forest communities and the marketing of lesser-known species...

145
René Forster Harald Albrecht Mirna Belisle Arturo Caballero Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing of lesser-known species from Mesoamerica

Upload: buihuong

Post on 12-Apr-2018

222 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

René Forster

Harald Albrecht

Mirna Belisle

Arturo Caballero

Hugo Galletti

Orlando Lacayo

Spencer Ortiz

Forest communities and the marketing of lesser-known species from

Mesoamerica

Page 2: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used

Tropical Hardwoods in Mesoamerica

Page 3: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing
Page 4: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used

Tropical Hardwoods in Mesoamerica

René Forster

Harald Albrecht

Mirna Belisle

Arturo Caballero

Hugo Galletti

Orlando Lacayo

Spencer Ortiz

Dawn Robinson

Translation: Cathy Barnett and Karen Eaton

Page 5: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in MesoamericaOriginal title: Comunidades forestales y el mercadeo de maderas tropicales poco comerciales de MesoaméricaEnglish Translation by Cathy Barnett and Karen Eaton

1st edition

Cover design by Guadalupe González / Libertad Mena. The cover photo depicts a mayan durmientero carrying a handhewn beam used as railroad tie (durmiente), which weights more than 80 kg.

The opinions expressed in this work may not necessarily coincide with those of the financing institutions; these are theexclusive responsibility of the main author.

ISBN: 968-7864-47-8

Printed in Mexico

Page 6: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

To our children:

Mario, Alfredo, María Fernanda, Manuel, Spencer, Grecia María,

Stephanie Azucena, Paola, Victoria, Levin and Erika

Page 7: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing
Page 8: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Index to boxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.1 Conceptual approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.2 Study Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.2.1 The Reserva de la Biosfera Maya (RBM) in the Petén, Guatemala. . . . . . . . . . . . .1.2.2 The Atlántida Forest Region - Honduras. . . . . . . . . . . . . . . . . . . . . . . .1.2.3 The state of Quintana Roo - Mexico. . . . . . . . . . . . . . . . . . . . . . . . . .1.2.4 Región Autónoma del Atlántico Norte (RAAN) - Nicaragua. . . . . . . . . . . . . . . .

1.3 Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Forest Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.1 Forested areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.2 Potential annual harvest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.2.1 Potential annual harvest in the RBM (Petén) . . . . . . . . . . . . . . . . . . . . . .2.2.2 Potential annual harvest in the Atlántida. . . . . . . . . . . . . . . . . . . . . . . .2.2.3 Potential annual harvest in Quintana Roo . . . . . . . . . . . . . . . . . . . . . . .2.2.4 Potential annual harvest in the RAAN. . . . . . . . . . . . . . . . . . . . . . . . . .

3 Forest Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.1 The rise of community forestry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.2 Regulation of forest use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3.3 Characterization of forest operations . . . . . . . . . . . . . . . . . . . . . . . . . . .3.4 Groups of forestry operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Tropical Hardwood Processing Chains. . . . . . . . . .4.1 Development of industrial infrastructure in the study regions . . . . . . . . . . . . . . . .4.2 Common characteristics of regional production chains . . . . . . . . . . . . . . . . . . .4.3 Production chains in which private companies control extraction and primary processing . .4.4 Chains where community operations control extractions and sawing . . . . . . . . . . . .4.5 Production chains based on chainsawn lumber or hand-hewn beams . . . . . . . . . . . .4.6 Community operations - private industry cooperative partnerships . . . . . . . . . . . . .

5 Current Markets for Lesser-used Species . . . . . . . . . . . . . . . . . . . . . . . .5.1 Historical trends in markets for lesser-known species . . . . . . . . . . . . . . . . . . .

CONTENTS

9

11

13

15

2323242527313437

39394041434546

4949505155

57575859606062

6363

Page 9: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

5.1.1 Developments in mahogany substitute markets. . . . . . . . . . . . . . . . . . . . .5.1.2 Independent uses of lesser-known species. . . . . . . . . . . . . . . . . . . . . . .

5.2. Timber volumes currently utilized . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.2.1 Petén. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.2.2 Estimated volume harvested in the Atlántida (Honduras). . . . . . . . . . . . . . . . .5.2.3 Quintana Roo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.2.4 Production by species in Nicaragua. . . . . . . . . . . . . . . . . . . . . . . . . .

5.3 Principal markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.3.1 Markets for timber from the Petén. . . . . . . . . . . . . . . . . . . . . . . . . . .5.3.2 Markets for hardwoods from the Atlántida. . . . . . . . . . . . . . . . . . . . . . .5.3.3 Markets for species from Quintana Roo. . . . . . . . . . . . . . . . . . . . . . . .5.3.4 Markets for species from the RAAN. . . . . . . . . . . . . . . . . . . . . . . . . . .

5.4 Prices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Limitations in the Marketing of the Lesser-used Species . . . . . . . . . . . . . . . . .6.1 Basic limitations of lesser-used species . . . . . . . . . . . . . . . . . . . . . . . . . .6.2 Management capacity in community operations. . . . . . . . . . . . . . . . . . . . . . .6.3 Frictions between community operations and private businesses. . . . . . . . . . . . . . .6.4 Shortcomings of private processing companies. . . . . . . . . . . . . . . . . . . . . . .6.5 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Marketing Opportunities for Lesser-used Species . . . . . . . . . . . . . . . . . . . . .7.1 Certification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2 Lesser-used species and promising markets. . . . . . . . . . . . . . . . . . . . . . . . .

7.2.1 Petén. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2.2 Atlántida. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2.3 Quintana Roo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2.4 RAAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.3 New forms of cooperation between forestry operations and private business in the Petén. . .

8 Experiences Introducing Lesser-used Species into Markets. . . . . . . . . . . . . . . .8.1 Promotion of new species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.1.1 Wood promotional centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.1.2 Commercial promotion projects . . . . . . . . . . . . . . . . . . . . . . . . . . .8.1.3 Private businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.2 Improvements in marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.2.1 Improvements in the business capacity of forestry operations. . . . . . . . . . . . . .8.2.2 “Bridge” initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.2.3 Promotion of the secondary industry. . . . . . . . . . . . . . . . . . . . . . . . . .

8.3 Vertical integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.4 Improving recovery rates and taking advantage of by-products . . . . . . . . . . . . . . .

9 Conclusions and Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.1 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.2 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.3 Recommended follow-up proposals. . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. Micro-credit financing program for forestry production . . . . . . . . . . . . . . . . . .2. Improvements in wood extraction procedures. . . . . . . . . . . . . . . . . . . . . . .3. Developing primary processing products . . . . . . . . . . . . . . . . . . . . . . . . .4. Promoting wood commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. Secondary industry promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6. Production and marketing tests: Motorsawn and handhewn wood beams and planks . . . .7. Production trials with lesser-used species . . . . . . . . . . . . . . . . . . . . . . . . .8. Proposed themes for discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9. Proposed technical studies about lesser-used species. . . . . . . . . . . . . . . . . . . .

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Appendix 1 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Appendix 2 Scientific and common names of important Mesoamerican species . . . . . . . . . . .Appendix 3 Promisory woods of Mesoamérica. . . . . . . . . . . . . . . . . . . . . . . . . . .

63646666676767686874757779

818182869092

9595969697979898

101101101103103107107110111111114

121121123124124125125126127128129129130

131133135143

Page 10: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Box 1. The long and winding road to community forestry in the RBM . . . . . . . . . . . . . . . .Box 2. Petén, Guatemala. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 3. The rise of community forestry in the Atlántida/Honduras. . . . . . . . . . . . . . . . . .Box 4. Atlántida, Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 5. Reinventing community forestry in Quintana Roo. . . . . . . . . . . . . . . . . . . . . .Box 6. Quintana Roo, Mexico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 7. First steps towards community forestry: the RAAN . . . . . . . . . . . . . . . . . . . . . .Box 8. Autonomous Region of the North Atlantic (ANAR), Nicaragua . . . . . . . . . . . . . . . .Box 9. Forest areas in Mesoamerica [hectares] . . . . . . . . . . . . . . . . . . . . . . . . . .Box 10. Potential annual harvest of hardwoods and extrapolated annual potential . . . . . . . . . .Box 11. Potential annual harvest in the RBM . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 12. Potential annual harvest in the Atlántida (37 forest operations) . . . . . . . . . . . . . . .Box 13. Potential annual harvest in Quintana Roo . . . . . . . . . . . . . . . . . . . . . . . . .Box 14. Weighted average of exploitable volume in the RAAN . . . . . . . . . . . . . . . . . . . .Box 15. Noh Bec, a forest ejido in Quintana Roo . . . . . . . . . . . . . . . . . . . . . . . . .Box 16. Will the production chains be broken in the Atlántida? . . . . . . . . . . . . . . . . . . .Box 17. Production of LUS in Mexico [m3] . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 18. Harvested volume of broadleafed species [m3] . . . . . . . . . . . . . . . . . . . . . . .Box 19. Extracted volume of lesser-known species in the RBM . . . . . . . . . . . . . . . . . . .Box 20. Estimated volume harvested per species - Atlántida Region . . . . . . . . . . . . . . . .Box 21. Estimated volume harvested of lesser-used species of Quintana Roo (2000) . . . . . . . . .Box 22. Estimated volume harvested of lesser-used species of Nicaragua . . . . . . . . . . . . . .Box 23. Exports of sawn lumber 1992 - 1999 . . . . . . . . . . . . . . . . . . . . . . . . . .Box 24. Production of lesser-used medium and heavy sawn woods in Mexico . . . . . . . . . . . .Box 25. Consumption of lesser-used medium and heavy tropical sawn lumber in Mexico . . . . . .Box 26. Prices of lesser-used species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 27. Rates of recovery in sawn tropical species . . . . . . . . . . . . . . . . . . . . . . . .Box 28. Recovery rates: heartwood and sapwood . . . . . . . . . . . . . . . . . . . . . . . . .Box 29. An order for railroad crossties . . . . . . . . . . . . . . . . . . . . . . . . . .Box 30. Deficiencies in the business ability of community operations . . . . . . . . . . . . . . . .Box 31. Differences between community forestry operations . . . . . . . . . . . . . . . . . . .Box 32. Unnecessary losses in the Atlántida . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 33. Pine vs. hardwoods: two lumber businesses in San Pedro Sula, Honduras . . . . . . . . .Box 34. Changes on Main Street: competition among furniture stores in San Pedro Sula, Honduras.Box 35. Opportunities for the use of smaller diameter species . . . . . . . . . . . . . . . . . . .Box 36. CUPROFOR: Experiences of a wood utilization and promotion center . . . . . . . . . . . . .

2628293032333536394042444546536166676869707172767778828384858789919399

102

INDEX TO BOXES

Page 11: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Box 37. An example of a hardwood sale in the ejido of Caobas . . . . . . . . . . . . . . . . . .Box 38. Fondo de acopio (microcredit program/Quintana Roo): steps in the right direction . . . . .Box 39. Women artisans (Quintana Roo): The ups and downs of promotion . . . . . . . . . . . .Box 40. Types of operations, by-products and recovery rates . . . . . . . . . . . . . . . . . . .Box 41. Sections of a tree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Box 42. Wood extraction waste in Noh Bec 1988 . . . . . . . . . . . . . . . . . . . . . . . . .

109113115117118119

Page 12: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

ABBREVIATIONS

AFE-COHDEFOR Administración Forestal Estatal – Corporación Hondureña de Desarrollo Fo-restal (Honduran Forest Service)

AHEC American Hardwood Export CouncilAMACUP Asociación Mexicana de Artes y Culturas Populares (a mexican NGO that

promotes handicrafts)BF Board feet*CCF Cámara Costarricense ForestalCECADI Centro de Capacitación y Desarrollo Industrial (a Mexican LUS promotion center)COATLAHL Cooperativa Regional Agroforestal, Colón, Atlántida, Honduras, Ltda. (Hon-

duran group of forest operations)CONAP Consejo Nacional de Áreas Protegidas (Guatemalan protected areas administration)CUPROFOR Centro de Utilización y Promoción de Productos Forestales (Honduran timber

research and promotion center)DBH Diameter at breast heigthFADCANIC Fundación para la Autonomía y el Desarrollo de la Costa Atlántica de Nicara-

gua (Nicaraguan NGO)FPL USDA/FS Forest Products LaboratoryFSC Forest Stewardship CouncilFYDEP Empresa Nacional de Fomento y Desarrollo Económico de El Petén (former

administration of Petén forests)INAFOR Instituto Nacional Forestal (Nicaraguan forest service)LKS Lesser-known speciesLUS Lesser-used speciesMARENA Ministerio del Ambiente y los Recursos Naturales (Nicaragua)MDF Medium density fiberboard*MIQRO Maderas Industrializadas de Quintana Roo (mexican plywood company)

* See also glossary (Appendix I).

Page 13: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

NHLA National Hardwood Lumber AssociationNPV Fundación Naturaleza para la Vida (Guatemalan technical support organization)PIQRO Recubrimientos y Pisos de Quintana Roo (Mexican flooring company)RAAN Región Autónoma del Atlántico Norte (Nicaragua)RAAS Región Autónoma del Atlántico Sur (Nicaragua)RBM Reserva de la Biosfera Maya (Guatemala)SSF Sistema Social Forestal (a Honduran social forestry program)USAID United States Agency for International DevelopmentUSDA/FS United States Department of Agriculture/ Forest ServiceWWF World Wildlife Fund/ World Wide Fund for Nature

Page 14: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

ACKNOWLEDGEMENTS

Financing and technical support for this study came from the United States Department of Agriculture/Forest Service through its International Institute for Tropical Forestry and the United States Agencyfor International Development and its Sustainable Regional Development Program, to support sustainableforest management in Latin America.

Carleen Yocum, Larry Swan and Marcia O’Connor, U.S. Forest Service, gave extraordinary supportto the project by providing multiple ideas to improve content and patiently encouraging its progress.Regis Miller, U.S. Forest Service Forest Products Laboratory in Madison, Wisconsin, also helped withsuggestions for the presentation of physical-mechanical data and scientific names of cited species.

In the field study phase, several institutions generously supported our efforts with their time andlogistical assistance to conduct the interviews: Centro Maya, the Fundación Naturaleza para la Vidaand the CATIE/CONAP Project in Guatemala; the Sociedad de Productores Forestales Ejidales de QuintanaRoo, S.C. and Tropica Rural Latinoamericana, A.C. in Mexico; CUPROFOR and COHDEFOR in Hondurasand Nicambiental and the CATIE/Transforma Project in Nicaragua.

Over the course of the study, we had the opportunity to interview a large number of peopleconnected to the forest sector in Guatemala, Honduras, Mexico and Nicaragua: forest communitymembers, forest extension workers, government officials, researchers, businessmen, forestry workers,guild members, collaborators from non-governmental organizations and the final consumers. Theinformation gathered during these interviews is the foundation of this study. We would like toacknowledge the enthusiasm and concern demonstrated in responding to our questions, and recognizethe desire of all contributors to aid in the development of the forestry-wood products sector in theirregions.

The current study benefited greatly from the review and comments of Dr. Frank Wadsworth,retired U.S. Forest Service scientist, International Institute of Tropical Forestry.

Our colleagues at the Universidad de Quintana Roo contributed many valuable ideas towardscontents of the study.

We would like to express our gratitude and thanks to everyone.

Page 15: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

The first officially recognized community forestryoperations in Mesoamerica began more than fiftyyears ago. Since then, their number has grownsteadily due in part to their ability to resolve landuse problems in regions of recent colonization.These operations have also helped reduce conver-sion of tropical forests to agricultural and grazinglands and, in many cases, substantially improvedthe quality of forest management, thus reducingover exploitation of the most valuable commer-cial species. Community forestry operations werealso among the first worldwide to receive recog-nition for good forest management based on thirdparty review (i.e. Forest Stewardship Council [FSC]certification).

In spite of these successes, community forestryoperations1 must confront a myriad of challengesover the next ten years if they are to consolidatetheir gains. A major challenge is the need to in-crease income from forest management opera-tions as a way to maintain interest of communitymembers in community forestry as an alternativeto clearing forests for agricultural and animal hus-bandry uses.

EXECUTIVE SUMMARY

A promising option to increase income fromcommunity forestry management is to increaseuse of lesser-used hardwood species.2 While tra-ditional commercial species, such as mahogany(Swietenia macrophylla), have been overex-ploited through the years and actually decreasedin commercial importance in many forestry op-erations, numerous other species are currentlyunderutilized. These species represent significantincome potential for forest operations. Manyoperations have already been successful in usingthese species, thereby increasing incomes and,in some cases, improving forest management.

The difficulties encountered in trying to promoteand sell lesser-used species are more serious thansimply buyer reluctance to purchase unfamiliarwood. One of the most serious challenges facingcommunity forestry operations involves learning andadhering to basic business practices, such as pro-viding buyers consistent product quality and quan-tity, and reliable and timely deliveries. With freetrade, community forestry operations have to com-pete more and more with large Chilean, Bolivian,Brazilian and Malaysian consortiums, many ofwhich produce as individual companies volumesequal to that of an entire region in Mesoamerica.

1 Refer to the glossary for a definition of “community forestry operations”.2 Lesser-used or lesser-known species may be defined as species whose current commercial demand is below

their forest production potential (see also glossary).

Page 16: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

16

Regional businesses that buy lumber from com-munity operations are especially important forincreasing utilization and sales of lesser-used spe-cies. Their proximity offers advantages in termsof costs, face-to-face communication, ability tocontrol order fulfillment, and understanding of theproduction context. These companies also facegrowing external competition in their traditionalmarkets. These facts lead to the necessity of ana-lyzing regional production chains when promot-ing lesser-used species.

Methodological approach

This study uses a global “conceptual” approach todevelop recommendations. It analyzes current sta-tus and trends of community forestry operations,regional production chains, and regional and nationalmarkets. It also describes opportunities and limita-tions for marketing lesser-used species, and evalu-ates previous promotion experiences.

Four regions with predominantly communityforestry schemes are included in this study: theReserva de la Biósfera Maya (RBM, Guatemala),the Región Forestal Atlántida (Honduras), the stateof Quintana Roo (Mexico) and the Región Autó-noma del Atlántico Norte (RAAN, Nicaragua). Awide range of people connected to forest pro-duction and wood processing were informally in-terviewed and results summarized for this report.3

Status and trends of community forestryoperations

Tropical broadleaved forests cover more than 7.5million hectares4 in the four regions included inthis study. Timber extraction is officially permit-ted in approximately 1.2 million hectares, of whichmore than 90% is controlled by community op-erations. Depending on a variety of factors, the

total amount of land allocated to communityforestry could increase up to 400,000 hectareswithin the next ten years. [Chapter 2.1].

Potential annual timber harvest of broad-leaved species in the four regions totals about630,000 m3, including a little more than 30,000 m3

of mahogany (Swietenia macrophylla). This is rela-tively small by international standards, but repre-sents an important resource in regional terms.[Chapter 2.2]

There are more than 150 community forestryoperations located in the regions studied. Signifi-cant differences exist between these operations, bothin terms of their use of the forest as a resource and inthe actual structure and practices of that use. Forexample, some are sophisticated enough to con-trol extraction and sawing of their own wood, whilemany others are still formalizing themselves as or-ganizations, and depend upon the actions and equip-ment of external actors, thereby deriving reducedbenefits from their forest practices. [Chapter 3.3]

Clear differences also exist in the socio-politi-cal setting of these forestry operations, both intheir normative aspects (e.g. by-laws and regula-tions) and their institutional-operational aspects(e.g. characteristics of technical assistance andcapacity for control). For example, in Petén, Gua-temala, a balanced division of labor (i.e. planning,implementing, and enforcement functions) amongregional players has been established. This en-courages non-bureaucratic forest production,while at the same time maintaining adequate con-trol over forest extraction and forest conversion.In contrast, forest institutions in the Atlántida havevery bureaucratic, centralized procedures for ex-traction permits, and while at the same time hav-ing a weak grip on regional forest problems. InQuintana Roo and the Atlántida regions, wherecommunity forestry was established more thantwo decades ago, diverse legal changes in theprivatization of the forests have destabilized someelements of community forestry. [Chapter 3.2]

3 Field work for this study was carried out in 1999 and 2000. Some relevant changes have ocurred sincethen, especially in Guatemala, where the new government has brought new policies into place.

4 One hectare equals 2.471 acres; a log scale cubic meter aproximates .221 Scribner MBF; a sawn cubicmeter equals .424 MBF.

Page 17: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Executive Summary

17

Status and trends of localand regional production chains

A significant portion of the primary processinginfrastructure in the regions was established dur-ing the industrial growth period of the sixties andseventies. Today, each region has between fiveand 12 sawmills (portable sawmills not included)with annual production ranging between 4,000to 20,000 m3 each. There are plywood plants inall regions, but only in the RAAN does productionapproach installed capacity. The RAAN is also theonly region studied where the amount of extrac-tion and saw-milling equipment has increased inthe last few years (i.e. portable sawmills).

Secondary processing operations developeddifferently in each of the regions studied: In Quin-tana Roo and Petén, several companies integratedfurther value-added production steps with theirprimary processing operations. In the Atlántida,a large number of independent secondary com-panies were set up in the seventies and eighties.Today, this is the only region that has a signifi-cant number and diversity of secondary process-ing companies (mostly in the furniture sector). InQuintana Roo, many secondary processing com-panies closed over the last twenty years; how-ever, two flooring companies, both orientedtowards the export market, opened in the nine-ties. In Petén, the few remaining secondary manu-facturing companies work only intermittently, buta group of flooring companies established in aneighboring region are becoming important buy-ers of Petén wood. In the RAAN, a large sawmillhas started to manufacture flooring products.[Chapters 1.2 and 4.1]

The regional production chains existing in thesixties and seventies were simple: Private busi-nessmen with legal access to forest exploitationwould set up extraction operations and primaryprocessing lines to sell logs or sawn timber tonational or international customers. Forest man-agement quality was low.

Since then, several changes have affected theseproduction chains and commercialization of lesser-used species:

• Colonization - The significant increase inthe rural population and subsequent de-forestation in the study regions has meant agradual reduction in potential timber supply.[Chapter 1.2]

• Impacts of Community Forestry - Thecreation of community forestry operations hasreduced negative ecological effects of col-onization and dramatically slowed in-discriminate exploitation of woodlands.[Chapter 1.2] At the same time, communityforestry operations radically changed existingproduction chains. Many private companieshad to give up control over forest productionand extraction, and sometimes sawing, andinstead were forced to negotiate with com-munity operations for logs or sawn timber.Community operations also adopted betterforest practices that reduced the supply ofhighly commercial woods (e.g. mahogany).[Chapters 3.1, 3.3 y 3.4]

• Modernization - New highways and increasesin regional demand have stimulated externalcompanies to start businesses in the regionsstudied that out-compete and displace regio-nal products (especially furniture and buil-ding materials). With the increase in freetrade between nations, this trend is expectedto continue. [Chapter 4.1 y 5.1]

•Forestry and Land Use Policies - Forestryand land use policies have changed frequent-ly and often unexpectedly. [Chapter 3.2]

Also, forest operations and processing compa-nies have not established stable relationships, whichis reflected in the highly unstable nature of produc-tion chains in the regions studied. [Chapter 4]

Status and trends of regionaland national markets

In general, regional players in the forestry sectorhave not adjusted to the changes described aboveor been able to take advantage of modernizationand increased commerce. Due to these varied prob-

Page 18: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

18

lems, consumption of lesser-used species for the lasttwo decades has actually declined. [Chapter 5.1]

Despite this overall decline, lesser-used spe-cies have managed to maintain a strong presencein many regional and national markets. For ex-ample, lower- and medium- density woods areused extensively in furniture production in theAtlántida, occupy market niches in furniture pro-duction in Central Mexico, and are used in theproduction of plywood in the RAAN, Petén andQuintana Roo. Higher-density woods are increas-ingly used for flooring in Quintana Roo, Guatema-la, and central Nicaragua, but have lost marketshare in other uses (e.g. piers, construction, andrailroad ties). [Chapter 5]

An important wood products technologicaltrend in the regions is the growing use of com-posite panels in furniture production, especiallymedium-density fiberboard (MDF). This means thatfurniture makers will need increasing supplies ofdecorative veneers (to cover the MDF-boards). Atthe moment, decorative veneers using lesser-usedwoods are not produced in any of the regions,thus excluding these species from this attractive,growing market segment.

Limiting factors for use of lesser-usedspecies in regional production chains

Various factors limit increased use of lesser-usedspecies in regional production chains:

• Managerial Capacity - With the exceptionof a few large companies, there is limitedmanagerial capacity in community forestryoperations and private processing compa-nies. The result is weak customer service,unreliable product quantities and quality, anduncertain delivery times. Few companiesappear to have the capacity to develop long-term business strategies (e.g. to defend theircurrent markets). [Chapter 6.4] The chancesof influencing the managerial capacity ofcommunity operations with conventionaltechnical assistance and training programs

are limited due to organizational, political, andsocial issues. For example, poorly stackedand stored wood is not necessarily the resultof lack of knowledge, but often reflects theinability of sawmill foremen to imposechanges due to “structurally” weak leader-ship (i.e. high turnover of leaders, key posi-tions filled based on a ascribed person’s statusin the community rather than technical skillsor achievements, and the fact that both fore-men and workers have the same formal sta-tus in the community). [Chapter 6.2]

• Relations Between Community ForestryOperations and Private Industry - Relation-ships between community forestry opera-tions and private industry remain poor, andeven worsen, as both entities struggle tocontrol extraction and sawing, often attempt-ing to fill positions in the production anddistribution chain about which they mayknow very little. This creates an asymmetri-cal situation: Community forestry operationswith greater volumes of mahogany and goodforest management have managed to estab-lish extraction and sawing procedures for thiswood, but find it difficult to market lesser-used species. On the other hand, privatecompanies, which have greater ability tomarket lesser-used species buy timber fromsources with poor forest management.[Chapter 6.3]

• Regulation and Control of Forest Produc-tion - Clear weaknesses are evident in thestate regulation of forest production, which,for example, often paralyzes the legal tim-ber market in the Atlántida. [Chapter 3.2]Also, a weak judicial system leads to a gen-eral situation of impunity. Currently, the va-lidity of agreements made at many differentlevels (e.g. between community members orbetween companies) is greatly reduced.[Chapter 6.3 y 6.4] Moreover, industrial cham-bers and other institutions in charge of in-dustrial promotion lack funding and adequatepolicies. They also appear to mainly con-sider the interests of large export-orientedcompanies, that normally process pine.

Page 19: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Executive Summary

19

Lesser-used species marketingand promotion experiences

In the study regions, there have been many ex-periences in the promotion of lesser used species:

a) Continuing work begun in the United Statesand Europe, wood research centers in Mexi-co and Central America have described thephysical, mechanical and aesthetic charac-teristics of several regional lesser-known spe-cies. While this approach has increasedknowledge of lesser-known species, it hasproven insufficient as a stand-alone measureto increase their use. Today, lack of knowl-edge about wood characteristics is no longerthe central problem, with the exception ofnoticeable information gaps, especially in theAtlántida. Consequently, many regionalwood research centers have strong fundingproblems.

b) Several initiatives have dealt with identi-fication of export opportunities, especially“green” markets. After almost ten years,results have been rather poor. In particular,lack of management capacity has inhibitedformation of stable commercial relations withtimber traders in the USA and Europe, whohave started to import certified timber fromprivate companies in Bolivia and Brazil. To-day, very few community forestry operationsare exporting directly to foreign markets.

c) Several market research studies have beenconducted, but no clear marketing concepthas resulted, hence their impact has beenreduced.

d) Some promotional initiatives have targetedmanagement capacity, and relations betweencommunity operations and private companies.Three general strategies have been used:

• Improvement through organizational re-structuring of operations

• Establishment of specialized technical groupsto take over some marketing functions, andact as communication and implementation

facilitators between forest operations andprivate industry.

• Discussions about division of labor be-tween community operations and privatecompanies (i.e. who controls what step inthe production chain).

Although there are as yet few long-termexperiences, it appears that these projectshave a much clearer impact on marketinglesser-used species than those focused onbasic technological research or export pro-motion.

e) Experiences with vertical integration havebeen both negative and positive. Communi-ties, technicians and donor organizationsfrequently favor vertical integration, althoughsimpler and more effective ways to improveincome may be available. Normally, verticalintegration of forestry operations appears tobe more successful at the log extraction level.There are fewer successes when efforts aremade to integrate sawmill operations, andeven fewer when secondary manufacturingis included. (It should be noted that verticalintegration may make good sense for fam-ily-based businesses, such as small carpen-try shops). [Chapter 8]

Recommended strategies

Promoting sales of lesser-used species does notnecessarily make sense in all regions studied.Increasing use of lesser-used species in the RAAN,Nicaragua, could be counterproductive becauseof lack of legal or regulatory framework to encouragebetter management practices. The priority in thissituation should be to establish appropriate forestmanagement and land use policies.

Improved marketing of lesser-used species willmost probably positively influence forest manage-ment in Petén (Guatemala), Atlántida (Honduras)and Quintana Roo (Mexico).

It is recommended that marketing and promo-tion of lesser-used species in Petén, Atlántida, and

Page 20: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

20

Quintana Roo should emphasize strengtheningregional production chains, and defending currentmarkets. The following approaches are suggested:

• Improve managerial capacity of communityforestry operations

• Improve the relationship between commu-nity forestry operations and private industry

• Increase marketing capacity of businesses • Improve the quality of legal regulations • Consolidate technical assistance in wood

processing and marketing

Activities should focus on regional and nationalchains and markets, because it is here that thesuccess or failure of community marketing effortswill be determined in the next ten years. This isnot to completely discard overseas markets. Cer-tainly, “green” (e.g. markets for certified prod-ucts) are an attractive option. Nevertheless, it isimportant to be realistic. Today, less than five ofthe more than 150 community operations existingin the study regions have possibilities to success-fully sell to these markets as direct exporters. Here,the most promising alternative is again to try toimprove regional chains, leaving export tasksto private companies or to specialized non profitorganizations and securing the flow through chainsof custody.

Specific project recommendations

1. Improving management through a mi-cro credit program - The primary re-commendation for Quintana Roo and theAtlántida, and possibly Péten as well, isthe establishment of a program to improvemanagerial capacity of community forestryoperations and relationships with privateindustry. Three basic tools are suggested:Micro credits, technical assistance, and le-gal advice. The experience with “fondos deacopio”, a micro credit program in QuintanaRoo, can be used (see box no. 38). The mi-cro credits would be used to finance woodproduction. They would be conditioned on

improving community forestry operations,probably with help from technical assistancegroups. Technical assistance groups couldalso help facilitate fulfilling timber orders andimproving cooperation between communityoperations and private industry. Improvingawareness of legal obligations should helptrade partners adhere to established agree-ments.

2. Community forestry extraction meth-ods and technology - Extraction technolo-gies and methods are critical first steps inthe production chain to make utilization oflesser-used species economic and environ-mentally-sustainable. Technologies and meth-ods differ in each region, as does the type ofassistance that may be needed. In theAtlántida, for example, the extraction pro-cess could be improved by introducing guidesfor chainsaw lumber production (Alaskansaws) and improving understanding of cus-tomer requirements. In Quintana Roo, ex-traction methods need to be explored thatrequire lower initial investment and operat-ing costs. This would make it easier for morecommunity operations to take control ofextraction operations.

3. Product development in the primaryindustry - In Péten, a mutually beneficialarrangement has been developed based onclose cooperation between different commu-nity forestry operations and a private com-pany. This situation increases capacity fortechnical innovations. Technical assistancecould be offered for sawn wood products aswell as for veneer. Support for developmentof decorative veneer capacity to broaden theproduct line is recommended (e.g. for usewith MDF used in furniture production). Suc-cess would provide a model for other regions.

4. Promoting lumber trade: it is recom-mended to start discussing how to improveregional forest products trade. This is a po-litical and a legal issue rather than a techni-cal one. Therefore, madereros and lumberdealers must be involved in the discussions.

Page 21: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Executive Summary

21

5. Secondary Industry Competitiveness -The Atlántida region could lose a significantregional furniture industry within 10 yearsbecause of external competition. The objec-tive in this case should be to improve com-petitiveness of local companies by assistingwith product development, distribution chan-nels, and marketing strategies. Small- tomedium-size companies should be encour-aged to pursue market niches that are notattractive to larger companies who importgoods from outside the region (e.g. offercustom installation of doors and kitchens).These activities would be an important op-portunity for CUPROFOR, the largest regionallesser-used species promotion center, to re-orient its focus from basic research to mar-keting and promotion.

6. Marketing chainsawn lumber: a marketsurvey and production tests for chainsawn andaxe hewn lumber are recommended. Thiswould provide a systematic marketing experi-ence that would give some clues for later work.

7. Pilot production with lesser-used spe-cies: selected secondary processing compa-nies should test lesser-used species in theirregular production to determine problemsand eventually starting using them on a regu-lar basis.

8. Shared Development Goals - Commu-nity forestry operations, private businesses,and government regulatory and marketingbodies need to come together to define andpursue common goals. Government entitiesshould consider a facilitative and coopera-tive approach, rather than one that is auto-

cratic and dictated to the parties concerned.The region of Petén is the most notable ex-ample of independent yet interrelated pro-cesses. Other regions could profit from theseexperiences. Many discussions are alreadytaking place that could be used to facilitateagreement, including forest managementcertification, “industrial clusters”, and bio-logical corridors.

9. Other recommendations include:• Characterize basic properties and conduct

industrial tests for selected species in Peténand Atlántida.

• Promote family-owned businesses thatspecialize in the utilization of residue that iscurrently left in the forest or discardedduring manufacturing; processing ideascould come from linking end-uses of com-mercially valuable species, such as mahog-any, with historic logging and processingpractices.

• Conduct studies and trials to improve fungiand insect resistance of lesser-used species.The objective is to identify cost-effective,ecologically sound and non-hazardoustreatments to prevent decay of light-weightlogs and sawn timber;

• Conduct bench marking studies related torecovery for various lesser-used speciesand processing methods;

• Establish market monitoring systems anddevelop business strategies for specificgroups of regional companies to maintainor to expand market share (e.g. small- andmedium-size carpentry shops in the Atlán-tida region).

Page 22: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

1.1 Conceptual approach

Over the last three decades, important steps havebeen taken towards more sustainable utilization offorest areas in Mesoamerica. With the grantingof user rights to local communities or groupsderiving from them, it has been possible to slowconversion of the forests and, at the same time,achieve considerable improvement in the qualityof forest management and extraction activities.One indication of these improvements is thesubstantial number of operations certified by ForestStewardship Council (FSC)-accredited organizations.

Despite their successes, community operationswill have to confront diverse challenges over thenext decade to consolidate their gains. Amongstthese challenges is the need to increase incomefrom forest management. Only in this way will itbe possible to maintain community members’interest in forest management as an alternativeto conversion, and subsequent agricultural andcattle-farming use of the land.

A promising option to increase income fromforest management is to increase utilization ofso-called lesser-known species. Whilst traditionalcommercial species, such as mahogany (Swieteniamacrophylla) have been over-exploited for yearsand are no longer important commercially formany forestry operations, significant volumes ofother species, which are currently under- utilizeddue to marketing difficulties, exist.

1 INTRODUCTION

One advantage of this approach is that it is amodel that has already been disseminated inMesoamerica. Unlike non-timber products, whichin practice have been developed only in communitieswhich enjoy the attention of non-governmentalorganizations (NGOs) and government bodies, andthe uncertain promise of selling environmentalservices (e.g. carbon sequestration credits), theutilization of lesser-known species already benefitsa great number of communities.

Greater utilization of lesser-known species alsoencourages implementation of important silvi-cultural measures. For example, in Quintana Roothe larger clearings produced by greater utilizationof lesser-known species has led to improvedconditions for the growth of species that werepreviously overexploited (e.g. mahogany).

Lesser-known species around the world havebeen systematically promoted and introduced intomarkets for nearly a century, with some eventuallybecoming high-value species (e.g. ramin). The firstapproach to promotion was by wood technicianswho described technical and aesthetic characteristics.Later, several organizations started active marketingefforts. In the USA, lesser- known species arepromoted worldwide by such powerful organizationsas the American Hardwood Export Council.Through skillful marketing efforts, Malaysia andother Southeast Asian countries have introducedmeranti (Shorea spp.) and rubbertree wood(Hevea brasilensis).

Page 23: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

24

All these initiatives have a common set ofdenominators: The species being promoted areavailable in large quantities at attractive prices,and promotions and sales are supported by a stronginternationally competitive service structure (e.g.orders are delivered when promised, grading isconsistent, responsibility is accepted and refundsoffered for errors or other problems, sales andmanufacturing are responsive to customer needs,payment methods or timing are negotiated, etc.)

In Mesoamerica, conditions are different:

• Promotion of lesser-known species continuesto be the almost exclusive concern of woodtechnology laboratories. Even if other organi-zations recognize the need to increase market-ing and promotion, few ideas have come forthon how to proceed.

• Problems with the supply of lesser-knownspecies in Mesoamerica are more serious thanin other regions. Here, there are not the samelarge quantities of timber nor competitiveprices on an international scale. The salesservices of the majority of Mesoamericancompanies also have serious weaknesses.These weaknesses are a reflection of limitedcapacity for marketing in particular and lim-ited managerial skills in general.

Today, Mesoamerican forestry operations facecompetition from Bolivian and Brazilian con-cessions; just one of which could have a largerextraction area than a whole Mesoamericanregion. Plywood producers face competition fromSoutheast Asian countries; and furniture makerscan see Chinese furniture increasingly penetratingtheir markets. The result of all this is that instead ofincreasing, the quantities of lesser-known speciesutilized have decreased considerably.

This report contends that an approach thatconcentrates on technological aspects, and possi-bly identification of new markets, to promotelesser-known species is not likely to succeed. Theproblems that make marketing of lesser-knownspecies in Mesoamerica so difficult go beyond anincomplete knowledge of the physical andmechanical properties of species, and the options

available for tackling the problems are muchgreater than just the technological description andtesting of new species (e.g. the use of marketingapproaches and techniques, new concepts andmodels of regional development, and experiencesof other community organizations).

