Profitability analysis of a traditional agroforestry model, in the El Manzanal Quichua Community, Ibarra – Ecuador

Abstract

The Andean Quichua community of El Manzanal, belonging to the parish of Caranqui, continues to apply agroforestry based on native crops and traditional practices. The objective was to carry out a financial analysis of its systems, for this a cash flow was prepared under the implementation of two systems; agroforestry and silvopastoral, with the incorporation of forest species; Alnus acuminata, Buddleja incana and Erytrina edulis, these species will generate wood and firewood, which can be marketed following the cutting cycles and applying appropriate silvicultural management practices. A qualitative and quantitative methodology was proposed, given that oral variables collected through interviews were used, in reference to its scope it is descriptive and non-experimental in design. That is why when establishing a cash flow considering a zero period with an investment of $12,000 and projected to fifteen years of production, a period in which the point of maximum profitability is reached, in the short and medium term, it was evaluated. its profitability using three financial indicators. It was concluded that the proposed model exhibits a positive profitability, with a NPV of $24,337.88, an IRR of 43.1%, and a B/C of $2.83.