Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak

Agricultural activities on peat soil are quite common in Malaysia. There are about 2.4 million hectare of peat in the country with 60% of this is located in Sarawak. Pineapple has been traditionally cultivated on peat soil in Malaysia as is the case in Samarahan, Sarawak. The economic value of pi...

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Main Author: Daud, Adrian
Format: Thesis
Language:English
English
Published: 2009
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Online Access:http://psasir.upm.edu.my/id/eprint/9855/1/FEP_2009_7_A.pdf
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spelling my-upm-ir.98552013-05-27T07:44:03Z Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak 2009-08 Daud, Adrian Agricultural activities on peat soil are quite common in Malaysia. There are about 2.4 million hectare of peat in the country with 60% of this is located in Sarawak. Pineapple has been traditionally cultivated on peat soil in Malaysia as is the case in Samarahan, Sarawak. The economic value of pineapple cultivation on peat soil should measure beyond private benefits (profit) and include global/social benefits (carbon sequestration value and willingness-to-pay value for better environment). Farmers surrounding the Integrated Agricultural Development Area (IADA) prefer to plant pineapple by using traditional method which means they are not maximizing their returns by planting at a much lower density than recommended by IADA. The high cost in fertilizer associated with pineapple cultivation caused some farmers to resort to plant at a lower density. The returns of the farmers are compared to the potential return with the matrix system (high-density planting). These farmers are also using the traditional method of residue burning which is harmful to the environment. There is a need to emphasize on the proper management of our resources like the sustainable utilization of natural resources such as peat soil. The practice of zero burning technique (ZBT) in pineapple cultivation has the advantage of greater carbon sequestration in soil compared to the traditional practice of residue burning and this the indirect benefit of using ZBT. The value of using ZBT is compared to residue burning technique in terms of net present value (NPV) by using costbenefit analysis (CBA). The total economic value (TEV) is the sum of the private benefits and global/social benefits. There is the incentive to adopt ZBT as it gives higher value than residue burning technique. Farmers who switch to ZBT may experience lower profitability (private benefits) but it results in higher global/social benefits especially through the value of soil carbon sequestration. In the long run it is environmentally sound as it results in the sustainable use of natural resources. The benefit of soil carbon sequestration can compensate the extra cost associated with ZBT. The market price of carbon should be at least RM6.72/tC for ZBT to yield similar total benefits with residue burning technique. The total economic value (TEV) shows that ZBT offers greater net benefit than residue burning. Adopting sustainable practices such as ZBT in our agricultural system is a good step in the utilization of natural resource and should be practiced extensively. Pineapple - Sarawak - Case studies Pineapple - Economic aspects - Sarawak Peat soils - Sarawak 2009-08 Thesis http://psasir.upm.edu.my/id/eprint/9855/ http://psasir.upm.edu.my/id/eprint/9855/1/FEP_2009_7_A.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Pineapple - Sarawak - Case studies Pineapple - Economic aspects - Sarawak Peat soils - Sarawak Faculty of Economics and Management English
institution Universiti Putra Malaysia
collection PSAS Institutional Repository
language English
English
topic Pineapple - Sarawak - Case studies
Pineapple - Economic aspects - Sarawak
Peat soils - Sarawak
spellingShingle Pineapple - Sarawak - Case studies
Pineapple - Economic aspects - Sarawak
Peat soils - Sarawak
Daud, Adrian
Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
description Agricultural activities on peat soil are quite common in Malaysia. There are about 2.4 million hectare of peat in the country with 60% of this is located in Sarawak. Pineapple has been traditionally cultivated on peat soil in Malaysia as is the case in Samarahan, Sarawak. The economic value of pineapple cultivation on peat soil should measure beyond private benefits (profit) and include global/social benefits (carbon sequestration value and willingness-to-pay value for better environment). Farmers surrounding the Integrated Agricultural Development Area (IADA) prefer to plant pineapple by using traditional method which means they are not maximizing their returns by planting at a much lower density than recommended by IADA. The high cost in fertilizer associated with pineapple cultivation caused some farmers to resort to plant at a lower density. The returns of the farmers are compared to the potential return with the matrix system (high-density planting). These farmers are also using the traditional method of residue burning which is harmful to the environment. There is a need to emphasize on the proper management of our resources like the sustainable utilization of natural resources such as peat soil. The practice of zero burning technique (ZBT) in pineapple cultivation has the advantage of greater carbon sequestration in soil compared to the traditional practice of residue burning and this the indirect benefit of using ZBT. The value of using ZBT is compared to residue burning technique in terms of net present value (NPV) by using costbenefit analysis (CBA). The total economic value (TEV) is the sum of the private benefits and global/social benefits. There is the incentive to adopt ZBT as it gives higher value than residue burning technique. Farmers who switch to ZBT may experience lower profitability (private benefits) but it results in higher global/social benefits especially through the value of soil carbon sequestration. In the long run it is environmentally sound as it results in the sustainable use of natural resources. The benefit of soil carbon sequestration can compensate the extra cost associated with ZBT. The market price of carbon should be at least RM6.72/tC for ZBT to yield similar total benefits with residue burning technique. The total economic value (TEV) shows that ZBT offers greater net benefit than residue burning. Adopting sustainable practices such as ZBT in our agricultural system is a good step in the utilization of natural resource and should be practiced extensively.
format Thesis
qualification_name Doctor of Philosophy (PhD.)
qualification_level Doctorate
author Daud, Adrian
author_facet Daud, Adrian
author_sort Daud, Adrian
title Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
title_short Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
title_full Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
title_fullStr Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
title_full_unstemmed Economic Valuation of Pineapple Cultivation on Peat Soil at the Integrated Agricultural Development Area, Samarahan, Sarawak
title_sort economic valuation of pineapple cultivation on peat soil at the integrated agricultural development area, samarahan, sarawak
granting_institution Universiti Putra Malaysia
granting_department Faculty of Economics and Management
publishDate 2009
url http://psasir.upm.edu.my/id/eprint/9855/1/FEP_2009_7_A.pdf
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