London, UK, 28 February
2006 - Half the world’s 1.2 billion poor
people depend on harvesting wild natural
resources for their livelihoods. These resources
include what are known as ‘non-timber forest
products (NTFPs)’, such as cocoa, rubber,
incense and other plant derivatives. The
value of NTFPs in global trade is currently
estimated at US$4.7bn annually. But how
can poor communities cash in on these products
in order to lift themselves out of poverty,
without destroying the natural resources
on which they depend?
As a result of their high economic value,
and the fact that harvesting is often less
environmentally damaging than timber extraction,
commercialisation of NTFPs has attracted
great interest from development and conservation
organisations. Over the last 15 years, many
attempts have been made to develop these
products commercially in ways that contribute
to environmental conservation as well as
economic growth. But while some attempts
have been successful, many others have failed
to deliver the expected benefits.
A new UNEP-WCMC report, entitled Commercialization
of non-timber forest products: factors influencing
success, describes the results of an international,
multi-disciplinary research project (CEPFOR),
which looked at why some commercialization
initiatives succeed while others do not.
The research examined 19 different NTFP
case studies in Mexico and Bolivia, including
products ranging from wild mushrooms and
palm fibres to incense and the agave-based
traditional beverage, Mezcal. In many areas
these products provide the only source of
income, and communities are dependent on
them for survival.
The research examined aspects of commercialization
such as ‘fair-trade’ and ‘eco-labelling’,
the role of entrepreneurs, and effects on
environmental sustainability. Key findings
include:
• Eco-labelling may present a barrier to
rural communities. Eco-labelling, while
providing a financial incentive for environmental
sustainability, was found to be expensive
and bureaucratic and out of reach of many
rural communities.
• Entrepreneurs can play a critical role
in determining whether the trade is ‘fair’.
Entrepreneurs often provide a link between
the producers and the market place. Their
behaviour can have a major influence on
whether trade is fair to producers or not.
In the CEPFOR research, entrepreneurs were
found to play a number of positive roles,
including identifying markets, providing
business contacts, advancing capital and
providing training to producers. However,
the inequitable distribution of power along
the market chain was widely considered by
producers to be a major factor limiting
commercialization success.This reflects
the relatively small number of entrepreneurs
active in the commercialization of many
forest products, resulting in a lack of
competition. Many communities are entirely
dependent on one or a few entrepreneurs
for bringing their products to market, which
can result in exploitation and ‘unfair’
trade.
• Product price often does not vary in accordance
with changing costs. Globalization is having
a severe impact on many producers in developing
countries, who increasingly have to face
competition with cheaper imported goods.
As a result, the price obtained by some
of the products (such as soyate palm) has
remained static over many years.
• Brand identity is often poorly developed.
A strong brand identity is critical to obtaining
a fair price. Producers need assistance
to help develop a brand identity, from people
skilled in business and marketing.
• Harvesting methods are often poor. One
of the biggest risks to commercialization
of wild resources is that they may be overharvested,
leading to degradation of natural resources.
Research results indicated that such overharvesting
is widespread. This can however be successfully
addressed through training and education.
A key recommendation of the research is
that aid should be targeted at developing
the business skills of rural communities
to help them avoid exploitation by others.
Many rural communities do not have a tradition
or experience of doing business. “Why not
provide learning opportunities to rural
people in developing countries in the same
way that Sir Alan Sugar’s TV programme ‘The
Apprentice’ educates young people here to
do business? I’d like to see the UK exporting
its business acumen to help these rural
communities develop economically as part
of the international aid that it provides,”
comments Adrian Newton of Bournemouth University,
one of the researchers on the CEPFOR project.
Another recommendation is that support should
be given to socially-minded entrepreneurs.
‘Such entrepreneurs deserve support, because
of the risks that they take and the critical
role that they play in commercial success’
states Dr Kathrin Schreckenberg (ODI), a
member of the research team. ‘Another key
finding was the importance of producer organizations,
which can provide opportunities to come
together and share information and contacts.
This can greatly strengthen their ability
to negotiate favourable business deals,
and command a higher price for their products’.
‘Many producers in developing countries
are extremely poor, and have little access
to health care or education’, adds Elaine
Marshall (UNEP-WCMC), coordinator of the
project. ‘Their geographical isolation and
lack of access to transport infrastructure
also constrain their ability to market their
products. Given these difficulties, communities
should perhaps specialise in producing high
quality products or goods. However, there
is no doubt that if provided with the right
kind of support, trading forest products
can genuinely provide a route out of poverty’.
EDITOR’S NOTES
1. Non-timber forest products (NTFPs) include
a wide range of commercial products traded
internationally, including nuts, seeds,
fibres, resins, fruits, oils and spices,
used for foods, crafts and medicines, among
many other uses.
2. The report Commercialization of non-timber
forest products: factors influencing success,
edited by Elaine Marshall, Kathrin Schreckenberg
and Adrian Newton, is published by the UNEP
World Conservation Monitoring Centre (http://www.unep-wcmc.org).
The report is available in English and Spanish
as a free download at: http://quin.unep-wcmc.org/forest/ntfp/outputs.cfm.
Hard copies are available from Dr Adrian
Newton, anewton@bournemouth.ac.uk (address
above). It is being launched on March 6th,
at the start of ‘Fair trade fortnight’.
3. The research project (CEPFOR) on which
this report is based was a collaborative
venture a collaboration between the UNEP
World Conservation Monitoring Centre (UNEP-WCMC),
the Overseas Development Institute (ODI),
Bournemouth University, and five locally
based organisations in Bolivia and Mexico,
and was sponsored by the UK’s Department
for International Development, Forestry
Research Programme.
4. The report includes a computer model
for assessing the viability of new products
and offers a toolkit for identifying those
products that are more likely to be successful
– or for identifying potential problems
before they arise.
5. Quote from one of the Bolivian producers
involved in the project: ‘The rain forests
are our bank – when we go and harvest the
resin from our trees, it is a way of earning
interest on our capital’. Quote from community
member in Guerrero, Mexico: ‘Those of us
who earn enough money from the forest products
to be able to stay in the community and
not have to migrate to look for work, consider
it a huge success’. Quote from community
member, Santa Rosa Challana, Bolivia: ‘We
are realising that to be successful in the
rubber trade has meant needing to innovate
and diversify our products, and trying to
respond to new customer demands’.
6. The fair trade movement has recently
witnessed a rapid growth in interest, both
in the UK and overseas. A number of organisations
are now offering products that have been
bought on the basis of a fair trade, for
example by buying direct from producers
at better prices. Some 19 organisations
now run Fairtrade Labelling Organisations
International (FLO) (http://www.fairtrade.net/),
which is an international standard setting
and monitoring body that labels products
that have been fairly traded. Examples of
fairly traded products growing rapidly in
popularity include Divine chocolate (http://www.divinechocolate.com/)
and Traidcraft tea and coffee (http://www.traidcraft.co.uk/).
7. Two high-profile attempts to commercialise
non-timber forest products in ways that
support the economic development of rural
communities include Ben & Jerry’s “Rainforest
Crunch” ice cream, and the Body Shop’s brazil
nut oil. However both of these have been
criticised for failing to deliver the expected
benefits: eg see http://www.jonentine.com/articles/boston_globe.htm;
http://www.mcspotlight.org/beyond/companies/bs_ref.html
