Management cost in government and private forest plantations in Tanzania: case study of Sao Hill and Mapanda plantations, Mufindi District, Tanzania

Abstract

A study on management cost in government and private forest plantations in Tanzania was carried out at Sao Hill Forest Plantation and Mapanda Forest Plantation. Specifically, the study identified management costs of Sao Hill and Mapanda forest plantations, examined factors influencing management costs of Sao Hill and Mapanda forest plantations and also assessed cost management strategies used by Sao Hill and Mapanda forest plantation all for the past five years. Socio-economic data were collected through checklists and structured questionnaires. Data were collected from the two projects treasurer’s offices of Sao Hill Forest Plantation and Mapanda Forest Plantation head offices in Mafinga. Qualitative data were analysed through content and structural-functional analysis. Quantitative socioeconomic data were analysed using descriptive and inferential statistical methods. The results show that average real management costs for Sao Hill Forest Plantation (SHFP) is TAS 520 000/ha/year and TAS 345 000/ha/year for Mapanda Forest Plantation (MFP) and is significantly influenced by salaries and wages (45.5%), soil ingredients (27.6%) and seed purchase (16.4%), fire protection( 23.1%), pitting and planting (14%), weeding (5%), pruning (0.9%) and beating up (0.6%). It was further revealed that the main factor contributed to higher management cost in Sao Hill forest plantation is lack of knowledge on cost management strategies. It is recommended that the government should use management costs as the basis for setting or changing royalty fees and also review the cost management strategies so that they can further attain the lowest unit real costs.