TITLE:
Economic Viability of Smallholder Agroforestry and Beekeeping Projects in Uluguru Mountains, Tanzania: A Cost Benefit Analysis
AUTHORS:
Willickister R. Kadigi, Yonika M. Ngaga, Reuben M. J. Kadigi
KEYWORDS:
Uluguru Mountains, Uluguru Forestry Reserve, Cost Benefit Analysis, Net Present Values, Benefit Cost Ratios, Nature-Based Income Generating Activities
JOURNAL NAME:
Open Journal of Forestry,
Vol.11 No.2,
April
2,
2021
ABSTRACT: Agroforestry
and beekeeping are widely promoted as prospective Nature- Based Income
Generating Activities (NIGAs) to improve livelihoods while at the same time enhancing biodiversity conservation
in degrading agro-ecologies. These activities can diversify and increase
famers’ incomes and support instinctive biota
and fauna resilience. However, evidence to showcase and compare their long-term
benefits is scant. We use the case of Uluguru Mountains in Tanzania to evaluate
and compare viability of agroforestry and beekeeping projects using the Cost Benefit
Analysis (CBA) approach. The results of analysis yielded positive NPVs for both
agroforestry and beekeeping projects at discount rates not higher than 8.2% and
8.5% respectively. Overall, the comparison of economic viability between agroforestry
and beekeeping projects revealed that the former was relatively more profitable
than the later in terms of both the NPV and Benefit Cost Ratio
(BCR) criteria. However, the Internal Rate of Return (IRR) for beekeeping was slightly
higher than that of agroforestry. Yet, we underscore the fact that these two projects
can jointly be implemented to enhance livelihoods of farmers and support biodiversity
conservation in the study area and other parts with similar agro-ecologies in developing countries. However,
farmers in these agro-ecologies need to be supported by governments and non-government
development partners in terms of training and inspiration to shift from orthodox
farming to sustainable NIGAs.