Biotic and abiotic stresses have been making it difficult to maintain the rates of genetic gains in forest tree breeding. Planting a mixture of genotypes or clonal composites can be an alternative to increase the security of forest plantations. The formation of clonal composites is complex due to inter-genotypic competition and indirect genotypic effects that can affect the efficiency of genetic selection. This study aims to understand how indirect genotypic effects can impact the response to selection and how the stand composition can be used to explore these effects and enhance forest yield. We used two clonal trials of eucalyptus hybrids implanted in a randomized complete block design with 24 replications, containing a single tree per plot evaluated for mean annual increment at 3 and 6 years. We focused on partitioning the genotypic variation into direct and indirect genotypic effects based on competition intensity factors. We identified aggressive, homeostatic, and sensitive clones based on the magnitude of indirect genotypic effects. Considering indirect genotypic effects, for mean annual increment, the total heritability decreased from 0.25 to 0.10 for 3 years and from 0.30 to 0.14 for 6 years, respectively. We proposed a workflow that uses the direct and indirect genotypic effects to predict the mean values for clonal composite combinations and to select the one with the highest yield. Our methodology considered spatial variation and interplot competition that can affect the total heritable estimates and response to selection in forest trials. The clones were classified as aggressive, homeostatic, and sensitive, according to their deviation from the indirect genotypic effects means. Our methodology enabled the extraction of useful information and predict many clonal composites' performance, which can be used in recommending genotypes to be planted in mixtures.
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