- Download PDF - 

SEEFOR 3 (1): 23-31
DOI: http://dx.doi.org/10.15177/seefor.12-03
  

Original scientific paper

 

Commercial Profitability of Poplar Plantation with Reference to the Damages Caused by Fungi


Ljiljana Keča 1*, Nenad Keča 1


1 University of Belgrade, Faculty of Forestry, Kneza Viseslava 1, 11000 Belgrade, Serbia

* Corresponding author: e-mail:  

Citation:
KEČA LJ, KEČA N 2012 Commercial Profitability of Poplar Plantation with Reference to the Damages Caused by Fungi. South-east Eur for 3 (1): 23-31. DOI: http://dx.doi.org/10.15177/seefor.12-03  


Cited by:        CrossRef        Google Scholar


Abstract

Background and PurposeDue to the fact that poplar rotation is one of the shortest in forestry, and as production of poplar wood requires rational and well-planned management, the potentials of sites and species must be maximally utilised. The main characteristics of the procedure of investment in poplar cultivation, is the fact that the conditions for the beginning of production and their exploitation are not created simultaneously. The main goal of the work reported in this paper was to examine the financial effects of different discount rates on the cost-efficiency values of studied poplar plantation, based on an analysis of the present value of costs and revenues over a stated time period using different methods of investment appraisal.
Material and Methods: Investment Appraisal also known as Capital Budgeting is used to asses whether capital expenditure on particular poplar plantations will be beneficial for the entity or not. The investigated plantation was established from Populus x euramericana cl. I-214 on alluvial semigley, with planting spacing 6 x 3 m, aged 26 years, for technical wood production. The data used in this study were collected from the archives of the, according to the age at plantation established and from the management and materials books of the forest enterprise “Vojvodinašume”. During two-year study, the material was collected from study plot in order to assess the density, distribution and significance of individual fungal organisms present in the plantation. Identification was based on the morphological characteristics of species. 
Results and Conclusion: Under the calculation discount rate of 12%, the project for the production cycle of 26 years was not cost-effective from the economic aspect. The discount rate of 6% can be accepted in this studied plot because of the better sites (alluvial semigley) and youngness of the stand. For the studied sample plot IRR is 6.94. R for the r=12% in the study compartment is 0.407. The analysis shows that PBP is practically unacceptable for the investor under the discount rate of 6%. In the studied plot altogether 11 species of fungi causing significant damages in hybrid poplar plantations were identified. Two were found on cortical tissue, 6 on leaves and 3 species are causing decay. Number of trees attacked with decaying fungi, like Fomes fomentarius, Trametes suaveolens, was bellow 2%/ two percentage.

Keywords: hybrid poplar plantations, investment appraisal, commercial profitability, costs, revenues, diseases, decline



