Economic assessment of producing a fluting paper using agricultural residues – a case study: Iran, Mazandaran Province

Abstract

Given limited forest resources and increased paper consumption and imports, establishing fluting paper mills using non-wood raw materials seems more essential than ever. This paper aims to investigate, technically and economically, the possibility of establishing a fluting paper mill (with a capacity of 10,000 tons a year) from agricultural residues in Iran's Mazandaran province. The average annual agricultural residues output (including wheat, barley, rice, corn, oil seeds and cotton) in the province was about 1.3 million tons from 2000 to 2010, showing the potential of the province as an appropriate source for providing raw material from agricultural residues. For economic evaluation of the project, economic indices such as rate of return, pay-back period and production break-even point were measured. The results indicated that establishing a fluting paper mill based on agricultural residues is feasible.