Therefore, a much broader approach to theproblem of how to better market lesser-knownspecies was taken for the present study. Thisapproach considers the full range of possible inputsthat may affect the problem, including technical,managerial, regulatory, and organizational aspects.The report begins with an analysis of the currentsituation and trends at the level of communityoperations, production chains, and markets. Basedon this analysis, limitations and opportunities arederived to improve the marketing of lesser-knownspecies, and experiences of different communitiesevaluated. The overall goal of this study is to developrecommendations about tools and strategies toimprove marketing of lesser-known species comingfrom community management.

The study places special emphasis on themanagement capabilities of community forestryoperations and the relationship these operationshave with regional processing businesses. Com-munity forestry operations were formed aroundsuch concepts as participation, empowerment,and sustainability, not concepts such as competi-tiveness, efficiency, and specialization. The needto improve marketing of lesser-known speciescould be a catalyst for community operations todiscuss how these apparently conflicting sets ofconcepts can be integrated.

1.2 Study regions

Community forestry plays an important role ingeneral land use in the four regions selected forthis study.

a) In the RBM (Petén), community forestry wasestablished as the main model of land useonly a decade ago. An exemplary division oflabor has been established between different

Page 24: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

25

bodies with regulatory, operational and con-trolling/evaluating responsibilities, by buildingon pilot studies in the RBM itself and intelligent-ly adapting experiences from other regions.

b) In the Atlántida Region in Honduras, com-munity forestry was set up as the dominantforest use almost thirty years ago, but thesystem still suffers from many deficiencies.

c) In Quintana Roo, Mexico, community forest-ry replaced the system of concessions twentyyears ago. This region was the first to discusssocial forestry as an aid to planning land usein large geographical spaces, as opposed toother perspectives which visualized socialforestry principally as an instrument of so-cial compensation. Some institutional andlegal changes have weakened the consensusthat initially supported community forestry.

d) In the Región Autónoma del Atlántico Norte(RAAN), Nicaragua, community forestry hasbeen legally decreed, but is not establishedin practice. Forest communities exist, but asyet have not been able to take control of theforests. Clear political and operationalsupport is needed.

The regions differ in their industrial infrastruc-ture and regional markets: The Atlántida andQuintana Roo have important final markets,while the RBM/Petén and the RAAN/Nicaragua aresituated far from them. The only region with asignificant secondary processing industry is theAtlántida. In Quintana Roo and Petén, secondaryprocessing capacity that existed fifteen years agohas almost completely disappeared, althoughsome flooring manufacturers have emerged. TheRAAN in Nicaragua as a region is just starting out,not only in relation to forest organization, but alsoindustrial growth. Moreover, problems remain inthe RAAN that are no longer critical in other regions(e.g. land ownership).

The regions chosen are not the only regionsin Mesoamerica where community forestry isdominant. In Honduras, the majority of broad-leaved forests are utilized by community groups.Besides the Atlántida forest region, la Mosquitia

and the department of Olancho are also important.In Mexico, ejidos and indigenous communitiescontrol forest management in practically all regions(more than 80% of the national forested areas). InNicaragua, all forests on the Atlantic Coast (RAAN

and RAAS) are, de jure, under the control ofindigenous communities or other communitygroups.

1.2.1 The Reserva de la Biosfera Maya (RBM)in the Petén, Guatemala

The RBM is located in the northern part of thedepartment of Petén, occupying approximately2.1 million hectares. The RBM constitutes the mostextensive area of natural woodlands, grasslandsand wetlands in Guatemala (see Map 2).

The colonization of the RBM has taken placeat the same pace as in the Petén. This region hasbeen exposed to fierce migratory pressure overthe last four decades, increasing from a populationof 25,000 people in 1960 to more than 525,000at present. In the south of the Petén, the Guate-malan government conceded colonization in smallproperties; whereas the northern part of the de-partment, the current RBM, was envisioned forforestry use, so no lands were distributed. Evenso, colonization did not stop with the presence ofthe RBM: today, approximately 100,000 peoplelive in this part of the Petén. Despite this, theconversion of woodlands in the RBM has been clear-ly less than in the south of the Petén. Althoughthe population has continued to grow, it appearsthat migratory pressure towards the forest areashas diminished in recent years.

As a protected area, the RBM does not havelarge populations. Trade relations are with townsand cities located between 20 and 50 kilometersto the south, in particular Santa Elena/San Be-nito/Flores (approximately 120,000 inhabitants)None of these are important markets for finishedwood products.

In the principal towns of the region, the infra-structure and services have improved consider-ably over the last ten years, unlike smaller villages

Page 25: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

26

where people still lack water, drainage systems,and telephones. Over the last ten years though,significant efforts have been made to ensure thatthe population has access to medical services andprimary education.

The north of the Petén has access to marketsoutside the region by two highways: One goeseastwards to Belize and the other to the southeast,reaching Rio Dulce and Guatemala City. Bothhighways have been greatly improved over thelast ten years. The idea of building a bridge overthe Usumacinta river has also been discussed, toconnect the Petén with Mexico by highway, or

improve the road which crosses into Mexico alittle further north at Tenosique. This would makethe Petén less isolated, with corresponding goodand bad effects. In Rio Dulce/Livingston there isa port.

Twenty years ago, the most common type ofbusiness was a sawmill with some extractionequipment, generally a small total investmentif compared to the profit it made. More or less40 sawmills existed. Since then, the number ofbusinesses working in the forestry sector in thePetén has decreased due to both supply andmarket problems.

For decades, the forest reserve in the north of thePetén was the domain of private companies. Duringthe sixties, seventies and eighties an importantindustrial infrastructure for timber was developed.However, forest management and extractioncontrol systems were weak, which led tooverexploitation of forests. Moreover, companieswere incapable of containing growing migrationand avoiding conversion of substantial forest areas.With growing concern for tropical rainforests in theeighties, this was a problem that had to be solved.In 1990, the Consejo Nacional de Areas Protegidas(CONAP) was set up to manage all protected areasin Guatemala and the RBM was decreed. At first,the CONAP encouraged a policy of total protection(zero extractions), which rapidly led to an industrialcrisis in the region. Total protection could neverbe completely implemented because it pre-supposed institutional capacity of spatial control(for example, ability to slow down illegal timberextractions), which did not exist. This policy alsoled to confrontations and clash of interests withmembers of the army, who in some cases sabo-taged CONAP’s work. Therefore large-scale illegallogging was unleashed in the rainforests of thePetén for nearly half a decade.

BOX 1

The long and winding road to community forestry in the RBM

This policy did not respond in any way to the

problem of colonization in the RBM. From 1995 to

1997, invasions of protected areas occurred daily,

leading to deforestation of 150,000 hectares.

Faced with this reality, change was inevitable.

Luckily, previous experiences existed (e.g. the

communities of San Miguel and La Pasadita,

which, with help from the project CATIE/OLAFO, had

negotiated against great odds a communal

concession in 1992), which enabled local actors

to reformulate the concept of forestry. The change

was implemented with exceptional intelligence

and realism, resulting in a system of forest use (i.e.

regulation, technical assistance, and participation

of local communities) that is probably the best-

organized and balanced in Mesoamerica. It is

important to note that together with the com-

munity concessions, two concessions were awarded

to private industry. These concessions have only

a small risk of being invaded by colonists, be-

cause, as seen in Map 2, they are “protected”

by the community concessions. This exemplifies

how a geographic factor was used to encourage

acceptance of community forestry.

Page 26: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

27

The forest product companies that survived,currently six, are businesses that made significantinvestments and were highly integrated: They allhave extraction equipment and a sawmill, threeof them have a plywood line, and one has anexcellent decorative veneer line (mostly mahog-any). Each company can process an annual inputof round wood between 10,000 and 30,000 m3.Two of these companies were able to establishimportant secondary processing lines: one forthe production of doors and the other for flexibleproduction of floors, doors, and prefabricatedhouses. Almost all have sales warehouses in Gua-temala City. These secondary processing lineshave worked intermittently over the last few years.

All of these companies are shadows of theirformer selves… large buildings with old machinery,often working at ten percent of capacity, some-times closing temporarily. A firm that had 400employees in its heyday now has less than 50,and the machinery is sized too large for thediameters of logs that now arrive at the plants,which increases costs and waste.

Micro and small carpentry shops5 exist in thelarger towns, which supply regional markets:There are probably no more than eight small busi-nesses in the region.

Some community operations installed theirown sawmills after implementation of commun-ity forestry; in each case this was carried out withthe help of development agency donations orlong-term loans. Portable sawmills were alsopurchased. Two of three sawmills installed did notwork due to errors in the purchasing of machineryor in the type of organizational structure chosen.Currently, some community operations are con-sidering buying the remains of sawmills that closeda few years ago.

In summary, the industrial infrastructure isbasically what remains from the period of in-dustrialization in the seventies and eighties. Eventhough this infrastructure is not ideal for theforest’s potential, and except in a few cases, has

not been maintained for about a decade, it still isimportant in regional terms and has potential forgrowth. In the case of the two companies thatreceived forestry concessions, it is likely that in-vestments will be made in their factories becausethe certainty of supply allows them to plan pro-duction more efficiently.

1.2.2 The Atlántida Forest Region - Honduras

The Atlántida Forest Region covers a strip 40-80kms wide which runs parallel to the northwestcoast of Honduras (see Box 4). It consists of thedepartments of Atlántida, Colón, Islas de la Bahía,and part of Olancho and Yoro, covering a totalarea of 1,511,000 hectares. The region is moun-tainous. The three mountain ranges that traversethe region have determined to a great extent theform of occupation and land use. The largest for-ests are in these mountain ranges whereas thevalleys have been turned over to other uses (bana-nas and palm oil amongst others). The precipitousmountains have led to a particular extractionsystem: Cutting logs into rough cants using chain-saws and subsequent transportation with mules(see chapter 3.3).

The agricultural frontier has continuouslyadvanced since banana companies began to cutdown forests in the valleys at the beginning ofthe XX century to expand their plantations.Beginning in the nineteen seventies, changes inland use increased due to the colonization of theregion encouraged by the Honduran government.Farmers have penetrated the most easily ac-cessible mountain sides, planting maize, beans,and semi-permanent crops, such as coffee, citricfruits, and sugar cane. The least accessible areason the steepest slopes, are still covered by forest.Colonization of these areas increases every timea new highway is built, which is indicative ofcontinuing migratory pressure.

5 For the purpose of the study, a micro business is defined as having less than 5 employees, a small business between5 and 15, a medium business more than 15 and less than approximately 60, and a large business more than 60.

Page 27: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest C

om

munities an

d th

e Marketing

of Lesser-u

sed Tro

pical H

ardw

oods in

Meso

america

28

BOX 2

Petén, Guatemala

International border

Main road

National parks Baffer Zone Community and industrial concessions

The two industrial concessions are Paxban and La Gloria

Source: Based on International Travel Maps, Canada.

17°10’

Detailed area

Page 28: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

29

The region’s most important trade centers arethe cities of La Ceiba (approximately 90,000inhabitants) and San Pedro Sula, the secondlargest city in Honduras (500,000 inhabitants).Both cities represent important end-markets forwood products. La Ceiba supplies the islands ofla Bahía, which have significant demand forfurniture and timber for construction due to theirgrowth as tourist centers.

A good road network connects the region’smajor cities through the valleys (San Pedro Sula,Tela, La Ceiba, Olanchito and Bonito Oriental).However, very little infrastructure has been es-tablished within the mountainous regions, a mea-sure used expressly to reduce the possibilities ofcolonization and changes in land use. Communi-

ties with groups that have licenses for timber ex-traction are generally found between the highwayand the mountains, or are hidden away in themountains. The Atlántida has very good con-nections with other markets (e.g. highway toTegucigalpa and Honduras’ seaport, which isPuerto Cortés).

The region has great potential for use ofhardwoods, not only because of the geographicproximity of the forests to important centers ofconsumption (the cities mentioned), but alsobecause of the rapid growth of these cities. Thefamiliarity of consumers in San Pedro Sula andLa Ceiba with lesser-known species is apparent,as are the prejudices they have against pine forfurniture.

BOX 3

The rise of community forestry in the Atlántida/Honduras

The Administración Forestal Estatal- Corporación

Hondureña de Desarrollo Forestal (AFE-COHDEFOR),

this is, the Honduran Forest Administration, was

set up in the seventies, as a “mixture” of state

enterprise and development instrument. It had

to take care of regulatory tasks, such as forest

management, transportation of timber, forest ex-

tractions, and primary processing. At the same

time, the program “Sistema Social Forestal” (SSF)

was created. Its objective was the participation

of rural population in forest management. The

participation of peasant groups in forest mana-

gement does not appear to have been seen as an

instrument of land use planning, but rather a

measure of social compensation. Despite this, the

SSF is an important step towards forest community.

In the Atlántida region, community extractions

started with the Cooperativa Agroforestal Colón

Atlántida Limitada (COATLAHL), which for a long

time supplied industry in San Pedro Sula. The state

ownership of forest lands, the operational mandate

of COHDEFOR to carry out extractions and primary

processing, and partial assignment of these two

tasks to community groups, are reasons why the

private industry in the Atlántida never developed

strategies of vertical integration, such as those

which exist in the other three regions (extraction-

sawing-secondary processing), and why they

concentrated on secondary processing. It can

be said from the development reached by the

secondary industry, that this division of labour

worked quite well. Today it is clear that mahog-

any has been overused for many years. In 1992, a

new law was passed with the objective of

granting extraction rights once again to private

companies. In the Atlántida, this scheme was not

successful. The groups there continued to work

as before, and, on the contrary, gained in strength

due to the activities of a project of technical

cooperation between Honduras and Canada.

A new law is being currently worked on which

fully takes into account the work of community

groups.

Page 29: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest C

om

munities an

d th

e Marketing

of Lesser-u

sed Tro

pical H

ardw

oods in

Meso

america

30

BOX 4

Atlántida, Honduras

ElSalvador

Gua

tem

ala

Bel

ice

Nicaragua

Detailed area

meters

International border

Main road

National park

Source: Based on International Travel Maps, Canada.

Page 30: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

31

There are currently 55 forestry operations inthe region that produce motorsawn lumber. Thereare also a large number of illegal sawyers. Bothgroups sell to approximately 20 madereros, whothemselves supply 35 small businesses, 14medium-sized businesses, and five large busi-nesses in the region, which by Central Americanstandards is a significant cluster. Most of the small-and medium-sized companies, and all of the largefirms, are in San Pedro Sula. The majority of thecompanies are involved in furniture production.One company produces truck beds (see Chapter8.1.3). It is important to stress the fact that thelarge companies do not get all of their supply fromthe region. The majority of their supply comesfrom la Mosquitia, where there are still significantvolumes of mahogany.

In the Atlántida, the decrease in availability ofmahogany forced several businesses out of themarket; however this decrease was not quite asdrastic as in other regions, especially QuintanaRoo. This was mainly because of the existence ofsufficient volumes of other species that were director technical substitutes for mahogany.6 Thecompanies did not have any problems withchanging their production to the new species,because most of the furniture is painted beforebeing sold, so that the grain and color of the wooddo not have the same importance. However, thecompanies in the Atlántida are exposed togrowing competition in their traditional markets(see Chapter 5.1.2 and 5.3.2; see also Box 16and 34).

An important neglected aspect of the timbersector in the Atlántida is the trade in motorsawnlumber by madereros. The madereros are theprincipal suppliers to secondary industries in SanPedro Sula and La Ceiba. The madereros are forthe most part small businessmen. The smallestbusiness does not deal with more than 10,000board feet annually, while the more active onesprobably exceed 300,000 board feet. The ma-dereros who exceed 100,000 board feet a yearare few and far between numbering fewer than

twenty. Their strengths lie in various areas. Notonly do they know the producers and con-sumersof timber well, but they also know how to transporttheir products, legal or not, to the centers wherethe wood is sold. Paradoxically, madereros, whohave always been seen as a source of chaos inthe forestry sector, have allowed companies whobuy hardwoods to continue to function even whengovernment bodies have practically put a haltto the production of legal timber. Presently, facingthe threat of a ban on extracting precious woods,it is the madereros who allow businessmen in-volved in secondary processing to sleep relativelywell at night.

In discussions about the forestry sector, themadereros are always perceived as the “bad guys”and are blamed for many of the existing forest ex-ploitation problems. This came about not only be-cause many of them work with illegal timber, butalso because of having to be a middle man for agri-cultural or forest products, which means you areassumed responsible in some way for exploitingproducers. Nobody is willing as of yet to recognizethat trade and established distribution channels areessential parts of the production chain and thatmadereros play an important role.

San Pedro Sula is the seat of diverse institu-tions of higher education and research, amongstwhich is the Centro de Utilización y Promociónde Productos Forestales (CUPROFOR, see alsoChapter 8.1.1).

1.2.3 The state of Quintana Roo - Mexico

The state of Quintana Roo is located in the south-east of Mexico. It has a surface area of 5,084,300hectares. The forests important for commerciallog supply are located principally in the center andsouth.

Quintana Roo has been an important centerfor immigration since the beginning of the twen-tieth century. Three migratory influxes can be dif-ferentiated:

6 See glossary for the definition of direct and technical substitutes.

Page 31: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

32

• At the beginning of the century, variousgroups of chicleros (chicle tappers) settledin the south of the state. Chicle is the latexof chicozapote [Manilkara zapota], the rawmaterial for natural chewing gum). Thesegroups later obtained the legal right to use theland in the form of ejidos.

• Migrating from the neighboring state of Yu-catan, a great number of Mayas settled in thecentral region of the state, becoming neighborsof Mayas who already lived in the region.

• In the seventies, peasants from other mex-ican regions with cattle-ranching, sugar-cane,and general agricultural traditions settled inthe southern part of the state. These peasantsalso became ejidatarios.

Since the 1980s, immigration to rural areashas steadily decreased and been replaced by emi-gration to the principal tourist center of the state,

Cancun. Along with these trends, agricultural, live-stock, and forestry production have lost importan-ce compared to the services sector, which currentlycontributes more than 70% of Quintana Roo’sgross domestic product.

The main cities of this state are Cancun(400,000 inhab.), Chetumal (120,000 inhab.) andFelipe Carrillo Puerto (40,000 inhab.). Cancún isan important market for finished wood products,but unlike the situation in the Atlántida, supplyrelationships with forestry and wood productsproducers of the state are weak. From the southof Quintana Roo, Cancun buys posts and grassfor the roofs of buildings used for tourism purposes,but furniture comes from elsewhere. Chetumaland Felipe Carrillo Puerto are small end-marketsfor forest products.

The region has good road infrastructure. Ap-proximately 70% of the rural settlements haveaccess to a highway. Towns normally have elec-

Community forestry in the peninsula of Yucatanhas its roots in Prehispanic Mayan culture. In the1940s, the Mexican government successfullyadded a state structure to these traditions bycreating chicle extracting ejidos. Timber extrac-tions remained in private hands. As a consequenceof new immigration in the seventies, increasinglylarger areas of forest were converted to other landuses, leading to a crisis in the model of privateforestry concessions.

At the beginning of the eighties, top bureaucratsof the state government and the federal ministryresponsible agreed on the need for change. Animportant group of ejidos was pushing for theright to exploit timber resources. Moreover, atechnical team was already established, capable ofdirecting the technical, organizational and polit-ical processes needed. At the same time, the

opposing coalition, made up of traditional timbermerchants and middle management in thegovernmental institutions, had lost power andcould not slow down the process.

Unlike Honduras, where community forestrywas set up under a national law, communitytimber extractions in Quintana Roo started in alimited geographical area, but allowed greaterconceptual freedom for the technical teams.Within this setting, it was possible to questionand experiment with many key elements of com-munity forestry: The role of technical assistancegroups, regulatory role of the state, the rights,obligations, possibilities and restrictions ofcommunities and, in general, the level of equi-librium which has to exist in order for communityforestry to work. The model was gradually ex-panded and consolidated institutionally.

BOX 5

Reinventing community forestry in Quintana Roo

Page 32: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

33

BOX 6

Quintana Roo, Mexico

Protected areas

Forest ejidos

Nacional borderInternational borderMain road

0 25 50 75 100

Page 33: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

34

tricity, clean water, primary schools, and a smallmedical center. The entire state has access toports, all within 5-7 hours trip by truck from theproduction centers.

The industrial infrastructure in the south ofQuintana Roo has gone through some dramatictransformations over the last twenty years. At theend of the seventies, there were 15 forestry en-terprises that combined extraction and primaryprocessing (sawing or plywood), and in somecases, secondary processing. Fifteen small andmedium secondary processing enterprises alsoexisted.Currently 90% of the wood productsbusinesses that used to exist have closed down orchanged hands. Most of the sawmills were soldto the communities. Of the four businesses thatproduced panels and plywood, the largest hasclosed down, while the others are working at aslower pace. Many secondary processing enter-prises have closed. However, two flooring companieshave opened with significant financial capacity,strong market orientation, and high-level managerialskills (see also chapter 8.1.3, PIQRO company).

1.2.4 Región Autónoma del Atlántico Norte(RAAN) - Nicaragua

The RAAN occupies a quarter of the total Nica-raguan territory (3.2 million hectares) and is lo-cated in the northeast of the country. It has alwaysbeen isolated from the central Nicaraguan power-base and is sparsely populated (average six in-habitants/km2; less than 5% of the country’spopulation). For this reason, it is currently seenas a formidable land reserve, exposed to strongmigration pressure from other regions.

The RAAN lacks high ground. Most broadleaved,exploitable forests are found in the Atlantic plains,bounded by large swamps or by sandy savan-nahs where the Caribbean Pine (Pinus caribaea)is dominant. Towards the west, the terrain slowlyincreases to altitudes of 300 to 600 meters. It is herewhere conversion to pasture lands is more advanced.

About 82% of the region is forested. Unlikethe other study regions (the south of QuintanaRoo, the Petén, and the Atlántida), where migra-

tory pressure is decreasing, the RAAN continues tohave all the characteristics of a frontier region:

• Migratory pressure and high conversion ratesof woodlands.

• Physical infrastructure (i.e. roads, electrici-ty supplies, clean water, drainage systems,and schools) and public services (i.e. security,education, health, and legal system) are stillvery weak.

• There is a limited institutional capacity toregulate and control land use and high levelsof violence and crime (related to drug traf-ficking and property rights).

• Three quarters of the population work in theprimary sector: Fishing, subsistence agri-culture, and forestry activities. The colonosfrom the Pacific area and center of thecountry have a livestock background.

The principal city of the region is PuertoCabezas (Bilwi), which has around 30,000 inhab-itants. Regional infrastructure is poorly developed.The highway to Managua is a rough dirt trackin very poor condition. There is the possibility oftransporting timber by sea or river.

Two large forest product enterprises exist inthe region which combine extraction, primaryprocessing (sawing and plywood) and, in one case,secondary processing. Otherwise, the industrialinfrastructure is restricted to portable sawmills thatoften operate on the fringes of the law.

The history of the autonomous region of theNorth Atlantic is to a large extent the historyof the Miskitos people, who have lived here forhundreds of years and the dominant indigenousgroup in the region (but not the only one). TheEnglish, who settled in the Atlantic Region in theeighteenth century and exploited precious woodsto supplement their shipping needs, negotiateddirectly with the Miskitos and did not intervene inthe extraction process. All other external groupswho arrived after the English have had to negotiatetheir stay with the Miskitos, as have most recent-ly the Sandinistas. The Spanish, who had their powerbase on the Pacific coast and the mountains, neverdeveloped significant activities in the Atlantic region.

Page 34: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

35

Towards the end of the nineteenth century,businesses from the U.S. began to exploit theforests, extracting mahogany, cedro real, ro-ble, pochote (cedro espino), guayacán, moraquebracho, brasil, ñambar and palo derosa. Enterprises with the capacity to process55,000 board feet of timber daily, often workingwith almost 600 employees, were developed. Noforest management existed, but the concentrationon mahogany trees of large diameters probablyreduced long-term effects on forestry ecosystems.

At the end of the nineteenth century, thecolonization of the Atlantic Region began fromthe northern central region.

This process led to the establishment of coffeeplantations and opening of road links betweenthe Atlantic and Pacific coasts. With the develop-ment of international markets and demand for certainproducts, cattle ranches were established all alongthe strip in the central region and north of the country(Matagalpa, Boaco, Chontales), directly affectingthe forest ecosystems in these departments.

BOX 7

First steps towards community forestry: the RAAN

Nicaragua is the one country in the study wherethe situation regarding community forestry isleast clear. Various indigenous groups (e.g. mis-kitos and mayagnas) have lived in the region forhundreds of years as fishermen, subsistencefarmers and, through timber extractions, man-aging resources in the community. There is a lawbased on this fact, to give indigenous groupsownership of “lands, waters and forests” whichhave traditionally belonged to them (Article 28of the Statutes of Autonomy of Nicaragua’sAtlantic coast).

Beyond these two factors described above,that appear to support establishment of com-munity forestry, practically all is uncertain: Theindigenous groups do not have access to the legaltools to determine their customary rights; nation-al forestry policies are contradictory and do nottake into consideration the situation of indige-nous groups; governmental attributions aredistributed over a large number of bodies (e.g.municipal and regional governments, and variousministries); and corruption is clearly presentamongst the government officials at variouslevels diverse entities, which is taken advantageof by migrants from other regions to obtain deedsto lands which the indigenous communitiesbelieve are theirs.

The indigenous groups have traditionally beengoverned by a council made up of the oldestmembers of the group, who represent the groupand make internal decisions, as well as havingcertain legal functions. With the advent of the state,its political structure (municipios - mayoralties) isreplacing communal structures to the degree thatthe municipal trustee (a position in the mayor’soffice) is now the principal authority in the com-munity. Normally the trustee is elected by thecommunity itself, but currently mayors (electedfor the whole municipality) are increasinglychoosing trustees who are close to them. There-fore a division along party lines is being accen-tuated in the communities, and the communityitself is losing its capacity for self-determination.It is important to remember that Law 28 of Auton-omy recognizes communal property, but does notdefine what constitutes a community, nor doesit define community decision making procedures.The decision-making and representative powersthat communities previously held are now beingpassed over to the mayor’s office. For the decisionsconcerning land use, this process is negative;passing decision-making to the mayor’s officeweakens the communities’ interest in communaluse of resources, and the mayor’s office does not havethe operational skills to direct forest management.

Page 35: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

36

BOX 8

Autonomous Region of the North Atlantic (ANAR), Nicaragua

Broadleaved forests

Pine savanna

Non forest cover

HONDURAS

NICARAGUA

Managua

Source: Based on International Travel Maps, Canada.and World Conservation Monitoring Centre (1996)

State borderMain roadInternational border

COSTA RICA

Page 36: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Introduction

37

A second large-scale colonization process beganin the sixties, with policies that provided incentivesfor intensive stockbreeding. Thus began amigratory trend, which still continues to penetratethe rainforests, spreading into lands increasinglyunsuitable for cattle and agriculture, and convertingextensive woodland areas into pasture. Unlike otherstudy regions, which at the beginning of thetwentieth century were virtually deserted, or whoseexisting populations were not directly affected bycolonization, the colonization of the RAAN often tookplace on land belonging to indigenous groups. Themigrants have advanced along the roads fromwest to east, settling first on the highest grounds(150 to 600 metres above sea level) and graduallyconverting towns which were indigenous intofrontier towns, with a predominantly mestizopopulation.

1.3 Methodology

Four methods were used to gather informationand data for this study:

• Analysis of community operations: Variouscommunity forest operations were visited

in the study regions, and community lead-ers, forestry workers, but also people notactive in the operations were interviewed.The analysis was carried out with instru-ments from the Rapid Rural Appraisal. Tocomplete the picture, interviews were alsocarried out with forest technicians, extensionagents and buyers.

• Description of the production chains includingmarkets: Companies in the processing chainwere visited to try and capture the types ofcompanies that exist on a regional level andthe principal buyers on a national level.

• Analysis of marketing experiences: Inter-views were carried out with people who havepromoted the use of lesser-known speciesor changes in processing that facilitated themarketing of lesser-known species, to cha-racterize the more promising initiatives.

• Study of literature and empirical knowledgeon characteristics of lesser-known species:Existing literature on the characteristics oflesser-known species was studied and infor-mation gathered from timber processors.Various studies on utilization rates were alsoevaluated.

Page 37: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

2.1 Forested areas

The countries studied have about 36 million hect-ares of broadleaved forests among them, out ofwhich a little less than 33 million hectares are inregions where community forestry is dominant.The study regions include a significant area offorests with communal management (see box 9).

Altogether, there are 1, 200, 000 hectares withextraction permits in the four regions studied, ofwhich 90% can be considered under some sortof community forestry scheme. In Quintana Roo,all of the area indicated, more than half a millionhectares, is under the control of community op-erations. In the Atlántida, the situation is practi-cally the same. In the Petén, there are two private

2 FOREST RESOURCES

BOX 9

Forest areas in Mesoamerica [hectares]

Guatemala 3,017,600 1,700,000 RBM 1,700,000 318,408

Honduras 2,705,600 2,280,200 Atlántida 527,600 110,000

México 26,440,000 26,440,000 Quintana Roo 3,686,700 533,601

Nicaragua 3,800,000 2,280,000 RAAN 1,600,000 240,000

TotalTotalTotalTotalTotal 35,963,20035,963,20035,963,20035,963,20035,963,200 32,700,20032,700,20032,700,20032,700,20032,700,200 TotalTotalTotalTotalTotal 7,514,3007,514,3007,514,3007,514,3007,514,300 1,202,0091,202,0091,202,0091,202,0091,202,009

* This refers to forested areas in regions where community forestry is dominant; it includes certain areasnot controlled by communities. The data presented here are based on the information which was available,whose quality varies considerably.

Source: diverse data.

Country Total area ofbroadleaved forests

Area of regionswith community

forestry*

StudyRegion

Area ofbroadleaved

forests

Areas withextraction

permits

>>>>

Page 38: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

40

company concessions with some 45,000 hect-ares each. In the RAAN, most areas where extrac-tion is carried-out are communal land.

The reason for the difference between total for-ested area and forested areas with extraction per-mits is the existence of areas with total protection(e.g. reserves and forests on very steep slopes),areas with secondary forests, which are not yet ofcommercial size, and areas which because of theirdistance or legal reasons are not commercially avail-able. The last category implies that the amount offorested land subject to commercial harvest opera-tions could increase in the mid term:

• In the RBM, 40,000 to 80,000 hectares morecould be managed.

• In the Atlántida, more than 150,000 hectarescould be added, totaling at least 250,000 hect-ares.

• In Quintana Roo, expansion of forested areassubject to commercial harvest over the nextfew years basically depends on solving theproblem of how to manage the vast areas cov-ered predominantly with smaller diameter trees

(see Box 35). Over the next ten years, an ad-ditional 100,000 hectares could be added if asolution is found to this problem.

• In the RAAN, there is forestland that is offi-cially available for some type of commercialforest operations, but there is not a well-or-ganized forestry service to manage additionalforest operations. Here, the forestry service,and in general, the system of forest use, stillhas to be consolidated. Despite this, it is re-alistic to estimate that the area that could beofficially accessed for commercial purposescould increase by 70,000 hectares over thenext few years.

In total, the forested surface area available forcommercial extraction could increase by approxi-mately 400,000 hectares in the coming years.

2.2 Potential annual harvest7

As a consequence of significant differences in rain-falls (from 1300 to 4000 mm per year) and other

BOX 10

Potential annual harvest of hardwoods and extrapolated annual potential*

RBM 258,268 48,039 0.186 318,408 59,225Atlántida 89,739 104,707 1.167 110,000 128,347Quintana Roo 533,601 153,627 0.284 533,601 151,529RAAN nd nd 1.200 240,000 288,000

* The information is based on the extraction permits issued by the respective institutions. It includespermits for mahoganymahoganymahoganymahoganymahogany and cedro (see also the following tables). The extrapolated potential refers tothe volume which could be exploited if all exploitable areas were counted instead of only countingthose which have applied for an extraction permit.Source: own work from diverse data.

Region Area underinventory [ha]

Annual authorizedvolume [m3]

Authorizedvolume

ha [m3/ha]

Estimatedarea[ha]

Annualextrapolatedpotential [m3]

7 This volume refers to the volumes authorized for harvest by each regional forest service, normally basedupon inventories and management plans.

Page 39: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Resources

41

variables (soils, slopes), the forests of the four studyregions are diverse, resulting in canopy heightsranging from a little more than 15 m in QuintanaRoo up to more than 40 m in parts of the Atlántidaand the RAAN. In these two regions trunk diam-eters of more than a meter are common, whereasin Quintana Roo average log sizes are smaller (i.e.,with diameters as small as 25 cm small-end).

How harvest operations are silviculturally regu-lated (i.e. minimum diameters for felling, cyclesand intensity of felling) also differs between re-gions. The Petén has probably the most conser-vative guidelines. All of these elements affect theannual legally available volume in the regions.

The results presented in Box 10 are based onthe data available in the study regions

The overall currently available potential of thefour regions is around 630,000 m3 annually. Thisincludes approximately 30,000 m3 of mahoganyper annum. This potential is small if compared tointernational production standards. A fairly largeconsortium in Brazil can easily reach productionlevels of 150,000 m3, using maybe 20 species,not the fifty or so needed to obtain this volume inCentral America.

Another characteristic that creates a disadvan-tage for regional log production is log form. Theirdiameters in Mexico are very small. Althoughlarger diameter trees are available in the forest,the Atlántida does not produce any logs, justrough-sawn or hand hewn timber with smallerdimensions. Currently, only Nicaragua produceslogs that can compete in terms of quality and di-ameters with Brazil, Bolivia or Peru.

Although the afore mentioned volumes aresmall by international production standards, theyare important assets by regional standards. Hereis an important potential for local companies toprofit on.

2.2.1 Potential annual harvest in the RBM

(Petén)

Box 11 shows the potential harvest for the mostimportant species in eleven concessions in the RBM,accounting for approximately 90% of all volumes.

Light and Medium-Weight Species. Mahogany(Swietenia macrophylla) is still the most impor-tant commercial species in this group. A signifi-cant volume of cedro (Cedrela odorata) has alsobeen reported. In some regions, the values shownfor these species will probably have to be cor-rected in the coming years due to overexploitation.

The only direct substitute for mahogany thatexists in any volume is Santa María (Calophyllumbrasiliense).

Light-coloured woods show significant poten-tial. Jobo (Spondias mombin), chacaj colo-rado (Bursera simaruba), and mano de león(Dendropanax arboreus) are species that couldbe used interchangeably for the production offurniture or mouldings because they all look alike.These species could eventually be marketed underone commercial name (in México jobo andchacah have been marketed together under thename jocha).

Amapola (Pseudobombax ellipticum) hasbeen used as a mahogany substitute. It is difficultto distinguish stained amapola from mahogany.However, because of its greyish colour and lightweight, it will have to be commercialized as a sepa-rate species. Amate (Ficus sp.) is another impor-tant species in terms of present volumes thatbecause of its very particular caracteristics will haveto be commercialized separately as well (see alsoappendix 2).

Regarding medium-weight species, the volumeof santa maría, danto (Vatairea lundellii) andsunza (Licania platypus) is promising. Significantvolumes of other medium-weight species –tzalam(Lysiloma bahamensis), canxan (Terminaliaamazonia), cola de coche (Pithecellobium arbo-reum), guaciban (Pithecellobium leucocalyx)–do not exist, but their marketing should not be todifficult because they reach significant volumes inother countries and are well known.

Heavy species: Results of this study indicate thatpucté (Bucida buceras) dominates in terms ofvolume. Previously, this species was consideredof little significance in terms of volume, far belowramón and chicozapote. For example, the

Page 40: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

42

BOX 11

Potential annual harvest in the RBM

Species SG Potential harvest [m3]

Mahogany Swietenia macrophylla 0.45 4,8754,8754,8754,8754,875Santa María Calophyllum brasiliense 0.52 2,8922,8922,8922,8922,892Amapola Pseudobombax ellipticum 0.35 2,1622,1622,1622,1622,162Jobo Spondias mombin 0.39 1,8811,8811,8811,8811,881Danto Vatairea lundellii 0.62 1,2191,2191,2191,2191,219Chacaj Colorado Bursera simaruba 0.38 899899899899899Mano de león Dendropanax arboreus 0.40 878878878878878Sunza Licania platypus 0.58 778778778778778Cedro Cedrela odorata 0.40 703703703703703Ceiba Ceiba pentandra 0.36 550550550550550Amate Ficus involuta 0.48 497497497497497Tempisque Masticodendron capari nd 494494494494494Jesmo Lysiloma sp. nd 486486486486486Yaxnik Vitex gaumeri 0.53 435435435435435Tzalam Lysiloma bahamensis 0.63 366366366366366Guasiban Pithecellobium leucocalyx 0.52 312312312312312Saltemuche Sickingia salvadorensis 0.60 245245245245245Pasaque Hembra Simarouba glauca 0.35 243243243243243Matasano Casimiroa edulis nd 231231231231231Luin Macho Drypetes brownii nd 181181181181181Canxan Terminalia amazonia 0.52 109109109109109Copo Coussapoa oligocephala s.d 8282828282Son Alseis yucatanensis 0.64 6868686868Cola de Coche Pithecellobium arboreum 0.56 4242424242

Pucté Bucida buceras 0.85 7,2927,2927,2927,2927,292Ramón Blanco Brosimum alicastrum 0.73 4,2244,2244,2244,2244,224Ramón Oreja de Mico Brosimum costaricanum 0.73 3,3793,3793,3793,3793,379Chicozapote Manilkara zapota syn achras 0.85 2,8782,8782,8782,8782,878Silion Pouteria amygdalina 0.78 1,2601,2601,2601,2601,260Catalox Swartzia lundellii 0.79 942942942942942Malerio Blanco Aspidosperma stegomeres 0.78 860860860860860Manchiche Lonchocarpus castilloi 0.79 841841841841841Jobillo Astronium graveolens 0.75 793793793793793Malerio Colorado Aspidosperma megalocarpon 0.78 689689689689689Luin hembra Ampelocera hottlei 0.66 665665665665665Sacuché Rehdera penninervia 0.75 539539539539539Chechen Negro Metopium brownei 0.70 493493493493493Canisté Pouteria campechiana 0.78 488488488488488Ramón Colorado Brosimum sp. 0.73 380380380380380Zapotillo hoja fina Pouteria mayeri 0.85 291291291291291Chichipate Sweetia panamensis 0.79 8686868686Manax Pseudolmedia oxyphyllaria nd 8181818181Hormigo Platymiscium dimorphandum 0.69 6060606060

Other species recorded 167167167167167

TOTALSTOTALSTOTALSTOTALSTOTALS 48,03948,03948,03948,03948,039

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium species

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy species

Source: Inventories of: Chosquitan, Río Chanchich, Las Ventanas, Uaxactún, San Miguel, La Pasadita andCruce Dos Aguadas, Arroyo Colorado, San Andrés, Paxbán, Carmelita, Bethel, Técnica Agropecuariaand Unión Maya Itzá (UMI). Total Area of Inventory: 258,268 ha.

