ECONOMIC EVALUATION OF CERRADO VEGETATION AREA SUBMITED TO SEVERAL MANAGEMENT SYSTEMS AND OF EUCALYPTUS PLANTATION

Abstract

The objective of this research was to evaluate the economic viability of producing wood in soils of the cerrado region under the following condition: a) cerrado native vegetation; b) a combination of strips eucalyptus plantation and cerrado native vegetation; and c) pure eucalyptus plantation. Analyses of the effect of changes in the discount rate, land value, levels of productivity and producing cost reduction were carried out for each treatment economic feasibility. Studies of the combined effect of discount rate and land value; productivity increase and producing cost reduction on the economic viability of the management system studied were also done. The net present worth was used as the decision variable. It was concluded that based on the productivity found and on the original production cost all treatments were not economically feasible. Huge cost reduction and productivity increase are necessary in order to turn the investments feasible.