1. ECONOMIC VIABILITY OF SILVOPASTORAL SYSTEM WITH TEAK (Tectona grandis L.F.) IN NORTHEAST OF PARÁ, BRAZIL Rosana Quaresma MANESCHY, UFPA Antônio Cordeiro de SANTANA, UFRA Jonas Bastos da VEIGA, UFRA Nairobi, Kenya, WCA 2009

2. INTRODUCTION Silvopastoral systems (SPSs) have been considered promising to integrate tree crops in livestock production systems and reclain large areas of degraded pastures of the Brazilian Amazon.Silvopastoral systems (SPSs) have been considered promising to integrate tree crops in livestock production systems and reclain large areas of degraded pastures of the Brazilian Amazon. They are used on small scale by innovative farmersThey are used on small scale by innovative farmers Characteristics of SPS in Northeast State of Pará:Characteristics of SPS in Northeast State of Pará: –Temporary –Grazing in tree plantations –Main trees: paricá (Schizolobium amazonicum Huber ex. Ducke) and teak (Tectona grandis L.f.) –Forage species: Brachiaria humidicola (Rendle) Schweick grass –Livestock: cattle

3. Silvopastoral system with 9-year-old paricá tree and Brachiaria humidicola grass grazed by cattle

4. Silvopastoral system with 3-year-old teak tree and Brachiaria humidicola grass grazed by cattle

5. OBJECTIVES Analyze the economic viability of SPSs with teak established in farm areas, comparing it to traditional tree plantations (TTP) of this species.Analyze the economic viability of SPSs with teak established in farm areas, comparing it to traditional tree plantations (TTP) of this species.

6. MATERIALS AND METHODS Locale: Northeast state of ParáLocale: Northeast state of Pará Soil: mainly OxisoilsSoil: mainly Oxisoils Climate: tropical wet (Am 2 )Climate: tropical wet (Am 2 ) –Mean temperature: around 25° C –Rainfall: 2500 to 3000 mm –Relative humidity: 85% (IBGE, 2008). Northeast of Pará Northeast region of Pará State, Brazil

7. Costs and revenues of both teak-SPS and teak-TTP Interviews: ten farmers Tree density: 1,100 trees/ha Stocking rate: 0.6 – 0.9 AU/ha Wood price: –First and second harvest: US$ 54/m 3 –Final harvest: US$ 250/m 3 Cattle price: US $ 0.83/kg Economic indicators: Net present value (NPV) and Internal rate of return (IRR)

8. RESULTS Costs: Teak-SSP:Teak-SSP: –Whole operation: US$ 7,582/ha –Labor: US $ 674/ha Teak-TTP:Teak-TTP: –whole operation: US$ 7,689/ha –Labor: US $ 659/ha

9. RESULTS Income: Teak-SPS: US$ 44,755/haTeak-SPS: US$ 44,755/ha Teak-TTP: US$ 44,338/haTeak-TTP: US$ 44,338/ha

10. Economic indicators in teak-SPS and teak-TTP in farms of Northeast region of Pará, Brazil.Economic indicators in teak-SPS and teak-TTP in farms of Northeast region of Pará, Brazil.Systems Economic indicators Year IRR (%) NPV (US$)* 8 % rate 12 % rate 14 % rate Teak-SPS2015.686,4672,026763 Teak-TTP2015.416,2901,892646 Source: Data from the survey, 2008. * U.S. $ 1 = R$ 2.40 (exchange rate on November 30, 2008).

11. CONCLUSIONS In the case of teak tree, the SPS is economically more attractive than the TTP. In the case of teak tree, the SPS is economically more attractive than the TTP. The adoption of silvopastoral systems in the Northeast Pará State should be encouraged as an activity over teak monoculture. The adoption of silvopastoral systems in the Northeast Pará State should be encouraged as an activity over teak monoculture.

12. National Council for Scientific and Technological Development (CNPq) Amazon Bank (BASA) Brazilian Agricultural Research Corporation ACKNOWLEDGMENTS