Economic Analysis of Integrated Harvesting Relative to Conventional Harvesting on a Pinus patula Stand in Tanzania

The conversion of a standing tree into a usable product is a very important activity and studies have shown that it is highly affected by the conversion costs which are associated with the whole plan (harvesting and processing). The economic aspects of forest harvesting are multifaceted and require careful consideration. Two harvesting systems were compared; first, Conventional Harvesting (CH) in this study means harvesting and processing of logs where only large diameter parts of the trees are utilized and mostly the small diameter parts are discarded causing loss of resources. Second, integrated harvesting (IH) in this study means the harvesting and processing of logs which are sorted according to end use allowing maximum utilization of the wood to the smallest diameter parts. This study aimed to determine the overall economics of forest conversion on tree felling and processing systems, specifically to determine the costs and revenue associated with IH and CH, with the factors influencing the choice of a felling and processing system. A study was done at FWITIC, a processing industry in the southern highlands, and data was collected through key informant interviews. The findings indicate higher total costs with IH ($2379) than CH ($1544), but also lower unit costs (84.37 US$/m3 for IH) and (100.3 US$/m3 for CH). The costs are topped by the revenue generated from each harvesting system of 177.222 US$/m3 for IH compared to 128.3 US$/m3 for CH, giving a benefit of 28.2 US$/m3 with CH and 92.84 US$/m3. The costs, benefits and time taken during the harvesting operations inform more on the influence on the selection of a harvesting and processing system