REFERENCES

  1. ROSE D, FERGUSON K, LOTHNER D C, ZAVITKOVSKI J 1981 An economic and energy analysis of poplar intensive cultures in the Lake States. North Central Forest Experiment Station Forest Service, U.S. Department of Agriculture, USDA Forest Service, Research paper NC-196
  2. LOTHNER D C 1983 Economic investigations of short rotation intensively cultured hybrid poplars. In: Hansen EA (eds) Intensive Plantation Culture: 12 years of Research USDA Forest Service GTR NC-91, pp 139-148
  3. BOYSEN B, STROBL S 1991 A growers guide to hybrid poplar. Ontario Ministry of Natural Resources, Toronto, Ontario, Canada
  4. VOLNEY WJ, ALFARO RI, BOTHWELL P, HOGG E H, HOPKIN A, LAFLAMME G, HURLEYJ E, WARREN G, METSARANTA J, MALLETT KI 2005 A framework for poplar plantation risk assessments. Unasylva 56: 20-25
  5. OOSTEN C 2006 Hybrid poplar crop manual for the prairie provinces. Saskatchewan Forest Centre, Prince Albert, SK and Poplar Council Canada, Edmonton, AB, Canada
  6. ISEBRANDS JG 2007 Best Management Practices Poplar Manual for Agroforestry Application in Minnesota. USDA, Washington, p 61
  7. PETRÁŠ R, MECKO J, NOCIAR V 2008 Value production of poplar clones. Journal of Forest Science 54 (6): 237–244
  8. KEČA LJ 2010a Estimation of cost-effectiveness of poplar wood production in Ravni Srem by applying the net present value method. Bulletin of the Faculty of Forestry University of Belgrade 101: 81-100. DOI: http://dx.doi.org/10.2298/GSF1001081K
  9. KEČA LJ 2011a Estimation of cost-effectiveness of poplar wood production in poplar plantations in ravni srem based on the method of pay back period. Bulletin of the Faculty of Forestry University of Belgrade 103: 41-56. DOI: http://dx.doi.org/10.2298/GSF1103041K
  10. KEČA LJ 2011b Estimation of cost-effectiveness of poplar wood production in poplar plantations in Ravni Srem based on the cost-benefit method. Bulletin of the Faculty of Forestry University of Belgrade104: 81-96. DOI: http://dx.doi.org/10.2298/GSF1104081K
  11. KEČA LJ 2010b Assessment of cost-efficiency for wood production in poplar plantations in Ravan Srem, based on internal rate of return. Bulletin of the Faculty of Forestry University of Belgrade 102: 25-40. DOI: http://dx.doi.org/10.2298/GSF100621001K
  12. KEČA LJ, KEČA N, PAJIĆ S 2011 Investment Appraisal of Poplar Plantations in Serbia. Baltic For 17 (2): 268-279
  13. CELLERINO GP, GENNARO M 1999 Review of poplar diseases. International Poplar Commision, FAO, Rome
  14. KEČA N 2003a Possibility of parasite (Marssonina brunnea (Ell.&Ev.) P. Magnus and Melampsora spp.) control on poplar foliage with some fungicides (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 88: 103-120. DOI: http://dx.doi.org/10.2298/GSF0388103K
  15. KEČA N 2000 The most frequent diseases in poplar plantations in the region of Potisje (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 82: 81-91 
  16. SHARMA RC, SHARMA S, GUPTA AK 2005 Effect of preventative fungicide sprays on Melampsora rust of poplar in the nursery. In: Pei HM, McCracken AR (eds) Rust diseases of willow and poplar. CABI Publishing, pp 209-212
  17. KEČA LJ, PAJIĆ S 2010 Financial Aspects of Restoration in Poplar Plantations with Technology of Full Ground and Soil Preparation, International Conference "Land Conservation"- LANDCON 09 05 - May 26-30, 2009 Tara Mountain/Serbia- in Global Change Challenges for Soil Management, Advances in Geology 41, Editor Miodrag Zlatic, Catena Verlag GmbH, p 321-334
  18. GITTINGER P 1972 Economic Analysis of Agricultural Projects. The Economic Institute, International Bank for Reconstruction of Development, The John Hopkins University Press, Baltimore-London
  19. LUMBY S 1988 Investment Appraisal and Financing Decisions. Third Ed. Van Nostrand Reinhold Co.Ltd, England
  20. POGUE M 2010 Corporate Investment Decisions Principles and Practice. Business Expert Press, New York, USA. DOI: http://dx.doi.org/10.4128/9781606490655
  21. GÖTZE U, NORTHCOTT D, SCHUSTER P 2008 Investment Appraisal-Methods and Models. Springer-Verlag Berlin
  22. KEČA LJ 2005 Analysis of commercial cost-effectiveness of poplar plantations. Bulletin of the Faculty of Forestry University of Belgrade 91: 135-147. DOI: http://dx.doi.org/10.2298/GSF0591135K
  23. KEČA N 2004 Mycoflora diversity in the stands and plantations of poplars in the section Aigeiros (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 90: 109-118. DOI: http://dx.doi.org/10.2298/GSF0490109K