Page 41: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Resources

43

inventory carried out by the German-Guatema-lan agreement (1992), which covered approxi-mately 2.5 million hectares, placed pucté ineleventh place in regards to harvestable volume.The top places were occupied by ramónblanco (Brosimum alicastrum), which repre-sents nearly 10% of the total volume, chicoza-pote (Manilkara zapota) with 6%, guapaque(Dialium guianense) with 5% and yaxnik(Vitex gaumeri), with 3%.

In the case of chicozapote, the differencebetween the cited inventory and the results pre-sented in Box 11 can be explained by the factthat there is a ban on logging this species, so it isnot considered in many inventories, such as theinventory of San Andrés and Paxbán, and the in-ventories of the Eastern region. In the latter cases,previous inventories of the same zones (Gálvez,1992), showed volumes of over 10 m3/ha of chi-cozapote.

Guapaque (Dialium guianense) may not havebeen included in the inventories because it is con-sidered noncommercial due to high silica content.The exclusion from inventory data is probably thecase for other species with small volumes or whichare considered noncommercial for some reason.To reduce costs, many inventories only gathereddata about certain species selected for their com-mercial significance. This implies a tendency toundervalue non-commercial species. For thesereasons, it is likely ramón was not considered insome inventories.

Because of their characteristics, the heavy spe-cies have to be marketed separately. An excep-tion could be ramón species [Brosimum alicastrumand B. costaricanum]. Realistically, the numberscited for the various Brosimum spp. need to bequestioned since the inventory teams cannot al-ways reliably differentiate them.

Many of the species in this group have whatare considered negative characteristics, which upuntil now has slowed their introduction to mar-kets. Some negative characteristics can be coun-teracted relatively simply and economically.Others, like the high content of silica in Pouteriaspp., are unacceptable for many uses.

2.2.2 Potential annual harvestin the Atlántida

The available information (Box 12) refers to 37inventories which covered a total of 19,980 hect-ares. A total of 55 permits have been issued cov-ering an area of 89,739 ha with a potentialextractable volume of de 104,707m3.

The following conclusions can be made basedon the data presented in Box 12:

• The importance of mahogany (Swieteniamacrophylla) has greatly declined. Only twooperations show significant volumes in theirinventories. Therefore, it is not possible toextrapolate quantities of this species for thearea as a whole that is currently authorizedfor harvest.

• Fortunately, a great number of species existthat can substitute for mahogany, eitherdirectly (e.g. same colour and similar grain)or as technical substitutes (e.g. similar tech-nological characteristics). The wood mostoften used as a mahogany substitute is SanJuan areno (Ilex skutchii) because it is easyto work, has fine texture, attractive grain,and an off-white colour, which is amenableto practically any kind of stain.

• The inventories show limited quantities ofheavy woods. As in Guatemala, this couldbe because inventories did not record spe-cies not considered commercial. Selillón(Pouteria izabalensis) can be used as anexample. This is a species that does not ap-pear in the inventories, but was one of thebest-selling species during the time a com-pany that produced truck beds was in op-eration. Another species that might havevolumes greater than those recorded in theinventories is paleto (Dialium guianense).This species is considered to be very difficultto process (high silica content). Thereforemany inventories do not list it, although farm-ers mention this species very often whenasked to name the most common species intheir forests.

Page 42: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

44

BOX12

Potential annual harvest in the Atlántida (37 forest operations)

Species SG Potential harvest[m3/year]

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesCumbillo Terminalia amazonia 0.64 6,467San Juan Rojo Vochysia jafensis 0.44 4,520Varillo Symphonia globulifera 0.56 3,148Huesito Macrohasseltia macroterantha 0.62 2,507Cedrillo Huertea cubensis 0.37 2,391Piojo Tapirira guianensis 0.42 2,467Rosita Hieronyma alchorneoides 0.61 2,226Redondo Magnolia yoroconte 0.52 2,029Sangre Real Virola koschnyi 0.36 1,916San Juan Areno Ilex tectonica 0.46 1,774María Calophyllum brasiliense 0.53 1,374Marapolan Guarea grandifolia 0.56 1,255Pepenance Byrsonima spicata 0.44 1,118Mahogany Swietenia macrophylla 0.45 1,056Cedro Real Cedrela odorata 0.33 1,003Jigua Nectandra hihua nd 612San Juan Peludo Vochysia guatemalensis 0.41 588Barba de Jolote Cojoba arborea 0.61 449San Juan Guayapeño Tabebuia donnell-smithii 0.45 282Aguacatillo Ocotea caniculata nd 275Coloradito Gordonia brandegeei 0.64 231Teta Zanthoxylum beliziense 0.43 219San Juan Colorado Vochysia ferruginea 0.38 219Laurel Negro Cordia megalantha 0.44 154Cedro Peludo nd 146Cuajada Dendropanax arboreus 0.40 142Negrito Simarouba amara 0.35 84Cipres Podocarpus guatemalensis nd 76Sangre Blanco Pterocarpus hayesii 0.45 72Indio Desnudo Bursera simaruba 0.33 44Carbón Guarea glabra ? 0.52 44Granadillo Dalbergia tucurensis 0.53 34Macuelizo Tabebuia rosea 0.57 23Laurel Cordia alliodora 0.44 19Nogal Juglans olanchana 0.40 8

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy speciesJagua Genipa americana 0.66 255Cortés Tabebuia guayacan 0.85 42Guapinol Hymenaea courbaril 0.78 5

Other species recordedOther species recordedOther species recordedOther species recordedOther species recorded 52

TOTALTOTALTOTALTOTALTOTAL 39,37839,37839,37839,37839,378

Source: inventories of 37 localities carried out by AFE-COHDEFOR (different years).

Page 43: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Resources

45

2.2.3 Potential annual harvestin Quintana Roo

Once again it is important to mention a possiblebias in the information presented. Because chi-cozapote (Manilkara zapota) is not currentlyused for timber products, it has probably not beenfully considered in the inventories. Therefore, thequantities shown are probably far lower than ac-tual volume. The same could have occurred with

ramón (Brosimum alicastrum), which in Quinta-na Roo people prefer not to fell given its impor-tance for animal fodder, and, during difficultperiods, for human consumption.

It is interesting to note that the species whichhave seen the most increase in use over the last fewyears are exactly those species which are mostcommon in the rainforests: Tzalam (Lysolomabahamensis), chechén (Metopium brownei) andsacchacah (Dendropanax arboreus). The ex-

BOX 13

Potential annual harvest in Quintana Roo

Common name Scientific name SG Annual potential [m3]

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesTzalam Lysiloma bahamensis 0.63 15,697Yaaxnik Vitex gaumeri 0.52 13,576Mahogany Swietenia macrophylla 0.45 11,049Chacah rojo Bursera simaruba 0.38 9,891Amapola Pseudobombax ellypticum 0.35 4,853Sacchacah Dendropanax arboreus 0.40 3,395Higo Ficus spp. 0.48 3,044Negrito Simarouba glauca 0.35 1,397Jobo Spondias mombin 0.39 417Ceiba Ceiba pentandra 0.36 23

Other light and medium 14,414and unspecified species*

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy speciesChechen Metopium brownei 0.70 13,835Zapote Manilkara zapota 0.85 9,618Katalox Swartzia cubensis 0.79 6,633Ramón Brosimum alicastrum 0.73 6,471Jabín Piscidia cummunis 5,870Chakteviga Caesalpinia platyloba 1,626Pucté Bucida buceras 0.85 1,601Chacte Kok Sickingia salvadorensis 0.60 1,562Machiche Lonchocarpus castilloi 0.79 447Palo de tinte Haematoxylon campechianum 152

Other heavy and 11,890unspecified species

“Palizada”**“Palizada”**“Palizada”**“Palizada”**“Palizada”** Various species 16,167

TOTALTOTALTOTALTOTALTOTAL 153,627153,627153,627153,627153,627

*) Some permits are not given specifying the species, but rather by group of species: “precious”, “soft”and “hard”. This means that annual volume per species is sometimes greater than that indicated, whilstvolume subsumed under “others and unspecified” are lower than the value registered.

**) Posts with diameters of less than approximately 20 cm DBH.

Source: data from Semarnap, 2000

Page 44: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

46

ception is ya’axnik (Vitex gaumeri), which de-spite large volumes, has not managed to pen-etrate markets due to the bad shape of its logs.

2.2.4 Potential annual harvest in the RAAN

As of yet, there is no consolidated information onthe volume of timber in Nicaragua or in the RAAN.Inventories have been conducted in all the tropicalrainforest areas, but methodologies and cir-cumstances differ enough that comparisons aredifficult. The information shown in Box 14 is anadjusted average of the most reliable inventoriesconducted so far in the RAAN. Even if the accuracyof the volume shown here cannot be assumed,estimates can be made about relative species’abundance:

• Very abundant species (more than 3 m3/haof standing timber over minimum cuttingdiameter; species are found in all operations):Cedro macho (Carapa guianensis), come-negro (Dialium guianense), zopilote(Laetia procera) and nancitón (Hieronymaalchorneoides).

• Abundant species (between 1 and 3 m3/haof standing timber over minimum cuttingdiameter; species found in most operations):Leche maría (Symphonia globulifera), sebo(Virola koschnyi), santa maría (Calophyllumbrasiliense), jobo (Spondias mombin), ojo-che (Brosimum alicastrum), palo de agua(Vochysia hondurensis) and probably ma-hogany. Mahogany is found in the “for-estry extraction frontier”; remote areaswhere companies high grade the most valu-

BOX 14

Weighted average of exploitable volume in the RAAN

Species P. E. m3/ha

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesCedro Macho Carapa guianensis 0.47 6.70Nancitón Hieronyma alchorneoides 0.61 3.50Santa María Calophyllum brasiliense 0.52 2.25Leche María Symphonia globulifera 0.56 1.75Sebo Virola koschnyi 0.36 1.70Jobo Spondias mombin 0.39 1.20Palo de Agua Vochysia hondurensis 0.34 1.05Mahogany Swietenia macrophylla 0.45 1.02Coyote Platymiscium sp. 0.58 0.65Quebracho Pithecellobium arboreum 0.65 0.41Cedro Real Cedrela odorata 0.33 0.22

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy speciesComenegro Dialium guianense 0.85 5.00Guayabon Terminalia amazonia 0.66 1.55Ojoche Brosimum alicastrum 0.73 1.50Mora Clorophora tinctoria 0.88 1.00Guapinol Hymenaea courbaril 0.78 0.90Kerosen Tetragastris panamensis 0.70 0.85Quita Calzón Astronium graveolens 0.75 0.55Almendro Dipteryx panamensis 0.85Zopilote Laetia procera 0.68 4.75

TOTALTOTALTOTALTOTALTOTAL 36.5536.5536.5536.5536.55

Source: General Management Plans (PGM) and Forestry Inventories from: Awas Tigni, Sansagwas, Kukalayaand Wacambay in the RAAN (made between 1995 and 1997).

Page 45: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Resources

47

able species (the phenomenon of “nomadic”timber extraction has ceased in other regions).Due to the nature of this kind of exploitation,high-quality inventories do not exist.

• Less abundant species (between 0.5 and1 m3/ha of standing timber over minimumcutting diameter; species are abundant insome operations): mora (Clorophora tincto-ria), guapinol (Hymenaea courbaril), ke-rosén (Tetragastris panamensis), coyote(Platimiscium sp.), cortez (Tabebuia guaya-can), quita calzón (Astronium graveolens),quebracho (Pithecellobium arboreum), andcedro (Cedrela odorata).

Total standing volume greater than minimumcutting diameter volume per hectare shown in Box14 (36 m3/ha) closely corresponds with otherestimates:

• The Forestry Action Plan of Nicaragua cal-culated a volume of 30 m3/ha for all speciesin the categories above minimum cuttingdiameter (usually 55 cm).

• According to IRENA/SWEDFOREST (1985), in theRAAN and the RAAS a volume of 200 m3/haof timber existed and 30 m3/ha were in cat-egories above minimum cutting diameter

(considering 30 species). For Río San Juan,a volume of 260 m3/ha and about 35 m3/haabove minimum cutting diameter was as-sumed.

• For the RAAS, in the northern zone of the RiverKung Kung, an inventory was conducted thatincluded 53 species, with a total volume of21.17 m3/ha and 11.82 trees/ha. Theweighted average for the 15 species consid-ered commercial was 18.43 m3/ha, withapproximately 9.81 trees/ha.

Based on these studies and data derived fromthem, it can probably be safely assumed that thebroadleaved forests in this region have the abilityto yield at least 30 m3/ha above minimum cut-ting diameter. Combining the assumption of 30m3/ha with a conservative estimate of 500,000ha of broadleaved forests in the RAAN and a har-vest cycle of forty years, yields an annual poten-tial volume of 375,000 m3, of which a third wouldbe highly commercial species (mahogany, cedroand cedro macho). However, this assumes aminimally organized forestry system able to com-ply with silvicultural guidelines and regulations (e.g.felling cycles and minimum diameters for felling),and reliable data about volumes extracted, whichcurrently do not exist.

Page 46: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

3.1 The rise of community forestry

Thirty years ago, the granting of forestry con-cessions to private companies was the dominantcommercial forestry model in Mexico and Cen-tral America. The criteria for granting concessions,the obligations that concessionaires acquired, andthe way in which extractions were carried outvaried considerably. Even though some of theseenterprises carried out the first inventories andmanagement plans in the region, most of themmaximized timber extraction with no considerationfor silvicultural aspects.

One benefit of this type of commercial for-est use was the establishment of an importantregional industrial base. Various sawmills and afew plywood companies were set up, and inregions with important regional markets, a sec-ondary processing industry was established. Infact, the large regional enterprises that existtoday came to light at this time (in the sixtiesand seventies).

In most cases, industry has aimed to integrateextraction and primary processing. The products,usually sawn lumber and mahogany plywood,were sold to both domestic and foreign markets,but no new production links were created in theregions (“enclave production”). The companiesbasically competed through privileged access tostanding trees and cheap labour.

In the sixties and seventies, the study regionswere exposed to various changes that ultimatelyled to the end of the concessions, and weakenedthe position of the companies who worked withthis model.

• During the seventies, massive colonizationtook place that, in the space of a few years,reduced the forested area where the con-cessions were located. In the light of the dis-appearing forest base, many companiesdecided to speed up extraction to stay “onestep ahead” of the colonos, thus worseningthe crisis.

• During the same period, world-wide criti-cism of private concessionaires’ poor per-formance grew. In some circles, it wasargued that the wealth created from com-mercial tropical forestry operations had verylimited impact on development, and criesfor a type of “social forestry” were heard(Westoby, 1985). In various countries, al-ternatives to the concession model weresought, which eventually, and after manystruggles by the communities themselves,led to the introduction of community for-estry models. What seemed to be no morethan a populist move to many, turned outto be an efficient tool to slow deforestation.At its best, this model delegated certainplanning and controlling land use functions

3 FOREST USE

Page 47: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

50

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

to the local population, in an agreementwhich benefited both the local population(e.g. offering them a source of income) andregulatory bodies (e.g. improving their spanof control in regions where land use couldnot be easily regulated). With appropriateforestry technical support, some commu-nities achieved high enough levels of forestmanagement to be certified by outside or-ganizations, such as the Forest StewardshipCouncil (FSC), as practicing “good manage-ment”. For these reasons, community for-estry did not disappear after a few years,but on the contrary, has grown.

The introduction of community forestry radi-cally changed private company access to forestresources and caused serious timber supply prob-lems for them. Previously, these companies weredirectly responsible for cruising and extraction,often paying no more than a token amount forthe timber. Under the community forestry model,it became necessary to negotiate with communi-ties, who feeling themselves in an advantageousposition, often increased timber prices. Manycommunities began a process of vertical integra-tion that allowed them to sell lumber, instead ofjust logs, outside the region, but reduced regionalroundwood supply. Moreover, the forestry tech-nicians who worked with the communities reducedthe amount of mahogany produced because thespecies had been over-cut. At the same time, oldprejudices and sensitivities made communicationdifficult. Traditional timber merchants (“madere-ros”) and the communities saw each other as en-emies, not allies in a common production chain.Finally, communities were often quite inflexiblein terms of adapting to buyer requirements.

In summary, it can be argued that with theadvent of community forestry, destruction of broad-leaved forests has been slowed substantially in ag-ricultural frontier areas. It has also led to theintroduction of important elements of good for-est management. At the same time though, it hascreated an unstable relationship with private tim-ber-processing businesses.

3.2 Regulation of forest use

At the beginning of the twentieth century the re-gions studied were sparsely populated by indig-enous groups and groups dedicated to resourceextraction activities.

• In Quintana Roo, Mayan rebels, fightingagainst the Mexicans, disease and hunger,had established a political-religious centre inthe central portion of the current state.

• In the Petén, a small Mayan population andsome resource extraction camps, which grewlarger or smaller depending on world pricesof the resources being extracted (chicle, tim-ber), coexisted.

• The Atlántida was probably the most denselypopulated region. San Pedro Sula was al-ready an important city that required culti-vation of extensive land for food supply. Thevalleys had been cleared for export cropsand small villages of agricultural workers hadbeen established, while forests in the moun-tains remained intact and sparsely populated.

• Various indigenous groups lived in the cur-rent RAAN.

In all cases, the groups used the forested landextensively, through slash and burn systems orextraction of non-timber forest products. Mostlands were considered public property and gov-ernments had established a system of timber con-cessions for private companies. Local populationswere legally recognized owners of the land onlyin exceptional cases.

During the twentieth century, migration intothe study regions grew. In general, the govern-ments of these countries encouraged emigration,promising to give state land to poor peasants fromother regions. Except for the first program ofpublic land grants in Quintana Roo, which wasaimed at chicle production, the system of gov-ernment land grants in the regions studied directlyor indirectly encouraged campesinos to clear for-ests, an activity that came naturally to them be-cause most came from agricultural or cattle-raisingbackgrounds. This was the case in the south of

Page 48: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Use

51

the Petén, the relatively flat parts of the Atlántida,and during the second emigration wave intoQuintana Roo in the seventies. In the RAAN, thispolicy still continues.

Twentieth century colonization in QuintanaRoo and the Petén, for the most part, did notcause problems with already established popula-tions. In Quintana Roo, the colonos settled in thesouth, whilst the Mayan population concentratedin the central region of the state. Both groups re-ceived ejidal titles. In the Petén, the older villageswere situated in the “forestry reserve” (currentlythe RBM), which is closed to new emmigrants.Emigration in the RAAN, on the other hand, hascreated significant conflicts with the indigenouspopulation.

Generally speaking, zones were colonized in amanner that left only small patches of woodlands,which were generally divided up between smalllandowners. The largest forested areas remainedin zones that governments did not distribute (thepresent day RBM in the north of the Petén andthe mountainous areas of the Atlántida forest re-gion) and in forests controlled by “traditional”populations.

In Mexico, the most important woodland ar-eas remained within the ejidal properties autho-rized during the first period of land distribution inQuintana Roo. In Nicaragua, the largest wood-lands are found in areas where indigenous com-munities have customary rights and colonos havenot yet penetrated.

It appears that the colonization of rural QuintanaRoo is a process that has reached its end. Here,people have begun to abandon the countryside togo to the cities. Colonization continues in the Peténand the Atlántida, but at a much slower pace thantwo decades ago. Only in the RAAN does coloni-zation pressure remain high.

Forest use rights have not necessarily comewith property deeds or usufruct rights. Rather, itwas often anticipated that communities woulddedicate themselves to agricultural and cattleranching activities, leaving forest extraction toprivate industry. This strategy failed because pri-vate enterprises were unable to prevent colonosfrom settling within their concessions and the sub-

sequent forest conversion. Because of this, theright to extract logs was given to forest commu-nities of Quintana Roo at the beginning of theeighties, and to communities of the RBM in the mid-nineties. In this last case, concessions were alsogranted to industry, but these concessions werelocated in areas that were unlikely to be invadedby colonos.

In the Atlántida, the right to extract logs wasgranted to community groups in the mid-seventies.With the “Ley para la modernización y desarrollodel sector agrícola” passed in 1992, this right wasseverely limited. However, the law was not veryrealistic, so in practice, the groups continued tooperate as before. Recently, bureaucratic proce-dures to obtain a permit for extraction purposeshave become extremely difficult, leading to an in-crease in clandestine extractions.

In the RAAN, a coherent legal system to regulateforest use does not yet exist. Even though the in-digenous communities should be able to exploitthe forest by right, in actual fact they play a sec-ondary role, due to the bureaucratic proceduresthat have to be followed. It is the madereros thattake centre stage.

Only in Quintana Roo and in some Guatema-lan cooperatives outside the RBM do communitiesown the forested areas. In the RBM, communities haveobtained long-term concessions. In the Atlántida,groups have exploitation permits for only a shorttime, whilst in the RAAN there is still no clear regu-lation of property or usufruct land rights.

3.3 Characterization of forest operations

A community forestry operation can be definedas a group formed in a community near or withina forested area to carry out joint activities of for-est management and forest products marketing.Normally, many community members are excludedfrom the community operation, so community andthe community operation are not identical in termsof members. Apart from a few exceptions, womenhave been excluded from forestry decisions. In manycases, the group of men who take part in forestoperations is also selective. In Quintana Roo, only

Page 49: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

52

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

official members of the ejido participate in forestoperations. Farmers living in the communitieswithout ejido rights (generally those that settledin the ejido long after its inception) are not a part ofthis group. In the Atlántida, only a small fractionof the community is normally interested in for-estry work and are therefore willing to organizein a group. Here, many men also work on theirown as independent motosierristas.

In the study regions, around 150 communityoperations exist which sell timber: More than 50in Quintana Roo, more than 20 in the Petén,more than 55 in the Atlántida, and between 15and 25 in Nicaragua.

The forestry operations in the regions studieddiffer in many aspects, which also determine theircapacity to manage the forests, process and selltheir forest products, and in general, fulfill theobjectives which their members have implicitly orexplicitly proposed for them (see also 6.2).

a) Atlántida: the “sociedades colectivas” or“grupos cooperativos”. These are legally con-stituted groups formed by campesinos belongingto communities nearest to the woods. These op-erations control more than 85% of the areas au-thorized for forest extractions.

The first groups were formed a little after theestablishment of the Sistema Social Forestal in1974, often joining the Cooperativa RegionalAgroforestal, Colón, Atlántida, Honduras, Ltda.(COATLAHL) and selling through this organization;in other cases as independent organizations. Somegroups went through a period of slow or no growth,and individuality (some motosierristas became self-employed). It was only at the beginning of thenineties, with promotional efforts of ProyectoDesarrollo del Bosque Latfifoliado (PDBL, a Hon-duran-Canadian project) that groups regainedstrength, conducted inventories, became legallyconstituted, and implemented the beginning ele-ments of more rational forest use.

Some 55 operations currently exist, with a totalmanagement area of 90,000 hectares. Each for-est operation covers between 300 and 7,300hectares, with most of them between 1,000 and2,000 ha. The annual cutting potential of these

areas (considering all species) varies between 800to 5,000 m3, with most operations between 1,000and 3,000 m3.

All of the groups have experienced fluctuatingmembership, partly due to constant modificationsof rules imposed by AFE-COHDEFOR. Currently, thegroups have between 10 and 40 members (aver-age 15).

The groups have a very simple internal struc-ture. Generally, there is one functional position,the president, elected for one or two years. Some-times, tasks, such as sales, are delegated to othermembers. A portion of the income from woodsales stays in the society for common expenses(transport costs, travel expenses etc). The presi-dent has to negotiate with AFE-COHDEFOR to obtainpermits and represent the group. Practically allthe groups use the same extraction procedures:Felling the tree, cutting planks with chainsaws,and subsequent transportation on mules. The bet-ter-organized groups have received small sawmillsfrom PDBL that are in the testing stage. The ideais to promote greater vertical integration. Imple-mentation of management plans and annual op-erational plans has waned due to AFE-COHDEFOR’sfinancial problems, being partially replaced byother organizations, especially PDBL. The good for-estry management certificate awarded by Rain-forest Alliance/FSC to COATLAHL has been renewed,which means that groups belonging to this orga-nization have been able to maintain their man-agement levels to a certain extent.

b) Quintana Roo: the ejidos. The ejido is a com-munal form of land ownership that was promotedin Mexico for more than five decades and whichcurrently includes more than 95% of the forestedareas of Quintana Roo. The ejidatarios, usually themen who founded the community, or their heirs,make joint decisions about land use. The first for-estry ejidos of Quintana Roo were established inthe thirties and forties. The main economic ac-tivity anticipated was harvesting chicle (the rawmaterial used to produce chewing gum), whichdid not imply forest conversion. These ejidos wereprovided with large overall forested areas (between20,000 and 90,000 ha). The ratio between total

Page 50: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Use

53

surface and number of families was high (morethan 400 ha per ejidatario). These are the ejidos thathave retained the most forested areas (between30 and 80% of total area).

A second group of ejidos was establishedin the seventies. These are generally smaller thanthe first (between 5,000 and 20,000 ha) and theratio between the ejidal area and the number ofejidatarios is smaller (approx. 80 ha). The mainactivities that were anticipated were cattle ranch-ing and agriculture, that is, conversion of forestswas part of the concept. These ejidos retained onlysmall patches of forest.

In general, the ejidos grew slowly, integratingboth the ejidatarios’ sons and new arrivals. How-ever, there are also ejidos that do not accept new eji-datarios and where ejido rights are strictly hereditary.

The ejido as a forestry operation is character-ized by both community and productive functions,

which can lead to various problems. The legalstructure of the ejidos is similar to the collectivesocieties in the Atlántida. The assembly of the eji-do elects three executives, who represent the ejido.The ejidatarios meet every month to discuss com-mon business and to monitor the actions of theirleaders. In some ejidos, various supplementaryinstitutional structures have been formed. In someejidos, new functional structures emerged. Otherejidos just split into various groups that managecertain steps of the extraction process on their own(see chapter 8.2.1). Currently, there are about fif-teen primarily forest-oriented ejidos (i.e. ejidos whereforest exploitation is the main source of income).These ejidos have annual potential harvest vol-ume between 2,000 to more than 15,000 m3

(i.e. they are clearly bigger than the collective so-cieties in the Atlántida). In forty other ejidos, moreimportant economic activities exist, but forest op-

BOX 15

Noh Bec, a forest ejido in Quintana Roo

Noh Bec was legally established in the forties asa chicle ejido: large surface area (currently morethan 17,000 ha of forests) and a high ratio of forestarea per ejidatario (approximately 400 ha perejidatario). In the fifties, a timber firm began towork in the ejido, mainly extracting mahogany.mahogany.mahogany.mahogany.mahogany.The members of Noh Bec participated in thesylvicultural labour and in extractions carriedout by the firm, learning the details and under-standing the business. In the seventies, manyfamilies from outside the ejido settled here, sig-nificantly increasing the population. This, and theproximity to the federal highway, facilitatedthe early introduction of infrastructure (schools,electricity, health centres). However, the officialprogrammes for changing land use were not verysuccessful: the chicle forestry culture was firm-ly rooted in the ejido. When in 1981 Noh Becobtained timber usufruct rights, it was discovered

that, unlike many other ejidos, there was still aconsiderable volume of mahoganymahoganymahoganymahoganymahogany (more than1,200 m3 annually). All of these elements (aculturally homogenous population, forestryorientation, knowledge of sylvicultural issues andextractions, large forested area, a high mahoganymahoganymahoganymahoganymahoganyvolume, importance of other forest products,access to formal education, good infrastructure)added to organizational skills and the innovativewill of the ejidatarios have paved the way for NohBec. Today, the ejido has machinery for extrac-tions, two saw-mills and a carpentry workshop(employing more than 170 people) and continuesto obtain the greatest part of its income (1999:1,500,000.- USD: 2,000.- USD/ejidatario) fromforestry activities. The ejido has also successfullyentered into processing lesser-known species,which today account for more than 60% of ex-tracted volumes.

Page 51: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

54

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

erations contribute significantly to the com-munity’s income. These ejidos have annual po-tential harvest volume of less than 5,000 m3.Many ejidos from the first group have large for-ested areas and important reserves of mahogany,and have managed to vertically integrate (extrac-tion and sawing). Unfortunately, this first grouphas not grown. Rather, some ejidos from thisgroup are losing industrial infrastructure due tolow reinvestment and organizational problems.The ejidos of the second group struggle to main-tain the status quo. In some cases, small mahog-any volumes (after adjusting authorized volumeto the real forest’s potential) has led to the com-munity to lose interest in forest operations, witha subsequent increase in illegal felling.

c) Reserva de la Biosfera Maya (RBM): The RBM

has the greatest diversity in community opera-tions. Three different groups can be identified:

• Communities inside the multiple usezone of the RBM: Here, all communitieshave received “community concessions”,which include forestry usage rights. Everyfamily in the community has a say in deci-sions about forest use. Benefits are equallydistributed. The communities do not owntheir land, but have usufruct rights for longperiods of time (more than 25 years). For-est composition varies greatly: some com-munities have considerable supplies ofmahogany (e.g. Carmelita with 877 m3 an-nually), whilst others have practically none.

• Operations in communities located out-side the multiple use zone: The easternpart of the RBM is practically uninhabited.These woods have been traditionally used bythe population found along the highway thatgoes from Santa Elena to the border withBelize (i.e. communities outside the RBM),extracting non-timber products, such as palmade xate or chicle, or illegally felling trees. Atthe beginning of the nineties, a group of ille-gal motosierristas who live in Melchor deMencos began to look for an opportunity to

legally harvest and mill trees. In 1997, theConsejo Nacional de Áreas Protegidas(CONAP) finally granted them a forest conces-sion. Other groups followed. Generally speaking, these groups have bet-ter managerial skills than the communitiesinside the RBM, in part because they have bet-ter access to formal education, a wider rangeof jobs, better services, and are less depen-dent on forest products. These groups werealso formed with a clear objective to produceand, unlike the communities, do not concernthemselves with community matters.

• Cooperatives. All along the Usumacintariver and the Río de la Pasión (i.e. the bufferzone of the RBM), various cooperatives wereset up with significant forest areas. Unlikethe groups mentioned previously, who onlyhave usufruct rights, the cooperatives owntheir lands, which broadens their land useoptions. Some cooperatives divided their landinto plots, which has made an annual forestmanagement plan based on area-based har-vesting impossible, and obliges them to seeksolutions based on management of smallforest properties. There are also significantdifferences in the internal organization of theco-operatives; For some, any form of orga-nization has almost completely disappearedand given way to individual managementof the forests, while others maintain an in-ternal organization which is not only con-cerned with productive matters, but alsoresolves diverse community problems. Thebest example of this is Unión Maya Itzá(which should not be confused with Bio Itzá),situated on the southern border of the Sie-rra del Lacandón National Park. This coop-erative has developed an impressive internalorganization, in which both interest groups(e.g. women and young people) and the “ba-rrios” of the village (probably with a certainethnic predominance) have their own fo-rums, which transmit their decisions to theexecutive committee. The tasks of directingproductive activities (e.g. forest operations)is delegated to three-person committees. In

Page 52: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Use

55

a similar fashion to the first Israeli kibbut-zim, this organization bases its strength onthe exceptional social conscience of itsmembers. The discipline of people whowere active in a guerrilla war struggle is un-doubtedly a factor. The communities of these three groupscome from very different cultural backgrounds.While some communities inside the RBM havea long tradition of using non-timber forestproducts, the co-operatives have an agricul-tural and cattle farming background. Differ-ences between community forestry operationscan be notable, such as forms of extraction,vertical integration, and organization of ac-tivities. Added to this mix are differences inforested areas, volume of highly commercialwood, and organizational skills. The fact thatmore differentiation in timber extraction andprocessing has not occurred is probably be-cause the operations have not existed for verylong. Most of the operations are selling stand-ing timber. Some also sell timber through aspecial agreement with a private enterprise,which allows them to obtain the benefits ofconventional sawing (see 7.4) and others sellchainsawn lumber.

d) In the RAAN, no forest operations exist as such,because indigenous peoples’ traditional govern-ment is collapsing, with power going to the clos-est formal political body, which are municipalgovernments (see Box 7). Decisions about forestuse are often made by outsiders (madereros andmunicipal employees) without consent of thecommunity. The benefits of forest use for the com-munity are limited and accrue to few.

The exceptions to this situation occur when alarge company reaches an agreement with a cer-tain indigenous group. In this case, all forestryactivities fall into the hands of the company. An-other important exception is the organizationalwork of Fundación para la Autonomía y el Desa-rrollo de la Costa Atlántica de Nicaragua, a non-governmental organization working in a forestcommunity (see chapter 8.2.1).

3.4 Groups of forestry operations

In the RBM, the Atlántida, and Quintana Roo,members of community forestry operations haveformed diverse second-level organizations. Theobjectives and work methods of these organizationsvary considerably.

• Atlántida. The Cooperativa Regional Agro-forestal, Colón, Atlántida, Honduras, Ltda(COATLAHL) was founded in 1975 as an orga-nization of forest operations, created in theframework of Sistema Social Forestal (SSF).Eventually it included more than 30 groups,but currently has only 11. This decrease isprobably related to the exhaustion of com-mercial species in the forests and subsequentloss of interest in timber extraction. Cur-rently, nine groups of COATLAHL have the FSC

backed certification for good forest manage-ment. COATLAHL has a sawmill, dry kiln, anda carpentry shop that works with mahog-any, redondo (Magnolia yoroconte) andsome lesser-known species. The greatestvolume is still sold as sawn lumber. Currently,the volume of wood managed by this coop-erative is low due to the restrictive policiesof AFE-COHDEFOR.

The Asociación Nacional de ProductoresForestales (ANPFOR) appeared two years agoas an alternative to COATLAHL. This organiza-tion is only just beginning and has not takenover any technical tasks.

• Petén. In this region, the diversity of com-munity operations’ and technical associationshas prevented greater horizontal cooperation.However, the cooperatives from the west ofthe Petén, who are advised by the same tech-nical organization, have formed a joint or-ganization, the Sociedad ComercializadoraAgroforestal (SCAF), through which some for-est and agricultural products have been com-mercialized. In the last few years, another horizontal or-ganization of community operations withoutside funding has appeared, the Asociación

Page 53: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

56

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

de Comunidades Forestales de Petén(ACOFOP). The actions of this organizationhave led to conflicts with technical assistanceorganizations. The ACOFOP has often defendedpopulist positions, such as the idea that com-munity operations, with a little training, couldcarry out any type of silvicultural work; inthis manner questioning the need for pro-fessional forestry technical assistance.

• Quintana Roo. A large number of second-level organizations working in forest ejido

issues exist. The oldest are the Uniones, or-ganizations that, in their time, were used topolitically control the ejidos. Between 1986and 1992, new organizations were formedwith more technical, and less political, lean-ing: the so called Sociedades Civiles. Todaythere are four sociedades civiles, groupingmore than 50 ejidos. Their objectives are tosupply forestry technical services, create acommon marketing platform, and improvelobbying.

Page 54: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

4.1 Development of industrial infrastructurein the study regions

The regional primary and secondary process-ing industry has a special importance for forestoperations: its geographic proximity brings manyadvantages in terms of costs, information feed-back, common standards etc.

In the sixties and seventies (with the exceptionof the RAAN, where industrial growth began in thenineties), a significant wood processing industrywas set up based on mahogany. In QuintanaRoo and the Petén, numerous sawmills and someplywood production plants were set up. In Quin-tana Roo, the growth of Cancun encouraged es-tablishment of doors and furniture companies,whilst in the Petén –a remote region far fromGuatemala’s national markets– only two medium-size secondary-processing industries appeared. Inthe Atlántida, substantial regional demand and aunique policy of industrial promotion, at the cen-ter of which was state control of sawing, resultedin a rapid growth of secondary industry, with mo-tor-sawn mahogany supplied by communitygroups. Currently, the Atlántida has the greatestnumber of secondary processing industries of allthe study regions.

In Quintana Roo and the Petén, the growth offorestry enterprises in the sixties and seventieswas, to a great extent, based on privileged and

cheap access to mahogany. High demand forthis wood meant that large profits could be madewith relatively little investment. Because the keyto this business was not the processing aspect,but access to resources, the region’s sawmills stag-nated technologically and soon fell far behindcompared to international standards. The growthof secondary industry in the south of QuintanaRoo took place in an economic “boom”, basicallyowing to the spectacular growth of Cancun. Whenthis “boom” came to an end, companies realizedhow weak their competitive capability really was.

The eighties and nineties were decades of cri-sis for traditional processing industries, basicallydue to two factors:

• On the one hand, the introduction of com-munity forestry schemes severely limitedshort-term timber supply. Based on newinventories, community forestry technicalassistance groups felt obliged to restrict thevolume of mahogany authorized for ex-traction. Furthermore, community operationswith the greatest mahogany volume soonvertically integrated in order to saw theirwood and sell outside of the region, thus furtherreducing regional supply.

• On the other hand, the fall in spendingpower caused by the economic crisis in thefour countries studied, elimination of trade

4 TROPICAL HARDWOOD PROCESSING CHAINS

Page 55: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

5 8

barriers and simultaneous modernization ofnational trade (which brought more com-petitive products into the regions) all led tomajor marketing problems.

These changes created a competitive situationthat regional enterprises were not ready to face.In particular, the management of these enterprisesmade some very costly mistakes and many busi-nesses had to close or decrease production. At theend of the seventies in Quintana Roo, 10 pri-mary processing and 20 mixed primary/sec-ondary processing enterprises existed. Of theformer, eight ceased operations during the eight-ies and were later sold to the communities. Of thelatter, 18 closed down and never opened again.

