Abstract:
A study on management cost in government and private forest plantations in Tanzania was
carried out at Sao Hill Forest Plantation and Mapanda Forest Plantation. Specifically, the
study identified management costs of Sao Hill and Mapanda forest plantations, examined
factors influencing management costs of Sao Hill and Mapanda forest plantations and also
assessed cost management strategies used by Sao Hill and Mapanda forest plantation all for
the past five years. Socio-economic data were collected through checklists and structured
questionnaires. Data were collected from the two projects treasurer’s offices of Sao Hill
Forest Plantation and Mapanda Forest Plantation head offices in Mafinga. Qualitative data
were analysed through content and structural-functional analysis. Quantitative socioeconomic
data were analysed using descriptive and inferential statistical methods. The
results show that average real management costs for Sao Hill Forest Plantation (SHFP) is
TAS 520 000/ha/year and TAS 345 000/ha/year for Mapanda Forest Plantation (MFP) and is
significantly influenced by salaries and wages (45.5%), soil ingredients (27.6%) and seed
purchase (16.4%), fire protection( 23.1%), pitting and planting (14%), weeding (5%),
pruning (0.9%) and beating up (0.6%). It was further revealed that the main factor
contributed to higher management cost in Sao Hill forest plantation is lack of knowledge on
cost management strategies. It is recommended that the government should use
management costs as the basis for setting or changing royalty fees and also review the cost
management strategies so that they can further attain the lowest unit real costs.
