Profitability of hybrid aspen breeding in Latvia
¹Forest Competence Centre, Dzerbenes Str. 27, LV1006 Riga, Latvia
²Latvian State Forest Institute ‘Silava’, Riga Str. 111, LV2169 Salaspils, Latvia
³Latvia University of Agriculture, Forestry Faculty, Akademijas Str. 11, LV3001 Jelgava, Latvia *Correspondence: martins.zeps@silava.lv
Abstract:
Hybrid aspen (Populus tremuloides × P. tremula) has fast growth in climatic conditions of Northern Europe and relatively high wood quality. Therefore, breeding of it has been carried out in a number of Baltic Sea Region countries. Breeding requires notable financial investment; therefore, the aim of our study was to estimate the profitability of hybrid aspen breeding in Latvia and the factors affecting it. Financial analysis was based on the differential approach, that is, only the costs and benefits that differ between two compared alternatives – planting of hybrid aspen and natural regeneration of silver birch or common aspen – were compared. Differential gain in this case included additional monetary value of the above-ground parts of trees in planted hybrid aspen stands (values obtained from trials in Latvia); differential costs were the costs of tree breeding, plants, planting, cleaning and protection against browsing damages (repeated use of browser repellents or fencing). Profitability of hybrid aspen breeding was significantly affected by the size of the area planted annually, soil fertility (site index) and length of rotation period. The differential gain from investments in tree breeding and establishment and management of plantations (r = 3%), assuming that selected clones would be used for 15 years and 500 ha are planted annually, in comparison to natural regeneration of common aspen and to silver birch, was 662 EUR ha-1 and 1136 EUR ha-1, respectively. In contrast, if only 50 ha are planted annually, the respective figures were 588 and 756 EUR ha-1. If fencing was used for protection of the hybrid aspen plantation against browsing, the differential gain was positive only on the most fertile soils (site index Ia).
Key words:
differential benefits, Populus tremuloides × P. tremula, site index.