  24. KARADŽIĆ D 1987 Influence of pathogenic mycoflora on declining of treees in Pinus spp. plantations. Forestry (Belgrade) 5: 89-106
  25. SPINELLI R, MAGAGNOTTI N 2011 Strategies for the processing of tree tops from hybrid poplar plantations. Baltic For 17: 50-57
  26. JAMES R, DEL LUNGO A 2005 The Potential for Fast-Growing Commercial Forest Plantations to Supply High Value Roundwood. FAO, Planted Forests and Trees Working Papers, Working Paper 33. Forest Resources Development Service, Forest Resources Division. FAO, Rome
  27. KEČA N 2008 Diseases in poplar plantations (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 97:7-31. DOI: http://dx.doi.org/10.2298/GSF0897007K
  28. SPINELLI R, NATI C, MAGAGNOTTI N 2005 Harvesting and transport of root biomass from fast-growing poplar plantations. Silva Fennica 39: 539-548
  29. KEČA LJ, KEČA N, PANTIĆ D 2012 Net Present Value and Internal Rate of Return as indicators for assessment of cost-efficiency of poplar plantations: a Serbian case study. Int For Rev 14 (2): 1-12. DOI: http://dx.doi.org/10.1505/146554812800923345
  30. 2005. Serbia and Montenegro: Selected Issues and Statistical Appendix. IMF, Country Report No. 05/232, Washington D.C., USA, p 127
  31. ANDERSON J A, LUCKERT M K 2006 Can hybrid poplar save industrial forestry in Canada’s boreal forest? A financial analysis and policy considerations. Western Forest Economist Meeting, Oregon
  32. TANKERSLEY L 2006 Hardwood Plantations as an Investment. University of Kentucky’s Cooperative Extension publication FOR-101
  33. TABBUSH P, BEATON A 1998 Hybrid poplars: present status and potential in Britain. Forestry 71: 355-364. DOI: http://dx.doi.org/10.1093/forestry/71.4.355
  34. JAIN SK, SINGN P 2000 Economic analysis of industrial agroforestry: poplar (Populus deltoides) in Uttar Pradesh (India). Agroforest Syst 49: 255-273
  35. ERIKSSON HM, HALL JP, HELYNEN S 2002 Bioenergy from sustainable forestry: Guiding principles and practice. In: Richardson J, Björheden R, Hakkila P, Lowe AT, Smith CT (eds), Kluwer Academic Publishers, The Netherlands, pp 1-17
  36. WHITEMAN A, BROWN C, BULL G 1999 Forest product market developments: the outlook for forest product markets to 2010 and the implications for improving management of the global forest estate. Working Paper FAO/FPIRS/02, Food and Agriculture Organization of the United Nations, Rome
  37. SIDDIQUI KM, KHAN FS 1991 In term Financial Analyses of on station intercropping study. Pakistan Journal Forestry 41 (2): 157-164
  38. DHILLON A, VINOD S, MAHK DP, DHILLON MS 2001 An economic analysis of poplar cultivation. Indian Forester 127 (1): 86-90.
  39. CHANDRA JP 1986 Poplar: A Cash Crop for North Indian Farmers. Indian Forester 112 (8): 698-710
  40. McKENNEY D W, YEMSHANOV D, FRALEIGH S, ALLEN D, PRETO F 2011 An economic assessment of the use of short-rotation coppice woody biomass to heat greenhouses in southern Canada. Biomass and Bioenerg 35 (1): 374-384. DOI: http://dx.doi.org/10.1016/j.biombioe.2010.08.055
  41. LATIF J, MOHD N M, TAYEB D M, KUSHAIRI D А 2003 Economics of Higher Planting Density in Oil Palm Plantations, Oil Palm Industry. Econ J 3 (2): 32-39
  42. MINGHAO P, YANZHONG S 2005 A brief summary of Melampsora species of Populus. In: Pei H M, McCracken A R (eds) Rust diseases of willow and poplar. CABI Publishing, pp 51-63. DOI: http://dx.doi.org/10.1079/9780851999999.0051
  43. KARADŽIĆ D, MILIJAŠEVIĆ T 2005 The most frequent powdery mildews on forest woody species and their impact (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 91: 9-29. DOI: http://dx.doi.org/10.2298/GSF0591009K
  44. ROYLE D , OSTRY ME 1995 Diseases and pest control in the bioenery crops poplar and willow. Biomass and Bioenerg 9: 69-79. DOI:http://dx.doi.org/10.1016/0961-9534(95)00080-1
  45. KEČA N 2003b Test of resistance of Populus x euramericana cv. Pannónia to the attack of Discosporium populeum (Sacc.) Sutton in the conditions of Gornje Potisje (in Serbian with English summary). Bulletin of the Faculty of Forestry University of Belgrade 87: 139-149. DOI: http://dx.doi.org/10.2298/GSF0387139K

 

© 2015 by the Croatian Forest Research Institute. This is an Open Access paper distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0).