In the Petén and the Atlántida, the industrialcrisis began in the nineties when those countriesopened their borders to imported goods. Cur-rently, all plywood plants are closed. Secondaryprocessing enterprises in the Atlántida, with theirimportant regional market, fared better, but thereis always the danger of closures there too, withmany companies working far below their installedcapacity.

In the Petén, the industrial infrastructure isbasically what is left over from industrialization inthe seventies and eighties. Even if this infrastruc-ture is no longer ideal for the forests’ potentialand has not been upgraded for nearly a decade(except in a few cases), it is still important in re-gional terms.

The nineties have seen the opening of mod-ern flooring factories in the Atlántida, Izabal (theneighbouring region of the Petén) and QuintanaRoo. These enterprises are extremely importantfor utilization of lesser-known species, becausethey can use heavier species not currently usedfor furniture production. These enterprises wereset up in the new climate of economic opennessand are different from traditional businesses: Theyare focused on markets outside the regions, andhave a greater financial and managerial capacity.In general, they are businesses that were designedto grow within the new regional setting, whilstthe traditional enterprises have had great difficul-ties adapting to it.

Some industrial growth has taken place in theRAAN over the last ten years. Generally speaking,this has consisted of portable sawmills work-ing with mahogany or cedro macho. Two largecompanies exist: A plywood factory and a saw-mill. Both enterprises control the timber extrac-tion process. The sawmill also has a mouldingsproduction line.

In all of the countries studied, motosierristasproduce rough cut beams and planks on the fell-ing site. Additionally in Mexico, durmienteros cutrailroad ties by axe.

The development of regional forest productstrade is analogous to the development of process-ing companies:

• Madereros have supplied processing com-panies in good times and in bad, often work-ing illegally. The often changing businessenvironment has hindered their growth andformal consolidation, therefore limiting theircapacity to cover typical trade functions (stor-ing, financing, distribution, and grading).

• Since so many sawmills are part of verticallyintegrated operations, lumber traders form arather small group and are generally based inthe countries capitals. They have always beeninterested in mahogany or other high-valuespecies, and never had the marketing powerto actively promote lesser-used species.

• Many furniture retailers settled in regionalcapitals in the fifties. Bad roads and primi-tive distribution infrastructure elsewhere pro-tected the regional products from externalcompetition. This has changed and todaythese companies must compete with largenational and international companies thatno longer work with local woods (see alsochapter 6.4 and Box no. 16 and 34).

4.2 Common characteristics of regionalproduction chains

A production chain is the sequence of processingand distribution stages from a certain raw mate-rial to finished products. Production chains are

Page 56: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Tropical Hardwood Processing Chains

5 9

the “channels” that take raw material, in this casetropical hardwoods, to markets. The competitive-ness of such a chain depends on the competitivenessof the companies involved as well as on the quali-ty of the relationship between companies, both ofwhich in turn depend, at least in part, on the qualityof regional services, networks, and infrastructure.Production chains can break if a company deci-des to supply itself from other sources (e.g. withSouth American instead of regionally producedlumber).

The production chains in the study regionshave been exposed to extraordinarily rapid anddrastic changes. Four out of the ten productionchains identified developed less than five yearsago. Three of the production chains will prob-ably disappear over the next five years. Withinthe chains, relationships are volatile. Most busi-ness relationships are younger than ten years,something that would be unthinkable in the UnitedStates or Europe.

The production chains in the study regions ba-sically differ in terms of the division of labour be-tween community operations and private industry(i.e. who controls which production steps?) andin the technology they use for sawing.

The division of labour that develops after con-solidation of communal forestry depends on vari-ous factors. There are large differences betweencommunity operations themselves, both in termsof their internal organization, and size and po-tential of their forests, which in turn affects theircapacity to consolidate their presence in specificlinks of a production chain:

• Well-organized community operations withsignificant mahogany reserves will soon buyequipment for extractions and sawing.

• Forestry operations with organizational prob-lems, but with attractive volumes of ma-hogany, generally do not bother to buy theirown extraction equipment and sell standingtimber to private enterprises.

• Community forestry operations that are notattractive to private industry, owing to theirlow volumes of commercial timber, or thoseenterprises which are not content with sell-ing standing timber, but do not have the

means to invest in heavy machinery, can sawtimber in the forest, using chain saws, axes,or portable sawmills.

The characteristics of the resulting chains aredescribed below.

4.3 Production chains in which privatecompanies control extraction andprimary processing

There are two situations where private compa-nies control extraction and primary processing:

• Private companies obtained concessions ofstate forests. This is the traditional wood ex-traction scheme, in which the company con-trols every step of the production process, andactively or passively excludes local commu-nities. In the study regions, only two com-panies have this situation, both in the RBM.The two companies do not have problemscontrolling forestry activities; they only haveto be concerned about possible campesinoinvasions.

• Private companies buy standing timber frompoorly-organized community operations orfrom operations not interested in extractingcertain lesser-known species. This is the domi-nant form of production in the RAAN. In Quin-tana Roo, some 35 community operationssell in this way.

In both situations described above, the privatecompanies involved generally show a high degreeof vertical integration. The issue that makes “tra-ditional” concessions unfeasible is the fact thatthe companies are not in a position to prevent co-lonos from felling the forest in order to take pos-session of the land. The involvement of thecommunities in extraction activities makes theseconversion activities more difficult. This could bethe answer to ensure conservation of the forests.When the private industries that control extrac-tions are small, forest extractions are often poorquality (i.e. these enterprises “cut and run”).

Page 57: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

6 0

The communities involved in these chains havea limited influence over the quality of forestry ac-tivities and receive limited benefits from forestryoperations.

In general though, it is in these situations thatthe range of species used has been expanded. Toa great extent, this is due to the fact that the sawnlumber produced is offered at lower prices than lum-ber from situations where community operationshave greater control, thus increasing sales oppor-tunities.

Once again, the discordance between themanagerial advantages, and the social and pos-sible ecological disadvantages of this type of pro-duction chain, must be stressed. When a companyowns or controls its wood supply, it is more effi-cient from a managerial and financial perspec-tive, which is why some of these enterprises havebeen more successful in introducing new species.The problem is the limited control that these com-panies can exercise over forest conversion acti-vities.

4.4 Chains where community operationscontrol extractions and sawing

The most successful community operations (usu-ally those that are well-organized and with largemahogany reserves) have managed to integratevertically, buying equipment for extraction and saw-ing. In Quintana Roo, at least ten ejidos withsawmills exist. In the RBM, one operation has boughta sawmill. In the Atlántida, a cooperative of for-estry operations (COATLAHL) has set up sawing ac-tivities and offers this service to its members.

The production of sawn lumber by commu-nity forestry operations has not always suited theinterests and potential of private industry in the studyregions. On the one hand, many private compa-nies already have their own equipment for ex-traction and sawing, and are not willing to giveup control over these production steps. Even whencompanies are forced to buy lumber, for examplewhen they do not have extraction permits, busi-ness has rarely prospered with community op-erations because the latter group prefers to sell

the most valuable species (e.g. mahogany) tobuyers from outside of the region, who pay more,give down-payments, and take all the timber atthe beginning of the season. The private compa-nies without extraction permits therefore are lim-ited to buying what is left of the mahogany fromthe smaller operations.

Extraction and sawing activities in communityoperations normally have specific organizationaland managerial deficiencies that make technical andmanagerial innovations more difficult than in pri-vate industry. In general, the result has been higherprices, greater problems with quality, worse ser-vice and, in some cases, a more limited range ofspecies processed.

However, it is usually the case that the pro-duction controlled by community operations canbring greater social benefits, more control overdeforestation, and better forest management.

4.5 Production chains based on chainsawnlumber or hand-hewn beams

Communities with less well-developed organiza-tional skills or no investment capital still have theopportunity to produce chainsawn lumber, eitherwith a chainsaw or a chainsaw with guide (Alas-kan saw) or hand (axe) hewn beams. Pit saws (op-erations that manually saw logs placed over a pit)are no longer used in the regions. Chainsawn lum-ber and hand hewn beam producers usually sellto middlemen (“madereros”), who in turn sell tosecondary industry. Flores Ricardez (1991) amongothers, has shown that the benefits of this type ofprocessing are as high or higher than those ob-tained from conventional sawing due to low “ex-ternal” production costs (e.g. gas, depreciation,and spare parts).

Currently, chainsawn lumber is the dominantform of production in the Atlántida. Consideringthe degree of development that the secondaryindustry achieved in the seventies, it can be de-duced that obtaining supply in this way workedwell. However, today it is clear that this methodalso brought about overexploitation of mahoganyin the Atlántida region. In Quintana Roo, the pro-

Page 58: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Tropical Hardwood Processing Chains

6 1

BOX 16

Will the production chains be broken in the Atlántida?

The Atlántida region has the most important sec-ondary processing industry of all the regions stud-ied. It is basically a furniture industry, with somesmall-scale door manufacturers. Five large compa-nies exist, alongside more than twenty medium-sized companies, around thirty-five small enterprisesand many micro industries. The large companies ex-port high-quality furniture to more than ten countries.Secondary processing industry in the Atlántida is atrisk. Dangerous competitors have appeared in al-most all markets, who are increasing their marketparticipation in an alarming fashion. In the foreignmarkets, especially in the USA, South-east Asian andChinese furniture companies are increasingly pen-etrating former Honduran strongholds. In the regionalfurniture market, commercial warehouses recentlyestablished in San Pedro Sula are altering the com-petition in different markets: in the furniture marketfor people with low to medium incomes, they areselling furniture produced outside the region (oftenmade from metal) at very low prices. In the marketfor people with medium to high incomes, new com-mercialization channels have been opened (WalMart, etc.), offering furniture with more modern de-signs and a better finish. The reaction of regionalcompanies to this new situation has not been pro-ductive; instead of reacting in the face of these newtrends, regional enterprises have unleashed a pricewar amongst themselves to keep the remaining seg-ments. This has clearly reduced their ability to react. The situation for industry is especially difficultbecause at this time no regulations or assistanceare being offered by the respective governmentbodies. The actions of AFE-COHDEFOR are often far re-moved from what actors in the productive chain aredoing: they restrict the extraction groups, criminalizetimber-merchants, and cause furniture producers tolose sleep at night with rumours about total bans onextractions. There is still a long way to go beforethey are able to establish strategies which would

permit sustainable timber supplies and promotebetter mechanisms for buying and selling.Extraction groups, timber merchants and second-ary industry have not found a joint platform to re-solve their problems. Therefore, the most seriousdeficiencies of the chain remain: lack of com-munication between links, lack of innovation, fund-ing difficulties, and the small size of companies.If things continue in this way, the opportunity whichthe forestry-timber sector represents for the Atlán-tida region for better resource management andeconomic development, will soon be lost. If trendscontinue, the current production chain will break: alarge number of companies will disappear over thenext ten years. Some of the surviving enterpriseswill have stopped obtaining supplies from commu-nity groups, prefering instead to import timber. The Atlántida is undoubtedly the study region withmost to lose in economic, social and ecological termsif the deficiencies in the current production chainare not corrected. It is vital that all actors under-stand what is at stake. The companies and work-places lost over the next few years will not be repla-ced for a long time. It is important that everyoneconcerned realizes that these values can be savedwith intelligent policies and a real contribution byall. The principal recommendations are:

• Recognize timber merchants as an importantlink in the productive chain.

• Give real support to community forestry pro-duction (legal situation, applying for permits,establishing an effective forestry service,technical support for sawing and timber ex-tractions).

• Improve information about volumes and spe-cies available at a regional level.

• Support small and medium businesses in or-der to increase their marketing and produc-tion capabilities.

Page 59: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

6 2

duction of railroad ties was for many years a sourceof income for the Mayan population. In the RBM,some groups still exist who produce lumber or cantsusing chainsaws with guides (Alaskan saws).

In practically every case, production chainsinvolving chainsawn lumber and hand hewnbeams are at risk. The low quality of the lumberis a central problem. Another factor is that theseforms of production are frowned upon by othersin the forest products industry, such as techni-cians and marketers, meaning that little effort ismade to improve them. Traditional forms of buy-ing and selling, unreliable supply, and late deliv-eries are also negative elements. In the Atlántida,the Sociedades Colectivas have replaced pit saw-ing with handheld chainsaws, but have not yetintroduced guides for the chainsaws, thereforeproducing lumber with very uneven edges. Thelumber is also smaller because it is transported bymules. These two factors mean that recovery fromresawing is low (< 75%). On the other hand, no-body can guarantee a consistent timber supply, adeficiency for which AFE-COHDEFOR is partly toblame because its procedures for granting extrac-

tion permits are so convoluted. In Quintana Roo,railroad crosstie production has almost totally dis-appeared because producers cannot comply withthe new procedures for buying and selling, andnew quality standards demanded for this product(see Box 29). In the Petén, legal motor-sawn lum-ber production is decreasing in favour of conven-tional sawmilling.

4.6 Community operations - privateindustry cooperative partnerships

A partnership between community operations andprivate industry has developed in the RBM and rep-resents a unique “experiment”: Various forestryoperations and a private business share costs, risks,and income from the steps which they jointly con-trol, which range from forestry tasks to the produc-tion of lumber and plywood. The partnership beganwith a forestry group with good organizationalskills (Suchitecos) and is now being broadened toinclude other operations. This partnership is de-scribed in greater detail in chapter 7.3.

Page 60: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

5.1 Historical trends in markets forlesser-known species

Two different types of markets can be identified forlesser-known tropical species from the study regions:

• Markets for mahogany and cedro substitu-tes. These are generally markets for furniture,doors, windows and decorative plywood,amongst others.

• Markets which are independent of ma-hogany. Mahogany was never the idealwood for certain uses (heavy construction,floors and piers), which is why other woodswere traditionally used. Heavier woods wereusually chosen which were also resistant torot and termites. To this can be added theuse of timber for plywood core stock.

Historically, these two uses have developed indifferent ways. While in regional markets thedemand for some mahogany substitutes has in-creased, the species with independent markets haveseen their demand rise and fall.

5.1.1 Developments in mahoganysubstitute markets

Mahogany is the traditional commercial speciesin the forests of the study regions. This species has

been subject to overexploitation for a long time.When community forestry was established,mahogany reserves had already been drasticallyreduced compared to numbers inventoried at thebeginning of the forestry operations. Moreover,many communities found themselves having tosell the small amount of mahogany they had leftto obtain capital. Currently, more than 150 com-munity forestry operations exist of which only aminority (about 30) have enough mahogany tobe significant in commercial terms.

The decrease in mahogany in these regionshas made timber buyers look for alternativesupplies.

• Foreign buyers (United States and Europe)substituted “Honduras Mahogany” withMahogany from South America (in bothcases Swietenia macrophylla, allthough theHonduran wood is said to be better), but alsowith Carapa from South America (Carapaguianensis), African mahogany (Khaya,Entandophragma) and species of the me-ranti group (Shorea) from South-East Asia;i.e. they simply stopped buying in theseregions.

• National buyers from Guatemala, Hondurasand Mexico have substituted mahogany withspecies from many different places: SouthAmerican mahogany (various species, notnecessarily meliaceae), palo blanco/pri-

5 CURRENT MARKETS FOR LESSER-USED SPECIES

Page 61: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

64

mavera (Tabebuia donnell-smithii) fromtheir country´s Pacific coast, and hardwoodsfrom the United States and South America.Only in two cases has mahogany been subs-tituted for a species from the same region insignificant quantities: by santa maría (Ca-lophyllum brasiliense) in the Petén and ce-dro macho (Carapa guianensis) in the RAAN.

• Regional lumber buyers are important in tworegions: Quintana Roo and Atlántida. A dif-ferent process took place in each region: InQuintana Roo, where no direct mahog-any substitutes exist and where shortly afterthe consolidation of community forestry(and the decrease in mahogany volumes) thecountry opened up its markets, secondaryindustry based on mahogany practically dis-appeared (except for micro industries). In theAtlántida, diverse direct mahogany subs-titutes exist and there is an important demandfor final products, which includes painted fur-niture (where the type of wood cannot be re-cognized by end consumers). Micro and small,and sometimes medium industry has subs-tituted other species from the region for ma-hogany, while some medium and large-scaleindustries are obtaining mahogany from theMosquitia Hondureña.

In summary, a substantial number of buyers(especially those outside the regions themselves)have dealt with the decrease in mahogany by find-ing supplies from elsewhere, either of mahoganyor other species; i.e. that only in a few cases wasmahogany substituted by species from the regions.Woods which are used as mahogany substitutesto a great extent are:

• Santa maría (Calophyllum brasiliense) inGuatemala

• Cedro macho (Carapa guianensis) in Ni-caragua

• Diverse species in the Atlántida.

Generally speaking, the species which subs-tituted for mahogany are currently used forfurniture and door production, and plywood. Usesand markets vary from region to region.

5.1.2 Independent uses of lesser-knownspecies

There are some uses for which other species areclearly superior to mahogany: the constructionof piers, truck beds, heavy constructions, somemusical instruments, certain handicrafts, railwaycrossties, wooden floors and other special uses.These are the uses which are termed independenthere; i.e. they are not linked to mahogany subs-titution.

In general terms, the demand for Mesoamericantimber for these uses has tended to decrease overthe last fifty years. This is true for both regionaland foreign markets.

Foreign Markets. Fifty years ago, a wide rangeof woods from Mexico and Central America wasimportant to the United States. Woods such asPithecollobium, Aspidosperma, Brosimum, Ca-llophyllum, Hymenaea, Simaruba, Terminalia(amazonia), Vatairea and many others were wellknown to timber merchants after the SecondWorld War (Hess, 1950). In the same way, manyGerman timber merchants, who are now retired,bought timber from this region. They know theregion’s species well.

Except for Nicaragua, where a significantvolume of timber from lesser-known species con-tinues to be exported as both sawn lumber andplywood, these timber flows have been significant-ly reduced. Sawmills that produce lesser-knownspecies for foreign customers practically do notexist. One can only speculate, but the most likelyexplanation is that volumes of really interestingspecies (such as Hymenaea) were limited. To thiscan be added the rise of Southeast Asia as a highlycompetitive exporting region. Another factor couldbe declining mahogany reserves, which waspossibly the species that made forest operationsprofitable.

Of the lesser used species that are still exported,most leave the country as semi-finished or finishedproducts, especially floors and, to a lesser extent,furniture.

Regional and National Markets. There hasbeen a decrease in the production of lesser-known

Page 62: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

65

species in regional and national markets as well.A clear example is heavy construction, wheremedium and heavy species are being slowlyreplaced with alternative materials (metal,cement). The use of lesser-known species fortruck beds, railway crossties, piers and musi-cal instruments has also decreased. In Box 13,the development of lesser-known species usein Mexico is shown. It shows a drastic fall involume: By 1997, consumption of lesser-knownspecies in Mexico decreased to about a fifth ofwhat production rates were twenty years before.This decrease can be explained in the followingway:

• With the disappearance of broad-leavedforests in vast areas timber supplies have re-duced. Regions like Quintana Roo, which havemaintained significant forested areas, have notbeen able to replace the production of timberfrom other regions, which is why many re-gional markets have been lost. Secondaryindustry in these states, for example Jalisco(northwest Mexico), has started to work withhardwoods from temperate climates.

• Modernization processes (improvements inroad infrastructure, modernization of tradeand market regulation) described in the pre-vious chapter have been another importantfactor, especially the new highways whichhave allowed new raw materials to bebrought to the regions, and displace tradi-tional materials (i.e. lesser-known species).

Even though the general trends in the fourregions have been similar, consequences havebeen different:

1. Atlántida/Honduras: It appears that the ge-neral production of lesser-known specieshas decreased. In this case, it seems to havegone from a situation where a few species–especially redondo (Magnolia yoroconte)–were produced in high volumes to a situationin which a number of different species areproduced in lower volumes.

2. RAAN/Nicaragua: Supplies of lesser-knownspecies for Managua have traditionally comefrom the Pacific coast. Although these sourcesare running out, other regions, especially theAtlantic coast, are not in a position to supplythem because of high transportation costsand general weakness of the timber trade.This results in the paradox of forestry producerswho have no markets for their timber, andmicro and small industries who have prob-lems with supplies.

3. Petén/Guatemala: Far from important con-sumer centres, timber production of lesser-known species grew only with the establish-ment of plywood facilities: These plywoodproducers closed down for the most partafter the opening up of Guatemala’s marketsdue to external competition.

Despite decreases in general terms, somemarkets for lesser-used species have grown:

• Flooring: In Quintana Roo, the creation ofa flooring factory and improvements in themanagement skills of some ejidos have beendecisive factors. In Guatemala, a decreasein available volumes in the Izabal/ Río Dul-ce region and improved management skillsof the community operations of the RBM weredecisive factors in the decision of the flooringindustry located in eastern Guatemala to buytimber from the Petén.

• Production of Painted Furniture: The popu-larity of painted furniture in the Atlántidahas made it posible to replace mahoganyor redondo; in Mexico, some kitchen cab-inets are finished with car paint, wheresurfaces of light hardwoods bring betterresults than pine.

• Some volumes of export sales to “green”markets.

Unfortunately, the increase in timberconsumption for these uses could not counteractthe losses in other uses. Except for RAAN/Nicara-gua, where exports and the production of cedro

Page 63: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

66

macho (Carapa guianense) for national marketshas grown considerably, it has to be said that insteadof increasing with the fall in mahogany volumes,the production of lesser-known species has actuallydecreased in the study regions.

5.2 Timber volumes currently utilized

Existing information on the quantity of lesser-known species utilized at a regional level oftensuffers from methodological deficiencies in datacollection. An initial estimate based on quanti-tative information and corrected according tovarious experts’ opinions is presented in Box 18.

5.2.1 Petén

For the Petén, profound changes are foreseen involumes of lesser-known species utilized becauseof problems in the plywood industry. For the years1998 to 2000, approx. 60% of the volume oflesser-known species was destined for this use.This volume will decrease considerably in thefuture because plywood companies from the Peténare exposed to such a strong competition. Theestimated volume of timber consumption for 1999is shown in Box 19.

The data include quantities exploited in the bufferzone. The estimate is derived from the 48,039 m3

established in Box 11 and approx. 7,000 m3 fromother sources.

500000

400000

300000

200000

100000

0

1977

1978

1979

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

7

Lumber and plywood

Railroad ties

BOX 17

Production of LUS in Mexico [m3]

Page 64: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

67

5.2.2 Estimated volume harvested in theAtlántida (Honduras)

The data shown in Box 20 are based on sales of stan-ding timber recorded by AFE-COHDEFOR for the extractiongroups. It probably has some deficiencies.

In Honduras, forest producers have to pay higherroyalties for commercial species than for lesser-used species. It is likely that some forest producersrequest felling permits for lesser-used species butfell more commercial species instead, transportingthe lumber with the papers for lesser-used species,taking advantage of AFE-COHDEFOR’s weak pointsconcerning the control of forestry tasks and trans-porting timber. This implies a certain bias.Somelesser-known species that appear as extracted,may have been harvested in smaller volumes ornot at all.

The numbers in box no. 20 demonstrate thelarge number of species used in the Atlántida.Here, mahogany is being replaced by at least fiveother species (technical substitutes).

5.2.3 Quintana Roo

No production statistics per species exist in Quin-tana Roo. Nevertheless, it can be stated that only

few species are currently used. Most of them havebeen present in national market for some time.Only few have been introduced lately by “green”traders.

While the use of species linked to flooring orfurniture production like tzalam and sacchacah isincreasing, the demand for other species like che-chen (which is linked to railroad ties) has beendiminishing.

5.2.4 Production by species in Nicaragua

No information is available for timber productionin the RAAN. In box 22, the relevant species for theRAAN are underlined.

• The only case in which changes in volumesreported can be directly attributed to a changein the commercial situation of a species is thecase of cedro macho, which in the ninetiesbegan to substitute for mahogany, makingit the most produced species in 1999.

• Data referring to species such as almendroand comenegro, which are species thatwere not seen in any workshop, could bebiased, given that many timber merchants

BOX 18

Harvested volume of broadleaved species [m3]

Volume extracted annuallyRegion Current Light and Medium Heavy Total

Annual Potential

RBMa) 49,500b) 9,000 2,000 11,000Atlántidab) 104,707 18,000 2,000 20,000Quintana Rooc) 139,000 19,278 7,758 27,036RAANd) 360,000 20,000 5,000 25,000

a) Estimate based on data from CONAP (2000) for the seasons 1998, 1999 and 2000. The data includequantities exploited in the buffer zone. The estimate is derived from the 48,039 m3 established inBox 11 and approx. 7,000 m3 from other sources, less 5,578 m3 of mahogany.

b) Estimated based on diverse data.c) Based on Semarnat (2000) for the season 1999. TzalamTzalamTzalamTzalamTzalam has been counted as a medium weight species.d) Estimate based on diverse data. It includes the cedro macho (Carapa guianesis).

Source: diverse sources.

Page 65: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

68

use timber transport permits for lesser-knownspecies to transport species of a higher value.

• The reported decline of guanacaste andpochote could be linked to a fall in productionin the Pacific region, mentioned by severalsawyers in Managua and Granada.

For several fairly commercial species such as San-ta María, botarrama, guayabo negro, LecheMaría and guapinol, the volumes appear to haveremained more or less constant from 1996 to 1999.

Nicaragua is the only country of those studiedwhich shows a clear increase in exports (Box23): The increase is, in our opinion, a result ofthe work of transnational companies (one is AgroDos Ríos, see chapter 8.1.3) which export toCosta Rica and the Caribbean. In Costa Rica,the industry knows and works with a largenumber of species. In the Caribbean, where ahigh demand for timber exists for constructionpurposes, it has been relatively easy to introdu-ce new species.

5.3 Principal markets

5.3.1 Markets for timber from the Petén

Regional Markets. In the Petén, standing timberis bought. There are no buyers for roundwood,plywood and limited buyers for lumber, so theseproducts are sold outside the region. The principalmarkets for the Petén’s timber have been centralGuatemala, Mexico, the United States, Europeand the Caribbean.

National Markets. The central region, especiallyGuatemala City, is where the greatest volume oftimber converges. Another important consumergroup is the flooring and siding industry in the “East”(on the Guatemala - Puerto Barrios highway). InGuatemala City, every kind of timber industryexists: there are poor neighbourhoods like “LaFlorida” which have three or four small sawmills,and in every street is a carpentry workshop. Allof this is characteristic of the informal sector.There is also an important formal industry, aimed

BOX 19

Extracted volume of lesser-known species in the RBM

Species

Light and medium-weight species for plywood (principally Calophyllum, Pseudo-bombax, Bursera, Dendropanax, Lysiloma, Pithecellobium leucocalyx, Terminalia andPithecellobium arboreum)

Ramón (Brosimum alicastrum) for plywood

Heavy species for sawing (principally Brosimum, Aspidosperma, Lonchocarpus,Astronium, Aspidosperma and Sweetia)

Santa María (Calophyllum brasiliense) for sawing

Other medium-weight species for sawing (principally Terminalia, Pithecellobium andLysiloma)

Source: Estimates based on assessments of regional producers.

Volumeexploited

5,600 m3

1,000 m3

1,000 m3

2,800 m3

600 m3

Page 66: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

69

BOX 20

Estimated volume harvested per species – Atlántida Region

Common Scientific P.E. 1989 1995 1996 1997 1998name name [g/cm3] [m3] [m3] [m3] [m3] [m3]

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium species Mahogany Swietenia macrophylla 0.42 11,970 1,468 1,433 2,411 2,026

Sangre Virola koschnyi 0.36 *2,236 274 537 387 1,722San Juan Areno Ilex tectonica 0.46 467 807 1,383 2,564 1,441Varillo Symphonia globulifera 0.56 5 265 638 1,008 1,326Barrenillo Mortoniodiedron 0.37 *745 25 146 1,248Pino Pinus oocarpa 0.55 272 344 607 1,129Piojo Tapirira guianensis 0.42 207 486 1,083 1,015Huesito Macrohasseltia 0.62 178 464 852 871Rosita Hieronyma 0.61 55 198 227 469 851Redondo Magnolia yoroconte 0.52 2,466 349 297 333 847Santa María Calophyllum brasiliense 0.52 *642 348 523 1,566 846Cumbillo Terminalia amazonia 0.64 391 536 1,314 553Coloradito Gordonia brandegeei 0.64 157 284 96 517Ciprés Podocarpus (n.d.) 23 44 11 83 351Cedro Cedrela odorata 0.33 3,695 215 280 472 295Marapolán Guarea grandifolia 0.56 64 159 60 216San Juan Peludo Vochysia guatemalensis 0.41 119 477 148 209Cedrillo Huertea cubensis 0.37 124 31 167 155 177Cincho Lonchocarpus latifolius 0.6 50 142Laurel Cordia alliodora 0.44 2,726 88 61 132 141Pepenance Byrsonima spicata 0.44 30 306 218 135San Juan Rojo Vochysia jefensis 0.44 113 138 262 115Cenizo Mirandaceltis monoica 0.7 17 110Aguacatillo Ocotea caniculata (n.d.) *373 52 235 140 93Amargoso Vatairea lundellii 0.62 1 25 89Barba de Jolote Cojoba arbórea 0.61 130 46 50 77Zapote Calocarpum mammosum 0.53 96 35Urraco Licania platypus 0.58 30 9Almendro Albizia caribaea (n.d.) 47 9San Juan Colorado Vochysia ferruginea 0.38 3 22Liquidambar Liquidambar styraciflua 0.51 122Aguacate Persea americana 0.52 23 20Jigua Nectandra hihua (n.d.) 8 87 205

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy speciesCelillón Pouteria izabalensis 0.71 43 2,077 1,066Vaca Ampelocera hottlei 0.66 27 83 33 379Bellota Quercus skinneri 0.78 12 250Masica/Masiquilla Brosimum alicastrum 0.73 309 235Pimientillo (n.d.) 309 235Paleto Dialium guianense 0.85 60 130

Other species extractedOther species extractedOther species extractedOther species extractedOther species extracted *1,585 11 141 520 804

TOTALTOTALTOTALTOTALTOTAL 25,535 5,925 9,556 18,330 19,694

* Species used principally for the production of plywood in 1989.Source: AFE-COHDEFOR-ATLANTIDA; 1998. Data for 1989: Estimate based on AFE-COHDEFOR (s. f.), quoted inInstituto de Investigación y Formación Cooperativista (1993).

Page 67: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

70

at both domestic and foreign markets. Theindustry manufactures household furniture anddoors, kitchen cabinets, closets, office furniture,shutters, truck beds, pallets (generally a separateline for saw mills) and flooring.

For the Petén, the main obstacle to enteringthese markets has been the high transport costs.Ten years ago, the journey from Flores to Guate-mala was an adventure which could last severaldays, not only because of the poor road conditions,but also because of multiple forest control points.The products from the Petén which could competewere those based on mahogany, because themarket price was clearly higher than the cost oftaking the products to Guatemala City. Productsincluded sawn lumber, plywood and other productswhose value was higher than transport costs, suchas doors or siding.

Transporting timber has become cheaper overthe last few years, not only because of better roads,but also because of a considerable decrease incorruption in the highway control. This opens upthe potential to introduce new woods onto themarket, especially heavy woods.

Markets for Light-Weight Woods: Most of theindustries in central Guatemala do not, and the nearfuture will not, buy lesser-known light-weight

woods from the Petén. In spite of decreasingtransport costs, light woods are still sold at priceswhich are much higher than comparable woodsfrom other regions. Not only the distance affectsthe price. In this market, the Petén has to com-pete against other Guatemalan regions whichproduce under different conditions (e.g. changesin land use, illegal felling or commercial planta-tions) which means that forest products from theseregions can be offered at much lower prices.Roundwood markets are completely out of thequestion given the high transport costs. However,opportunities are no greater in sawn lumber markets,which is mainly used for furniture production.

The dominant wood in this market is paloblanco (Tabebuia donnell-smithii), from thePacific coast, a well-known species found at alllevels of furniture production, from the smallestcarpentry workshop to the largest furniture com-panies. In all of these cases, the sales price is muchlower than any potential substitute coming fromPetén. One could maintain the “hope” that anoverexploitation of palo blanco would raise itsprice, allowing wood from Petén to compete, butthere are no signs that this species is becomingscarce. Besides there is growing supply fromplantations. Large companies are now analysing

BOX 21

Estimated volume harvested of lesser-used species of Quintana Roo (2000)

Species Exploited volume

Light and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesLight and medium speciesTzalamTzalamTzalamTzalamTzalam (Lysoloma bahamensis) 7,000 m3

SacchacahSacchacahSacchacahSacchacahSacchacah (Dendropanax arboreus) 6,000 m3

Chacah rojoChacah rojoChacah rojoChacah rojoChacah rojo (Bursera simaruba) 3,000 m3

AmapolaAmapolaAmapolaAmapolaAmapola (Pseudobombax ellipticum) 1,700 m3

Negrito Negrito Negrito Negrito Negrito (Simarouba glauca) 1,200 m3

Other light and medium species 400 m3

Heavy speciesHeavy speciesHeavy speciesHeavy speciesHeavy speciesChechenChechenChechenChechenChechen (Metopium brownei) 4,500 m3

MachicheMachicheMachicheMachicheMachiche (Lonchocarpus castilloi) 2,500 m3

Other heavy species 750 m3

Source: estimates based on assessments made by regional producers.

Page 68: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

71

Volume exploited (m3/year)Species P.E.

(gr/cm3) 1995 1996 1999 Light and medium species Light and medium species Light and medium species Light and medium species Light and medium species

Cedro Macho Carapa guianensis 0.47 1,595 19,659 26,194Nancitón Hieronyma alchorneoides 0.61 3,108 3,497Santa María Calophyllum brasiliense 0.53 4,559 3,034Sebo/Banak Virola koschnyi 0.45 n.a. 2,901Ceiba Ceiba pentandra 0.3 2,841 2,422Botarrama Vochysia ferruginea 0.38 n.a. 1,456Guayabo negro Terminalia sp. 0.51 n.a. 1,185Leche María Symphonia globulifera 0.56 n.a. 890Palo de Agua Vochysia hondurensis 0.34 n.a. 676Coyote Platymiscium sp 0.58 n.a. 575Nancite Byrsonima crassifolia 0.59 n.a. 482Ojoche Brosimum terrabanum 0.6 n.a. 460Camibar Copaifera aromatica 0.62 n.a. 452Carolillo Ormosia sp. 0.54 n.a. 405Genízaro Pithecellobium saman 0.53 2,849 *3,738 *371Guanacaste negro Enterolobium cyclocarpum 0.38 4,049 **15,229 **292Mahogany Swietenia macrophylla 0.45 2,987 ***34,622 ***0Cedro Real Cedrela odorata 0.33 2,540 12,184 0Pochote Bombacopsis quinatum 0.39 1,323 2,634 0Guanacaste Blanco Albizia caribaea 2,919 10,730 0

Heavy species Heavy species Heavy species Heavy species Heavy speciesAlmendro Dypteryx panamensis 0.85 n.a. 2,323Guapinol Hymenaea courbaril 0.78 2,907 2,166Comenegro Dialium guianense 0.83 n.a. 1,946Areno Laetia procera 0.68 n.a. 1,711Níspero Manilkara achras 0.89 n.a. 1,668Guayabón Terminalia amazonia 0.66 n.a. 992Rosita/Manteco Sacoglottis trichogyna 0.72 n.a. 930Mora Clorophora tinctoria 0.88 n.a. 549Other hardwoods (in 1995 and 1996 the species 6,943 20,604 3,966listed above whose values per species wereunavailable were included.)Total hardwoods without mahogany and cedro 19,678 86,010Pino Pinus caribea and oocarpa 49,081 134,483 13,373

NATIONAL TOTALNATIONAL TOTALNATIONAL TOTALNATIONAL TOTALNATIONAL TOTAL 71,36771,36771,36771,36771,367 267,299267,299267,299267,299267,299 74,91874,91874,91874,91874,918

BOX 22

Estimated volume harvested of lesser-used species of Nicaragua

* This species is used in metal/wood furniture production.** These data do not represent the reality of the saw mills at a national level. Only one enterprise (Fundi-

ción la Providencia) bought 95 m3 of wood in log form of this species in 6 months, which would represent32% of the national volume.

***Although mahogany was officially baned in 1999, high volumes were seen in the saw mills, as well asthe large quantities seen in the eastern market of Managua.

Source: Forestry Statistics Bulletin MARENA 1996 and Annual Report 1999 INAFOR.

Page 69: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

72

the possibility of integrating rubber tree wood(Hevea brasilensis), which differs considerably frompalo blanco, and melina (Gmelina arborea),which appears to be very similar, into their produc-tion lines. These species are entering the marketsat prices even lower than those of palo blanco.In the case of cheap furniture, the primary sub-stitute for palo blanco is pine, which is offeredat half the price of palo blanco. At all levels, solidwood is being replaced by particle board or medium-density fiberboard (MDF), which has the same or aslightly higher price than palo blanco, but canreduce manufacturing time. In summary, furnituremarkets for light-weight woods from The Peténare limited. It is the same for the kitchen cabinets,closets, mouldings, frames and pallet markets.

Another danger for light-weight woods is im-portation, which has gradually increased, a-mounting to about 86,3 million dollars,creatinga trade deficit of 50.8 million dollars in 1998.

Mahogany and its direct substitutes: ma-hogany substitute markets are in the productionof high-quality furniture. Direct mahogany subs-titutes are santa maría (Calophyllum brasilense)and cola de coche (Pithecellobium arboreum).Both species have certain problems with drying,so they must be handled carefully. They competedirectly against several reddish varieties fromGuatemala’s Pacific coast.

Door production is another market for thesawn lumber of these species. In this market,santa maría has been well accepted (see thediscussion on the door market in the descriptionof the markets for medium and heavy woods).

