu - Economic aspects - Case studies 2006-03 Thesis http://psasir.upm.edu.my/id/eprint/198/ http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf application/pdf en public masters Universiti Putra Malaysia Logging - Terengganu - Economic aspects - Case studies Faculty of Forestry English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Logging - Terengganu - Economic aspects - Case studies
spellingShingle	Logging - Terengganu - Economic aspects - Case studies Mat, Salleh Financial Feasibility of Timber Harvesting Under Conventional and Sustainable Forest Management in a Timber Concession in Terengganu
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
qualification_level	Master's degree
author	Mat, Salleh
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
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Forestry
publishDate	2006
url	http://psasir.upm.edu.my/id/eprint/198/1/549035_FH_2006_1.pdf
_version_	1747810172006301696

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

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