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Survey and Cost-Benefit Analysis of Camellia brevistyla Managemen

  • Date of declaration:2018-10-31
Jiunn-Cheng Lin, Yi-Hung Chen, Pei-Jung Wang, Meng-Shan Wu
Year
2019
Key Words
oil-tea camellia, Camellia brevistyla, cost-benefit analysis, net present value.
Abstract

In recent years, food security issues have focused public awareness on edible oils. By boosting the oil-tea camellia industry, the production of camellia seed oil can provide healthy, safe, locally produced edible oil. In addition, as camellias grow, they form deep roots for anchorage. The wide-spreading fibrous root systems of camellias have an outstanding water-retention capacity. Therefore, subsidies are paid to promote the planting of oil-tea camellia in projects to adjust farming systems and activate agricultural land use, and to alter farming practices after abandoning betel-nut plantations. This study conducted interview surveys on production costs and profits of Camellia brevistyla. The benefits of investing on oil-tea camellia were measured by the net present value (NPV), internal rate of return (IRR), and a sensitivity analysis. Results indicated that with a peak harvest, the annual production of oil-tea camellia seeds reached ≥1500 kg×ha-1. Forty years of planting yielded an NPV of as much as NT$533,922 in total. The IRR of the investment was as high as 9.6%. Hence, the investment proved to be a feasible management project. Although the 20-year payoff period for an output of 1500 kg×ha-1 might lower farmers’ willingness to participate in the project, results of the sensitivity analysis showed that positive returns could be yielded as early as the 13th year of cultivation if the annual output could be increased to more than 2500 kg×ha-1. In case of a lean crop year with a drop in the annual output of 70%, the NPV might still be positive, because of changes in the external environment, such as costs, a bumper crop year or crop lean year, or oil content, having little impact on the NPV. It is advised to prioritize improvements in camellia varieties in order to achieve stable economic profits: grafting of high-yield breeds in older tea groves and cultivating high-yield breeds in new tea grove plantations. Moreover, the study discovered that the NPV is most affected by the volatility of the oil content. To cope with that, education for farmers on applying adequate fertilizers, tending, and ameliorating conditions for oil-tea camellia cultivation should be enhanced. With the total volume of oil production being boosted, the production of oil-tea camellia can effectively yield high benefits.