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http://dx.doi.org/10.14578/jkfs.2015.104.2.248

Optimal Production Management Strategy for Non-timber Forest Products using Portfolio Approach - A case study on major fruit trees -  

Won, Hyun-Kyu (Warm Temperate and Subtropical Forest Research Center, Korea Forest Research Institute)
Jeon, Jun-Heon (Department of Forest Economics and Management, Korea Forest Research Institute)
Lee, Seong-Youn (Department of Forest Economics and Management, Korea Forest Research Institute)
Joo, Rin-Won (Department of Forest Policy Research, Korea Research Institute)
Publication Information
Journal of Korean Society of Forest Science / v.104, no.2, 2015 , pp. 248-253 More about this Journal
Abstract
This study applied the portfolio approach as a means to provide decision-making information for the establishment of the optimal production plan for non-timber products. The target items of non-timber forest product were Chestnut, Jujube, Walnut and Astringent Persimmon. The data used in this study were the annual report of forestry production cost survey which contains the annual production, annual gross income, and annual product cost from 2008 to 2013. These data were used to calculate the expected return of non-timber forest product. The objective function in the portfolio models was to minimize the expected return volatility, called risk and the constrain was to achieve the minimum expected return rate. Results indicated that the production ratio of the nuts and fruits in 2013 was 7% for Chestnut, 20% for Jujube, 5% for Walnut and 68% for Astringent Persimmon. Furthermore, portfolio presented that the production ratio was 10% for Chestnut, 9% for Jujube, 3% for Walnut and 78% for Astringent Persimmon in the near future. The cause was analyzed due to maintain stable production and income of Astringent Persimmon and Chestnut. Meanwhile, the revenue of Walnuts and Jujube was in great variation with relatively higher revenues.
Keywords
non-timber forest products; expected return rate; return volatility; portfolio approach; Markowitz models;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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