Economic Aspects of Application of Biotechnologies During Creation of Forest Plantations

S. S. Morkovina (), I. V. Sibiryatkina () and A. V. Ivanova ()
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S. S. Morkovina: G.F. Morozov Voronezh State University of Forestry and Technologies
I. V. Sibiryatkina: G.F. Morozov Voronezh State University of Forestry and Technologies
A. V. Ivanova: G.F. Morozov Voronezh State University of Forestry and Technologies

A chapter in Integration and Clustering for Sustainable Economic Growth, 2017, pp 305-315 from Springer

Abstract: Abstract The article views economic possibilities for creation of forest plantations on the territory of forest fund and areas taken from agricultural turnover. With the help of survey among the managers of enterprises that work in the sphere of forestry, evaluation of risk and income during creation and exploitation of forest plantations was performed. It was established that the age of cutting (or turnover) of forest plantations, together with assortment and agricultural technique of growing, influences significantly the entrepreneurial revenues and risks. Forest plantations with minimal turnover of cutting are the most risky and unprofitable. A criterion of entrepreneurial certainty in effectiveness of creation of forest plantations is combination of acceptable level of revenues with acceptable risk. It is proved that significant factors for development of entrepreneurship in this sphere are measures for support and tax subsidies. A large part of entrepreneurs that work in the forestry sphere of the central part of Russia are not sure in effectiveness of plantation forestry, as these activities are related to risk and uncertainty in receipt of the final result, due to long time intervals of growing plantation trees. The economically expedient plantation forestry is based on combination of two conditions—turnover of cutting for the criterion of maximum of receipt of the targeted assortments and price for assortments that is sufficient for compensation of production costs which appear in the process of cutting. A large contribution into reduction of the turnover of cutting and, as a consequence, reduction of production costs could be done by biotechnologies. It is determined that with the use of biotechnologies, the cost of creation of forest plantations grow significantly. That’s why entrepreneurial structures are not interested in creation of plantations. This task could be solved in the sphere of development and establishment of the State program of support for development of agricultural forestry and plantation forest breeding. The program should envisage economic mechanisms of stimulation of development of plantation forest breeding.

Keywords: Forest plantations; Cost of growing; Biotechnologies; Risks; Entrepreneurship; Q23 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-319-45462-7_32

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DOI: 10.1007/978-3-319-45462-7_32

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