Determinants of the production and commercial values of Eucalyptus woodlot products in Wogera District, Northern Ethiopia

Abstract

Background: Growing and planting of Eucalypts tree at a farm level in the form of woodlot has become a common practice among Ethiopian rural households. Currently, Ethiopian smallholder farmers mainly establish Eucalypts woodlot as a part of livelihood portfolio for meeting both household wood consumption and generating cash income. However, empirical evidence is lacking on the extent of households motivation in Eucalyptus woodlot production and factors influencing commercial values of its products. Consequently, this study investigated the factors influencing commercial value of Eucalyptus woodlot products in Wogera district. Methods: Primary data were collected from 120 randomly selected Eucalyptus producer households through pre-tested questionnaires. Multiple linear regression analysis was employed to determine the significant variables affecting commercial values of Eucalyptus products in the study area. Results: The result of the study revealed that different types of local Eucalyptus woodlot products such as pole, worage, mager, split wood and bundle of firewood were produced and used both for households’ consumption and commercial purpose. Moreover, the OLS model result indicated that age (p < 0.1), wealth status (p < 0.1) and woodlot size of households (p < 0.01) positively and significantly determine the commercial value of Eucalyptus woodlot products. While, access to credit service and experience are significant but with negative influence on the commercial values of woodlot products at 5% levels of significance. Conclusion: Generally, production and marketing of Eucalyptus wood products play a significant poverty alleviation role as a source of regular income, local medicine, firewood, fence and construction materials in turn improving the livelihoods of the rural community in Ethiopia. Based on the findings, providing capacity-building training to strength producer’s credit usage on Eucalyptus Woodlot production system should be advisable. Moreover, the stakeholder should establish wood industry to enhance the income generation capacity of Eucalyptus for producers and traders. Finally, to reduce the conflict between crop producers and Eucalyptus producers, cluster planting are advisable.