Levels of profitability and production expenses are crucial decision‐making tools in any organization. This study was undertaken to assess the profitability of T. grandis and P. patula seeds production in selected forest plantations seed sources in Tanzania. It focused on analyzing the costs, benefits, and profits associated with the production of T. grandis and P. patula seeds from the selected plantation sources. Data were collected using key informant interviews, researcher’s direct field observations, and literature review. The collected information was analyzed using the SPSS (Version 23.0) and Microsoft Excel computer programs. Cost−benefit analysis (CBA) was performed to assess profitability, in which the net present value (NPV), cost−benefit ratio (CBR), and internal rate of return (IRR) were the criteria used for assessing profitability. Findings indicate that T. grandis seed production is a profitable project with an NPV of TZS 3,225,502/ha, CBR of 7.78%, and IRR of 1.28, despite having higher production costs than P. patula seeds. The production of P. patula seeds was observed to be unprofitable with negative NPV, CBR, and IRR of TZS −3,689,000/ha, −24.65%, and 0.14, respectively. It was evident that weeding was the most costly activity in the production of both T. grandis and P. patula seeds. On the other hand, Longuza Forest Plantation was observed to be the most suitable area for producing T. grandis seeds. However, appropriate price decisions and cost control measures are important aspects for ensuring sustainability and maximizing profitability of T. grandis and P. patula seed industry.
Senya et al. (Thu,) studied this question.