Profitability potential of Forest Plantations in Forest conservancies of Kenya

Abstract

Eastern, Central and Mau Forest conservancies constitute about 90% of all forest plantations in Kenya. The Kenya government banned timber harvesting in 1999, which is still in force in some conservancies. Forest plantations have subsequently deteriorated in volume and value due to over-maturity. The main objective of this study was to show the profitability potential of Forest plantations in Eastern, Central and Mau Forest Conservancies with the intention of showing their worth before deteriorating further and losing value. Data was collected from selected forest stations in Eastern, Central and Mau Conservancies. Compartment data was obtained from both mature and over-mature plantations. Volume tables were used to convert compartment data to volumes. Kenya Forest Service General Order was then used to convert volumes to revenues and Cost benefit analysis used to determine the profitability. Results showed that revenues per hectare for Pinus patula over-mature plantations were between Kshs 508,170 and 821,156 while for mature plantations between Kshs. 297,695 and 864,355. Revenues for over-mature Cupressus lusitanica ranged between Kshs. 475,243 and 894,381 while for mature ranged from Kshs 664,411 to Kshs. 1,063,993. Per hectare forest management cost was found to average Kshs. 80,000. Profits per hectare were found to range from Kshs. 220,576 to 975,700. This study concluded that the profitability potential of forest plantations in Eastern, Central and Mau forest conservancies is great and recommends that an inventory of all mature and over-mature forest plantations be taken to be a basis for fast tracking timber harvesting especially of the mature and over-mature forest plantations, which over time would decay and deteriorate in volume and value