ECONOMIC VIABILITY OF SILVOPASTORAL SYSTEM ECONOMIC VIABILITY OF SILVOPASTORAL SYSTEM

WITH TEAK (WITH TEAK (Tectona grandisTectona grandis L.F.) IN NORTHEAST OF L.F.) IN NORTHEAST OF

PARÁ, BRAZILPARÁ, BRAZIL

Rosana Quaresma MANESCHY, UFPARosana Quaresma MANESCHY, UFPA

Antônio Cordeiro de SANTANA, UFRAAntônio Cordeiro de SANTANA, UFRA

Jonas Bastos da VEIGA, UFRA Jonas Bastos da VEIGA, UFRA

Nairobi, Kenya, WCA 2009Nairobi, Kenya, WCA 2009

INTRODUCTIONINTRODUCTION

• Silvopastoral systems (SPSs) have been considered promising to Silvopastoral systems (SPSs) have been considered promising to integrate tree crops in livestock production systems and reclain integrate tree crops in livestock production systems and reclain large areas of degraded pastures of the Brazilian Amazon. large areas of degraded pastures of the Brazilian Amazon.

• They are used on small scale by innovative farmersThey are used on small scale by innovative farmers

• Characteristics of SPS in Northeast State of Pará:Characteristics of SPS in Northeast State of Pará:

– TemporaryTemporary

– Grazing in tree plantationsGrazing in tree plantations

– Main trees: paricá (Main trees: paricá (Schizolobium amazonicumSchizolobium amazonicum Huber ex. Huber ex. Ducke) and teak (Ducke) and teak (Tectona grandisTectona grandis L.f.) L.f.)

– Forage species: Forage species: Brachiaria humidicolaBrachiaria humidicola (Rendle) Schweick (Rendle) Schweick grassgrass

– Livestock: cattleLivestock: cattle

Silvopastoral system with 9-year-old paricá tree and Silvopastoral system with 9-year-old paricá tree and Brachiaria humidicolaBrachiaria humidicola grass grazed by cattle grass grazed by cattle

Silvopastoral system with 3-year-old teak tree and Silvopastoral system with 3-year-old teak tree and Brachiaria humidicola Brachiaria humidicola

grass grazed by cattlegrass grazed by cattle

OBJECTIVESOBJECTIVES

• Analyze the economic viability of SPSs Analyze the economic viability of SPSs

with teak established in farm areas, with teak established in farm areas,

comparing it to traditional tree plantations comparing it to traditional tree plantations

(TTP) of this species.(TTP) of this species.

MATERIALS AND METHODSMATERIALS AND METHODS

• Locale: Northeast Locale: Northeast state of Pará state of Pará

• Soil: mainly OxisoilsSoil: mainly Oxisoils• Climate: tropical wet Climate: tropical wet

(Am(Am22))

– Mean temperature: Mean temperature: around 25° Caround 25° C

– Rainfall: 2500 to Rainfall: 2500 to 3000 mm3000 mm

– Relative humidity: Relative humidity: 85% 85% (IBGE, 2008). (IBGE, 2008).

Northeast of Pará

Northeast region of Pará State, BrazilNortheast region of Pará State, Brazil

• Costs and revenues of both teak-SPS and teak-TTP

• Interviews: ten farmers

• Tree density: 1,100 trees/ha

• Stocking rate: 0.6 – 0.9 AU/ha

• Wood price:

– First and second harvest: US$ 54/m3

– Final harvest: US$ 250/m3

• Cattle price: US $ 0.83/kg

• Economic indicators: Net present value (NPV) and Internal

rate of return (IRR)

RESULTSRESULTS

Costs:Costs:

• Teak-SSP:Teak-SSP:

– Whole operation: US$ 7,582/ha Whole operation: US$ 7,582/ha

– Labor: US $ 674/haLabor: US $ 674/ha

• Teak-TTP: Teak-TTP:

– whole operation: US$ 7,689/ha whole operation: US$ 7,689/ha

– Labor: US $ 659/haLabor: US $ 659/ha

RESULTSRESULTS

Income:Income:

• Teak-SPS: US$ 44,755/haTeak-SPS: US$ 44,755/ha

• Teak-TTP: US$ 44,338/haTeak-TTP: US$ 44,338/ha

• Economic indicators in teak-SPS and teak-TTP in farms of Economic indicators in teak-SPS and teak-TTP in farms of

Northeast region of Pará, Brazil.Northeast region of Pará, Brazil.

SystemsSystems

Economic indicatorsEconomic indicators

YearYear IRR (%)IRR (%)NPV (US$)*NPV (US$)*

8 % rate8 % rate 12 % rate12 % rate 14 % rate14 % rate

Teak-SPSTeak-SPS2020 15.6815.68 6,4676,467 2,0262,026 763763

Teak-TTPTeak-TTP2020 15.4115.41 6,2906,290 1,8921,892 646646

Source: Data from the survey, 2008. * U.S. $ 1 = R$ 2.40 (exchange rate on November 30, 2008). Source: Data from the survey, 2008. * U.S. $ 1 = R$ 2.40 (exchange rate on November 30, 2008).

CONCLUSIONSCONCLUSIONS

• In the case of teak tree, the SPS is economically more In the case of teak tree, the SPS is economically more

attractive than the TTP. attractive than the TTP.

• The adoption of silvopastoral systems in the Northeast The adoption of silvopastoral systems in the Northeast

Pará State should be encouraged as an activity over Pará State should be encouraged as an activity over

teak monoculture. teak monoculture.

National Council for Scientific and Technological Development (CNPq) National Council for Scientific and Technological Development (CNPq)

Amazon Bank (BASA)Amazon Bank (BASA)

Brazilian Agricultural Research CorporationBrazilian Agricultural Research Corporation

ACKNOWLEDGMENTSACKNOWLEDGMENTS