Mahogany plywood has suffered an importantsetback with the growing importation of plywoodfrom Southeast Asia. Guatemala is experiencingwhat Mexico experienced almost fifteen yearsago, when the country joined GATT. This trend isextremely important for lesser-known specieswhich can be peeled, because producers usedthem in large volumes for the inner plywoodlayers, while using mahogany for the other layers.It will be difficult to recover lost markets: Importedplywood is sold at 25% less than plywoodproduced locally. This is equivalent to 2 USD for a4 by 8 feet/one quarter (122 by 244 cm/6mm)sheet in wholesale trade.

Markets for medium and heavy woods: Theprospects for medium and heavy woods lookbetter than for light woods, because competitionfrom other species, especially those coming fromplantations, is much smaller. The flooring and en-trance door factories are potential customers fortimber from the Petén. In the production of entrancedoors there is heavy demand for species whichare durable and attractive. Traditionally this has

Year Nº of species Volume m3

1992 17 4,5681993 16 7,2091994 38 26,9621995 38 55,3901996 N.D. 91,2361997 N.D. 112,5811998 N.D. 83,1531999* N.D. 33,507

* Data from May 1999.

Source: Forestry Statistical Bulletin D.G.F. MARENA; CETREX, 1999. INAFOR, 1998.

BOX 23

Exports of sawn lumber 1992 – 1999

Page 70: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

73

been a market for mahogany. With time, ma-hogany substitutes, principally santa maría,have been used. Here, timber from the Petén com-petes with imported wood, especially in compa-nies who export. One door factory works mainlywith wood from the United States and Brazil, suchas oak (Quercus sp.), cerejeira (oak substitute)and andiroba (mahogany substitute). The timberfrom the Petén could be offered at a lower pricethan imported woods, but the imported woodarrives properly-dried, with standard quality and noproblems regarding supply. Many entrance doorsare exported to the United States, where oak isthe traditional wood that foreign producers try tosubstitute with their own woods. In general, formaking entrance doors, santa maría (Calophyllumbrasiliense) and cola de coche have been ableto fill certain niches, but they are seen as secondrate in terms of quality. Despite this, the marketseems to be open to the idea of new species.

Several commercial businesses have begun toimport doors. If they do not want to be displaced,medium and large-scale national producers needto rethink their strategies and restructure theirsupply and sales relations.

Another important use for wood from thePetén is in flooring:

• Small companies in Guatemala City specializein the installation of floors with a wide rangeof species, such as santa maría (Calophyllumbrasiliense), chichipate (Sweetia pana-mensis), tzalam (Lysiloma bahamensis)danto (Vatairea lundellii) and teca (Tec-tona grandis). These companies buy flooringstrips from large producers in eastern Gua-temala and parquet pieces from carpenters,who obtain this wood from unknownsources. Installers buy these pieces at lowprices, but often have problems with the quality,because they are cut with very rudimentarymachinery. Competition with other woodsis much less in the flooring market becauselateral hardness is required, which usuallycorrelates with a high specific gravity. Withthe exception of teak (Tectona grandis), noplantation species is hard enough.

• Large flooring companies, located in the“east” i.e. on the Guatemala City to Río Dul-ce highway, are expanding, and their tradi-tional source of supplies, the Río Dulce/Izabal region, is no longer sufficient for theirdemand, so these companies have nowbegun to buy wood from the Petén, as bothsawn lumber and as logs, including specieslike bálsamo (Myroxilon balsamum), chi-chipate (Sweetia panamensis), guapinol(Hymenaea courbaril), cola de coche (Pi-thecellobium arboreum) and cortez (Tabe-buia guayacan), as well as the species alreadymentioned for the small firms. However,demand varies according to the species: thelarge companies, which export, buy allthe bálsamo and all the chichipate that theycan lay their hands on, even importing thesewoods from Mexico. The demand for gua-pinol and cola de coche is also high. Theother species are sold to small firms, who sellinto the national market. Large enterpriseshave also tried species like manchiche (Lon-chocarpus castilloi), but have not been suc-cessful in introducing them to their customers.

External Markets for Timber from the Petén.Guatemala exports $35.5 million dollars worthof forest products annually, mainly to CentralAmerica, United States, Europe, the Virgin Islandsand, to a lesser extent, Asia. Even though ma-hogany from the Petén is important for theseexports, most of them are based on wood whichdid not come from the Petén.

Mexico. As a market, Mexico has been asvolatile as its currency. After each devaluation inthis country, Mexican timber has entered neigh-bouring countries’ markets to be gradually dis-placed when inflation counteracts the effects ofdevaluation; i.e. timber exports from the Peténto this country are of a temporary nature. Cur-rently, the general tendency is for timber to go toMexico, but the volume handled is small due tothe costs of transporting the timber through Belize,which are relatively high. This situation couldradically change if the rumors are true, and a brid-ge is built over the Usumacinta river. In this case,

Page 71: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

74

timber from the Petén would compete on equalterms with timber from other Mexican states suchas Campeche, Chiapas and Quintana Roo, whichwould definitely have a significant impact on lesser-known species. The species which are commonlyexported to Mexico are high value varieties andalso some species for floors, like tzalam (Lysi-loma bahamensis), manchiche and bálsamo.In the year 2000, Guatemala‘s sales to Mexicowere primarily mahogany, while Mexico soldbálsamo and chichipate (called cencerro in Me-xico) to Guatemala (mainly for flooring productionin the east of Guatemala).

Europe and the United States. After a longpause in production in the Petén, former Europeanand American buyers are starting to come back andto establish new commercial contacts.

These buyers are mainly interested in ma-hogany. It would be naïve to think that the lackof interest in lesser-known species is due to lack ofknowledge (see chapter 5.1.2). It is rather the casethat they know the principal species, but that theyget better supplies of similar species from otherparts of the world.

On the other hand, “green” buyers are moreinterested in lesser-known species: without adoubt, certification opens up a “window of oppor-tunity” for lesser-used species. In general, greenbuyers have been principally interested in whatare known as exotic woods; i.e. wood with anextraordinary colour or grain, which can be usedfor “high end” purposes like musical instruments,artistic uses, fine furniture etc. There are tworeasons for this:

• The prices of the timber being offered arenot competitive in the construction marketor for industrial use, and the volume is in-sufficient for mass markets.

• Exotic timber markets are markets where thegreen stamp has a special significance.

The possibility of selling certified timber hasawakened some interest and is currently a poten-tial market for significant volumes of sawn lumberof lesser-known species.

5.3.2 Markets for hardwoods from theAtlántida

The Atlántida region is the study region wherethe greatest number of lesser-used species haveentered the markets, basically in regional markets.This is due to a large number of species which cansubstitute mahogany, a significant regional sec-ondary industry and proximity of manufacturingand consumer centres, which facilitates trade (le-gal and illegal).

Regional Markets. Chainsawn beams andplanks are the principal commercialized product.Markets for lumber sawn in sawmills are smallbecause most secondary processing enterprisesresaw the lumber with their own machinery ordeliver it to resawing companies (maquila). Theregion is an important consumer centre for fin-ished products. In San Pedro Sula and in La Ceiba,especially, one can observe diverse distributionchannels for household furniture. In La Ceibasmall and “micro” carpentry workshops pre-dominate which sell directly to final consumers ordistribute to traditional trade warehouses. In SanPedro Sula medium-sized enterprises sell throughfurniture “boutiques”, where imported furnitureis also offered, and large companies sell throughfurniture stores. These three distribution channelsare the most important for lesser- known woods.Another important market is for doors and windows,which are still supplied by small and micro enterprises.Custom kitchen cabinets and closet markets arebeing threatened by distributors of products fromoutside the region, but small manufacturers stilldominate. Office furniture has been made withproducts from outside the region for a long time.

A large number of species suitable for furni-ture manufacturing exist. In view of the reductionin mahogany, micro, small and medium processingenterprises have not hesitated to use these otherspecies, relying on the lower expectations of theircustomers. A factor that has motivated use oflesser-known species is the high demand for fur-niture painted black, where diverse species can be“hidden”. Even so, clear preferences obviously exist:

SPECIES WITH A CONSOLIDATED DEMAND: Forestry pro-ducers and madereros know they can easily sell

Page 72: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

75

these species to the secondary industry: redon-do (Magnolia yoroconte), laurel negro (Cordiamegalantha), marapolán (Guarea grandifolia),san juan areno (Ilex skutchii), cedro (Cedrelaodorata), sangre (Pterocarpus sp.) and varillo(Symphonia globulifera).

SPECIES WITH AN IRREGULAR DEMAND: Madererossometimes buy these woods even when they donot have any orders for them: some of these specieshave been known for a long time, others are new:naranjo (Terminalia amazonia), santa maría(Calophyllum brasiliense), rosita (Hieronymaalchorneoides), huesito (Macrohasseltia macro-terantha), pochote (Bombacopsis quinatum),barrenillo (Mortonodiedrum anisophyllum) andciprés (Podocarpus guatemalensis).

SPECIES WITH AN INCIPIENT DEMAND: madereros onlybuy these species if they have received an orderfor them: paleto (Dialium guianense), celillon(Pouteria izabalensis).

OVERUSED SPECIES (currently no trade allowedwith these species): granadillo (Dalbergia sp.),guayacan (Guaiacum sanctum), carreto (Sama-nea saman), carreto real (Albizia guachepele),cortez (Tabebuia guayacan), san juan guaya-peño (Tabebuia donnell smithii).

Central Honduras: Tegucigalpa is a surpris-ingly small market for hardwoods, especially forlesser-used ones. Pine predominates in all usesand is produced on a scale, and with technology,far superior to hardwoods. In the city there are fewerthan ten medium or large enterprises that buyhardwoods, and of these, most are only interestedin mahogany.

Foreign/external markets. There is a prohi-bition on exporting sawn lumber. Rumors existthat small amounts of sawn wood are still ex-ported. Most wood leaves the country as furnitureparts or semi-finished or finished furniture, gen-erally produced with mahogany.

5.3.3 Markets for species from Quintana Roo

In Quintana Roo some 12,000 m3 of light-weightwoods are produced annually, basically of fourspecies: sacchacah (Dendropanax arboreus),

chacah (Bursera simaruba), negrito (Simaroubaglauca ) and amapola (Pseudobombaxellypticum). The ejidos sell almost 70% of thisvolume in log form (some 8,500 m3 annually).The rest (around 800,000 board feet per year) issold as lumber by the ejidos who own a saw mill.

In Quintana Roo some 14,000 m3 of mediumand heavy wood are produced annually, mainlytzalam (Lysiloma bahamensis), chechen (Meto-pium brownei) and machiche (Lonchocarpuscastilloi), while pucté (Bucida buceras), catalox(Swartzia cubensis) and chaktekok (Sickingiasalvadorensis) are produced in lower quantities.

The ejidos with sawmills sell their timber aslumber. The ejidos that do not have sawmills selllogs to local saw mills, which process them andthen sell lumber to the regional or national market.Quintana Roo is the second largest state in termsof heavy-weight sawn wood production in Mexico,surpassed only by Campeche.

Regional markets. The main cities are Me-rida, Cancun, Campeche and Chetumal. Mostlight-weight roundwood produced in QuintanaRoo is sold here. The main buyers are a factoryin Felipe Carrillo Puerto and another in José MaríaMorelos, both in the centre of Quintana Roo.Some timber produced in the north of the state issold in Tizimín, Yucatán, where it is processedfor panels and plywood. Sacchacah (Dendro-panax arboreus) is a special case, which becauseof its organoleptic characteristics (it is tasteless) isused for the manufacturing of ice-cream spoons,tongue depressers and toothpicks in a factorylocated in the state.

In Quintana Roo, the market for lumber madefrom light-weight woods is limited. Somecompanies located in Cancun and one located inChetumal produce furniture, flooring, windows,decks and mouldings. These products are soldlocally. In the nineties, the flooring factory locatedin Chetumal was an important customer for sawnlight wood, which was used for the centre oflaminated parquet. The factory has now replacedthese woods with pine from the centre of thecountry. In any case, the factory represents apotential market for more than one million boardfeet per year. The same phenomenon was found

Page 73: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

76

in the Cancun region, where light woods were usedfor concrete forms in the construction industry.Currently, third-rate sawn pine is used or 19 mmplywood, also pine, because they are cheaper.

Amongst medium and heavy woods, tzalam(Lysiloma bahamensis) (furniture and flooring),machiche (Lonchocarpus castilloi) and che-chen (Metopium brownei) (floors) have a stablemarket. The main regional buyers are flooringcompanies located in Chetumal and diverse furni-ture companies located in Cancun. These firmsgenerally buy lumber. Many other species suchas ramón (Brosimum alicastrum), bayo (Aspi-dosperma sp.), pucté (Bucida buceras) and jabín(Piscidia communis) show an erratic and limiteddemand, generally for flooring or building.

Different species such as chicozapote (Manil-kara zapota), chakteviga (Caesalpinia platylo-ba), yaití (Sideroxylon gaumeri) and bayo(Aspidosperma cruentum) are used to build caba-ñas and other constructions, especially in thetourist market, owing to natural characteristics ofstrength, durability and a straight trunk. Here, logswith a 10-25 cm diameter is the most commercialproduct.

Central Mexico (Mexico City, Guadala-jara, Monterrey). Nationally, there are threeimportant centres for secondary processing andbuying heavy lumber. The most important is

Mexico City, from where manufacturers andconsumers from the central Mexican states aresupplied. Guadalajara is second, which acts as adistributor for the Bajío, Western and Pacificregions. The third centre is Monterrey, which isthe principal distributor in the North and Northeastof Mexico. The same medium and heavy speciesthat are sold in regional markets are sold in thesemarkets. Light- weight wood is sold mainly asplywood. An exception is sacchacah (Dendro-panax arboreus), which is sold for pencil pro-duction.

Foreign markets. The ejidos of Quintana Roothat have a good forest management certificatehave made various attempts to place their woodproducts in “green” European and Americanmarkets. These attempts were often supportedby local companies interested in entering thesemarkets or by overseas organizations interestedin promoting forest management. The flooringfactory PIQROO financed the certification of someejidos and as well as its own production, but ashort time later decided to expand its supplies toa large number of ejidos, certified or not, andstopped using the certification.

Ejido efforts did not go past the promotionalstage for a long time. Only now is Noh Bec startingto export in a more systematic way. The mainspecies exported have been chaktekok (Sickin-

BOX 24

Production of lesser-used medium and heavy sawn woods in Mexico

State Estimated productionBoard feet /year

Campeche 5,000,000Chiapas 1,500,000Oaxaca 1,000,000Quintana Roo 1,700,000Other States 800,000

TOTALTOTALTOTALTOTALTOTAL 10,000,00010,000,00010,000,00010,000,00010,000,000

Source: Estimates of the Company Productos Forestales del Sureste y Centroamérica, S.A.

Page 74: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

77

gia salvadorensis), because of its bright red colour,catalox (Swartzia cubensis), because of its almostblack colour, and chechen (Metopium brownei),because of its decorative streak. These speciescompete in the exotic species market; i.e. thosespecies which stand out because of their colouror interesting grain. These markets are moredemanding than national markets and might beinterested in buying dry wood.

There are various timber merchants who areexporting non-certified heavy timber to variousplaces in the United States. In this case, the mainspecies is tzalam (Lysiloma bahamensis).

Light-weight woods do not appear to havegreat potential in the exports market given thatthey have no streaks, design or character, and ingeneral can be replaced with other species.

5.3.4 Markets for species from the RAAN

The purchase of wood products in the RAAN’sregional markets is low. No city in the RAAN hasmore than 30,000 inhabitants. A low level of de-velopment depresses the market further. In PuertoCabezas, the region’s most important city, furni-ture and building needs are met by small businessand a simple infrastructure, handling small quantities.

This means that most of the timber extractedis sold outside the region. Some goes abroad byship as lumber (the Caribbean, United States,Spain, Korea). Many logs are transported by river

(Río Prinzapolka, Río Grande de Matagal-pa) tothe sea and once again upriver on the Río Escon-dido to Rama, where they are sawn or trans-ported in log form to Managua. The third pos-sibility is to transport logs or sawn lumber acrossland to Managua. The road infrastructure is bad;the main road which goes from the North Atlanticto Managua is no more than a dirt track in poorconditions, which converts the 500 km route intoan odyssey of more than 20 hours.

Traditionally the logs have been transportedin their natural state, but in the last few years thenumber of saw mills (especially mobile ones) hassteadily increased. These saw mills are replacingthe fixed saw mills in the centre of the country.There are no signs that the saw mills in the RAAN

are improving their infrastructure; rather they are“opportunists” who set up with little capital andaim to work while they can, and close down theminute timber processing gets complicated.

Two large companies, that integrate extrac-tions and primary processing, have started-up overthe last ten years. These companies emerged withforeign capital to supply foreign markets. One is aplywood company and the other works in sawingactivities, and is now integrating a flooring line.

In central Nicaragua, there is a greater indus-trial infrastructure than in the RAAN. However, theorientation and functioning of these firms alsoreflect the beginning stages of industrialization andtrade: three enterprises exist which could beconsidered large (all produce plywood) and act

Consumer Centre Annual Volume Consumed [PT]Chetumal 700,000Cancún 450,000Guadalajara 2,500,000Mérida 750,000Mexico City 3,600,000Monterrey 2,000,000

TOTAL 10,000,000

Source: Estimates of the company Productos Forestales del Sureste y Centroamérica.

BOX 25

Consumption of lesser-used medium and heavy tropical sawn lumber in Mexico

Page 75: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

78

BOX 26

Prices of lesser-used species

Product RBM Atlántida Quintana Roo RAAN

Standing timberStanding timberStanding timberStanding timberStanding timber 0.06 USD/Doyle Foot This market 15 USD/m3 12 – 24 USD per tree(approximately does not exist (8- 18 USD/m3)10 – 13 USD/m3)

Sawnlogs on patioSawnlogs on patioSawnlogs on patioSawnlogs on patioSawnlogs on patio This market This market 49 USD/m3 No datadoes not exist does not exist

Sawnlogs in primarySawnlogs in primarySawnlogs in primarySawnlogs in primarySawnlogs in primary This market This market approx. 80 –120 USD/m3

processing plantprocessing plantprocessing plantprocessing plantprocessing plant does not exist does not exist 64 USD/m3

Motor sawn or axeMotor sawn or axeMotor sawn or axeMotor sawn or axeMotor sawn or axe 0.40 USD/BF AAAAA: 0.73 USD/BF 0.44 USD/BF 0.37 – 0.50 USD/BF

hewn lumber onhewn lumber onhewn lumber onhewn lumber onhewn lumber on Timber sawn with BBBBB: 0.55 – 0,62 USD/BF axe hewn Timber sawn withthe roadsidethe roadsidethe roadsidethe roadsidethe roadside chain saw CCCCC: 0.40– 0.48 USD/BF (sleepers) chain saw withoutwithoutwithoutwithoutwithout(legal extractions) withwithwithwithwith frame Timber sawn with frame (data from the

chain saw withoutwithoutwithoutwithoutwithout frame Rio San Juan region)

Sawn lumberSawn lumberSawn lumberSawn lumberSawn lumber 0.53 USD/BF AAAAA: 0.97 USD/BF DDDDD: 0.85 USD/BF 0.55 – 0.60 USD/BF

in saw millin saw millin saw millin saw millin saw mill BBBBB: 0.69 USD/BF EEEEE: 0.97 USD/BF

CCCCC: 0.40 – 0.57 USD/BF

Sawn lumberSawn lumberSawn lumberSawn lumberSawn lumber FFFFF: 0.70–0.80 USD/BF No data HHHHH: 1.32 USD/BF KKKKK: 0.80 – 0.85 USD/BF

for exportationfor exportationfor exportationfor exportationfor exportation GGGGG: 1.5 USD/BF JJJJJ: 4.50 USD/BF LLLLL: 0.60 – 0.75 USD/BF

(fob Puerto Barrios) (free carrier) (fob various ports)

A:A:A:A:A: Redondo (Magnolia yoroconte), san juan areno (Ilex skutchii), san juan real (Vochysia hondurensis),primavera (Tabebuia donnell-smithii).

B:B:B:B:B: Laurel (Cordia alliodora), marapolan (Guarea grandifolia), piojo (Tapirira guianensis), guanacaste(Enterolobium ciclocarpum), santa maria (Calophyllum brasiliense).

C:C:C:C:C: Barrenillo (Ampelocera hottlei), sangre (Pterocarpus sp.), rosita (Hieronyma alchorneoides), varillo(Symphonia globulifera), macuelizo (Tabebuia rosea), aguacatillo (Ocotea caniculata), hormigo (?), cedrillo(Huertea cubensis).

D:D:D:D:D: Light woods: amapola (Pseudobombax ellipticum), sacchacah (Dendropanax arboreus), chaca (Burserasimaruba).

E:E:E:E:E: Medium and heavy woods: tzalam (Lysiloma bahamensis), machiche (Lonchocarpus castilloi), chechen(Metopium brownei) (con albura).

F:F:F:F:F: Amapola (Pseudobombax ellipticum), santa maría (Calophyllum brasiliense), guaciban (Pithecellobiumarboreum), danto (Vatairea lundellii).

G:G:G:G:G: Manchiche (Lonchocarpus castilloi).H:H:H:H:H: Chechen (Metopium brownei) sin albura, machiche (Lonchocarpus castilloi), chaktekok (Sickingia

salvadorensis).J:J:J:J:J: Catalox (Swartzia cubensis) sin albura.K:K:K:K:K: Luarel (Cordia alliodora), cortés (Tabebuia guayacan), pochote (Bombacopsisi quinatum), cedro ma-

cho (Carapa guianensis), coyote (Platimiscium sp.), nogal (Juglans olanchana), roble (Tabebuia rosea).L:L:L:L:L: Guayabón (Terminalia amazonia), guanacaste (Enterolobium ciclocarpum), guapinol (Hymenaea

courbaril), genízaro (Pithecellobium saman).

Source: own data, survey CUPROFOR (1999) and SIFOR (2000).

Page 76: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Current Markets for Lesser-used Species

79

like enclave firms. Another four firms are medium-sized, but a majority of firms are micro and smallbusinesses, working with national markets.

For hardwoods, the Managua-Masaya-Granadacorridor is especially important and, with somegood-will, might be characterized as a “furnitureproduction cluster”. Companies in this region havebeen working with hardwoods from the Pacificregion for several years (e.g. guanacaste, gua-pinol and pochote). Supplies from the Pacificare becoming increasingly troublesome, to theextent that several saw mills which had previouslyconcentrated their production on those supplies,have had to change products (starting to processpine) or are on the verge of closing down. Forthese companies, timber supplies from the Atlanticare not very promising due to the rise of sawmillsin the RAAN. The serious buyers of sawn lumber(Spanish and Korean) are buying directly in theAtlantic region.

With this trend, it is not certain which directionthe micro and small companies of the Managua -Granada corridor are going to go for their timbersupplies. These enterprises have always obtainedtheir supplies from timber cut with chain saws at

very low prices. The motosierristas who work inthe RAAN, called sampopos in Nicaragua, cannotsupply timber at the same price and haveconcentrated on extracting mahogany, which hasled to problems with supplies for the micro andsmall industries in the corridor. Most probably sixtypercent of these companies will disappear over thenext fifteen years. The question is which woods willthe remaining companies use (lesser used species,Pine, Imported hardwoods, MDF) and where will theyobtain their supplies? Hopefully regional actorssuch as functionaries, business people, and traders,will start to shape positive answers to these questions.

5.4 Prices

While standing timber prices are similar in the fourcountries, sawn lumber prices differ significantly.It is important to note that prices quoted for sawnlumber in the Petén and RAAN were established byprivate enterprises, whilst prices in Quintana Roocorrespond to ejidal companies. In the case ofHonduras, prices for sawn lumber reflect the highprices of motor sawn lumber.

Page 77: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

6 LIMITATIONS IN THE MARKETING OF THE LESSER-USED SPECIES

6.1 Basic limitations of lesser-used species

The lesser-used species in the regions studiedhave various limitations that reduce potential formarket entry:

Small volumes: The majority of lesser-usedspecies are available only in limited quantities, whichoften creates inconsistent and unpredictable sup-ply. There have been several attempts to marketthese species in groups, but substantial differencesbetween them create difficulties. It appears logicalto concentrate marketing efforts on the two tothree dozen species that account for 90% of avail-able volumes.

Lower wood quality: With few exceptions,log quality of lesser-used species is poorer thanmahogany. In general, logs have smaller diam-eters and lengths, the shape of the log is poorer,and some species have marked problems with re-gards to rot and insects. This in turn means thesawn wood has more defects. Some species havea high percentage of sapwood even in mature trees.

Reduced rates of recovery (see also Chap-ter 8.4): Lower wood quality leads to a higher per-centage of waste and higher unit costs than morevaluable commercial species, such as mahogany.

Examples:

• In the Peten, Gretzinger (1996) estimatedrate of recovery using the difference betweenthe volumes recorded during scouting (whichrecords standing commercial volume) and logvolumes in the log yard: it is 98% for Ma-hogany and Cedar and 93% for the rest ofthe combined types. Then he estimated therate of recovery measured as the differencebetween the volume in the log yard and thevolume bought and paid for the logs (afterdiscounting for low quality wood). It was 90%for Mahogany and Cedar and 85% for therest. The difference between these two datasets is probably greater in reality due to prob-lems in measuring.8

• In Quintana Roo, one sees the same trend inlumber (Box 27). With the exception of Ama-pola (Pseudobombax ellipticum), lesser-usedspecies have lower rates of recovery com-pared to mahogany. In addition, many spe-cies yield low quantities of higher grade wood,one reason being a high percentage of sap-wood (e.g. in species like Metopium,Swartzia). Based on National Hardwood

8 The larger the diameter of the tree, the more the use of Doyle’s volume equation underestimates the realvolume of a log. Since mahogany trees in the study had larger diameters than the other species, the diferencein the rate of recovery must have been larger than the nominal result.

Page 78: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

8 2

Lumber Association (NHLA) lumber gradingrules, sapwood is classified as a defect andis classified in a lower grade. In addition, sap-wood is difficult to market, which means thata smaller volume of wood bears the entirecost of production (Box 28).

Lower grade and recovery implies higher perunit processing costs. In the end, the lesser-usedwoods in the region under study lack the cost ad-vantage that is a central issue for their substitu-tion for Mahogany.

In Quintana Roo, the production cost of oneboard foot of a lesser-used heavy wood species isat least 50% higher than the production cost ofsawn mahogany. In contrast, the market price forlesser-used wood is approximately 60% the priceof mahogany.

Technical problems:

• Heavier woods require special tools (e.g. heaviermachinery and cutting edges covered withstellite or tungsten). In a more modern pro-duction environment, this is not a major con-

cern; however, in the regions studied, this isa problem. Many of the species found in highvolumes are also those with a high silica con-tent, which further complicates processing.

• Lighter woods are generally sensitive to vari-ous fungi and insects and require specialtreatment and handling. The chemical treat-ments available locally (phenolchlorides) areprohibited in many countries and by ForestStewardship Council certification standards,and alternative treatments have not been de-veloped. As a result, it is very difficult to pro-duce “certified” light weight woods.

6.2 Management capacity in community operations

Community forestry operations entail produc-tion and transformation of wood or non-woodproducts in rural communities. In some cases, acommunity forestry operation is identical to thegovernment of a community (as is the case ofmany Mexican ejidos). In others, the operation is

BOX 27

Rates of recovery in sawn tropical species

Class Equival to NHLA* Mahogany Sac Amapola Machiche Chechen KataloxChacah

Mill Run, 6 ft. and longer #1 common and better 41% 31% 46% 32% 22% 20%Mill Run,5 ft. and shorter #3A common and better 8% 11% 7% 12% 6% 10% Total Total Total Total Total 49% 42% 54% 44% 28% 30%6 ft. and longer, rejects #2B common and worse 6%5 ft. and shorter, rejects #3A common and worse 3%

Total Total Total Total Total 58%58%58%58%58%

*) Grading rules used in Quintana Roo and and by the NHLA are not directly compatible, therefor the citedequivalence is only an approximation. For machiche, chechen. and katalox differences in color (sapwood/heartwood) are not taken into consideration for estimating the equivalence of the NHLA classification.Normally, in the NHLA classification the variance in color strongly diminishes the grade of a board. (Seealso the following Box).Empty cells: without data.

Source: Production records of the Noh Bec and Tres Garantias ejidos.

Page 79: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

8 3

an independent entity, separate from the com-munity, and only includes persons with specificinterest in the use of forestland (as seen incollective societies of Atlántida, Honduras).

A major limitation in marketing lesser-usedspecies is the low managerial capacity in manycommunity forestry operations. This is a sensi-tive topic because criticism of this aspect couldbe misunderstood as a critique of community op-erations as such, and hence, could be taken as astance in favor and support of privatization ofthese operations. Although sensitive, this subjectmust be addressed because without changes inexisting organizational structures, very few com-munities will be in a position to increase quanti-ties and improve availability of lesser-used speciesfor commercial purposes.

Community forestry operations differ from aprivate forestry business. For example, the pur-pose and the context in which they arise are dif-ferent from those of a private business. The focusof a business is making a profit based on a finan-cial investment, whereas, community forestryoperations are generally established to regulate acommunity’s access to a nearby forest. A majorfocus of regulation has been assuring equal ac-cess for all and the participation of as many com-munity members as possible (usually men). This

has fostered a horizontal organizational structurein contrast to a hierarchical structure in a busi-ness enterprise. When ejidos were conceived, noone imagined that one day they would have tocompete with large business consortiums in Bra-zil, Bolivia or Malaysia.

The active participation of community mem-bers in the decisions and benefits of forestry acti-vities improves their ability to control use ofcommunity land and reduces conversion of forests.Unfortunately, the organizational structure thatpromotes high participation can create a varietyof problems that have negative consequences forits ability to respond as a business (see Box 30).

In Figure 29, we can see that limited manage-rial capacity in community operations is frequentlya consequence of diverse structural and culturalelements. These elements are difficult to changebecause they do not depend directly upon thevolition of individual members within the com-munity; nor are they directly addressed throughtraining or technical assistance.

Can business ability be improved in commu-nity operations?

Over time it is possible to observe changes inthe managerial ability of the community opera-tions; however, these changes are not easy todescribe.9 The majority of changes are temporal:

9 In part, this is due to the to the fact that until now, there has been a lack of indicators to measure the situation.

BOX 28

Recovery rates: heartwood and sapwood

Class Machiche Katalox

6 ft. and longer Heartwood 26% 12%6 ft. and longerSapwood 6% 8%Total 32% 20%5 ft. and shorter Heartwood 9% 6%5 ft. and shorter Sapwood 2% 4%

TotalTotalTotalTotalTotal 44%44%44%44%44% 30%30%30%30%30%

Wood graded as “heartwood” should contain less than one-third sapwood, worst case, for katalox andless than one-fifth sapwood, worst case, for machiche.Source: Production records of Tres Garantias and Caobas (two mexican ejidos).

Page 80: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

8 4

they occur when a leader is elected with a higherwork ethic coupled with management capacity.This promotes increased capacity within the op-eration. When this leader ends his term and isreplaced by a leader with reduced abilities, themanagement capacity of the enterprise falls again.In spite of this cycle, longer lasting changes dotake place. These are linked to changes in themacroenvironment and organizational bases (i.e.formal education and culture), cooperation withexternal organizations and to definite changes inthe organizational structure of the operationsthemselves.

There are several factors that support com-munity business capacity improvement. Amongthe most outstanding:

1. Socioeconomic level of the communities.A generally higher socioeconomic level inthe community as a whole facilitates the ac-ceptance of a more efficient work system.This factor indirectly underscores the impor-tance of formal education, among otherthings.

2. Adequate external involvement. Differenttechnical assistance groups have begun tounderstand the importance of analizing andimproving the management abilities of com-

munity forestry operations, and of propel-ling them in this direction. For example, inPeten groups of forestry technicians haveestablished a way to give input about the ad-ministration of forestry related tasks of com-munity operations. This step, which has beencriticized by institutions with a purist ap-proach that think that communities shoulddo everything, sparked basic improvementsin the utilization systems of the regions.

Several other factors prevent structural andproceedural changes in community forestry op-erations:

1. Fear of social inequality. A community gainsits stability from homogeneous membership.Although richer and poorer families exist,the general tendency is to seek a leveling off.This implies that community leadershipshould benefit members in an egalitarianmanner. From the community’s point ofview, everyone should have the chance tobecome a community leader at some time.This policy requires rotation of the key posi-tions within the community; however it se-verely limits the accumulation of experienceand knowledge.

BOX 29

An order for railroad crossties

When Compañía de Ferrocarriles Mexicanosstopped buying railroad crossties from the regionin 1998, the Sociedad de Ejidos from WesternQuintana Roo sought new markets for heavywoods. A business from Northern Mexico order-ed 760 railroad crossties, but set different meas-urements: the usual measurements of 7” x 8” x 8’were changed to 7.5” x 9” x 9.5” (an increase insize of 43%).

In spite of initial enthusiasm, only 72 wereproduced because the crossties were too heavy

to be carried on the back of one person, which isthe traditional way to transport and extract theproduct (see title illustration). For reasons un-known, people from the ejidos did not cooperateto transport the crossties nor seek another solution.Since 72 pieces were too few for a truckload, theywere sold at a discount in the regional market.

Lesson Learned: Even small, unspectacularchanges in requirements can result in insurmoun-table supply obstacles because of reduced in-novative capacity among community operations.

Page 81: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

8 5

BOX 30

Deficiencies in the business ability of community operations

Common features ofCommon features ofCommon features ofCommon features ofCommon features ofcommunity operationscommunity operationscommunity operationscommunity operationscommunity operations

Horizontal organization with leaders elected be-cause of their status in the community, notbecause of their technical, organizational oradministrative skills.

The idea of profesional leaders is lacking.Leaders are on duty for short periods (1 to 2years), and then return to their farmer activities.While occupying the position, their formalincomes are reduced.

The internal control systems (e.g. againstembezzlement of money) are not effective andsanctions are weak.

Investment culture in community operations ispoor. Members have short-term consumptionpriorities. Instead of investing, members expectquick revenues.

Rules of access to common machinery (e.g.carpentry machinery) are weak. All membersfeel the right of using it, but nobody feels obligedto maintain it. No one is asigned a budget tomaintain machines.

Sales representatives are in place for shortperiods and have no say in the production, beingunable to transmit and impose clients specific-ations.

Poorly developed internal information systems.No accounting, cost comparison data, or rate ofrecovery estimations.

Negative consequencesNegative consequencesNegative consequencesNegative consequencesNegative consequencesfor business capacityfor business capacityfor business capacityfor business capacityfor business capacity

Technical authority of community leaders issmall, because they often know less abouttechnical procedures (e.g. extraction) than theworkers. Their limited technical knowledgereduces quality of decisions.

The reduced income of leaders may fostercorruption. Constant rotacion in decision postsstrongly erodes knowledge accumulation andtherefore limits learning capacity of the operation.

A community leader that embezzles funds has areduced chance to be caught and sanctioned.Rotation is an instrument to limit this problem.Another reaction is to distribute incoming moneyamong operation members as soon as it gets in toavoid that this money later desappears, thereforereducing the possibility of later investments.

Reduced investments. A high percentage ofequipment and production facilities come fromexternal grants.

Equipment rusts, gets damaged or disappears,reducing the quality and speed of production.

Clients and the community’s sales representa-tives don’t build relationships and hence lackunderstanding of each others need. Therefore,products only loosely conform to client specifi-cations.

Operations lack information for adequate deci-sions concerning investments, prices, and cost

reduction.

Page 82: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

8 6

2. Rejection of the delegation of functions tooutsiders. As a community, the tendency isto be closed to outsiders, especially when itis ethnically homogenous. Communities tendto reject delegation of duties and functions tooutside entities, even when this would clearlybe more beneficial to the community. This isa major difference between the communityoperations of this region compared to vari-ous cooperatives in northern countries,where the concept that professional “out-siders” can occupy key functional positionsprevails.

3. Self-image and development concepts ofexternal organizations. Traditional commu-nity decision structures (typically the generalassembly) are not efficient when doing busi-ness. External organizations have been slowin addressing this problem because it toucheson deep rooted convictions of the technicalpersonnel, such as “the more democracy andparticipation at the community level, the bet-ter”. However, there is evidence that toomuch participation is not in the best interestfor communities, because it hinders effectivedecision-making. External organizationsare also reluctant to promote changes in thecommunity’s organizational structures be-cause of a long history of failures and thebelief that community development shouldbe completely self-determined.

Various community operations have begun toseek new means of participation and decision-making structures, but results are slow to show.Basically, they have worked to separate the tech-nical – administrative decisions (that can be madeby “technical” leaders) from those decisions thathave characteristics of community concern (andthat continue to be made with the greatest parti-cipation possible). For the technical-administrativedecisions they are promoting the professionalismof the technical leaders (who are not elected bythe general assembly, but rather contracted; theyreceive better salaries, have more freedom to uti-lize funds, but are subject to much stricter finan-

cial control, etc.). A good example is the ejido ofNoh Bec (see chapter 8.2.1).

Distinct differences exist between the variouscommunity operations, which also impact theirbusiness ability and in their potential to modifysuch capacity. These differences have beencharted in Box 31.

6.3 Frictions between community operationsand private businesses

The traditional systems of private concessions thatbrought riches to some madereros was alteredwith the beginning of community forestry. Al-though the appearance of this new system hasbrought about consolidation of forestry produc-tion over the long haul, it represents the end ofbusinesses based on privileged access to the wood.Because of this, madereros, as well as businessowners with vertically integrated operations, hadproblems accepting the newly imposed relation-ship. The new order excluded them from the prof-itable mahogany extraction and forced them todeal with community operations in a disadvanta-geous negotiating position.

On the other hand, community operations havenot been interested in cooperating with regionalplayers; specifically those communities that havebeen able to set up sawmills because they can selltheir production outside the region. This fact greatlycomplicates the raw material supply of many sec-ondary regional industries. Complicating this is theweak management of community operations andefforts of madereros to take advantage of this weak-ness (i.e. undermining the leaders).

Conflicts arising from these issues have notbeen completely resolved, and today a logical di-vision of labor between community operations andprivate businesses does not yet exist. Both groupscontinue to try to vertically integrate in order to con-trol new links in the production chain, and fre-quently end-up in businesses for which they lackthe expertise to manage. The private businesseswant to regain control over extraction, meanwhilecommunity operations seek to control the extrac-tion, primary and then secondary processing.

