Product description: These are commercial projects intended to grow trees of different species, harvest and process them for sale. Such projects are common in many countries. For example in North American countries there are many and large tree plantations or farms for the purpose of producing "Christmas trees" alone. Tree farms or plantations can be used for producing timber for the lumber industry, wood for the paper, particle board and other similar industries. These farms can also produce logs fuel. Other purpose of tree plantation can to be to produce fruit and seeds, to keep animals, to obtain feed for domestic animals, to make the sanctuaries for engendered animals, to protect the soil from erosion, etc.
Rationale: Due to extensive deforestation the Amhara Region has lost practically all its natural forest resources. A region which had large forests and huge tracts of land covered with shrubs just fifty years age is now almost barren. Amhara land has not only lost it forests, but it is also losing its soils fast. And soil is the only known natural resource Amhara land has, and this dwindling resource is the source of life of its 19 million people. Hence tree plantations can be justified by the mere fact that it protects the soil from being lost for ever through erosion. In addition tree plantations or farms can have commercial benefits to investors through the sale of timber, logs, fruits and seeds, fodder, etc. Planting of trees on a commercial scale does not only benefit investors, it also benefits the whole people of the Amhara region.
Market Potential: Type of products which could be obtained form tree farms or plantations is listed above. All the products have sufficient market in the region. For example, there is an extreme shortage of timber for the existing wood processing industries. There is a shortage of fuel wood throughout the region. Wood products such as poles used in the construction industry are becoming more expensive and more scare. All these indicate a shortage of forest products in the region which shows the existence of captive markets for products of tree farms or plantations.
Major Inputs: Land which is not suitable for cultivation, nurseries for seedlings, hand tools for planting trees, manpower (unskilled labor).
Estimated Investment: The size of the land where the plantation will take place determines the amount of investment. The larger the land the more the investment. At any rate tree plantation does not require heavy machinery and equipment nor does it need buildings. All it needs is hand tools such as shovels, spades, axes, sickles, etc. For a 10hectare tree farm, the initial investment will not be more than Birr 50,000.
Benefits: Protects the soil from erosion, contributes to the conservation of the ecological balance, adds natural beauty to our land- our region, produces wood and related products to the economy of the region, and creates export potential.
Location: Any place where there is land for tree plantation preferable near urban center.