Open Journal of Forestry, 2021, 11, 83-107
https://www.scirp.org/journal/ojf
ISSN Online: 2163-0437
ISSN Print: 2163-0429
DOI: 10.4236/ojf.2021.112007 Apr. 2, 2021 83 Open Journal of Forestry
Economic Viability of Smallholder Agroforestry
and Beekeeping Projects in Uluguru Mountains,
Tanzania: A Cost Benefit Analysis
Willickister R. Kadigi
1
, Yonika M. Ngaga
1
, Reuben M. J. Kadigi
2
1
Department of Forest and Environmental Economics, College of Forestry, Wildlife and Tourism, Sokoine University of
Agriculture, CHUO KIKUU, Morogoro, Tanzania
2
Department of Food and Resource Economics, School of Agricultural Economics and Business Studies, CHUO KIKUU,
Morogoro, Tanzania
Abstract
Agroforestry and beekeeping are widely promoted as prospective Nature-
Based Income Generating Activities (NIGAs) to improve livelihoods while at
the same time enhancing biodiversity conservation in degrading agro-ecologies.
These activities can diversify and increase famers’ incomes and support in-
stinctive biota and fauna resilience. However, evidence to showcase and com-
pare their long-term benefits is scant. We use the case of Uluguru Mountains in
Tanzania to evaluate and compare viability of agroforestry and beekeeping
projects using the Cost Benefit Analysis (CBA) approach. The results of anal-
ysis yielded positive NPVs for both agroforestry and beekeeping projects at
discount rates not higher than 8.2% and 8.5% respectively. Overall, the com-
parison of economic viability between agroforestry and beekeeping projects
revealed that the former was relatively more profitable than the later in terms
of both the NPV and Benefit Cost Ratio (BCR) criteria. However, the Internal
Rate of Return (IRR) for beekeeping was slightly higher than that of agrofore-
stry. Yet, we underscore the fact that these two projects can jointly be imple-
mented to enhance livelihoods of farmers and support biodiversity conserva-
tion in the study area and other parts with similar agro-ecologies in develop-
ing countries. However, farmers in these agro-ecologies need to be supported
by governments and non-government development partners in terms of
training and inspiration to shift from orthodox farming to sustainable NI-
GAs.
Keywords
Uluguru Mountains, Uluguru Forestry Reserve, Cost Benefit Analysis, Net
How to cite this paper: Kadigi, W. R.,
Ngaga, Y. M., & Kadigi, R. M. J. (2021).
Economic Viability of Smallholder Agrofo-
restry and Beekeeping Projects in Uluguru
Mountains, Tanzania: A Cost Benefit Analy-
sis. Open Journal of Forestry, 11, 83-107.
https://doi.org/10.4236/ojf.2021.112007
Received: December 22, 2020
Accepted: March 30, 2021
Published: April 2, 2021
Copyright © 2021 by author(s) and
Scientific Research Publishing Inc.
This work is licensed under the Creative
Commons Attribution International
License (CC BY 4.0).
http://creativecommons.org/licenses/by/4.0/
Open Access