DefinePK

Abstract

ABSTRACT Eucalyptus timber grown under social and farm forestry programs in Pakistan finds no firm footing in the local timber trade due to various reasons. This situation needs to be redressed to break the deadlock in eucalyptus marketing as well as for the promotion of afforestation programs by creating better profitability from planting Eucalyptus. Beside many other marketing and utilization measures the export potential of Eucalyptus wood chips from Pakistan could be an alternative to improve eucalyptus marketing and hence its profitability and production. In the present study benefit cost analysis has been carried out to determine the economic feasibility of manufacturing Eucalyptus chips at the stump for export purposes. The results of this analysis showed that at present the marketing margin in export of Eucalyptus chips from Pakistan is negative because of high production cost than the price offered in the international market. Higher production cost is mainly due to scattered supplies, higher transportation cost, small scale of chipping and need of integration in the processing of Eucalyptus wood. However, chip production cost could be reduced through economies of scale, specialization, using improved technology and cut down in the transportation cost.