Opportunities for the smallholder sandalwood industry in ... - ACIAR

Table 5. Comparison of the income, costs and profits of eight different planting models
Summary (NPV format) US$/hectare/year a
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7 Scenario 8
Garden
(1 ha)
Garden and
sandalwood
heartwood
(1 ha)
Sandalwood
only (1 ha)
Sandalwood
sapwood
(1 ha)
Garden and
sandalwood
(10 ha)
Sandalwood
only (10 ha)
Garden and
sandalwood
(1 ha)
Garden and
sandalwood
(1 ha)
4 yr 4, 15, 20 yr 15, 20 yr 1 × 7 yr 4, 15, 20 yr 15, 20 yr 2 × 15 yr 1 × 30 yr
Sandalwood gross receipts – $28,754.61 $28,754.61 $15,850.74 $194,353.07 $194,353.07 $14,878.83 $27,037.55
Garden gross receipts $12,219.51 $12,219.51 – – $26,266.08 – $14,878.83 $12,219.51
Total gross receipts $12,219.51 $40,974.11 $28,754.61 $15,850.74 $220,619.15 $194,353.07 $58,851.63 $39,257.06
less average variable costs of:
– land preparation and planting $249.66 $2,467.50 $2,467.50 $6,489.79 $16,945.25 $16,945.25 $3,058.21 $2,467.50
– weed control $1,871.45 $2,553.13 $2,553.13 $2,221.12 $17,260.91 $17,256.67 $3,110.17 $2,566.84
– pruning – $120.83 $120.83 – $476.70 $476.70 $152.65 $57.00
– fertiliser – $239.48 $239.48 $678.13 $1,618.67 $1,618.67 $296.81 $239.48
– pest and disease control – $383.03 $383.03 $226.81 $1,023.22 $1,227.00 $524.41 $516.80
– irrigation – $18.73 $18.73 $18.73 $126.60 $126.60 $23.66 $18.73
– harvesting – $1,620.49 $1,620.49 $1,473.88 $5,517.48 $5,517.48 $2,296.36 $478.66
– gardening $4,903.47 $4,903.47 – – $10,540.11 – $5,970.61 $4,903.47
Total average variable costs $7,024.58 $12,306.67 $7,403.20 $11,108.47 $53,508.96 $43,168.39 $15,432.87 $11,248.49
Gross margin (receipts – variable $5,194.93 $28,667.44 $21,351.41 $4,742.27 $167,110.19 $151,184.68 $43,418.76 $28,008.57
costs)
Capital purchases $3,601.75 $6,881.80 $6,881.80 $4,665.29 $7,730.64 $7,730.64 $7,585.03 $7,696.85
Total fixed costs $3,601.75 $6,881.80 $6,881.80 $4,665.29 $7,730.64 $7,730.64 $7,585.03 $7,696.85
Total costs $10,626.33 $19,188.47 $14,285.00 $15,773.76 $61,239.60 $50,899.02 $23,017.90 $18,945.33
Farm profit $1,593.18 $21,785.64 $14,469.61 $76.97 $159,379.55 $143,454.04 $35,833.73 $20,311.72
Internal rate of return 0.28 0.24 0.16 0.10 0.25 0.21 0.28 0.17
Benefit:cost ratio 1.15 2.14 2.01 1.00 3.60 3.82 2.56 2.07
Return to labour 1.76 4.70 5.74 1.27 7.64 9.33 6.02 4.98
NPV relative to scenario 1 1.00 13.67 9.08 0.05 100.04 90.04 22.49 12.75
– = not applicable; NPV = net present value
a Figures are all in US$ based on the exchange rate of US$1 = 101.17 vatu on 2 August 2008 at a discount rate of 10%.
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