Technical and economic viability of Eucalyptus sp. coppice for charcoal production

Abstract

The aim of this study was to compare the properties of wood and charcoal of Eucalyptus sp., from two silvicultural systems (replanting and coppicing), in addition to assessing the economic viability of both systems, through the financial indicators Net Present Value (NPV), Internal Rate of Return (IRR) and Payback. The study was carried out in a charcoal producing company, located in the municipality of Itamarandiba, Minas Gerais, Brazil. The results showed that the wood from the coppice system has a lower Mean Annual Increment and a higher heartwood/sapwood ratio, producing a more friable charcoal and with lower productivity compared to the replanting system. Regarding the economic analysis, both systems were economically viable, with an IRR greater than the discount rate and a positive NPV. Comparatively, the economic results of the coppice system were slightly better, presenting less vulnerability in the sensitivity analysis regarding fluctuations in the price of charcoal. The option for coppice may be interesting for the producer due to its lower financial expenditure and satisfactory economic results, although with lower product quality.