Financial assessment of alternative breeding goals using stand-level optimization and data envelopment analysis

ABSTRACT Choosing traits for breeding requires financial and genetic information. This study introduces a theoretically sound and empirically detailed assessment setup for analyzing two traits from the financial perspective: decay resistance and tree growth. The analysis is conducted in two stages: first (1), a stand-level optimization analysis is applied producing maximum bare land value with the presence of enhanced tree growth or decay resistance. Realized genetic improvement effects in growth were incorporated in the existing growth models by means of genetic multipliers. For decay resistance the genetic gain was based on an assumption of full resistance to decay. Then (2), applying the optimal solutions as outputs, and investments for enhanced tree growth and decay resistance as inputs in a data envelopment analysis, DEA efficient frontiers for three climatic regions, Southern, Central and Northern Finland were revealed. The results indicated that focusing on tree growth in Southern Finland would be more beneficial than in Central and Northern Finland. Further, the DEA showed that efficient frontiers are not identical among the climatic regions, suggesting that separate breeding goals would be applied, too.

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