Assessing the Financial Drivers in Eucalypt Nursery Production Systems: A Conjoint Analysis Approach

This paper focuses on an application of conjoint analysis within forestry economics. More specifically, it was used to determine eucalypt plant value perceptions among South African nurserymen, to assess the financial drivers of the eucalypt production system, and to attempt to quantify the trade-offs between attributes of a eucalypt nursery and the selling price of the plants. Utility functions for the selected attributes, and a model estimating the value of eucalypt plants, were developed. Results show that selling price is the most important determinant of perceived value of a package. Nursery production costs appear to be the strongest financial driver within eucalypt production systems, as it is the highest price influencer of all the significant attributes. This paper describes conjoint research, which can be used to determine benchmark selling prices for new and altered environmental goods and services. In general, such a study can assist resource owners and managers with high-level marketing, a pricing system, and competitive-strategy planning.