ECONOMIC ANALYSIS OF SELECTED SPECIAL-PURPOSE SPECIES REGIMES

The economics of growing Pinus radiata D. Don (radiata pine) in a small farm woodlot in the central North Island were compared to certain special-purpose species, viz cypresses, eucalypts, Acacia melanoxylon R. Br. (Australian blackwood), and Juglans nigra L. (black walnut). The blackwood was assumed to be planted in gaps in a scrub canopy, and the other species on grass cover. The tending regimes for all the species were designed to produce high-quality, clear, butt logs which would be sawn in Rotorua and sold on the domestic market. The economic analysis included, for each species, the calculation of the internal rates of return and the net present values at the 5 % and 10 % real discount rates (on a pre-tax basis). The analysis indicated that the following real rates of return could be expected for each species: radiata pine 4.0-9.9%; cypresses 4.0-8.0%; eucalypts 3.1-7.5%; blackwood 5.3-8.0%; and black walnu