Financial Analysis of a Tropical Forestry Enterprise - Realized in the Deramakot Reserve, Malaysia, by Application of the Forest Growth Model FORMIX3Q

This study analyzes the financial viability of three forest management scenarios for the Deramakot Forest Reserve in Sabah, Malaysia: Reduced Impact Logging (RIL), Low Impact Logging (LIL) and Conventional Logging (CL). Three sustainable Annual Allowable Cuts (AAC) were calculated with the process-based model FORMIX3Q. The study reveals that harvesting is feasible even under the current degraded conditions and suggests an AAC of 10,000 m3/year for at least 40 years. The integration of a costing module allowed combining the surveyed cost and revenue-related data of the harvesting scenarios with key data, e.g. the AAC, as well as a detailed analysis with financial indicators, and a sensitivity analysis. The module also provides the total balance sheet and internal cost distribution.