Page 83: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

8 7

BOX 31

Differences between community forestry operations

+ Range of variations in the characteristics of the operations+ Range of variations in the characteristics of the operations+ Range of variations in the characteristics of the operations+ Range of variations in the characteristics of the operations+ Range of variations in the characteristics of the operations –––––facilitates business capacity reduces business capacity

CriteriaCriteriaCriteriaCriteriaCriteria

Forestedareas

Mahoganyvolume

Internalstructure

Samenessof forestoperation andcommunity

Operationalfunctions

Reinvestmentwillingness

Internaldivisionof labor

Internal com-munication

Workethic

Attitudetowardinnovation

Number ofmembers

Communityinfrastructure

Formaleducation

Stabilityof positions

Large: i.e. some community concessions inPetén (> 60,000 hectares)

Significant: i.e. Noh Bec (> 1500 m3 usable /year)

Differenciated: a sanctioned businessexists, Community and productionfunctions are clearly separated (i.e UniónMaya Itza or Noh Bec)

The operation is independent from thecommunity. Only a small percentage ofthe community members participate in thecommunity operation (i.e. “Suchitecos“,Petén)

Only those functions directly related toforest usage

Medium: the members are in favor ofreinvesting part of the surplus

A division of labor with more or less clearhierarchies is established

Smooth and fluid: members are wellinformed regarding the existing orders

A culture of responsibility and learning isprevalent

Members are open to trying newproceedures and processes

There is a relationship between the number of members in the operation and it’s business ability,but this relationship depends on many other factors. In general, a larger group can pool greaterleadership, external aid and financing, but it runs higher risks with regards to communication andconsensus building.

Good: easy access to markets

Moderate

Leaders are in the positions for prolongedperiods of time

Small: i.e. some usage groups in the Atlántida(< than 1,000 ha)

Not significant (in the majority of the communityoperations)

Not differentiated and not functional:no sanctioned business organization exists(i.e. indiginous communities in the RAAN)

The community leaders also manage the operation.High percentage of the community members are

members of the community operation as well. (i.e. San Miguel community, Petén)

Diverse productive, community and politicalfunctions; dispute settlement

Low: all the surplus is divided up among themembers at the end of the season.

Everyone does everything. When there is an order,operation leaders divide the volumes to produceamong the members, and every member or groupof members is responsible for a smal volume in all

production steps

Poor: only some members, those in charge of sales,know the details regarding the orders

A culture of minimal effort prevails

It is diffícult to implement new proceedures

Poor

Low

High rotation of positions

Source: Primary research.

Page 84: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

8 8

The first point of disagreement is regardingextraction.

From the perspective of community opera-tions, the sale of standing timber is unsatisfactoryfor various reasons.

• Profits from wood sales are greatly reduced • For all practical purposes, no work is cre-

ated for the community • Opportunites to institute good silvicultural

practices are reduced

Private industry does not have the least interestin giving up control of the extraction process. Forthem, this step is vital for several reasons:

• Direct control over the trees extracted • Reduced financial expense, since the direct

costs of extracting the trees themselves areconsiderably less than prepayments theywould have to give to communities to buy logsdecked and ready for transport

Communities have problems setting up extrac-tion activities because of the high investmentneeded for extraction machinery (skidders, trac-tors, etc.). More economical means of extractionexist, but these are just beginning to be explored.On the other side, regional markets for logs fre-quently do not exist, and businesses that buy tim-ber have their own extraction machinery and arenot inclined to buy logs.

One way to avoid investing in extraction equip-ment is the use of chainsaws (with or without aguide, such as an Alaskan sawmill) or axes at thefelling site to manufacture beams or boards. Thisrequires low investment and in fact, is practicedby a large number of communities. This type ofoperation is dominant in Honduras and was domi-nant in the Mayan communities in Quintana Roountil a few years ago, when the demand forwooden railroad crossties bottomed out. It is alsopracticed in some communities in Guatemala.

This on-site production is attractive for manyreasons, but in practice requires certain improve-ments and assistance to be viable. On many oc-casions, chainsawn or axe-hewn products areexposed to strong prejudices and misjudgements.10

The division of labor that develops followingthe implementation of community forestry de-pends on many factors. Large differences betweencommunity operations exist – in their internal or-ganization, size and forest potential – all of whichdetermine their ability to integrate certain partsof the transformation chain.

Some observations related to this topic, basedon research performed for this study include:

•Well-organized community operations thathave significant volumes of mahogany donot hesitate to buy extraction and sawingequipment.

• Forestry operations that have attractive volumesof mahogany, but also general organizationalproblems, do not tend to buy their own ex-traction and sawing equipment, but insteadsell standing timber to private businesses.

• Community operations that are not attractiveto private industry, because of lower volumesof commercial wood, or those communitybusinesses that do not want to be limitedjust to sales of standing timber, but do not havethe means to invest in heavy equipment, canbegin to saw wood on location using axes,chainsaws or portable sawmills.

Over time, these factors combine to create asystem in which well-organized and well-managedcommunity operations achieve vertical integrationand do not have problems selling high value wood;however, they may encounter problems in sellinglesser-used species because of their lack of pro-duction and marketing abilities. On the other side,private businesses often try to establish relation-ships with poorly managed operations, which al-lows them greater control over felling and extraction.

10 E.g. Many technical advisors argue that the low recovery rate of these products is unacceptable, forgettingthat the recovery rate is only one element for the profitability of a certain production.

Page 85: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

8 9

Obviously, the different situations affect both sides.Community forestry operations with good forestrymanagement are not able to sell lesser-used spe-cies. Meanwhile, businesses that have the capabil-ity to sell these species buy them without creatinga positive effect on forestry management.

Building bridges between well managed com-munity forest operations and regional processingcompanies with good marketing abilities will be amajor task in the years to come. In reality, themost important conflicts within the commoditychains continue to be community relationshipswith private businesses. Often, it is at these pointsthat the chain is broken. For example, when abuyer decides to stock up with imported wood.Conflicts arise in the trading of standing volumeas well as in the trading of lumber. In both casesuncertainty about the possible actions of the otherparty is the first obstacle to overcome. In the event

that one party decides not to honor an agree-ment, it is difficult for either to implement dueprocess to impose the legally established contract.

The problems existing in the trade of lumberare apparent for example in the Atlántida region.Here, only chainsawn lumber is traded. Eventhough the secondary industry is located near thesawing facility, organization of transportation andlack of communication create a great deal of un-certainty that has not been resolved. Groups thathave managed to produce large enough quanti-ties to merit renting a truck, frequently have notfound a buyer - they go out in search of a clientwith the product loaded on a truck. Since the truckowner rents his truck by the mile and hour, thesellers are under pressure to sell the wood asquickly as possible and run greater risk of negoti-ating a poor deal. Once the product is unloaded,it is nearly impossible to reload.

BOX 32

Unnecessary losses in the Atlántida

Forest extraction in the Atlántida is affected bydifficult technical conditions: some 60% of theforest land is located on slopes of more than 50%(Roper, 1995). In addition, there are practically nosecondary roads, which is a strategy the insti-tutions use in order to prevent the colonizationand conversion of forest land. As a consequence,the timber is cut on site with chainsaws and latertransported by mules to the villages. Severalunsuccessful initiatives to use chain saws with aframe (“Alaskan saws”) have been promoted.Without the frame, the resulting boards andbeams are crooked. In addition, the sawn trunkshave to be small enough to be carried out onmules. Depending on the timber type theirvolume ranges from 10 to 25 PT.

These two factors together lead to a poor-quality product. Buyers complain of high lossesin the later transformation process. For example,20% of the timber is lost just in the first cut in theresawing process.

Behind these costly inefficiencies, there areseveral problems:

• The current distribution system, whichrevolves around the madereros, seriouslylimits the communication between theforestry producers and the secondary busi-nesses. This causes increased difficulty inreaching agreements about size and qualityand would imply the need to develop asystem to “beef up“ the quality.

• Due to the style of work in the communityoperations, that is a vertical division of la-bor and delegation of certain functions,splitting up the proceeds requires a consensusthat is difficult to reach; therefore, no one iswilling to abandon the process and risk newapproaches.

• Extraction techniques have not been im-proved.

Page 86: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

9 0

These circumstances create a powerful nego-tiating edge for the buyer. He can impose strict qualitystandards and reject product. The only defensefor sellers is their personal negotiating skills. In thisscenario, one can see the problems connected withlack of grading standards, lack of formal agree-ments between the communities and secondaryprocessing businesses, and lack of trust betweenthe two groups.

In light of the large number of uncertainties,(the most glaring being the slowness of the AFE-COHDEFOR to expedite access permits) communitygroups cannot promise to deliver orders on a time-ly basis. This has negative effects on several levels.On the one hand, businesses are not inclined toprepay when they do not know if and when theywill receive product in exchange. The businesses,unlike madereros, generally do not venture out intothe communities to negotiate and hence do nothave much control over what happens in the for-est. For them, the system of advance paymentcarries too high a risk. On the other hand, nothaving a secure sale for the timber they produce,madereros seek a way to assure a sale and henceonly work with species that have markets, such asSan Juan areno (Ilex tectonica), redondo(Magnolia yoroconte), marapolan (Guarea gran-difolia) and barrenillo (Mortonodiedron ani-sophyllum). This is a vicious cycle: some speciesare not offered because of uncertain sales and lackbuyers due to inconsistent supply.

The secondary industry has problems with li-quidity and cannot always, nor does it want to,pay for wood when it arrives at their door. Pinesuppliers offer easier payment terms, which issomething the secondary processing industryhopes hardwood suppliers would adopt. However,community operations are not in a position toaccept installment payments because collectingdebts would require several trips from far removedcommunities. In addition, it would create dis-gruntled community members who want imme-diate payment for their labor. All of this generatestension and often brings into question the hon-esty of the community operations leader.

Also, for example in Quintana Roo, mecha-nisms for log sales are primitive. The buyer makes

a contract once a year with the ejido (which, ex-cept in the more organized ejidos, is verbal). Toassure the purchase, the buyer must offer a pre-payment that is usually 50% of the total sale. Sincethe rural sector has rudimentary administrativepractices and rarely uses banking instruments, thisprepayment is in the form of cash. This estab-lishes a lose-lose cycle which benefits no one. Forthe buyer, it means the outlay of a great deal ofcapital and huge risk. For the seller, it means asituation that perpetrates a backward administra-tion process and dependency on the buyer.

Buyers are, for the most part, old madereros.Many of them are on commission for wholesalersin Central Mexico, who are interested in the pur-chase of select species and who do not have in-terest in forming commercial alliances with sellers.

In summary, there are limitations on both sidesthat impede implementation of modern businesspractices that would benefit both parties. For in-dustry it means unpredictable supply. Readily avail-able lumber inventories do not exist, but ratherare logs extracted and processed per order, whichmay take some months. During this time, thebuyer’s capital is tied-up. Liquidity problems withinthe forest products sector clearly limit the possi-bilities of marketing new species.

6.4 Shortcomings of private processing companies

Poor relationships between community operationsand private businesses are not the only limitationin the production chain. Private business that rep-resent subsequent links in the chains have prob-lems too.

Normally, links along a production chain aremutually suited to each other. A highly developedbusiness will buy its wood from producers thatare also developed. An example can be seen inthe comparison between pine and hardwood com-modity chains. The pine chain is more competi-tive in nearly all phases of production anddistribution. For example, standing timber volumeper hectare is larger and more or less sound ex-traction regulations are in place. On the strength

Page 87: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

9 1

of these two elements, competitive sawmills anda secondary industry without marked liquidityproblems, have grown. In contrast, broadleavedforest production is still meager. Per hectare vol-umes are reduced and regulations are often diffi-cult or impossible to follow, forcing many companiesto work illegally. Lumber is distributed in a systemplagued with liquidity problems and inefficientbusiness practices. Buyers frequently belong to theinformal sector (see Box 33).

Historically, the private businesses have grown(in the sixties and seventies) under easy condi-tions. Companies had access to very good timbersupply and an absense of strong competition. Thismade it unnecesary to develop financial, techni-cal and managerial capabilities.

Modernization of the countries studied, withcontinuous improvements in infrastructure andservices, has greatly reduced transportation costs.

This has facilitated sales of the forestry productsto external buyers, but also allowed the rise ofcommercial enterprises that offer new productsin traditional regional markets. These dynamics havegained momentum with the commercial openingof markets between countries. The new competi-tion for the regional industry shows the weak-nesses of regional production chains.

These weaknesses are pivotal with regard topromoting new species and protecting alreadyestablished markets built around lesser-used spe-cies. Regional businesses were not ready for thecompetition. Although private businesses do nothave the structural organization problems thatcommunity operations have, their business capac-ity is below par. Management skills are poor andoften lacking marketing knowledge. Companiesare under-funded, and machinery is often obso-lete. The horizontal and vertical links that are

Pine vs. H

BOX 33

Pine vs. hardwoods: two lumber businesses in San Pedro Sula, Honduras

Two lumberyards visited in San Pedro Sula clearlyreflect the problems of regional processingchains:

• The lumberyard that sells pine occupies anarea that is more than 5,000 sq. meters alongone of the most heavily traveled streets ofSan Pedro Sula. It proudly displays varioussawn lumber products in several dimensions,stacked and graded. For a small additionalcost, the lumberyard will custom-cut boards.The manager is available to handle questionsfrom clients and knows his business. Heoffers a delivery service. The manager gaveup selling hardwood species some time agodue to the supply problems. He manages avolume in excess of 80,000 BF monthly.

• The lumberyard that sells the hardwoodspecies occupies an area of 400 sq. meters,with approximately 15 meters of frontage ona sparsely traveled street in the same city.The motorsawn boards are stacked on topof each other just as they came out of theforest, twisted and cracked. One has to aska neighboring merchant if the owner is in.After calling for five or so minutes to theother side of the road, the father of the ownerappears. He knows the prices, but cannotgive further information. The carpenters thatpurchase here have to take the boardsthat need resawing to another place. Thequantities sold do not exceed 10,000 BF

monthly. The business does not offer deliveryservice.

Page 88: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

9 2

characteristic of succesful regional productionenvironments (clusters) are missing. An importantelement in furniture production is that compa-nies have only marginally developed the capacityof combining diverse materials (wood with fab-rics, metal or leather). This is a complex problemencompassing production, supply, logistics, anddesign (see below). Governmental and non-gov-ernmental industrial support is weak.

Results are predictable. In Quintana Roo, thesecondary industry has practically disappeared.In the Petén, the two existing secondary process-ing businesses are operating at reduced levels. Inthe Atlántida, many secondary processing busi-nesses are being displaced in their traditionalmarkets:

• Export oriented companies (normally work-ing with mahogany) are being displaced be-cause Asian competitors are improving theirquality and delivery times, and reducing re-quired order size.

• In regional markets, new commercial enter-prises are emerging and displacing productsmade in the region. Regional businesses havenot reacted other than to reduce prices. Veryfew know how to differentiate their products.

Besides the previously discussed problems,design is an important issue facing exporting com-panies in the Atlántida. Furniture designs origi-nate from US designers, who lack understandingof the characteristics of Honduran lesser-used spe-cies. As a result they cannot design around thestrengths of the woods.

On the other hand, the type of furniture that istraditionally made in Honduras (department storefurniture) is conservative and made for middle-class markets in the United States. This productline is not suitable for experimentation with colorand texture, as would be, for example, Italian bou-tique furniture, which is designed for more mod-ern tastes. Boutique furniture requires greater skillsin combining various materials (e.g. metal – es-pecially aluminum, synthetic finishes, and fabrics)than are available in Honduras.

6.5 Financing

Forestry production in the regions studied have clearproblems with internal and external finanacing:

• Community forestry operations werenot designed to provide internal financ-ing. In contrast to a conventional business,where the arrangement for capital is a fun-damental initial step, community operationsusually have been established to regulateaccess and usage rights to the forests andother resources (agricultural lands, ranches).Their strength comes from the contributionof labor of the group members, not theircontribution of capital. Along with this situa-tion is the fact that the immediate objectiveis the distribution of work, and not profit-ability. Frequently, community operationslack adequate banking instruments to facili-tate money management.

• The attitude of members runs counterto the capitalization of the operation.The attitude of community members towardfunding a forestry operation is closely linkedto the previous point. Several factors inhibitfunding. In the first place, for many opera-tions, the profits that were previously real-ized disappeared due to leadership errors ordiversion of funds. As a result, immediatedistribution of earnings without thought tothe future capital needs of the business ispreferred. Another factor is ineffectual in-vestment in the operation. Frequently, thereare errors in machinery purchases. There isalso the attitude that the equipment is com-munal property which infers open access forall. The issue of maintenance and care ofthe equipment is also not part of the invest-ment equation. As a result, pessimism aboutinvesting exits. Additional factors are the lackof a “savings” culture and immediate de-mands for cash among rural families. Thisleads to the use of the money earmarkedfor extraction process prepayments for per-sonal needs instead.

Page 89: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Limitations in the Marketing of the Lesser-used Species

9 3

BOX 34

Changes on Main Street: competition among furniture stores

in San Pedro Sula, Honduras

Traditional furniture stores in San Pedro Sula are

situated along the main commercial street in the

city. Shopping for furniture can be somewhat

frustrating though, because they all offer

practically the same products. The furniture is

made in a style that was considered modern and

elegant nearly 30 years ago (“the modernist

elegance of the 70’s”: brilliant black varnished sur-

faces with gilded edges complete with glass tops).

The wood is barely visible. The furniture varies

between moderate- and low-quality with corres-

ponding prices.

These furniture stores now have competition.

• In some of the best locations on the same

street are the stores of two large interna-

tional retail chains: Elektra (Mexican) and

La Curazao (Dutch). These stores offer fur-

niture made of alternative materials (metal,

alloys) and are more affordable than

traditional furniture stores. Designs are

acceptable for the segment of the popula-

tion with moderate to low income. These

stores are open to buying regional products,

but in practice this rarely happens, because

of their buying conditions (low prices, long

paying times, etc.)

• Furniture stores targeting the higher income

segment have opened in the new com-

mercial centers (malls) and on the “elegant

streets” of the city. The furniture that they

offer is impeccable in appearance and “ele-

gant” in style. It combines natural wooden

finishes, MDF, fabrics, aluminum and other

materials. Although there is a store that

offers furniture made in the region, the

majority of the stores offer imported

products.

• In recent years, stores such as Price Club,

which are oriented to the middle to upper-

middle class segments, have opened.

Many offer imported furniture. Furniture

made in Southeast Asia using rubber treerubber treerubber treerubber treerubber tree

wood wood wood wood wood (Hevea brasiliensis) predominates.

An example is a small table with two

benches, called a breakfast set. Although

it is more expensive than the furniture in

the traditional stores, it is efficiently

enginered, obviously inspired by Ikea

furniture (Sweden). Its design leaves

behind the “modernist elegance of the

70’s” to express informality, functionality

and “joy of life” with a green tint that

enhances the natural grain of the wood.

The trend is clear. The stores that represent

the end of regional production chains are losing

market share to new competitors, who repre-

sent the end of various external production

chains. This occurs in the low to medium income

segment (main street), as well as in the medium-

to high-income segment (malls and elegant

streets). The newcomers profit from a more

clearly defined target market, new designs, ap-

plication of merchandising techniques, devel-

oped store image, and in general, a much better

use of marketing tools. In general, the newer

marketing mix is more developed and success-

ful. Even with higher pricing, non-traditional

stores are attracting a growing clientel from all

economic levels.

Page 90: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

9 4

• Difficulties in obtaining credit. InMexico, and to a lesser degree in the othercountries studied, commercial credit agen-cies have nearly no experience in grantingcredit to community entities. As a result, alarge number of formal problems arise: thelegal structure of the operation, its form ofresponsibility, and the procedures to estab-lish guarantees. The ability of the banks toanalyze the credibility of a project for financ-ing is limited, even though communities as-sure the credit with strong guarantees. Ingeneral, the granting of credit for operationsin the forestry sector is not a priority for com-mercial banks. As a rule, banks do not nor-mally have sufficient knowledge about theforestry sector to allow them to establish asound line of financing, nor do they haveflexibility with regards to procedures and timeframes that would permit implementation ofthese lines of credit. Development banks andgovernmental financing function outsidenormal banking policies and directives, andoften grant credit without adequate guaran-tees. Their focus is political rather than finan-cial objectives. Non-forestry sectors continueto have priority over the forestry sectors.

• Focus on tangibles. The institutions andpeople that make decisions regarding thegranting of economic support, such as credit

or grants, tend to finance equipment andmachinery, frequently with the goal of verti-cal integration. At one extreme, they financethe purchase of expensive machinery but donot include funding for the expertise of some-one who knows what to buy. Hence, themoney frequently is spent on machinery thatdoes not serve the purpose for which it waspurchased. One example of this is the fi-nancing of portable sawmills. In Peten andQuintana Roo, of the eight portable saw-mills bought with external funds over the lastten years, five never passed the test phasebecause they were not suitable for sawingthe species found in the regions. In two in-stances, the saws were completely ill con-ceived and would not have worked even withsoftwoods. Banks and donors are partial tofinancing machinery and equipment becauseit is easy to confirm appropriate use of funds(i.e. by means of a receipt and existence of themachinery), and because they often do notknow that other alternatives exist for opti-mizing production (e.g. reducing costs, im-proving productivity, etc.) It should be statedthat these types of alternatives are oftenlinked to systematic and efficient loan pro-cesses, and the type of technical assistancethat is just beginning to take shape in theregions under study.

Page 91: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

7.1 Certification

The certification of forestry operations by thirdparties in accordance with Forest StewardshipCouncil (FSC) standards has created significantopportunities to increase sales of wood comingfrom “certified” forests. Forestry operations in theregions studied understood early on the opportu-nities that certification can offer. They were amongthe first in the world to be “certified” and cur-rently, there are a significant number of certifiedoperations in these regions.

When the idea of certification began, the first“green” businessmen from the United States andEurope that arrived in Mexico and CentralAmerica came to buy wood that not only camefrom the well-managed forestry operations, butthey also strongly preferred wood from commu-nity forestry operations. In general, they rejectedthe idea of buying wood through a private localintermediary.

The growth of commercial quantities of certi-fied wood was slow. For a long time, forestryoperations did not produce the quality needed norwithin the time-lines required. The resulting or-der backlogs meant lost sales and reputations ofU.S. and European buyers. In addition, priceswere high (cost accounting to support higherprices did not exist and there was a mistaken be-lief that foreign buyers could afford to pay more).

This required the “green traders” to work withinsmall niche markets. In addition, markets for cer-tified wood proved to be more difficult to createthan expected and market segments in which cer-tification was important were much smaller thanexpected. Frequently, the sale of certified woodwas a form of advertising that allowed bettermarket access for the non-certified products of abusiness. In spite of these limitations, the impactof certification on forestry management in Mesoa-merica has been positive.

In the commercial arena, the most importantaspect of certification has been the learning op-portunity. “Green” traders were much more tol-erant of deficiencies in the community operationsthan traditional buyers. The efforts of people likeMark Platin (Wild Woods/United States), HubertKwisthout (Ecological Trading Company/GreatBritain) and Jürgen Jordan (Espen/Germany) haveprovided community operations a chance to learnabout production and export sales.

The business of certified woods in “green”markets will certainly grow over the coming years.The more developed community operations arein a position to respond efficiently to export or-ders. Nevertheless, it is naive to think that “green”markets will be the principle outlet for the lesser-known woods found in the regions studied. Overthe next ten years, conventional markets will con-tinue to be the primary destination for these

7 MARKETING OPPORTUNITIES FOR LESSER-USED SPECIES

Page 92: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

96

woods. This conclusion, although preliminary, isbased upon the following considerations:

• Only a minority of community operations willdevelop sufficient management capacity tobe able to compete in international markets.

• Prices of sawn wood made from lesser-known speces are too high to allow pen-etration of larger markets

• Certified private forestry operations of Bo-livia and Brasil have strong advantages (e.g.much larger concessions, total control overextraction, and virgin forests), and do not ap-pear to have as many problems producingsufficient certified products to satisfy marketdemand.

7.2 Lesser-used species and promising markets

7.2.1 Petén

At present, the geographic isolation of the Petén,the easy availability of wood suitable for furnitureproduction in Central Guatemala coming fromother regions, and the growing importance of woodfrom plantations all greatly limit the potential formarketing lesser-used light-weight species from thePetén. However, heavier woods have good mar-ket potential. Some that stand-out are:

• Pucté (Bucida buceras): This wood is quitesimilar to chichipate (Sweetia pana-mensis). At first glance it is difficult to un-derstand why these two types cannot bemarketed together. The reason is primarilydifferences in physical/ mechanical charac-teristics and inferior workability of pucté–the boards have a tendency to bend andwarp, sawing and sanding are more difficultthan chichipate, and the dimensional changeswhich occur after cutting and drying aregreater. Nevertheless, none of these factorsare insurmountable technical challenges.

• Ramón (Brosimum spp.) – Species in thisgroup have significant potential as flooring.The main technical problem is high sensitiv-

ity to sapwood stain. Without adequate man-agement, it is nearly impossible to producestain-free boards. Toledo (1996) also reportsdrying problems. An added problem facinggreater use of this species is that it couldgenerate concern among environmentalgroups since it offers high nutritive value tothe wildlife.

• Chicozapote (Manilkara zapota): This spe-cies is highly attractive because of its darkpurple color. It also has superior lateral hard-ness, making it ideal for flooring and can beused in heavy construction for ground con-tact application and in wet areas. Cutting ofgreen trees of this species is currently illegalbecause of its importance for the extractionof chicle (dead or down can be removedthough). Unlike Mexico, forestry extractionand chicle production in the Petén are ac-complished by two different groups. Thismakes it difficult to introduce its use as a woodsource since “chicle” groups tend to blockany attempts to open this avenue. However,in general terms, it can be demonstrated thatthe region’s potential chicle production byfar exceeds actual demand. This situation willbecome increasingly true since the demandfor natural chicle is diminishing with time.

Interesting markets for chicozapote are:

• Flooring production in Guatemala Cityand the Oriente (eastern Guatemala, in thearea of Zacapa and El Ranchito). Buyersin these two markets differ greatly: the busi-nesses in the Oriente are geared towards ex-port and are much more conservative inintegrating new species of wood in theirproduct lines. A new species must be avail-able in significant volumes (a monthly mini-mum of 30,000 BF of sawn wood) and beesthetically attractive. These businesses haveexpressed an interest in ramón, but couldalso be interested in the malerios (Aspi-dosperma sp.), in luin hembra (Ampelo-cera hottlei) and in pucté (Bucida buceras).Flooring businesses in Guatemala City are

Page 93: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Marketing Opportunities for Lesser-used Species

97

fewer and are geared toward local markets.They are open to new species, but it is fore-seeable that their demand will be much lessand more intermittent than that of Orientebusinesses. The product that these busi-nesses require can be made more easily andwith fewer problems by workshops in thePetén, and thereby establish a value-addedstep in the process. Besides the species men-tioned above, businesses in Guatemala Citycould be interested in tzalam (Lysilomabahamensis), manchiche (Lonchocarpuscastilloi), and danto (Vatairea lundellii),because of different preferences of final con-sumers.

• Local markets and inexpensive furniture.In light of fewer possibilites for marketingsawn wood of the light-weight varieties out-side the region, the most likely outlet will be inthe manufacture of inexpensive furniture forgrowing regional markets. There are severalprivate wood working shops, as well as com-munity ones, that could focus on this market.

• “Green” markets for the heavy exoticwoods. The “green” buyers have shown in-terest in manchiche (Lonchocarpus casti-lloi), chechen (Metopium brownei), jobillo(Astronium graveolens), llorasangre(Swartzia cubensis) and others. It will be im-portant to cement relationships with the buy-ers by working with enterprises that alreadyhave capacity to supply these species effi-ciently and are able to increase their commer-cial volumes. A second phase would be theintroduction of new species.

• Flooring markets and markets for exoticMexican woods. Mexican markets will becomeof interest to the Petén with the probable con-struction of a direct highway between the Peténand Mexico in the near future. Several spe-cies are used to make flooring in Mexico, includ-ing tzalam (Lysiloma bahamensis), chechen(Metopium brownei), manchiche (Loncho-carpus castilloi), and possibly ramón (Brosi-mum sp.) and pucté (Bucida buceras).

• Various markets for decorative veneers.

7.2.2 Atlántida

Many interesting species are found in theAtlántida, the majority of which are suitable forfurniture and some for flooring:

• Huesito (Macrohasseltia macroterantha)• San Juan Colorado (Vochysia ferruginea)• Rosita (Hieronyma alchorneoides)• San Juan Peludo (Vochysia guatema-

lensis)• Cedrillo (Huertea cubensis)• Barba de jolote (Cojoba arborea)

None of these species pose major processingproblems.

The most interesting markets are:

• Regional production of furniture• Regional production of flooring (see Chap-

ter 8.1.3).

7.2.3 Quintana Roo

Supply from plantations in Mexico will be of sec-ondary importance over the next ten or moreyears due to the small area planted. This impliesstable possibilities for high-quality light-weightwood classes, such as sacchacah (Dendropanaxarboreus), chacah (Bursera simarouba), and toa lessor degree negrito (Simarouba glauca) andjobo (Spondias mombin).

As for heavier woods, tzalam (Lysiloma baha-mensis) and manchiche (Lonchocarpus castilloi)will see increasing sales. The same could be pos-sible for chechen (Metopium brownei), althoughsapwood utilization is a problem. Another prom-ising species is katalox (Swartzia cubensis), al-though the problem of sapwood utilization is evengreater than in chechen. Because of their spe-cific characteristics, Katalox and chaktekok(Sickingia salvadorensis) will probably not achievethe sales volumes of species previously men-tioned, but could occupy some interesting nichesfor exotic woods.

Page 94: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

98

Some interesting markets are:

• Flooring production in Quintana Roo. Thismarket is not being accessed by the ejidosdue to financing problems. The wood pro-vided by local suppliers to the local flooringmanufacturer comes from operations withpoor forestry practices, but the advantage isa 30-day payment period (see Chapter 8.1.3).

• Marketing of wood in Mexico City (heavyspecies). The Mexico City market currentlyhas more demand than the region can sup-ply, even though the region’s forests have thepotential to satisfy the demand. The primaryproblem is the financial capacity of the inter-mediaries involved, who can only handle lim-ited quantities at a time. Another problem isthe coordination between sawmills and op-erations that do not have sawing capability.

• Marketing axe-hewn/motor sawn heavywoods in the United States. Little knowledgeexists about the hand- or rough-hewn mar-ket in the U.S. The architectural accent nichemarket, such as interior and exterior, non-load bearing beams, fireplace mantles, andexterior appearance posts, should be con-sidered.

7.2.4 RAAN

The RAAN has a different level of regional devel-opment than the other regions studied. The Petén,Atlántida, and Quintana Roo have identifiablecommunity forestry practices that have a clearimpact on forestry use in a minimally acceptedlegal framework. On the other hand, the RAAN isstill a frontier region that lacks identifiable for-estry practices and there is practically no con-structive state level process regarding land use.The result is insecurity regarding ownership of theland, uncontrolled immigration, exploitive forestrypractices, and a divestiture of the indigenous com-munities with regards to both their lands and tra-ditional practices. In this context, priorities shouldbe the establishment of a forestry system, and

not the promotion of the marketing of the wood.In the opinion of the authors, a constructive rela-tionship between forestry production and mar-kets will not be seen within the next five years.

7.3 New forms of cooperation betweenforestry operations and private businessin the Petén

In 1997, a concession for a forestry communitywas approved in the Petén for the “Sociedad CivilImpulsores Suchitecos”. This group is made upof ornamental palm leaf collectors, former work-ers for forest companies, and small-scale woodextractors (motosierristas). The majority of themlive outside the reserve in Melchor de Mencos,which is a small city on the way to the border withBelize. Since its inception, this group has dem-onstrated high management capacity. One canalso add knowledge of felling and extraction prac-tices, marketing, and the mentality of forestryworkers. That is to say, faith in the profitability offorestry activities. A problem for this group is thegreat distance from their concession to the mainhighway (over 40 km). The group is also inter-ested in adding value to their product. When theybegan, they did not have money to buy the equip-ment to make roads and skid trails, much less forsawing the wood. On the other hand, a businessin Flores, managed by Don Eugenio Tajer, wasfighting supply problems. With the participationof the “Co-responsible NGO” (Fundación Naturalezapara la Vida), the technical group that aided thecommunity operation, an agreement was reachedwherein expenses and incomes of the joint activi-ties were divided, including felling, extraction,transportation and sawing all the way to plywoodmanufacturing. Several additional negotiations de-cided who would do what work, who would fi-nance the work, who would market, etc.

The final agreement negotiated allowed mem-bers of the Suchitecos group to do the majority ofthe work – extraction to sawing – with pre-financ-ing from both parts (the group prefinanced laborcosts, the company other expenses). They alsomarketed their product. Because the production

Page 95: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Marketing Opportunities for Lesser-used Species

99

BOX 35

Opportunities for the use of smaller diameter species

The state of Quintana Roo receives between 800

to 1500 mm of rainfall per year, which in combination

with the relatively poor calcarious ground yields a

semideciduous tropical forest with a canopy of

between 8 m and 18 m. Many wood species do not

reach minimum cutting diameters required for

lesser-used species (35 cm DBH). For example,

zapotillozapotillozapotillozapotillozapotillo (Sideroxilon gaumeri) represents some

18.8% of the total number of inventoried trees in the

forest, but it is only 9.3% of the basal area and 7.6%

of total volume. It is rare to see diameters greater

than 35 cm. Many other species have similar

diameters. Until now, harvest has been concentrated

on trees with a diameter in excess of the minimum

allowed for cutting. This limits the potential for the

development of a forest industry and does not take

advantage of existing volumes.

At present, smaller diameter trees are mainly

used for the type of rustic construction found in

tourist centers – which is supplied mainly with

contraband wood. Over the last few years, certified

forestry operations have recognized this potential

market and begun to develop guidelines for orderly

use of smaller diameter trees, including those that get

larger, but for which smaller diameters are in demand,

for example, chaktevigachaktevigachaktevigachaktevigachakteviga (Caesalpinia platiloba).

The use of smaller diameter trees can be de-

veloped through various scenarios, each of which

has implications for forestry and organizational

issues, and markets:

• Use of trees felled for road and skid trail cons-

truction: In most cases, only those trees spe-

cifically felled for extraction are utilized. Ejidos

that have started utilizing smaller diameter trees

removed for skid trails and roads have not only

gained supplemental income, but realized

significant savings in the extraction costs for

larger pieces. This is due in part to the fact that a

skidder does not have to push over the small trees,

thereby saving time and fuel. The market for the

posts in tourist centers is sufficient at this time

to absorb production resulting from this method.

• Greater use of smaller diameter trees within a

designated cutting area:. There has been an

increase in extracting smaller diameter trees

with special characteristics that already have

established markets (i.e. straightness for posts).

Increased removal of smaller diameter trees

could potentially encourage growth of higher

value species. Available volume from this treat-

ment method will be much higher than the

volume from roads and skid trails. It is estimated

that current stock probably exceeds three million

cubic meters.*

• Use of smaller diameter trees from currently non-

productive forests: There is potential to utilize

trees from forests growing in unused agricultural

areas (“acahuales”). There is no information re-

garding growing stock or growth, nor have

utilization strategies been developed. However,

the mere size of the area in question (more than

three million hectars) implies significant potential

volume.

The market for posts is too small and selective

to take advantage of the latter two alternatives at

this time. However, there is potential to use smaller

diameter trees as a source of energy for various

regional businesses that have high energy demands,

such as sugar and cement factories. These businesses

could use wood as a substitute for non-renewable

sources of energy, such as oil and gas.

In summary, the potential to use smaller diameter

trees is promising. It could greatly increase wood

utilization and generate employment. In order to

function, this option requires feasibility studies in the

areas of marketing, forest potential, and organizational

aspects. Following these studies, a testing program

and follow-up extension phase would be necessary.

* Estimate is based on 500,000 hectars with growing stock of 6 m3/ha.

Page 96: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

100

of the wood was completely prefinanced, it al-lowed complete independence from the buyers.

(a) Implementation of Grading Practices: In thefirst year, mahogany (mahogany (Swieteniamacrophylla) and manchiche (Loncho-carpus castilloi) were produced. From thebeginning, the Suchitecos managed toachieve something that the Mexican ejidoshad not been able to in 15 years: use of grad-ing practices accepted in the United States.Something even more surprising is in thesubsequent year, they were able to refinethe grading, obtaining a greater percentageof higher grade wood and substantially im-proving the final results. These points areindicative of their learning capacity and po-tential for innovation.

(b) International Marketing: The Suchitecogroup sought foreign buyers to improve theprice of mahogany (mahogany) and to sellmanchiche (Lonchocarpus castilloi). Buy-ers appeared from Mexico, the United Statesand Germany. The sawn wood could be in-spected by interested parties and transportedas soon as it was paid for, in a process thatwas exceptionally straightforward for custom-ers . Larger volumes were sold in the U.S.some three months after production. In thiscase, “green certification” did not play a majorrole. Traditional wholesalers were in a posi-tion to pay equal or better prices for the ma-hogany than buyers in green markets. Themanchiche (Lonchocarpus castilloi) wassold to “green” buyers in Germany.

An important point to stress in order to un-derstand the dynamics behind the developmentof this operation was the work ethic, business skillsand abilities of the NGO that shared responsibilityfor the operation. The joint work of the Suchitecogroup and NGO demonstrates how well the triangleof community operations – technical organiza-tions and normative institutions (in this case CONAP)can function. This cooperation is perhaps the

most interesting of all the “production chains” inthe Petén. It builds on the strengths of both thecommunity group and private business, andthe agreement between the community and busi-ness that divided jobs and costs fostered an analysisof costs by both sides, and eventually yielded amutual concern to reduce them. If this agreementfurther satisfies the private business owner, it willbecome an example with potential to help in-crease the use of lesser-known species.

The agreement between the Suchitecos groupand private business has other advantages:

• It combines the ability to control use of theland (e.g. reduce conversion) of communityoperations with marketing experience ofthe private company.

