11. SOCIO-ECONOMIC ISSUES IN AGROFORESTRY

11.6  Economics of agroforestry

In several of the Case Reports in this book, farmers reported on the value of growing trees both for supply of products for their own use and to boost the family's cash income. A third aspect is the reduced need to spend cash on buying commodities which can be produced on farm if agroforestry systems are fully developed and adopted.

In a recent study in Vihiga Division, Kakamega District, on the socio-economic aspects of Eucalyptus growing on small-scale farms, Gustavsson and Kimeu (1991) found the following:

• An average farmer put 20% of his total land area under Eucalyptus trees for fuelwood, as a cash crop (selling poles) and as a source of building material. Each farmer saved Sh 5,000 annually when he was self-reliant in fuelwood.

• The products mainly harvested were poles, firewood, fencing posts and timber. These products were sold to dealers either from nearby Majengo market or from Kisumu town.

•  Wood fetches an average of Sh 210 per cubic metre when the buyer does the harvesting.

•  Fuelwood prepared for sale in small bundles fetches Sh 1,200 per cubic metre and dealers noted that the prices had doubled over the last few years.

• Timber fetches Sh 600 per cubic metre.

Gross-margin calculations showed that growing Eucalyptus was very profitable, with only tea exceeding it. The cash income from Eucalyptus is most important on farms that are less than 2 ha and where other crops cannot be produced on a sufficient scale.

Another recent study on the socio-economic aspects of Grevillea growing on small-scale farms in Kirinyaga District (M'Mutungi, 1991) concluded that:

•  It is clear that the benefits outweigh the investment costs and therefore Grevillea can profitably be grown commercially

• Crop-yield loss was insignificant where pruning was done regularly

• Farmers growing Grevillea were found to be self-reliant in fuelwood

•  The trees act as security during drought or periods of delayed payment for cash crops such as coffee. Trees are usually sold to cater for emergencies and pressing financial needs, e.g. school fees.

• There is a bright future market if farmers are educated on timber quality and the management needed.

One hectare with 150 Grevillea trees grown with crops was estimated to give the farmer a net income of Sh 2,800 annually from the Grevillea trees alone. In addition, the trees had many environmental and other benefits which cannot be quantified in monetary terms.

From these and other studies it is obvious that agroforestry is highly profitable and deserves continued attention in Kenyan agricultural and forestry extension, and in training and formal education.