Conversion And Resource Evaluation Ltd. contributes to "Incentive Scheme for Invader (Encroachment) Bush Management - A Cost Benefit Analysis"
30 June 2009, News release from Conversion And Resource Evaluation Limited
Conversion And Resource Evaluation Ltd. [CARE Ltd.] has been working with Dagmar Honsbein (an official from the Ministry of Finance, Namibia and a policy expert) and the Polytechnic of Windhoek, Namibia on a study on the cost-benefit analysis of removing encroachment bush from farmland in Namibia. The work, funded by the Namibian Agronomic Board, started in late 2008 was completed in June 2009.
Scope of the problem
Some 26 million hectares of prime agricultural land in Namibia are encroached by bush. The Bush Encroachment Research, Monitoring and Management Project has shown that bush thickening results in a reduction of the land's carrying capacity by up to 80% in some areas. In addition, water-use efficiency of natural rangelands has become extremely poor in the encroached areas, which increases the frequency of artificial drought events in a drought-prone country such as Namibia. Since the phenomenon of bush encroachment results in an alarming loss in productivity of Namibian savannas, it is commonly regarded as part of the desertification process.
Bush encroachment has increased drastically over the last 30 years. The Bush Encroachment Research, Monitoring and Management Project, in 2004, estimated that some 10 million hectares of commercial farmland were infested with invader bush in 1970, whilst this figure had increased to 16 million hectares by 2004 in commercial areas. Bush infestation mainly occurs in the higher rainfall areas of the country, where cattle and beef production is dominant. The overall objectives of the work were:
Conversion And Resource Evaluation Ltd. tasks
CARE Ltd. carried out the cost-benefit analysis for a wide range of options, specifically include, the cost benefit analysis [CBA] and cash flow for:
From this, the subsequent value added options for the cleared invader bush were evaluated:
From the calculation of the NPVs under a range of circumstances, the following results were obtained:
The results of the CBA will be used by the Namibian Agronomic Board to direct future policy in the utilisation of bush and the optimal ways of supporting clearance activities for increased livestock production.
Conversion And Resource Evaluation Ltd.
Formed in 1996, C.A.R.E. Ltd. has been working on the research, development, demonstration and commercialisation of advanced thermal conversion technologies for the product of heat, power, combined heat and power and green chemicals from biomass and wastes. C.A.R.E. Ltd. specialises in technical and engineering services to the bio-energy and energy from wastes industry. Our extensive practical experience in combustion, gasification and pyrolysis allows CARE to deliver effective technical solutions to the developing bio-energy industry.
For further information on these and other services offered by C.A.R.E. Ltd., contact:
Dr. C. Peacocke
Conversion And Resource Evaluation Ltd.,
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For further information please email Conversion And Resource Evaluation Limited