• The agreement reached between the busi-ness and the community operations promotesthe introduction of costing systems to forestryoperations. This is a basic prerequisite forimproving income from lesser-used species.

• Another important aspect of this agreementis that in taking the production to “neutral”ground (away from negative community in-fluence), it is able to overcome communityorganizational problems and makes it easierto adopt technical knowledge.

Changes are occurring in the original agree-ment. The Suchitecos operation has bought its ownequipment and is now in a position to produceindependently. However, other operations withfewer organizational and investment possibilitieshave entered the arena. These groups have smallervolumes of mahogany that are dispersed acrosstheir concessions– which makes extraction moredifficult and less profitable.

Further progress for this type of cooperativeagreement will depend to a large degree on howcommunities negotiate with the private company.If communities unite and act as a “cartel”, chancesare that positive aspects like the cost-conscious-ness and the flexibility of agreements as well as theprofitability may be lost.

Page 97: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

8.1 Promotion of new species

8.1.1 Wood promotional centers

Promotion of “lesser-known” species began withproper identification of wood imported into Eu-rope and the United States (see Hess and Record,1950) and later description in various wood labo-ratories in these countries (aesthetic and physi-cal-mechanical properties, and later their machin-ability). By the end of the 70´s, laboratories forthe study of wood were present in Mexico andCentral America. These laboratories completedimportant work in the description of the lesser-used species. In Nicaragua, the Laboratorio deTecnología de la Madera, with help from theSwedish government, described more than 70species between 1990 and 1994. In México, atleast four laboratories have worked with tropicalspecies. In Honduras, the Centro de Utilización yPromoción de Productos Forestales (CUPROFOR) iscurrently working on the description of Hondu-ran species. The only country that does not havethis type of facility is Guatemala.

It is obvious that the work of the wood promo-tion centers is fundamental to begin to systemati-cally introduce new species to markets. Nevertheless,the wood laboratories have had serious problemsin maintaining their activities over prolonged pe-

8 EXPERIENCES INTRODUCING LESSER-USED SPECIES INTO MARKETS

riods. They differ from the laboratories in U.S.and European countries, which work with spe-cies from all over the world and are also utilizedto test new wood products. The laboratories inMexico and Central America commonly havelapses in activity as soon as the more importantspecies from their countries have been studiedand external donor support withdrawn.

On the other hand, it is clear that although thework of the wood laboratories is basic for the pro-motion of lesser-used species, by itself it is notenough.

The response has been to enlarge the scopeof work of the laboratories to convert them intowood “promotion centers”. Basically, they seekto reduce the cost of experimentation and riskfor businesses through practical experimentationwith new species (e.g. production trials, develop-ment of drying schedules, and development ofadequate designs for products made of new spe-cies). The two institutions that have followed thispath are the Centro de Capacitación y DiseñoIndustrial (Mexico) and, much more ambitiously,CUPROFOR in Honduras (see Box 36). A commondanger for the wood promotion centers though,is the “cocooning”, a lack of a real working rela-tionships with regional wood products manufac-turers. The centers appear to find it easier to workwith the sophisticated machinery they own. Theydo not take into consideration the technical limita-

Page 98: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

102

BOX 36

CUPROFOR: Experiences of a wood utilization and promotion center

The Centro de Utilización y Promoción de Pro-ductos Forestales (CUPROFOR) is the tropical woodsresearch center for the Administración ForestalEstatal – Corporación Hondureña de DesarrolloForestal (AFE-COHDEFOR). CUPROFOR is the result of acooperative project between Honduras and theUnited Kingdom, in which both countries havechanneled substantial investments.

CUPROFOR’s objectives are to promote use oflesser-used species to reduce over-exploitationof more valuable species; contribute to sustainableproduction of the forests, and improve quality oflife for the people that depend on the forestry-woodproducts sector. The Center has an impressive infra-structure, including a laboratory for technical andchemical analysis, a well-equipped wood workingshop, large sawing facility, three dry kilns, open airdrying shed, showroom, library with large collec-tion, conference room, administrative buildings,dining hall, etc.

CUPROFOR is well-known in the forestry-woodproducts sector and enjoys a good reputation. TheCenter has published several technical bulletinsregarding lesser-used species and has a knack forpresenting information in layman’s language soit is easy to understand for small to medium-sizebusinesses.

The Center also offers services, such as resaw-ing, drying, and saw sharpening as well as courses,such as wood stacking and drying.

Some areas could be improved to betterachieve Center objectives. For example:

• Target groups: The Center has not adequatelyassessed and described its possible targetgroups, and has not defined the potential ofeach, nor how it plans to work with them.At the same time, the “one size fits all” ap-proach is not adapted to the specific require-ments of each business or group of busi-nesses. In addition, some of the services of-fered compete with private industry in anunfair way, since they only consider direct

costs (i.e. re-sawing, drying, and saw sharp-ening). A solution would be to differentiateprices for these services according to the sizeof business. This way services could be of-fered to businesses that otherwise would nothave access to them, without being in di-rect competition with the other providersof these services.

• Furniture Design and Production Classes: Thewoodworking shop holds courses on wood-working and furniture making. The furniture iscopies of furniture found in magazines andis technically high-quality. The furniture ismade without haste, using traditional car-pentry joints, in the same manner as an am-bitious amateur would work. However, theseprocedures and designs do not touch on anyproblems that regional wood working shopsare experiencing. These shops have to makeproducts in less and less time and at reducedcosts for specific distribution channels. Onlyin very few cases do they work with designsfrom the Center’s woodworking shopbecause these designs don’t fulfill customerpreferences. The Center’s wood workingshop could have greater impact if it ins-tituted more systematic procedures for de-velopment of designs, selected the businessgroups it works with more carefully, anddefined target markets and channels ofdistribution. With this strategy, it would bepossible to promote designs that facilitatestrategies for product differentiation whilereducing production costs for regional pro-cessing companies.

The consequence of a lack of a clear benefitfor various business groups is that CUPROFOR re-ceives little cash from the private business sector.The experiences of wood promotion centers inNicaragua and in Quintana Roo (CECADI), whichnearly collapsed after withdrawal of externalsupport, are examples of what should be avoided.

Page 99: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

103

tions and specific market orientation of regionalcarpentry shops. The result are products (mostlyfurniture) that regional businesses have difficultyincorporating into their product lines.

It is important to note that other institutions,with much smaller amounts of money, have simi-lar objectives in promoting artisan handcrafts. Oneexample is the Mexican organization AMACUP

(Asociación Mexicana de Artes y Culturas Popu-lares). In this case, technicians work in the shopof the person receiving assistance. The productsthey develop in this setting offer real possibilitiesfor the artisans and real life problems are dealtwith. Emphasis is placed on the design and mar-keting of these products.

8.1.2 Commercial promotion projects

Given the problems of marketing sawn wood fromlesser-used species, the first activity of technicalassistance groups that aided community opera-tions (Guatemala, Honduras and México) was tolook for new markets for existing forest products.

The market research studies conducted inMexico and Guatemala yielded similar results:there was demand for different species. The prob-lem was lack of ability to offer the wood at a priceand quality required to be competitive. Resultshighlight a central weakness of the communityoperations: The lack of flexibility and ability to adaptto buyer demands. The positive news from thesestudies was that businesses exist in other parts ofthese countries that are able to make a profit withlesser-used species.

Other types of commercial promotion projectsfor lesser-used species exist that are integratedwith the larger national industry. These types ofprojects are not happening in the regions studiedbut it is worthwhile to comment about them. Theseprojects consist of several phases:

• Determine forestry potential• Evaluate existing use of the species• Address knowledge gaps about physical -

mechanical characteristics

• Conduct manufacturing and marketing tri-als with interested businesses

• Create investment programs• Find commercial contacts in relevant markets

This process has proven successful in variouscountries, for example, Peru,11 that base their for-estry system on large industrial concessions. How-ever, this approach presupposes adequate businesscapabilities along all links of the production anddistribution chain. That is to say, at no time aredeficiencies in the legal framework, extraction,processing, or community operations questioned.Neither are those in the relationship with the pro-cessing businesses. Basically, this process is anoption for big businesses with control of the en-tire production chain, from access to export. Thisprocess is also an option for production chains whereall the links have sufficient business capacity andmajor conflicts among them are non-existent.

8.1.3 Private businesses

Nearly all the businesses in the region have triedto market lesser-used species at some time. Pro-motion has generally taken the form of makingand distributing samples, but there have also beenmore original attempts, such as the sale of tzalam(Lysiloma bahamensis) under the name ofcaribbean walnut. Other businesses have at-tempted to modify consumer attitudes by meansof television commercials that show off the beauty ofthese little-used woods. Without a doubt, the largerfloorings businesses have been the most success-ful in market introduction of the lesser-used spe-cies. Some factors behind these successes are:

• World demand for wood flooring has grownrapidly over the last 15 years, which hasencouraged introduction of new woods.

• Businesses have made major efforts to de-fine channels of distribution to support thesale of products.

• Several heavier lesser-used species are idealfor this use.

11 See Toledo and Rincón (1996).

Page 100: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

104

• Businesses have emphasized wood supply.Instead of one buying department, thesebusinesses normally have a buying group(e.g. forestry representative, wood workers,and trusted community representatives) incharge of delivering the wood. Between thisand acceptance of higher finance costs, theyhave been able to adapt to the communityforestry production structure and resolvesupply problems.

• Recruitment of good managers with techni-cal and negotiation skills, and marketingabilities. This point, that should be obvious,is quite difficult to achieve in the study regionsand has been a critical element in the successor failure of countless businesses.

With these factors in place, it is possible toreduce harvest and processing costs to accept-able levels, and the consumer has responded posi-tively to the introduction of some new speciesinto the marketplace. From a forest managementstandpoint, a problem arises that, in order to re-duce costs, some businesses prefer to work withcommunities that have a weak organization andlow forest management capabilities, which in turn,implies lower standards of forestry management(see the text on “PIQRO” p. 106 and the almosttraditional chain in Guatemala).

An important group in the promotion of lesserknown species is the “green” merchants who, fiveto ten years ago, began seeking markets for spe-cies that traditional wood merchants in Europeand the United States had tried and rejected sometime before. Because the “green” buyers paid goodprices to the communities, the communities be-gan to pay attention to these specialty niche mar-kets. In the United States, this is the exotic woodsmarket (species that because of their streaks orcolor are destined for special uses). In Germanyand Great Britain, the main market was musicalinstruments. The small volumes available were notconsidered major problems because these mar-kets did not require large volumes. The business-men estimated they needed to start with between60,000 and 120,000 BF per year.

Volume and quality of supply from commu-nity operations turned out to be problems. There

were shipments that were defective, badly cut,poorly stacked, and mis-sorted. In addition, therewere problems of several months of back orders,charges for wood that had been prepaid but sub-sequently sold to another buyer only days beforeshipment was to take place, and no replacementvolume provided when mistakes happened. Thefirst generation of “green” merchants disappearedafter a few years due to supply problems, not lackof markets.

The following describes three private business-marketing experiences with lesser-used species.

ATLANTIC WOODS (ATLÁNTIDA):A LOST OPPORTUNITY

Atlantic Woods is a truck bed producer. They boughtspecial machinery to manufacture this product,therefore becoming the first company in the regionto abandon the use of general purpose carpentrymachines. The business invested a significantamount in product development and in marketselection.

Production began in 1997 and peaked in 1998.During this time, the business employed up to 130workers and produced from two to three contain-ers per month (the customer wanted four or more).Wood consumption was approximately 75,000 BF

per month, mostly species that were too heavy forfurniture production and for which no market ex-isted. As a consequence, it gave a real boost to theforestry production in the collective societies.

Production was achieved despite the external re-gional context. The business had to constantly fightproblems that do not exist in other countries andthat usurped 50% of the manager’s time, such asthe inability to obtain a steady supply of electricity.

Wood supply was also a significant problem,not just its consistency and pricing, but also thequality. For example, suppliers produced the lum-ber by chainsaw without guides. The result wasthat much of it was uneven and crooked. Trans-port of the lumber by mule makes it necessaryto reduce the dimensions of the lumber (see alsochapters 3 and 4.5).Both elements resulted in awaste of more than 20% on the first cut to

Page 101: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

105

straighten the block face. Atlantic Woods alsonever came to agreement about standard dimen-sions with suppliers (i.e. communities and inter-mediaries) which caused additional losses furtherdown the line. The quality of wood also left so muchto be desired that costly checks, block by block,had to be conducted upon receipt of the wood.In general, suppliers were unable to improve thequality of their product, even in basic aspects.Finally, AFE-COHDEFOR never provided support inthe form of technical assistance or training.

The benefits generated by Atlantic Woods, suchas employment and forestry production, shouldhave merited substantial support from the govern-mental agencies. On the contrary, the businesshad to deal with tedious bureaucratic procedures,and was even criticized from unexpected sources.For example, in one study for CUPROFOR, Ardónet al. (1997) write: “…it seems a shame to seehow such good woods like rosita and varilloare exported as low value-added products [truckbeds], when they could be going as fine furni-ture... On the part of the local producers thereis a concern that this company is going to pushthe prices of these woods upward”. Therefore“…the work of the business should be reviewedsince its functioning can have a negative impacton the national industry.”

This argument merits an analysis, because it isbased upon common, but mistaken, conceptsabout promoting lesser-used species. On the onehand, the authors of the study appear to assumethat there is an option to choose between theproduction of fine furniture for export and truckbeds. In no way does that option exist. No busi-ness in La Ceiba is currently in a position to ex-port and the companies in San Pedro Sula thatdo export are focused almost completely on ma-hogany. In reality, if rosita (Hieronyma alchor-neoides) is not used for truck beds, there wouldonly be marginal use of it for low-value and poorly-designed local furniture. Even if both alternativescompeted against each other, the decisive crite-ria to whom the timber should be delivered toshould be the price each buyer can pay for it. Onthe contrary, industries with a lower productivitywould profit more. Added value can be taken into

consideration for evaluating the benefits of a cer-tain industry, not to restrain the activities of oth-ers. If not, all industries except some handicrafts(that have the best added value rate) should beprohibited.

The death sentence for Atlantic Woods camewith the devaluation of the Malaysian Ringgit.Suddenly, Malaysian competition was in positionto offer products some 30% cheaper. Because60% of Atlantic Woods costs were for wood alone,their ability to reduce costs was minimal. Theowner is convinced that if conditions improve,meaning if suppliers are able to improve theirproduct (which in light of the high volumes con-sumed would normally be expected), AtlanticWoods could continue in the market. Things beingwhat they are, the customers of Atlantic Woodsare now buying from Malaysia. Atlantic Woods hassuspended production in the hope of better timesand community forestry producers are losing hun-dreds of thousands of dollars each year, the onlyoption being to illegally sell their wood at a loss.

AGRO DOS RIOS (NICARAGUA):SALES WAREHOUSE FOR LESSER-USED SPECIES

One of the most successful marketers of lesser-used species are those businesses that work withoutside capital. This implies access to knowledgeand experience from outside the region studied. Itis interesting to note the factors that affected suc-cess of these businesses in the promotion of lesser-used species. Agro Dos Ríos is such a company.

Agro Dos Ríos is a company located in Nica-ragua which was set up with Costa Rican capitaland management. From their home country, thesemanagers are able to handle a wide range of spe-cies, many of them falling in the category of lesser-used. In Nicaragua, the company buys standingtimber and controls all production steps. This helpsthem to reduce costs and make decisions early in theprocess that make sense later in the process (e.g.bucked log lengths).

Although Agro Dos Rios exports the majorityof its production, it has a sales warehouse on thehighway between Managua and Granada. This

Page 102: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

106

warehouse is supervised by a highly knowledge-able manager, Don Ricardo Montero, who has areal understanding about how certain species canbe best utilized. Don Ricardo has an impact on thefront end (advising buyers) and on the back end(defining production procedures for the variousspecies with respect to the most promising prod-ucts). The ability he has to impact both directions,and at the same time foster links between produc-tion chains, is obviously of major importance.

The actual point of sale for lesser-used speciesdiffers greatly from the typical point of sale forother broadleaved woods in the regions studied.Usually, there is poor service (e.g. no re-saw, plan-ing, or delivery service), limited product line, anddoubtful wood origins (see Box 33 and chap.6.4).In contrast, the warehouse of Agro Dos Rios hasa good display of products, offers excellent assis-tance, good combination of services, and a largearray of finished products as laths, siding, andvarious molding products.

The Agro Dos Rios example highlights threenecessary elements to successfully commercializelesser-used species: The need to reduce costs, theability to establish effective communication betweenlinks of the production chain; and the need for aperson with the unique ability to intertwine the el-ements of production with market requirements.

PIQRO (QUINTANA ROO):ADAPTING THE INDUSTRY TO FOREST POTENTIAL

PIQRO is a laminated flooring business that was origi-nally funded by a Mexican development bank totake advantage of lesser-used species. The busi-ness began operations in 1989 with annual pro-jected processing capacity of about 2.5 millionboard feet of sawn wood (which amounts to15,000 m3). The business failed to produce a profitfor more than five years. The business changedmanagement and ownership on several occasionsand stopped production for a prolonged period.

This phase of uncertainty ended when the com-pany was purchased by its current owners, whohave greater investment capacity and good man-agement. In Mexico, this last point not only im-plies mastery of strictly business aspects, but also

the ability to manage difficult relationships withstate entities and forest producers.

Following a testing phase, the new manage-ment decided to use exclusively wood importedfrom the United States. This eliminated problemslinked to introduction of lesser-used species andsimplified production by having a consistent woodsupply with uniform quality. The first purchaseof lesser-used tropical wood came after analysis ofwhat ejidal sawing operations could supply and whatthe business really needed. One result of the analy-sis was that the grading standards used by thesawing operations made the wood unnecessarilyexpensive. Grading rules and a price acceptableto both parties were negotiated and trading began.

The species used were tzalam (Lysilomabahamensis) and machiche (Lonchocarpuscastilloi) for surface layers and sacchacah (Den-dropanax arboreus) and chacah (Bursera sima-ruba) for core. Tests of remaining abundant heavierspecies were carried out in the following months,but only chechen (Metopium brownei) producedacceptable results. The wood supply mechanismfunctioned surprisingly well and sawing operationsbegan to produce for much longer periods of timethan ever before. The business began to seriouslyconsider the possibility of establishing a “green”policy, in order to obtain supplies exclusively fromejidos with “certified” forest operations.

In the end, this didn’t work for several rea-sons. First, the business discovered that certifica-tion was a weak selling feature in its market place.In addition, they discovered that suppliers inCampeche, Quintana Roo’s neighboring state,were able to supply raw material at prices consid-erable lower than those of Quintana Roo. Also,the market favored a tropical species, nabah(Myroxilon balsamum), that is infrequently foundin the certified ejido forests. Finally, pine fromcentral Mexico is cheaper than the lighter woodsused for the core layers. PIQRO has stopped buyingfrom the ejidos with “certified” forestry opera-tions at the present time and now buys from pri-vate suppliers whose sources are not part of theequation. This situation was also brought aboutin part due to other problems caused by suppli-ers (back orders) as well as the business (very latepayments).

Page 103: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

107

This experience exemplifies the difficulty ofbuilding comercial relationships between wellmanaged community operations and private busi-nesses with the ability to market lesser-used species.The interests of both parts often are too divergentand the willingnes to collaborate is too weak tobe able to follow a common strategy. Until now,companies and forest communities based comercialrelationships on the production of mahogany.With the dwindling of this species, things are be-coming more difficult, because lesser-used spe-cies generate much smaller profits thanmahogany. ”Green certification” is a big oppor-tunity, but it remains to be seen if it has enoughstrength to orient the interests along the produc-tion chain towards a common strategy. Today,very few companies in the region are targeting“green” markets, and very few chains will be ableto adapt to the requirements of export markets ingeneral and certified markets in particular.

8.2 Improvements in marketing

In the regions studied, both the forestry operationsand the private wood processing businesses thatwork with tropical woods have significant problemsoffering competitive products. This has serious im-pacts on their ability to introduce lesser-used species.

Various initiatives have been attempted to ad-dress this problem. They include:

• Initiatives that seek to improve the businessability of forestry operations

• Initiatives that attempt to facilitate sales ofthe forestry operations through non-vestedintermediaries.

• Initiatives that seek to improve the competi-tiveness of the wood processing businesses

8.2.1 Improvements in the business capacityof forestry operations

There are several examples of attempts to im-prove the business capacity of community opera-tions (see also chap. 6.2).

a) Noh Bec, Quintana Roo. Improving manage-ment capacity. At the end of the 80’s, the inter-nal structure of Noh Bec, which was establishedin agrarian law, was not different from other eji-dos. The ejidal assembly, which included all ejidomembers, elected a Board of Directors (president,secretary, treasurer, and controller) for three-yearterms. This group had a wide variety of responsi-bilities, including representation, conflict resolu-tion, management of community funds, etc.

Noh Bec had clear management deficiencies.This became apparent when the ejido made itsfirst attempts to sell lesser-used species. Changesneeded to finance production, process the wood,and price the products were significant barriersfor a long time. Many buyers learned through poorexperiences that even the best-organized ejidosin the region could be problematic suppliers. Im-provements were slow to come.

The most important factor in changing thissituation has probably been that ejidatarios rec-ognized they could not arbitrarily change peoplein decision-making positions. An inept or corruptdecision could mean significant losses for the ejido.As a result, they began to re-elect people who haddone good work . This enabled the person to applygreater experience to problems, and increase hisauthority.

Afterwards came the establishment of a neworganizational structure: the Technical ForestryCommittee. Committee membership is named bythe General Assembly, and made up of outstand-ing ejido members and outside technical assistancepersonnel. Its function is to prepare decisions thatare later presented to for the assembly. In somecases, they can also make decisions independently.Not having to discuss all questions in an assemblyof 200 ejido members, some of whom neitherunderstand nor have interest in forestry relatedissues, has greatly reduced decision-making timeand improved the quality of those same decisions.The establishment of the Technical Forestry Com-mittee reflects not only organizational maturityon the part of the ejido, but also timely organiza-tional work by outside technical assistance orga-nizations.

Page 104: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

108

The next step to improve management was cre-ation of the post of Forestry Administrator. Thisis a full-time, paid position in charge of directingthe technical aspects of the forestry operation.Previously this job was performed by the ejidopresident. The Forestry Administrator is con-tracted based on technical skills and not status inthe ejido, and fills the position for three years. In thisamount of time, considerable improvements inthe quality of the forestry related tasks have beenpossible.

Along with these improvements in manage-ment, there have been progressive changes in fi-nancial administration. There is now a professionalaccountant with authority to demand weekly finan-cial reports, which is the beginning of systematiccost accounting. In addition, management of thesawing operation has been assumed by a memberof the ejido that has high status in the communityand high management skills, which together givehim considerable authority.

The assembly has also given salesmen suffi-cient freedom to negotiate on their own. This hasallowed them to sell the majority of lesser-usedspecies volume that remains at the end of theyear from the sawing operations.

Lastly, Noh Bec decided to separate ejido ad-ministration and business administration. To dothis they created a separate legal entity (“Sociedadde Producción Rural”) which is made up of ejidalmembers and organized like a business. The as-sembly elects a council that can select and dismissthose in management positions. The effectivenessof the changes can be judged by the success of theforestry operation. In 1999, the volumes of lesser-used species sold doubled that of mahogany. Afterseveral failures exporting wood to “green“ mar-kets, the ejido was able to make a sale that satis-fied a buyer, whosubsequently increased his orderfor the next year. This makes Noh Bec the onlyejido that is currently exporting directly withoutintermediaries.

b) Caobas, Quintana Roo. Radical change in thedecision-making body. Like Noh Bec, the com-munity of Caobas began around 1930 and was

declared an ejido at the beginning of the 40’s.Initially, its population was mainly Mayan, buttoday it has a more heterogenous make-up. Theejido began with 113 ejidatarios. Now there are307. Productive forest land is similar in size tothat of Noh Bec. However, forests in Caobas wereexploited a lot more than Noh Bec. Today, Caobashas just one-fifth (300 m3) of the volumes foundin Noh Bec. Because there is a greater numberof ejidatarios in Caobas, the distribution of earn-ings is much less (between 600 to 2000 pesosannually per capita compared to 18,000 pesos,approximately 1,800, USD) annually in Noh Bec).

In the last five years, the ejido of Caobas, justas many other large forest ejidos of the region,has developed an organization of forestry use thatis very different from the previous organization.It has split into many smaller user groups, eachof which has obtained the right to carry out certainforestry activities on their own and make cer-tain decisions themselves

The “forestry usage groups” are a way to ad-dress the weaknesses of the ejido production sys-tem, which in this case they tried to resolve througha completely new system and not, as is the case inNoh Bec, trying to improve the old one.

In the current structure, the commercializationof wood is under the control of the usage groupsand not the ejido. To achieve this, the volume ofmahogany available annually is divided betweenthe usage groups according to their size, in such away that each ejidatario receives the same volume.

To carry out operations, usage group repre-sentatives agree on one key person who thenworks with all the groups. The responsible per-son, called jefe de monte, first marks the areafor the current year and divides it into blocks forextraction. This work is aided by forest techni-cians from the Sociedad Civil de Productores Fo-restales (see chapter 3.4). These blocks and theorder in which they are to be harvested, first tolast, are raffled among the usage groups. Thisdecides which group works first and where, whichgroup is next, and so on. This raffle also deter-mines the volume of lesser-used species the groupsare entitled to, since each group receives the num-

Page 105: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

109

ber of cutting blocks necessary to fulfill their des-ignated volume of mahogany and has the right touse all lesser-used logs above the minimum cut-ting diameter located in this area. There is nevermore than one group working at a time nor isthere more than one cutting area in process. Thejefe de monte works with the groups in all of thefollowing tasks: scouting, marking, felling andskidding wood. Group members can bring theirown machinery, but they are subject to the deci-sions of the jefe de monte. The decisions rel-evant to harvest issues are in the hands of justone person. The groups can, if they so desire,contract third parties to carry out the work. Theycan also sell the standing timber. While all thegroups extract the mahogany on their own, andlater saw it in the ejidal sawing operation, manyof them prefer to sell the lesser-used species asstanding timber. The sawing of wood continuesto be the task of the ejido, which cuts the wood ofthe usage groups and charges by the foot. Theprofits from the sawmill finance the expenses ofthe ejidal president. The arrangement makes itdifficult to improve the technology used in thesawing operation. It is clear that innovative ca-pacity has moved from the ejido to some of theusage groups.

In Caobas there are eight usage groups, con-sisting of between 10 and 129 ejidatarios. Theusage groups all have different orientations. Thereare groups that are highly motivated to improvetheir extraction and processing operations. Oth-ers have out-sourced the more difficult tasks andprefer to be leassers, even to the point of sellingthe standing timber. The usage groups are morehomogenous than the ejido as a whole when itcomes down to their attitudes about work and in-novation. Hence, some decisions are easier thanbefore. One result of this is, they generate and dis-tribute larger surpluses from the forestry extrac-tion. It should be noted that part of these surplusescome from a considerable reduction in investmentin communal works (such as forest roads).

The usage groups are not necesarily bettercommercial traders than the old ejido. The internalstructures and working procedures of the groupsare nearly the same. However, within the group,there is a greater sense of unity (which stems

from the voluntary nature of the groups and thecompetition among them). Added to this is a greatersense of responsibility on the part of the leaders,which positively affects marketing efforts. A ma-jor problem emerges with the separation of ex-traction (now controlled by the usage groups) fromsawing (still under control of the ejido administra-tion). Communication among these productionsteps, which are essential for the promotion oflesser-used species, is weakened. The sales of theusage groups are accomplished in an indepen-dent fashion for small orders; however in a jointfashion for larger ones. A significant volume of thesales made outside the region (i.e. 100% of the ma-hogany and 50% of the heavier lesser-used spe-cies) are channeled through the fondo de acopio(see box no. 38). This office makes a prepaymentto finance production and is the point of contactfor buyers. There are no up-to-date records main-tained of recovery rates and costs which makes itdifficult to establish prices, especially for lesser-usedspecies that do not have established market prices.

The diverse management capacity of usagegroups means varying levels of ability to marketlesser-used species. While some groups havestopped selling these species, or sell them as stan-ding timber, other groups have had some successselling them as roundwood or even as lumber.

BOX 37

An example of a hardwood sale inthe ejido of Caobas

In 1998 an order for hardwoods was receivedfrom a private buyer in a neighboring ejido. Firstapproach was to the president, who called ameeting of the 6 group leaders. They nameda representative (in this case the forest manager)to negotiate the terms of sale. Harvesting wascarried out jointly and the delivery was madeas if it were from one sole supplier. Income wasthen divided proportionately.

Page 106: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

110

e) Layasiksa, RAAN, a community with erodedinternal structure. The community of Layasiksa,Nicaragua has a completely different context thanthe ejidos described in Mexico. While the ejidoswere supported for decades by the Mexician gov-ernment, Layasiksa was involved in a civil warthat impoverished the entire region. While NohBec and Caobas have asphalt access which allowsdelivery of all sorts of of merchandise from therest of the country, the community of Layasiksa hasto transport merchandise for five hours on a boat toreach the city of Bilwi (Puerto Cabezas), which isconnected to the rest of Nicaragua by a poorlymaintained roadway system. In general, all basicsocial indicators (e.g. infrastructure, health, andeducation) reflect a much more difficult situationfor Layasiksa than the Mexican communities.

The internal structure of Layasiksa as well asmost other indigenous communities in the RAAN

has been eroded by the war and continues to erode,in large part due to loss of authority of traditionalinstitutions (e.g. Council of Elders) and successfulefforts of the municipal government to centralizepower (see Box 7). In this situation, Layasiksaalmost completely lacks its own decision making,representation, execution and control. All of whichhave had adverse effects on its potential to planland use and negotiate with foreign entities (woodbuyers).

The community works with a project financedby World Wildlife Fund (WWF), overseen by the Fun-dación para la Autonomía y el Desarrollo de la CostaAtlántica de Nicaragua (FADCANIC). This project isbasically a forestry project, but the NGO has workedintensely, but cautiously, within the communityorganization to help develop decision-makingstructures. Following intensive groundwork, thetraditional leaders (Council of Elders) and emerg-ing leaders (a judge and the municipal representa-tive) selected members for the newly establishedCommittee for Communal Improvement. Thesemembers in turn named 30 people to work in theforest. They are now seeking people that can man-age administrative matters, finances in particular.

The Committee for Communal Improvementand the communal assembly selected a forestedarea to examine for forestry operations. Based on

the analysis, they conducted a forest inventoryon 3000 hectares. People were trained to do thisand the most capable were named communaltechnical aids. During this phase, no one was paid.However, for the preparation of the yearly op-erations plan, technicians received payment. Inthis case, the operations plan (the prerequisite toget felling permits from the government) is theproperty of the community. This represents anexception in the region, where most inventoriesand operations plans are generated by madereros.The work has been long and tedious, but demon-strates that even in a community with an erodingsocial structure, it is possible to establish adequatedecision-making mechanisms.

8.2.2 “Bridge” initiatives

Frequently, community forestry operations areunited under one organizational umbrella whichhas the task of representing the operations, pro-viding technical assistance and attracting devel-opment funds. These organizations have givenstrong impetus to marketing of forest products.Despite not being marketing experts, forestrytechnicians usually have more business ability thancommunity members of forestry operations. Thisis not only because they are better trained, butthey also hold their positions for longer periodsand interact more with people attuned to mar-keting of wood (e.g. have contacts in cities). Thetechnicians have sought and found customers forthe products the communities can supply, sup-ported communities in negotiating beneficialagreements, and assured that the wood purchasedarrives at its destination.

Several problems have arisen during this work:

• Control of sales: Although the communitiesdesire support in the search and maintenanceof customers, they do not necessarily want tohand over control of the actual transactions.This fact has frequently highlighted differ-ences between the desires of the techniciansand the realities of the farmers.

Page 107: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

111

• Questions of technical leadership: It appearscooperative organizations in other countries,such as in the United States, understand thattechnical and administrative decisions shouldbe made by persons with the appropriate setof knowledge, skills and experience. This isnot always the case in communities inMexico and Central America. Some exter-nal groups think that community members,with little or no training, are able to techni-cally manage their forests, process logs, andconduct marketing. This perspective appearsbased on the idealization of the potential, be-havior, and knowledge of community mem-bers. In light of the significant challengesfacing community forestry operations incoming years, this may be an irresponsiblestance and in the end harmful to the com-munities because they will be left out of themarket. If communities want to participatein unsubsidized commercial systems, they willhave to learn to accept technical leadershipand redefine areas in which democratic deci-sion making is truly important. Based on thisperspective, the best way to promote partici-pation of communities in technical decisionshas been to open the technical groups tothe children of community members. Insteadof delegating technical functions to the com-munities (who can only halfway performthem) encourage formal training for theyouth of the communities. One example ofthis is found in one of the more importantorganization in Quintana Roo. The technicalleader and several forestry technicians are sonsof community members.

• Limitations of technicians: Technicians arelimited in time as well as knowledge to do allthe work related to marketing. The technicalassistance groups were formed to undertakeforestry related tasks and not administrativeand marketing tasks. Since, in general, near-ly all businesses in the forest sector are late-comers to marketing, hardly any of thetechnical assistance groups have personneltrained in this discipline.

Because of the growing importance thatmarketing and forest trade have in communities,special marketing entities have been developedin the umbrella organizations (described in chap-ter 3.4). In Mexico, they created various fondosde acopio (microcredit programs- see box no. 38).In Guatemala, cooperatives formed the SociedadComercializadora de Productos Agro-forestales,an organization that markets diverse forest andagricultural products.

8.2.3 Promotion of the secondary industry

Promotion of the secondary industry in the regionsstudied has generally been limited to isolated mea-sures and lacks an overall vision. Usually, promo-tion is a secondary objective in a vague and genericpromotional context. It is true that forestry opera-tions have promoted vertical integration, traininginstitutions have taught carpentry courses, andsome chambers (guilds) have organized participa-tion in trade shows and export initiatives. How-ever, these measures remain isolated without sometype of organization, and are limited to conven-tional options like training, assistance and financ-ing. In reality, promotional initiatives in theseregions have been a far cry from the type of inte-grated programs for industry promotion found inother regions or countries.

This situation is changing with the advent ofdiscussions about industry clusters (cooperationbetween nearby businesses) in Central Americaand Mexico. This discussion revolves around syn-ergies that can emerge from close proximity ofvarious businesses. This has given industry an ideaof the importance of analyzing its current positionand setting a direction for growth. There appearsto be ample room for outside assistance in this area.

8.3 Vertical integration

Vertical integration (establishing control over thepreceding or following production steps) is a com-mon strategy in volatile environments where a playerhas little influence over others and there are limited

Page 108: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

112

possibilities for planning. It increases control overextraction and processing and can often reduce costsand risks. However, in more developed economies,where transaction costs are less, the more success-ful small- and medium-size businesses tend to bemore specialized.

Vertical integration is a “natural” strategy forboth forestry producers and external decisionmakers. It is often the first strategy considered andone in which people are inclined to invest largersums. This is due to ideological reasons (value-added), psychological reasons (new machinery andequipment), and practical reasons (donors aremore likely to buy carpentry equipment than payfor an accountant that could put the operationsaccounting books in order. It is easier to show proofof a carpentry workshop than a well- balancedgeneral ledger). In many cases, the players leantoward vertical integration because they simplydo not know about other alternatives for increas-ing revenues and creating working opportunities.

About 50% of vertical integration investmentsfail in the environment of community operations,.The argument for “value-added” quickly becomesonly a theoretical concept. Issues such as the dif-ficulty in organizing production, logistics of dis-tant markets, and problems of insufficientknowledge become factors working against suc-cess. When processing is inefficient, whether it bein extraction alone or extraction and sawing, it maybe a poor idea to try to resolve such problemsthrough vertical integration. In these cases, work-ing to improve the current organization may bepreferred. Nevertheless, in instances where verti-cal integration has worked, there have also beensignificant advances in the sale of lesser-used spe-cies, since more “value-added” increases the geo-graphic radius of potential customers.

There are positive and negative experiences atall levels of integration. However, the results of thefirst phases of processing (extraction and sawingor rough sawing and extraction) have generallybeen more positive. The risks of a project’s fail-ure are much greater in the subsequent steps ofdrying and secondary processing.

The integration of secondary processing opera-tions has taken two forms: True integration, in

which the community operation establishes a sec-ondary processing operation, or an independentfamily or group carpentry operation who in turnsets-up supply agreements with a community busi-ness. The community carpentry operations usu-ally work with mahogany, while some familyoperations within the community mainly workwith lesser-used species.

The most frequent mistakes in vertical inte-gration projects have been:

• Projects are financed that lack communitysupport, but are accepted by the commu-nity because they are free. When the ma-chinery is installed, there is no one interestedor able to use it.

• Lack of knowledge about how to orchestratea modern industrial project in a rural-com-munity. The need to adequately analyze mar-ket conditions and organizational aspects isunder-estimated, and the general belief ex-ists that buying machinery is the answer.

• Institutions that finance the purchase ofequipment and machinery (donations andloans) give money for purchases and even-tually for later training; however, they rarelymake money available for working capital, andconsulting related to equipment purchasesor sales trips.

• Technicians over-estimate their ability andknowledge to make machinery-purchasingdecisions and lack qualified advisors. Hence,much of the equipment purchased is not suit-able for the intended purpose.

• Once money is freed-up for the project, time-lines for spending are frequently imposed bydonors, and consequently decisions aboutspending thousands of dollars are made tooquickly.

• When the community makes the decision tobuy, they often lean toward the cheapestequipment, even though it is used and inpoor condition. Needed repair costs are dif-ficult to determine at the time of purchase.

• Little serious marketing planning for futureproduction takes place. Hence it is difficult

Page 109: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

113

BOX 38

Fondo de acopio (microcredit program/Quintana Roo): steps in the right direction

For many years, wood traders have pre-financedthe extraction and sawing of mahogany. The sameis not true for lesser-used species. The profit oflesser-used species is not enough to cover risksand financial costs. Businessmen in search oflesser-used species (especially for flooring) preferto buy in Campeche (a neighboring state ofQuintana Roo), since the wood is cheaper andsawmills are in private hands, and as such theoperation does not require pre-financing.

