Assessing the economic efficiency of typical agroforestry models in Kon Tum

Abstract

This study aims to evaluate the economic efficiency of typical agroforestry
models in Kon Tum province. The method is used to evaluate economic
efficiency through the use of the indicators NPV, BCR and DPP with a
discount rate applied r = 6.5%/year. The analysis and evaluation results
showed that all 27 models have total net profit (NPV) > 0. The total net
profit has a large variation among models from the model of pure forest
plantation (Litsea glutinosa) with a total net profit only reached 79 million
per hectare for a 25 year business cycle to the model NNCNC (Japan Green
Pumpkin) has the same business time but NPV reaches 14,391 million per
hectare. Some models with large NPV and fast payback times are often the
models that require a large amount of investment capital. Others make
smaller investments and the payback period is longer. The models with the
potential to bring a large total net profit and the fast payback period mostly have medicinal factors such as Polyscias fruticosa, Codonopsis sp. and
Angelica sinensis. However, these medicinal plants have only been grown
spontaneously on a small scale in the past few years, so the market (the
purchasing network is still fragmented) has not been shaped. Therefore, in
order to develop and replicate the models of medicinal plants, it is
necessary to have the help of relevant agencies in building markets, brands
and geographical indications for endemic medicinal products of the region.