Economic Viability of Tectona grandis sole Cropping and Intercropping for 20 years Planting Project

Affendy Hassan and Tan M.S and Assis Kamu and Mohammad Amizi A. (2013) Economic Viability of Tectona grandis sole Cropping and Intercropping for 20 years Planting Project. Research Journal of Agriculture and Forestry Sciences, 1 (3). pp. 22-25. ISSN 2320-6063

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URL: http://www.isca.in/AGRI_FORESTRY/Archive/v1/i3/4.I...

Abstract

Economic viability of Tectona grandis sole cropping and intercropping for 20 years planting project were carried at the Boonrich plantation in Lahad Datu, Sabah. The study was conducted to evaluate the economic viability and to compare between T. grandis sole cropping and intercropping of T. grandis with Salacca zalaca. The data of height, diameter, cost and prices were analysed. The parameter that used to measure the economic viability of the project were net present value (NPV), internal rate of return (IRR), benefit cost ratio (BCR), land equivalent ratio (LER), sensitivity analysis (SA) and payback period. The analysis was carrying out by using Microsoft excel. From the study, the NPV of intercropping is RM27,063.70 (USD8,841.54), the LER is 1.37, 23.68% of IRR and have a shorter payback period (13 years) compare to the sole cropping. As a conclusion, the intercropping can give a higher profit to the company, not only that it has a shorter payback period than the sole cropping. In addition, it also showed a higher yield as the LER is more than one (1.37). Therefore, T. grandis intercrop with S. zalaca will gain extra benefit and greater output than the sole cropping.

Item Type:	Article
Keyword:	Agroforestry , Intercropping , Benefit cost analysis , Economic indicator and sensitivity analysis
Subjects:	S Agriculture > S Agriculture (General) > S1-(972) Agriculture (General) > S560-571.5 Farm economics. Farm management. Agricultural mathematics Including production standards, record keeping, farmwork rates, marketing S Agriculture > SD Forestry > SD1-669.5 Forestry
Department:	FACULTY > Faculty of Tropical Forestry
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	30 Jun 2023 09:24
Last Modified:	30 Jun 2023 09:24
URI:	https://eprints.ums.edu.my/id/eprint/34022

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