Eucalyptus chips export from Pakistan
Eucalyptus chips export from Pakistan
Kanwar Muhammad Suleman and Muhammad Ayaz
ABSTRACT
Eucalyptus timber grown under social and farm forestry
programs in Pakistan finds no firm footing in the local
timber trade due to various reasons. This situation
needs to be redressed to break the deadlock in
eucalyptus marketing as well as for the promotion of
afforestation programs by creating better profitability
from planting Eucalyptus. Beside many other marketing
and utilization measures the export potential of
Eucalyptus wood chips from Pakistan could be an
alternative to improve eucalyptus marketing and hence
its profitability and production. In the present study
benefit cost analysis has been carried out to determine
the economic feasibility of manufacturing Eucalyptus
chips at the stump for export purposes. The results of
this analysis showed that at present the marketing
margin in export of Eucalyptus chips from Pakistan is
negative because of high production cost than the price
offered in the international market. Higher production
cost is mainly due to scattered supplies, higher
transportation cost, small scale of chipping and need of
integration in the processing of Eucalyptus wood.
However, chip production cost could be reduced through
economies of scale, specialization, using improved
technology and cut down in the transportation cost.
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September 1995
Vol. 45, Iss. 3
