The fast growth rate of Eucalyptus to provide possible products for the livelihood consumption and for the market has over won the continuing planting of the species irrespective of the policy resistant from the policy makers in Ethiopia. Until the end of the 1990s, the main tree seedling produced in government nurseries was Eucalyptus, but starting from the early 2000s, production of Eucalyptus in government nurseries has been given up. On the contrary, Eucalyptus gives some attention for concern in the context of diversified plantations by smallholder farmers, because owing to its importance to the household livelihood strategy by providing income and wood products for household consumption. With a large proportion of the world population in general, and of developing countries such as Ethiopia in particular, depending on wood for cooking and heating, the economic importance of Eucalyptus is immense. Eucalyptus outputs have significant impacts of change on rural livelihoods. The objective of the study is to review existing literature on Eucalyptus from science, policy, and farmers’ perspectives and to assess the local market value and commercialization of Eucalyptus by farmers. In this study it was found that Eucalyptus wood products contributes 78 % of the local market economy for firewood, 100 % each for construction poles and posts, 20 % for charcoal and 93 % for the four wood product types at Huruta town which amounts a total of birr 99,867 ($ 12,484) in two weeks in 2005 markets and which is $15,189 when discounted at 4 % interest rate at the current market. Farmers have remarked that planting fast growing trees like Eucalyptus is the best alternative strategy to minimize the existing firewood scarcity in the locality rather than the use of cow dung and crop residues. The three extensive benefits farmers can obtain if they choose to grow Eucalyptus as a commercial tree on their land are (i) diversifying their farm income by growing it as a crop; (ii) increasing the productivity of their existing farm endeavour; and (iii) improving the sustainability of their current farming system.
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