Productivity and Financial Analysis of  Traditionally Practiced Eucalyptus Woodlots in Northern Ethiopia

Farmers have been planting Eucalyptus trees as a significant tree species on their farmlands due to its multiple socio-economic benefits. Despite the expansion of eucalyptus woodlots, there is limited information on their productivity and financial performance.  The objectives of this study were: (i) to investigate the productivity of E. globules woodlots ; (ii) to conduct a comparative financial analysis of E. globules woodlot with crop land use; and (ii) to assess farmers’ perception on socio-economic and environmental effects of E. globules woodlots. The qualitative and quantitative data were collected through a household survey, key informant interviews, focus group discussions, field inventory,and market assessment. Seventy-eight sample plots with a size of 2 m x 5 m area were laid using 10% sampling intensity to collect inventory data.  The productivity analysis result indicated that the mean annual increament of coppicing stands of E. globules aged 3, 4 and 5 years were recorded as 27.2 ± 1.0, 27.3 ± 3.0 and 29.1 ± 1.0 m3/ha/year, respectively. Mean annual increament of seedling stand of E. globules aged 3, 4 and 5 years were recorded as 23.4 ± 0.5, 25.7 ± 0.5 and 28.1 ± 0.1 m3/ha/year, respectively. Profitability analysis also showed that a woodlot with a coppice stand is a more attractive practice than other land uses. Overall, the study revealed that investing in eucalyptus woodlots is rewarding and more profitable than annual crops, especially during the coppice management period. Farmers in the study area perceived the socio-economic benefits of eucalyptus woodlots. However, diverse perception was observed regarding the environmental impact of eucalyptus woodlots. Training and awareness creation to farmers is needed to encourage tree management practices that help to increase eucalyptus woodlot productivity and to minimize the possible negative environmental impacts.