Cost of Sustainable Timber Forest Management in the State of Acre, Brazilian Amazon

Abstract

This study aimed to generate economics information on sustainable forest management in the state of Acre. Data collection addressed the following points: 1) prices of forest land and timber logs; 2) development and implementation of the Sustainable Forest Management Plan (SFMP) and the Annual Operational Plan (AOP); 3) forest harvesting and 4) timber transport to the sawmill. Basic data were obtained through interviews with forest consultants, timber industry entrepreneurs, and owners of firms involved in forest extraction. Different scenarios were considered: forests located $50 mathrm{km}$, $100 mathrm{km}$, and $150 mathrm{km}$ from the city of Rio Branco; managed areas with and without permanent plots; and with the application of silvicultural treatments. The production cost was obtained using different interest rates, and a 25-year cutting cycle was adopted. In economic terms, forest management activities were evaluated by calculating the net present value (NPV) and the production of log delivered to the sawmill yard was evaluated by calculating the marketing margin. The results generated in this study on forest management practices in the state of Acre allowed us to infer the following main conclusions: 1) the average cost of producing standing timber in an area located $50 mathrm{km}$ from the Rio Branco timber hub increases by approximately $0.82\%$ with the installation and measurement of permanent plots throughout the cutting cycle and 2) the marketing margin for logs indicates that for more distant areas ($150 mathrm{km}$)) this activity is unfeasible.