The Forest Sector Innovation Fund (FSIF), administered by Forestry South Africa, has developed an innovative decision-making support tool for small scale forestry entrepreneurs and larger, existing timber growers.
The Forestry Enterprise Simulator (ForEntSim) was designed to assist small growers in evaluating the feasibility and profitability of forestry enterprises and activities throughout the rotation length. It is a joint initiative by the Department of Forest and Wood Science at Stellenbosch University, the Institute for Commercial Forestry Research and the Forest Economic Service.
The simulator is an open source web-based application for small growers and entrepreneurs interested in entering the industry and helps them to calculate the net present value, equivalent annual income, land expectation value and internal rate of return of one hectare of plantation based on income and costs. It provides an ex-ante simulation of enterprise ventures to test viability and capital requirements to identify potential improvements that will increase profitability.