Economic analysis of sustainable management of candeia

Abstract

Candeia wood (Eremanthus erythropappus) is widely used for production of essential oil and its active ingredient, alpha-bisabolol, is consumed by both the cosmetics and pharmaceutical industry. This study aimed to determine the productivity and operating costs associated with exploration, transportation and commercialization of candeia timber obtained from sustainable management systems and used for oil production; to determine the gross income or revenue obtained from the sale of candeia timber; to analyze the economic feasibility of sustainable management of candeia. For the economic analysis, Net Present Value, Net Present Value over an infinite planning horizon, and Average Cost of Production methods were used. Results indicated that the most significant costs associated with candeia forest management involve transportation and exploration. Together they account for 64% of the total management cost. Candeia forest management for oil production is economically feasible, even in situations where the interest rate is high or timber price drops to levels well below currently effective prices. As far as candeia forest management is concerned, shorter harvest cycles allow higher profitability. However, even in situations where the harvest cycle is relatively long (30 years), the activity is still economically feasible.Key words: Eremanthus erythropappus, alpha-bisabolol, Net Present Value. ANÁLISE ECONÔMICA DO MANEJO SUSTENTÁVEL DA CANDEIA RESUMO: A madeira de candeia (Eremanthus erythropappus) é muito utilizada para a produção de óleo essencial, cujo princípio ativo, o alfa-bisabolol, é consumido pelas indústrias de cosméticos e medicamentos. Neste estudo, objetivou-se determinar os rendimentos e os custos das operações relacionadas à exploração, transporte e comercialização de madeira de candeia obtida em sistemas de manejo sustentável e utilizada para a produção de óleo; determinar a receita ou renda bruta obtida com a venda de madeira de candeia; analisar a viabilidade econômica do manejo sustentável dessa espécie. Para a análise econômica, utilizaram-se os métodos do Valor Presente Líquido, Valor Presente Líquido com horizonte de planejamento infinito e Custo

Economic Viability of Management Plants of Stryphnodendron adstringens (Mart.) Coville in North of Minas Gerais State

“…In the management of the candle (Eremanthus erythropappus DC. ), the higher costs were the transport and exploration (Oliveira et al, 2010). Comparing the cash flow of the present study with the cash flow for the implementation of eucalyptus forests, we found that the cost was lower because in planted forests is greater demand for infrastructure as opening and maintenance of roads as well as pre-treatment and post cultural (Guedes et al, 2011).…”

Sustainable Management of Eremanthus erythropappus in Minas Gerais, Brazil – A Review

“…When a farmer opts for managing Eremanthus erythropappus in native areas, the most significant costs are associated with timber harvesting and transport, representing 67% of the total costs (Oliveira et al, 2010). To ensure higher profit, farmers should sell their timber directly to companies that extract the essential oil, without intermediaries for the transactions (Oliveira et al, 2009).…”

“…On the other hand, an area with average production volume of 45m 3 .ha -1 and stacking factor of 2.67, for a cutting cycle of 15 years and wood delivered to the manufacturer, at a price of US$ 350.stacked cubic meter -1 , can provide a net profit of US$ 15,387.62 ha -1 . According Oliveira et al (2010), management for the extraction of essential oil is economically feasible, even under high interest rates, or low wood prices.…”

Bees Diversity on Flowers of Eremanthus spp. (Asteraceae)

“…The wood of candeia can be used in the manufacture of fences by small farmers, and its oil is commercialized in the cosmetic and pharmaceutical industry (Lima et al, 2013). These characteristics are essential because they guarantee the recovery of degraded areas and allow economic return for the small rural producer (Oliveira, Andrade et al, 2010).…”