Wood is the most used primary form of energy in developing countries, and most of it is collected free from the wild, thus causing deforestation and its attendant environmental problems. The only possible way to conserve natural forests and woodlands in developing countries such as Tanzania, is by producing wood from planted woodlands. Sustainability in the production of wood from planted woodlands will be achieved only if the woodlands are financially viable. This paper dwells on the financial parameters needing to be considered to produce wood profitably in rural woodlots, taking into account problems which can be encountered in the financial evaluations.
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