This paper investigates the profitability of cloned teak seedlings among small-scale farmers in the Canton of Hojancha in Costa Rica. A survey was conducted among small-scale farmers to explore their opinions regarding tree breeding. Most respondents considered that the use of improved seedling material is profitable and their willingness to plant clones in the future was high. The net present value of teak plantations at a 5% discount rate was estimated to be USD 12,330, USD 12,814, USD 14,284 and USD 14,308 per hectare for four non-genetically modified seedling plantations. According to a sensitivity analysis, the profitability of a teak plantation based on non-genetically modified seedlings is more sensitive to changes in timber prices than to changes in silvicultural costs. Investment in clone planting appears potentially highly profitable. With interest rates of 5 and 3%, it was profitable to plant clones if only 1% of genetic gain in volume was achieved and if the price of the clones was not greater than 50% of non-genetically modified seedlings.
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