engleski

Integral Approach to Private Forestry and Game Management- Investment Analysis From Croatian Dinarides

Investing capital in renewable resources like forests represents spatial and temporal management which is significantly limited by the natural potential of a certain habitat (e.g. volume increment, the quantity of food for wildlife, etc.). In other words, the rate of return which is expected by the investor is quite fixed and the only tool by which the investor can increase it is to add additional business activities and/or extent present added-value-chain. In the Republic of Croatian only forests which can be bought by the individual or institutional investors, and in which it is possible to establish commercial hunting ground, are the private forests. Based on these insights we have investigated the characteristics of capital investing in a large-scale private forest, in which besides extensive forest management, the game management takes place. Among 1, 104 hunting grounds the one with the greatest share of forest cover (94%) and the share of private ownership (92%) is taken to be the focus of this case-study (name of the hunting ground: VIII/120 Permani (10, 017 ha)). The theoretical approach is used in which the investor buys all private forests (predominantly consisting of common beech), conducts forest management activities and makes a profit by selling timber. Furthermore, the hunting segment consists of game management for red deer, roe deer, wild boar and brown bear. Both forestry and game management businesses include all relevant costs which are essential for sustainable development and in the end outcoming with the incomes from selling timber and commercializing the hunting right. In the time period of the next 30 years the internal rate of return, net present value and discounted payback period are calculated in order to quantify the investing potential.

Croatia, game management, capital budgeting, private forests, forest management planning

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