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This study was carried out to examine the productive efficiency of small-scale sawmills in Mufindi District. The specific objectives were: (i) to assess the relative efficiency of small-scale sawmills in Mufindi, (ii) to identify factors for variation in the small scale sawmill’s relative efficiency and (iii) to provide policy recommendations for efficiency improvement in utilization of forest resources. A structured questionnaire was used to collect data from 80 small-scale sawmills in Mufindi District. Data were analysed using descriptive as well as quantitative methods. Technical, scale and allocative efficiency score of sawmills were computed using data envelopment analysis programme developed by Coelli. Censored regression models were estimated to identify factors for inefficiency of smallscale sawmills. Results showed a mean technical efficiency of 84% (CRS model) and 92% (VRS model), allocative efficiency of 84% (CRS model) and 89% (VRS model) and cost efficiency of 70% (CRS model) and 81 % (VRS model). Furthermore, results from the censored regression model revealed that Owners/manager’s education, experience, the size of the sawmill timber yard and partnership ownership had positive effects on sawmill’s efficiency while machine age had a negative effect on sawmill’s efficiency. Recommendations for enhancing small-scale sawmills production efficiency are: Strengthening extension services to increase sawmilling experience, and insistence on partnership ownership of sawmills. Since mill size positively enhanced sawmills’ relative efficiency, anincrease of the size of mills must receive priority. Squeezing sawmill area as a result of increased number of sawmills leads to inefficiency. Lastly but not least, the use of sawmilling by products particularly chips, saw dusts and slabs should be promoted as it is a way of increasing efficiency in sawmilling.

Most Catchment Forest Reserves (CFRs) in Tanzania are managed in collaboration between government and communities through Joint Forest Management (JFM). In these forests, harvesting of timber and other valuable products are strictly prohibited. This led to minimal incentives for communities’ participation in conservation. To readdress this anomaly, ecosystem goods and services are optimised to provide compensation fordeferring timber benefits. This study aimed at developing an optimisation model based on sale of carbon and beekeeping activities. The study was conducted in Morogoro and Iringa regions in and around Kimboza and New Dabaga Ulongambi-(NDU) FRs respectively. The incentive model was developed using two decision variables (carbon and honey) and a set of constraints using linear programming. The model output revealed optimal returns ranging from USD 2025 to 6144 per forest per year in Kimboza andNDU FR respectively. Small returns in Kimboza were associated with small size of the forest reaching maximum at threshold between 615 and 1536 ha from a combination of carbon and honey. It is recommended to involve higher forest size (more than 600 ha) for community to maximise incentives particularly when carbon alone is considered. With lower forest size beekeeping activities become important.Keywords: Catchment Forest Reserves- Communities-Incentives-LinearProgramming-Carbon-REDD+NTFPs- Honey-Tanzania

Loss of tree diversity through improper land use practices such as overgrazing and poor farming practices in tropical areas and other natural ecosystems is one of today's most worrying environmental problems. This study was conducted to assess the impact of farming and pastoralism on tree species diversity in two forests each owned and managed by pastoral and farming communities in Kilosa District. Household survey solicited information on perceptions of local communities on drivers that influenced tree stocking and diversity of their forests. A forest inventory was conducted involving twenty circular in each system plots laid along two transects. In each plot, trees and shrubs with DBH > 5 cm were measured for DBH and height. A total of 48 different species were recorded out of which 75%were tree species and 25% shrubs species. The forest under pastoral system had a Shannon - Wiener Index (H’) of 3.13 as opposed to farming system with an index of 2.05. Average stocking for the forest under pastoral system was 235 stem ha-1, whereas that of farming system was 209 stem ha-1. Basal areas of 13m2ha-1 and 6m2 ha-l were recorded for forests under pastoral and farming systems respectively. Standing volume showed the same tendency where 216m3ha-1 was recorded from the forest under pastoral system as opposed to 100.12 m3ha-1 from the other forest. The high loss of species diversity and stocks particularly in the forest under farming system were attributed to anthropogenic disturbances including cutting trees for farm expansion, charcoal making and house construction. Although the assessment on the community perception on the loss of tree diversity in the area showed conflicting interests between the two societies each blaming activities of each community as major causes of forest degradation. This calls for more enforcement of rules and regulations and tree planting in degraded areas predominantly in the farming communities. The study further revealed that the existing tensions over land resource ownership between the two communities of farmers and pastoralists may be contributing factors of unsustainable use of tree species and other forest resources. It is recommended that interventions should be done to settle conflicts over land resource ownership and management between the two villages as well control proliferation and dominance of Acacia nilotica as a way to improve pasture and improve species diversity in the area. Key words: Tree stocking - rules and regulations - anthropogenic disturbances