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.