ECONOMIC ANALYSIS OF FOREST FOMENTATION WITH EUCALYPTUS IN THE STATE OF MINAS GERAIS

Abstract

The economic analysis of forest projects is a basic tool to determine if an investment should or not be undertaken. The objective of this work was to determine costs and revenues of the production of wood of the Asiflor-IEF fomentation program and to verify its economic viability. It was done a sensitivity anbalysis of the results in relation to the main economical variables: Land productivity, transport cost and price of the product. For achieving this purpose it was determined the costs and revenues involved in the activity and, for the economical analysis the Net Present Value (VPL) and the Internal Rate of Return (TIR) were used. The sale of the standing timber was found economically viable for any simulation and demanded the higher subsidy, the cost of the firewood, placed at the user yard, was highly influenced by the transport cost and the viability of the production of charcoal was highly influenced by transportation distances, by fire wood price and by land productivity.