An analysis of potential investment returns of planted forests in South China

• DOI: 10.1007/s11056-019-09708-x
• Publication Date: 2019-03-04T08:33:30Z
• Authors: Pu Zhang; Youjun He; Yiming Feng; Rafael De La Torre; Hongyan Jia; Jixin Tang; Frederick Cubbage
• Keywords: Pinus massoniana; Cunninghamia; Forest product

Financial returns of forest plantations are an important concern around the world. In this research, we focused on South China's timber investments, collected data from Pingxiang, Guangxi Province, China, which is demonstration zone Fast-growing and High-yielding Timber Plantation Base Construction Program National Strategic Storage Production Bases Program, used capital budgeting analysis method sensitivity to compare different scenarios planted management. The results showed that excluding land costs, (1) financial Eucalyptus managed by small business were excellent, having IRR 28% per year a LEV $7555 ha, but it had high risk with fluctuations cost, price yield; (2) for Experimental Center Tropical Forests indicate Castanopsis hystrix greater than those Cunninghamia lanceolata Pinus massoniana forest, IRRs 24%, 21%, 13% 10% respectively. mixed × features profits low risks; (3) farmers lower levels management in still middle rank global comparisons. This study gave view investment provided more options improving economic both businesses China.