APPRECIATION FOR THE FOREST RESOURCE EUCALYPTUS SP.

The outputs produced in the calculation of the appreciation of the forest resource of Eucalyptus sp. for the period 1985-1996 is the following.

Table 6

Appreciation

(In Millions of US$, 1996)

Source: Own elaboration

In order to carry out the calculations the following premises and assumptions were taken in consideration :

a) The costs of exploitation of an hectare of Eucalyptus sp stays constant during all the period of analysis. It was estimated to be 16.23 US$ / m³. (See Table 9)

b) The price on site of a cubic meter of Eucalyptus sp. wood equal to 39 US$/ m³ was valued constant for all of the period of analysis. (See Table 8)

c) The real utilized annual interest rate (r) is 7.97%. And it belongs to a nominal annual interest rate of 8.5% for the long term credits. To deflect, a 6.6% appraisal of inflation corresponding to the year 1996 was applied. The real interest rate stays constant during all the period of analysis.

d) All the calculations have been carried out in dollars of 1996. The average type of change corresponding to that year was of 1US$= $Ch 396.773. Source: Central Bank of Chile. Monthly Bulletin N° 8733, July 1997.

e) The produced volume at the end of the 12 years has been valued in 264m³ / ha. In this calculation all the trees of same age (which are the majority) or superior to 12 years (mature trees that have not been harvested in the previous years) are considered. For the last ones, the output stays on 264 m³/ha. These calculations are produced from the Annual Medium Increment, that in case of the Eucalyptus sp. is 22 m³/ ha/ year. Source: The forest sector: achievements and challenges. Santiago of Chile. INFOR 1996.

f) The information registered by INFOR on the Inventory of Plantations of Eucalyptus sp. is complete- by age range- only for the years 1995 and 1996. However, for the years 1985 to 1994 only exists global information. Consequently, in order to carry out the required calculations presently reported, this global information by ages has been distributed, applying an average percentage distribution (% T) produced during the years 1995 and 1996.

g) The principal destination of the Eucalyptus sp. harvest is pulp. The registrations of current demand shows a preferential behaviour for pulp wood products over saw wood products. It is estimated that 96% of the net production coming of the Eucalyptus sp. forests, including thinnings, are oriented towards pulp or derived products.

h) In all cases, the figures are nets of forest fires and plagues. The coefficient’s estimate of the losses for plagues, illness and blazes for the Eucalyptus sp., already applied by INFOR in their statistics, are contained in the Introduction of the Environmental Accounting in the National Bills of the Central Bank of Chile Project. Investigation financed by the Central Bank of Chile and executed by the Forest Institute in collaboration with the Department of Agrarian Economy of the Catholic University of Chile. 1996.

Next, a detailed presentation of the information utilized in order to calculate the Appreciation of the Forest Resource Eucalyptus sp.

Planted surface of eucalyptus sp. by age

The surface planted with Eucalyptus sp. corresponding to the period 1985-1996, and detailed by age, has been produced through official figures published by the Forest Institute of Chile (INFOR). These figures are nets³ of harvest and losses for blazes and plagues.

Table 7

Surface Planted of Eucalyptus Sp. by Year and Age : 1985 - 1986

(Standing Forest Hectares)

Source: Own elaboration on figures of INFOR.

Just as it was warned in point f) of the assumptions and premises, the information registered by INFOR on the Inventory of Plantations of Eucalyptus sp. is complete- age range- only for the years 1995 and 1996. The remainder of the figures is esteemed.

In order to have a global vision of the evolution of the planted surface of Eucalyptus sp. in the period 1985-1996, the following figure is introduced.

Figure 4

Planted Surface of Eucalyptus sp.

1985 - 1996

Volumetric Growth of Eucalyptus Sp.

The Mean Annual Increment for Eucalyptus sp. is of 22 cubic meter per hectare/ year and corresponds to the average pondered of the registered outputs for all of the country.

Prices

In order to calculate the Actual value of the Eucalyptus sp. forest resource, the on the site costs of wood was utilized. This, to their time, was determined from the costs of wood put in factory, to who the expenses for concept of discharge and patio, transport from the forest until the plant and hauling were discounted.

Table 8

On The Site Price Calculation

(US$/m³)

Source: Elaboration on figures of the INFOR

Cost of on Site Production of 1 m³ Eucalyptus Sp.

In order to calculate the cost of on site production of an hectare of Eucalyptus sp., the following items were considered: Establishment of the Plantation, Fire prevention maintenance, Administration, Protection and Road Construction.

In order to determine the average cost of on site production of 1 m³ of wood, the following assumptions were taken in consideration:

• Growth equivalent to 22 m³/ ha/ year. This is calculated for a representative site, to the level of all the country, of the plantations growth.

• The final objective of forestation is to produce pulp wood.

• It is estimated an average final extraction equivalent to a volume of 264 m³/ ha.

Table 9

Cost of Production of Eucalyptus Sp.

Source: Own elaboration on figures of the INFOR

The cost of establishment varies according to the initial considerate density and includes the following tasks: Underbrush clearance, burning, fencing, soil preparation, fire prevention, plantation, control of overgrowths and/ or rodents and fertilization.

The initial value of the establishment of the plantation in the year zero, according to INFOR, is of 524 US$/ ha.

It includes: Cutting, logging and encampment installation.

The utilized cost of harvest is 1,848 (US$/ ha) and you/he/she/it return 7 US$/ m3. Applying an output of 264 m³/ha.

The annual cost is of 19 US$/ ha/ year. the Future Value of this annuality was calculated, for a period of 12 years and to an annual interest rate of the 7.97%. So the result is of 359.92 US$/ha and it is equivalent to 1.36 US$/ m³.

Includes : Surveillance, supervision, minor maintenance, insurance against fire and disasters, plague control labors, and fire fighting.

The cost of Administration and Protection are, according to INFOR, of 12.4 US$/ha/year. the Future Value of this annuality was calculated for a period of 12 years to an interest rate of the 7.97%. The result is of 234.9 US$/ha and equals to 0.89 US$/ m³.