To solve financing problems and assistmarketing, a microcredit fund was establishedwith the help of various entities to finance dealsinvolving lesser-used species. The original ideawas to establish a warehouse of sawn wood ineach ejido, which could supply buyers as soon asthey placed an order. This was soon modified topre-finance ejidos for firm orders. At the sametime, it also included the necessary technicalassistance to move orders forward, such as forlog quality control, bucking, sawing procedures,and machinery maintenance.

The mechanism by which this works is anagreement between the ejidos or groups in theejidos with the microcredit fund. The ejido orusage group agrees that buyer payments will gointo the microcredit fund in exchange for a lineof credit (working capital) for production of logsand sawn wood, and technical assistance. Aninterested buyer negotiates the price of the woodwith the ejido or usage group, but makes paymentto the microcredit fund. The buyer also has topromise to pay five Mexican centavos (about halfcent per dollar) into the microcredit fund perboard foot sold. This is equivalent to less than 1%of the value of the wood. An extension technicianthat has the community’s confidence supervisesthe production process, quality issues anddelivery times. Once the contract is signed, thefund frees up the credit (generally less than$5000- USD) and production begins. The first buyerpayment is made when the wood is sawn andfinal payment is made within thirty days.

This financing tool has proved very effective.Production of lesser-used species grew at asignificant rate, especially those that had markets.It has also generated better prices for the wood.Currently, seven species are sold: tzalamtzalamtzalamtzalamtzalam (Lysi-loma bahamensis), chechenchechenchechenchechenchechen (Metopium brownei),machiche machiche machiche machiche machiche (Lonchocarpus castilloi), amapolaamapolaamapolaamapolaamapola(Pseudobombax ellypticum), sacchacah sacchacah sacchacah sacchacah sacchacah (Dendro-panax arboreus), chacah chacah chacah chacah chacah (Bursera simaruba) andsanta maría santa maría santa maría santa maría santa maría (Calophyllum brasiliense). In 1999more than three million board feet were sold.

Problems with this financing mechanisminclude:

• Low re-payment by customers and lack oflegal recourse: This has to do with lack of firmdirection regarding the granting of credits.Individuals in one ejido took pre-paymentsand used them for other ends.

• Knowledge gaps: The employees of the fundwere named on the strength of the confidenceof the community, not their technical ormarketing skills. No training was provided.Consequently, the person responsible formarketing had shortcomings that might havebeen resolved with marketing, micro-creditsmanagement or English courses. Theseproblem limited success in accessing exportmarkets.

• A deficient organization: The fund is success-ful for its size in spite of poorly laid-out direc-tion and guidelines ($150,000 USD). Monitoringand evaluation systems do not yet exist andthe lessons learned have not been incorporated.Neither is there a code of conduct nor clearobjectives for the technicians: Some basicquestions remain unanswered, such as: Whatpolicies for granting credit should be followed?What policies for recuperating funds shouldbe implemented? What marketing and pro-motional activities should have priority?What should be the impact on the businessstructure of the ejido?

Page 110: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

114

to establish realistic machinery needs. As aresult, machinery often has excess capacity,unnecessary functions or more importantly,lacks needed functions.

• Production lines are planned as if they wereto be built in a developed country, neglect-ing any organizational and social constraintsin developing countries (See chap. 6.2).

• Still another frequent error has been think-ing about a carpentry operation before con-solidating extraction and sawing operations.

8.4 Improving recovery rates and taking advantage of by-products

A manager has several possibilities to improvecompetitiveness of his or her business and prod-ucts, many of which are simpler and more inex-pensive to implement than vertical integration.For example, a good manager will analyze alter-natives for making the current production moreefficient. Some options could be reducing costs,increasing recovery rates or increasing workeroutput. Another alternative is making use of by-products. Regional experiences mainly involve twoof these strategies: Introduction of by-productsand increasing recovery rates. These two strate-gies are interrelated and cannot always be clearlydifferentiated. For example, the relationship ofvolumes of various qualities of sawn wood andthe by-products is not fixed. The desirable ap-proach is to increase volumes of the best quality(recovery rate).

The rate and degree of use of by-products, aswell as the ability to improve these two param-eters are closely linked to the method of the forestproduction. Operations that produce motorsawn/rough hewn wood and those that sell standingtimber, generally have developed fewer lines usingby-products than operations that work with moreexpensive processing techniques. Communityoperations can be divided into five groups (seeBox 40) according to their primary product andcharacteristics of production. Each group has acertain capacity for making their processing op-erations more efficient.

The community operations that pertain toGroups 1 and 2 (see Box 40) rarely use by-prod-ucts originating from rough cutting or axe hew-ing of wood. Recovery rate of the main product isrelatively reduced, since production of pre-deter-mined lengths implies leaving undersized sectionsBC (see Box 41) unused on the forest floor.

The community forestry operations that per-tain to Group 3 of Box 40 aren’t very dynamic intheir use of by-products. In general, they havelimited interest in improving recovery rates, eventhough they frequently extract the large branches(section DE/Box 41). They do not take care inbucking (cut C/Box 41), as a way to raise recov-ery rates. Bucking is done to improve transportof the roundwood. In many cases, this results inabandonment of short log segments in the forest.

The operations of Group 4 have started im-proving recovery rates and the use of by-products.For these operations, just as in those of Group 3,recovery rate depends on several factors:

• In the felling and extraction, recovery ratesdepend on the quality of the log segment(soundness, shape, and defects), the tech-niques for felling, and the requirements of themain product.

• In primary processing, the quality of the logsegment, type of main product produced,processing techniques, machinery mainte-nance, and the abilities and knowledge of theoperators are important.

The case of Noh Bec exemplifies the limita-tions and possibilities of an operation to increaserecovery rates and use of by-products. In this case,it deals mainly with improvements made aroundthe use of mahogany.

From1954 to1981 the forestry operations inNoh Bec were carried out by an external plywoodbusiness (MIQRO). Since the business mainly peeledlogs for plywood, stumps and log segments withrotten centers or holes were not acceptable. Thismeant that the felling cut (cut A/Box 41) had tobe high enough to avoid some of these problems(120 cm or higher). At the same time, log segmentslengths were based on what was needed for peel-

Page 111: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

115

ing, that is to say in multiples of 260 cm, whichmeant loss of shorter log segments. Unlike otherwood extraction operations in the region, theytook advantage of thick branches.

When the community operations won controlof wood extraction, for the most part they main-tained the same criteria for felling and bucking.Even in 1984, when they installed their own saw-ing operations, they continued doing so. This didnot change until Noh Bec decided to do a study toverify the efficiency of their extraction process,specifically of mahogany. This study, completedin 1991 (Ramírez, Gutiérrez, Sánchez, 1991),produced alarming results. Due to deficient scout-

ing, a little less than one-fourth of the mahoganytrees were not found for felling. These trees re-mained in the forest and ran the risk of develop-ing rot and disease problems during the 25 yearsspan before the next cutting cycle. Many branchesthat could be used for sawing were left in the for-ests (section DE/Box 41, minimum diameter of35 cm). Because of this, the volume extractedper hectar only amounted to 75% of what couldhave been extracted on a sustainable basis. In ad-dition, the volume of wood discarded due to care-less bucking at the log yard was greater than hadbeen estimated. There were also logs found inthe forest that had been felled, but for whatever

BOX 39

Women artisans (Quintana Roo): The ups and downs of promotion

In the mid 80’s, when forestry usage in Noh Becwas consolidated, the towns people began to takean interest, individually and as a group, in prod-ucing more elaborate products, (furniture andhandicrafts). Several initiatives took root at boththese levels.

An interesting initiative was the promotion ofwood processing by women. A U.S. artist, SarahEoff, taught the wife of a carpenter from the town,Doña Gloria, how to use the lathe in his work-shop. In the end, she could make cups and platesof amazing quality that she and her husband soldin the nearby market of Chetumal. The success ofthis initiative was the motive behind financingbroader application of the initiative: To seek newmarkets, include more women from Noh Bec andother ejidos, improve the machinery, and improvesafety. To achieve this, they had to overcome sev-eral obstacles.

It was foreseeable that the women would havedifficulty selling their products outside the region.A less predictable factor was that the women hadto obtain the right to leave their homes to workon the lathes, and not all were successful. Somewomen became discouraged when they saw that

their first products were not sold. Another im-portant potentially negative factor was lack ofcohesion within the groups. Many women preferedto work individually or within their family. Stillanother problem was that the women lacked awell-defined relationship with the ejidos con-cerning raw material. Would they buy it? Wouldthe ejidos donate raw material to them? Theseissues were slowly resolved.

A marketing structure, created in collaborationwith a national promotional organization for ar-tisan crafts was established. This guaranteed salesof a portion of the production. The external or-ganization came to accept the fact that in thiscase, the best organizational structure was a fam-ily one, with the lathes under the control of atmost two women. This obviously elevated thecosts of the investment for each woman whoparticipated. As for the wood supply, the assemb-ly of ejidatarios decided that the women couldtake wood left-over after felling activities con-ducted to obtain logs for sawing. Currently, thewomen and associated technicians are discuss-ing how to improve the quality of their products(dried and finished) without raising prices.

Page 112: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

116

reason had not been extracted. Lastly, they dis-covered that the practice of setting stump heights80 cm or more considerably reduced availablevolume for sawing. Unlike plywood production,a sawmill can use a large portion of a log, even ifthe center is rotten or more of the base of theshaft is included. On the average, Noh Bec waslosing 0.122 m3 in every stump cut too high.

Losses due to poor utilization of stumps,branches, and felled but abandoned log segmentsare summarized in Box 42.

After extrapolating the value of the waste andtrees not found, they came to the conclusion thatthe forestry operation had lost more than onemillion dollars over seven years.

As a result of this study, the two forestry op-erations began to make efforts to locate all of thetrees in the area, placed the felling cut as low aspossible, and used all the main branches. They alsokept track of felled volumes on-site rather than inthe log yard after the screening on the gatheringyards. Hence the volumes extracted more closelymatched those authorized in the operational plan.

The next advance in use of by-products camewith demand for a specific product: Beehives.Beehives have to be light and resistant to climaticextremes and mahogany is well suited for this use.The required parts are small. In the beginning,the ejidal carpentry shop took advantage of wastein the sawing operation; however, this soonproved to be insufficient. Then they began re-cover the secondary branches of mahogany (sec-tion FG/Box 41 - minimum diameters of 16 cm)from logging sites. What is important here is thefact that the community operation did not carryout the extraction, but rather bought thesebranches from individual ejidatarios that organizedthe extraction and transport to the sawmill, whichwas possible because several of the communitymembers had vehicles and the main road could beused year- round. Unlike the huge logs and largebranches that had to be sawn on a large band saw,these branches could be sawn with small circular saws.

The ejidatarios also found a use for hollow sec-tions that could not be sawn - flower pots for thehomes of the people in Noh Bec, who are greatflower lovers.

Another important activity already describedis the production of artisan crafts by groups ofwomen. The women obtained permission to ex-tract wood from the forest, using branches of ma-hogany or lesser-used species, from trees felledfor sawing. The importance of the agreement be-tween the women and the ejidal assembly shouldnot be underestimated. It is often this aspect,where initiatives encounter major problems.

A trip to the forest of Noh Bec confirms thatall primary and secondary branches are being usedand the felling cuts are made at the lowest pos-sible point. They are not yet using branches under16 cm (section HI/Box 41 - minimum diameterof 7 cm). Neither are they using the forks nor thebuttresses, because in Quintana Roo they are gen-erally very weak.

The volume not currently utilized during extrac-tion of mahogany is estimated to be about 5% ofthe total volume actually extracted. There are sev-eral potential uses for this un-utilized volume: Theforks (sections CD, EF and GH/Box 41) have anattractive grain, but are difficult to process. Theyare not useful for beehives due to changes in thedirection of the fibers. This makes them difficultto turn on a lathe, as well. The best possible useof these is in the production of artisan crafts, inparticular those worked on a band saw (see Rec-ommendations).

There have been important changes in saw-ing practices as well, although many aspects re-quire improvements:

• They have improved stacking which reducedlosses due to fungus and insects attacks.

• Band saw maintenance has improved (e.g.better sharpening, changing saws before theywear out, and proper feed rates), all of whichhave reduced loss due to damaged wood.

• Operators on the edge trimming and cut-offsaws have more experience than before,however they are far from turning out opti-mal work in the current circumstances. In thecase of the edge trimmer, lack of optical aidscould easily account for 3% of the losses atthis point. In the case of the edger/chop saw,lack of knowledge regarding internationalgrading standards leads them to cut more

Page 113: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

117

BOX 40

Types of operations, by-products and recovery rates

Main product Characteristics of production

Group IGroup IGroup IGroup IGroup IMotor sawn or axe hewnwood with set dimensions:i.e. production of railroadties in Quintana RooCoef A: 30 to 40%Coef B: 20 to 30%

Group IIGroup IIGroup IIGroup IIGroup IIMotor sawn wood withno set dimensions and useof a chainsaw guide i.e. someoperations in the AtlántidaCoef A: 40 to 50%Coef B: 20 to 45%

Group IIIGroup IIIGroup IIIGroup IIIGroup IIILogs. Extracted volumeis controlled in log yardCoef A: 70 to 90%Coef B: 25 to 45%

Group IVGroup IVGroup IVGroup IVGroup IVLogs. Volume to extracted isdetermined in the forestCoef A: 80 to 95%Coef B: 25 to 50%

Group VGroup VGroup VGroup VGroup VActive efforts touse by-products

Coef A: Recovery rate for the extraction (includes motor sawing in groups I and II).Coef B: Recovery rate added for extraction and sawing. (Includes re-sawing in groups I and II). At some points,presented number are estimations that need further substantiation by yield studies.Source: primary research.

• The main product has set dimensions for length and width, which implythat a significant portion of the piece remains behind on the forest floor.Section AB (see Box 41) is utilized.

• Commercial by-products are nearly non-existent.• Sawing takes place in the forest. The wood products are transported

by simple means and there is little incentive to take out by-products,even for domestic use.

• The main product has variable dimensions, which allows extraction of themajority of the log.

• The rest of the characteristics are the same as in Level I.

• Extraction with skidders.• Frequently the larger branches are extracted (Section CD of Box 41).

These branches are processed the same way as normal logs.• The skill of the chainsaw operator is an important factor for recovery

rates.• Extracted volume may be above volumes set by the operating plan,

bacause the wood is measured in the log yard after getting rid of lowquality sections. Since allowed volumes are fullfilled with better qualitywood, the incentive to use lower quality sections is reduced and a lot ofwaste remains in the log yard.

• This means that there is a lower recovery rate with respect to totalextracted timber.

• Extraction with skidders.• Many characteristics of the previous level, but now they begin to

actively seek best use of the log. Since the volume is measured atfelling point, and therefore the extracted volumes are a mixture of goodquality and bad quality, the forest operations will tend to extract alsothe lower qualities to process them. The change in the controlling pointusually is connected to other improvements:

• The height of the cut for felling is reduced from about 80 cm (whichwas the usual felling cut hight for plywood production) to the heightthat the butresses permit. Normally the trees in the region have littlebutresses, so the cut is made just above ground level.

• The lenght of the second sections bucked (Point B in the blueprint) is nolonger made based on means of transportation, but rather on how toimprove utilization for later procesing.

• Some characteristics of the two previous levels.• Market conditions, business attitude of the forestry operation or of small

businesses in the community encourage use of by-products; i.e. smallerbranches, hollow log segments with some rot or insect damage, etc.

Page 114: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

118

BOX 41

Sections of a tree

I

HG

F

E

D

C

B

A

Page 115: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Experiencies Introducing Lesser-used Species into Markets

119

than is needed. This probably causes unnec-essary losses of 4% or higher. An additionalpoint is that the operators of the main sawlack the knowledge needed to optimize cuts,considering flaws in log segments, end uses,and esthetic potential.

• Bucking (cut B) has improved, but it is stilldone only to maximize production of longersegments. This strategy is possibly the bestin light of the difference in prices between shortand long boards (boards –5-feet and less aresold at half the price of longer boards), butperhaps not if the quality of the wood is takeninto account (i.e. potential grade).

An important development in reducing wastein the sawing operation has been the emergenceof small businesses directed by ejidatarios. Many ofthem have been sales representatives or ejidalpresident and learned a great deal about how toform a business and detect marketing possibilities.Several have begun to produce beehives, the sameproduct as the community carpentry shops. Inaddition, many others have begun to producehandles out of lighter woods that have less resis-tance to impact (e.g. brooms and carpet beaters).In general, these small businesses are focused onlow-value products that require low investment andthat have regional markets. Their advantage isaccess to cheap raw materials.

In Noh Bec, the separation between activitiesthat community forestry operations should perform

and activities handed-off to independent micro-businesses, which are usually managed by ejidalmembers, has functioned well. Generally, they haveknown how to distinguish between ventures thatrequire greater investment, but benefit the entirecommunity, and less profitable ones that can bepicked up by private businesses.

The ejido of Noh Bec has achieved better re-covery rates and greater use of by-products thanhave other community operations:

• Few community operations take as much carein the tasks involved in extracting logs. Manycommunity forestry operations continue to“skim the cream” from their forest reserves.

• Few operations utilize the secondary branches(sections FG), since they do not have a largeenough carpentry shop or enough disciplinedworkers to begin the production of beehives.

• In many community sawing operations, yieldsare unnecessarily low due to poorly adjustedmachinery and poor maintenance. Thiscould be resolved with little more than a will-ingness to improve. Again, the reason thatthese problems continue is not technical norfinancial. It is found in the organizationalstructures described previously in the chap-ter about effects of management capacityon forestry operations.

• There are artisans in the other communities,but many work independently, only obtainingwood as needed without agreements with theforestry technicians. Byproducts are not used.

BOX 42

Wood extraction waste in Noh Bec 1988

Type Percentage wasted*Stumps 6.3 %Main branches 10.2 %Abandoned sections 0.5 %

Total WasteTotal WasteTotal WasteTotal WasteTotal Waste 17 %17 %17 %17 %17 %

*) Ex: For every 100 m3 extracted, 6.3 m3 remain in the woods as stumps.Source: Ramirez et al. (1991).

Page 116: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

9.1 Conclusions

Main opportunities and threats. The regionsincluded in this study have significant potential todevelop their forestry-wood products sector. Inthe short term, the regions could probably doubletheir production of wood. Medium term, theseregions could triple or even quadruple their pro-duction without abandoning good managementof their forests, by using a sufficient number ofspecies. Among outstanding regional strengths isthe fact that many forestry communities have es-tablished good management of their forests (i.e.as indicated by “certification”). In addition, the re-gions have significant industrial infrastructure.Atlántida and Quintana Roo have large end-mar-kets, and roads to larger markets improve annu-ally in Petén.

In spite of these strengths, players in the for-estry-wood products sector run the risk of becom-ing losers in the complex process of changebrought about by regional and national modern-ization and the end of protectionist commercialpolicies. With few exceptions, forestry operationsand wood processing businesses have lost mar-ket share in their traditional markets in the faceof competition from other regions, and have notbeen able to penetrate new markets. Many busi-nesses are clearly working below their production

capacity and some have closed. Instead of grow-ing, volumes of broad-leafed species producedhave declined over the last ten years.

Main problems. These negative trends havetheir roots in several structural problems.

• Limited business capacity: In general, re-gional forestry operations and wood process-ing businesses have limited business capacity.This is a classic problem that small businesseshave when confronting larger ones. Never-theless, there are certain regional issues.Regional isolation reduced competition fora long time; consequently, regional busi-nesses have not grown because of improvedproductivity, but rather other factors (for ex-ample, access, often informal, to cheapmahogany). In the case of community for-estry operations, the organization itself lim-its their business capacity (see chapter 6.2).

• Weaknesses in regional production chains:Obvious weaknesses remain in regional pro-duction chains. Without question, relation-ships between community operations andprivate businesses continue to be difficult. How-ever, at the same time relationships betweensome private businesses and portions of theproduction chain demonstrate real possibili-ties for improvement. In several regions, tim-

9 CONCLUSIONS AND RECOMMENDATIONS

Page 117: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

122

ber trade is an especially weak link in theproduction chains. These businesses have adeficient internal structure. They suffer fromlow working capital, are often not legal com-panies, and offer a reduced service pallette.Beyond this, their relationship with forestproducers is weak.

• Land use policies and laws: Sectorial policiesand regulations in some countries tend toinhibit forest use without improving protec-tion of the forests.

• Technical Assistance: Unlike technical for-estry assistance, which is often high quality,technical assistance regarding processingissues and marketing is weak, especiallywhen it comes to community operations.

• Knowledge gaps: Some gaps exist with re-spect to technological characteristics of lesser-used species. Noticeably larger knowledgegaps exist with respect to the adequate useof marketing tools (see Box 34, for example).

These problems are not so obvious when regionshave significant volumes of mahogany (Swieteniamacrophylla), because the higher income earnedfrom this species tends to disguise them.

These problems become critical though forlesser-used species that have significantly lowermarket value. For example, primitive financial ar-rangements that work for mahogany do not workfor production of lesser-used species. These speciesdo not generate sufficient revenue to compensatefor higher costs and elevated risks inherent withmore primitive kinds of financial arrangements.

General description of needed actions.Clear changes in conventional procedures areneeded to promote lesser-used species. It is notenough to technically support businesses in adopt-ing new species and spreading this knowledge. Itis essential to work to resolve the aforementionedunderlying problems that impede commercializa-tion of lesser-used species.

If community forestry operations and process-ing businesses want to increase sales of lesser-used species, they must improve their internalorganization, and their relationship with othermembers of the production chain. Only after es-

tablishing a firm organizational base can busi-nesses pursue resolution of technical problems.

Need for external assistance. Communityforestry operations and processing businesseshave made advances in resolving the aforemen-tioned problems. However, it is obvious they willrequire external assistance to move forward.

Possibilities of interlacing other discus-sions and actions.The potential for externalassistance and interlacing it with other regionaldevelopment initiatives is high. Regional players,which includes governments, have begun to un-derstand that they must develop industrial pro-motional strategies if they want to avoid damagefrom globalized markets to this all-important for-estry -wood sector. Several discussions have sprungup that could be highly applicable to the promo-tion of lesser-used species.

• Industry Clusters: This concept involves theinformal cooperation of several businesses witha similar production orientation to gain a com-petitive advantage and appears to have be-come the new economic orthodoxy in the fourregions studied. The programs that have be-gun to plant this idea explicitly recognize thehuge potential of the wood products industry.

• Forestry certification: This discussion seeksto take advantage of “green” markets in or-der to improve forestry management. Partof this concept entails “chain-of-custody”arrangements from “certified” forests andoperations all the way through manufacturerinventories. This process could improve com-munication between the various players inthe wood products production chain.

• Biological corridors: Actions in this areacould also benefit the discussion about woodproducts production chains and promotionof lesser-used species since it could benefitkey areas and communities.

Promotion of lesser-used species.Threeof the four regions studied could benefit from pro-motion of lesser-used species. The one exceptionis the RAAN, Nicaragua, where promotion effortsmight be counter productive to good forest man-

Page 118: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Conclusions and Recommendations

123

agement due to lack of forestry laws, guidelines,and enforcement. Here, the danger is that greateruse of broad-leafed species could accelerate deg-radation of the resource. For this reason, the pri-ority for RAAN should not be on promoting greateruse of lesser-used species, but on establishingguidelines for forestry use.

In contrast, promotional measures for lesser-used species in Petén, Atlántida and in QuintanaRoo would have positive effects on forestry man-agement, industry development, and regional de-velopment as a whole.

9.2 Recommendations

For the time being, the promotion of lesser-usedspecies should not necessarily mean incorporat-ing more species, but rather increasing sales ofcurrently-known species that are not used much inthe market. Above all, defending market share forthese species, which are faced with competitionfrom products originating from other regions,should take precedence. Instead of trying to intro-duce new species, either new products from al-ready commercial, but underutilized, species shouldbe developed or existing products improved.

The central objective of promotional activitiesin Petén, Atlántida and Quintana Roo should bereinforcing regional production and distributionchains, and defending current markets. Workshould be pursued at all levels of the businesses.

Below are specific recommendations:

a) Increase business capacity of communityforestry operations. It is important to im-prove decision making skills, improve prod-ucts and services, and increase reinvestments.Successful models already exist which canbe applied to other operations. With fewexceptions, secondary processing should notbe promoted among community operations.The activites to promote horizontal coopera-tion between community operations shouldfocus on improving competitiveness, not onfostering price agreements, which can re-sult in a sales cartel.

b) Improve relationships between communityforestry operations and private regionalbusinesses. To avoid further ruptures in re-gional production chains, emphasis shouldbe placed on facilitating transactions betweencommunity forestry groups and private busi-nesses. All parties in a contractual agreementshould commit to a higher level of compro-mise. The communities should reduce theirdependence on advance payments and im-prove communication with other actors inthe production chains. This is especially truefor Atlántida. Here the regional wood andtimber merchants (madereros) should be rec-ognized as indispensable links in the produc-tion chain. The overall objective should be tocombine the strengths of community forestryoperations and those of regional private busi-nesses. Here lies a significant potential toimprove the competitiveness of regionalcompanies.

c) Improve capacity of private businesses toorient themselves to market demand. A largenumber of private businesses suffer from se-rious weaknesses. As long as this continues,these businesses will continue to lose marketshare. In this case, knowledge and applica-tion of marketing concepts will be of utmostimportance (see Project Proposal No. 5).

d) Elevate quality of forest regulations. Hon-duras and Nicaragua need to modify officialregulations to facilitate forestry and woodproduction, and at the same time allow es-tablishment of more sustainable forestry use.Existing experiences in the development ofsound policies could be applied.

e) Reinforce technical assistance for process-ing and marketing wood. It is necessary toestablish industrial assistance in the forestorganizations. It is also necessary to convinceindustrial chambers to cooperate with theseorganizations. Today, these two types of or-ganizations have little contact with eachother. Not only it is necessary to improverelationships between community forestryoperations and private industry, but also to

Page 119: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

124

advocate cooperation between those tech-nical advisors that help these groups.

The focus of promotional measures for lesser-used species should be on regional markets andproduction chains, and in some cases nationalones. Here is where, over the next ten years, thesuccess or failure of commercializing lesser-usedspecies from community forestry production willbe defined. This does not mean completely ig-nore the export market. ”Green” export marketsare an attractive niche, but it is important to berealistic about the potential to access these mar-kets. Today, of 150 existing community opera-tions in the regions studied, fewer than five havepotential to successfully penetrate “green markets”as direct exporters. The best alternative appearsto be to seek improvement in regional productionand distribution chains, and leave the challengeof exporting to private businesses or specializedNGOs. This requires the set up of chains of custody.

In the promotion of LUS, each region shouldset specific priorities:

• Atlántida: The focus should be on defend-ing current regional markets for furniture,doors, kitchens, closets, etc. To achieve this,communication up and down and acrossproduction and distribution chains, and be-tween small- and medium-size businesses willhave to be improved considerably.

• Quintana Roo: It is important to improvecommunication in the flooring productionchain (see description PIQRO). The nationalmarkets for sawn woods intended for floor-ing are important too. A significant marketfor lighter species appears to be the pro-duction of painted furniture and moldings.These could be produced locally. In addi-tion, there is a growing regional market forround posts (see box 35).

• Peten: Activities should be oriented towardssatisfying demand for flooring wood in east-ern Guatemala. Since the cooperation be-tween community forestry operations andprivate businesses has been successful, theexport of sawn wood and decorative ve-neers can be envisioned (see chapter 7.3).

9.3 Recommended follow-up proposals

1. Micro-credit financing program for forestry production

General concept: This would be a program ofmicro credits to facilitate financing extraction andwood sawing. Micro credits would be subject toorganizational and technical improvements incommunity forestry operations. They could beimplemented with the support of technical assis-tance groups. This program is recommended forQuintana Roo, Atlántida, and possibly Peten.

Justification: This program addresses someof the major problems identified in this study. Itwill contribute to improving community forestrybusiness capacity and relationships with privatebusinesses.

Prior experience: This proposal is based onthe outcomes of “fondos de acopio”. These fundscreated a combination of financing and technicalassistance. There is a weakness in these funds whichstems from the lack of realistic goals and inadequateguidelines for awarding credits (see box 38).

Brief description:

• The micro credits (which normally would notexceed $5,000 U.S., although it could benecessary to increase this amount to $8,000U.S.) would be managed by a trusteeship.The credits would be awarded to communityoperations or private businesses that performthe activities of extraction or first transfor-mation. The credit would primarily be grantedas working capital but would not be closedto other options (equipment purchase).

• To obtain credit, the applicant operationwould have to demonstrate compliance withcertain organizational or technical require-ments. Requirements could include establish-ing an accounting system or designation ofa production manager with certain techni-cal abilities. Technical assistance providers,financed by a separate fund, would supportapplicants in meeting their conditions.

• To guarantee repayment of credits, a repre-sentative from the program would be present

Page 120: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Conclusions and Recommendations

125

during trading negotiations with clients. Thetechnical assistance group would also seekout new buyers. Stockpiling wood, takinginto account potential product specificationsand storage requirements, should be con-sidered to improve availability. This strategyallows access to buyers that individual opera-tors would not otherwise be capable of be-cause of their inability to carry financial riskand lack of organizational ability. For ex-ample, there is currently significant demandin Mexico for railroad crossties. Due to thenature of the demand (large volumes, strictquality standards, and need to pre-financethe production), community operators havenot been able to offer bids. However, theycould if they combined their efforts.

• The technical assistance group could be in-ternal or external to the program. Besidesthe functions previously described, this groupwould facilitate communication and coop-eration with private businesses.

Potential Partners: The initiative for the microcredit program should come from technical for-estry assistance groups already in the regions. Theproposal should be further developed with offi-cials from national development banks along withinternational development agencies or internationalfoundations. Financing could come from eithernational or international development banks.

2. Improvements in wood extraction procedures

General concept: Conduct practical studies andprovide technical assistance to improve certainaspects of the extraction, mainly in Quintana Rooand Atlántida.

Justification: Current extraction methods inAtlántida and Quintana Roo seriously limit accessto important markets for many producers. InAtlántida, the main problem is the crooked lum-ber that results from chainsawing without guides.Additionally, the transport of lumber by mulemakes it necessary to limit lumber dimensions.

Both factors combined lead to a very low recov-ery rate on later processing steps. In Quintana Roo,current extraction methods require large invest-ments. This means many communities are un-able to afford financing for their own extraction.Beyond this, current operations have to reducecosts or improve production to stay competitive.

Objectives: Improve quality of wood transportedfrom the harvest site to roads, reduce extractioncosts, and facilitate access of community forestryoperations to extraction using methods that re-quire small initial investment and are geared to-wards smaller volumes.

Previous experience: In Mexico, a project withGreat Britain revealed significant potential to im-prove information about extraction alternatives.It also produced information useful for develop-ing new alternatives, one of which involved useof farm-forestry tractors that could also be used inthe rainy season for non-forest related activities.

Brief description: First Phase - A local techni-cal assistance group would initiate diagnostic stud-ies of current extraction methods. Based upon theseresults, extraction experts would be invited to makerecommendations to improve the process.

Second Phase - This would be an experimen-tal phase in which community operations wouldmodify current methods based on recommenda-tions provided. The options with the most likeli-hood of acceptance among community operationswould be determined.

Third Phase - The local technical assistancegroup would introduce recommended improve-ments communities.

Potential partners: Various groups of forestrytechnical assistance providers, community forest-ry operations, external technical assistance pro-viders, and potential outside financing sources.

3. Developing primary processing products

General concept: Develop decorative veneer andimprove production of sawn wood for businesseswith the capacity to effectively use targeted tech-nical assistance.

Justification: In the regions studied, experi-mentation with new timber species (i.e. defining

Page 121: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

126

physical and mechanical characteristics) is muchless important than developing and improvingproducts that use lesser-used species. Decorativeveneer may be a key product for lesser-used spe-cies due to increasing use of MDF in furniture pro-duction in these regions (MDF boards must becovered with veneer or sinthetic surfaces both foresthaetical and practical reasons). Since theAtlántida region has a lot of furniture companies,the development of a line of decorative veneer isvery important. It could also have positive effectsin Quintana Roo and RBM. The veneer could beproduced by existing plywood companies, whichnormally have a slicer (the most appropiate ma-chine to produce decorative veneer). The problemis that many of these factories are currently closed.

In Atlántida, there are many hindrances forstarting this line. On one hand, the only veneerproduction line in the region, which was origi-nally intended for plywood, has been closed foryears. On the other hand, the present method ofwood extraction (rough-hewn lumber of smallerdimensions) makes it difficult to obtain the cantused for veneer production. The first problemcould be resolved by transporting wood to a veneeroperation in Tegucigalpa; however, the secondone would require more consideration and maybe difficult to resolve without better extractionmethods. Given all this, it is recommended thatthis activity be tried first in Petén.

Objectives: Improve quality of flitches and de-velop decorative veneer product lines. Establishlocal teams to provide commercial and technicalassistance to wood processing companies.

Previous experience: All regions currentlyhave plywood manufacturing facilities with veneerslicers. With the exception of a business in Peten,specialized knowledge about decorative veneerproduction does not exist nor how to make deco-rative veneer from heavier woods.

General project description:• Identify community forestry operations and

private businesses with the capacity and will-ingness to translate recommendations intoreal production.

• Develop a group of industrial technical as-sistants and marketing experts.

• Encourage constructive interaction between lo-cal industrial assistants and external consultants.

• Implement proposal first in Peten, whereprivate industry cooperation with commu-nity forestry organizations will facilitate theprocess. The local assistance group will carryout brief technical analysis and market stud-ies. Following this, an external consultant willtrain factory personnel in the production ofdecorative veneer.

• In the same manner, the same process couldbe followed in other regions and for produc-tion of sawn wood.

Potential partners: Forestry technician groupsor chambers interested in establishing industrialtechnical assistance program, external consultants,community forestry operations and private busi-nesses.

4. Promoting wood commerce

General concept: Begin discussions focused onstrengthening regional wood commerce.

Justification: Wood commerce, whether in logform, motorsawn, rough-hewn or sawn wood, is aweak link in nearly all the regions. Wood merchantsvery seldom are able to acquire banking creditsbecause of the deficiencies in the banking sys-tem. As a consequence, their liquidity is low, forc-ing them to keep very small stock of wood for trade.Therefore, when a company orders lumber, it fre-quently has to wait till the logs are extracted fromthe forest and then sawn.

At the same time, the businessmen who dealwith logs and rough hewn wood (the madereros)are frequently perceived as the “bad guys”, be-cause many of them work informally. Forest pro-ducers often see madereros as people that unjustlyget a huge piece of the pie.

Today, no region has a promotion strategy tosupport timber trade companies.

Previous experience: Until now, there has beenlittle discussion about wood commerce. It is mostoften mentioned when someone is looking forscapegoats. In Quintana Roo, the “fondos acopio”

Page 122: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Conclusions and Recommendations

127

(micro credit program) attempted to partially re-place timber merchants. The financing program(see proposal no. 1) might possibly have the sameeffect. Even if this approach worked in the shortterm, it is not a viable alternative for a competi-tive commercial timber trade in the medium- orlong-term.

Objective: Conduct a detailed investigation ofwood commerce and financing in the differentregions and open up constructive dialogues withmadereros.

General project description:

• The region that is most lacking in a con-structive dialogue about wood commerce isAtlántida. Here the confrontation betweenthe upper echelon of the forestry institution(AFE-COHDEFOR) and timber commerce is thegreatest. A careful strategy to convince boththe madereros and public officials to adoptconstructive attitudes must be found.

• The need to increase size and reduce num-ber of trading companies must be discussed.Timber trade in Mesoamerica is subject tothe same concentration processes that occurall over the world. The question is how thiscan occur with the least damage.

Potential partners: The key promoters of thisdiscussion should be neutral, for example CUPROFOR

in Atlántida or the University of Quintana Roo.

5. Secondary industry promotion

General concept: Explore the possibilities, limi-tations, and impacts of technical assistance forthe secondary industry.

Justification: In Quintana Roo and Atlántida,many secondary manufacturing businesses are los-ing market share to external competitors. To over-come this problem, the businesses need technicalassistance. Several initiatives have been directedtoward this objective, but have had limited im-pact, because they only addressed a small part ofbusiness problems and they were conceptually weak.

Due to the limited results in industrial promo-tion, no one really knows which promotion proce-dures work and which do not. Project managersstill have a lot to learn to improve the impact oftheir activities. Therefore, this project would not onlybe directed at promoting the secondary industry,but would keep an eye on how this promotion canbe implemented, trying out diverse technical assis-tance strategies (i.e. product development, produc-tion and/or commercial assistance).

Objective: Explore various means of industrialand commercial technical assistance.

Previous experiences: There is already someexperience with industrial technical assistance inthe regions studied, which could be the basis foridentifying specific efforts.

General project description:

The following technical assistance alternativesare proposed:

• Conventional technical assistance: This as-sistance would be geared toward improvingequipment in businesses and increasingworker skills.

• Product differentiation: Currently, businesseshave limited range of products with little dif-ferentiation between one business and an-other. Their current strategy to retain marketshare is to reduce production costs, whichoften results in poorer quality. Productswould be analyzed to determine ways to dif-ferentiate them by means of combiningmaterials (i.e. metal, fabric, and leather),wood species, or use of better hardware.

• Product development: Regions do not havean efficient means of linking market require-ments with the production possibilities ofregional businesses in order to develop prod-ucts. With the help of an external consult-ant, an exercise in product developmentshould be carried out. Products with thegreatest potential will be those that requirefinal installation by a carpenter, such asdoors, windows, closets, and kitchen cabi-nets. These products offer an advantage tosmall- and medium-size businesses where

Page 123: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

128

larger or foreign businesses have not beenable to excel (for example in Mexico City).It will be important to establish a relation-ship with an external source able to provideadequate advice about product design.

• Horizontal and vertical cooperation betweensecondary manufacturing businesses: Therehave been several initiatives to encouragehorizontal cooperation, but few have hadconvincing results. In general, cooperationhas been oriented toward supply aspects(joint purchases) or production (joint equip-ment purchases). Secondary manufacturershave not explored the possibilities of jointmarketing (complementary product lines,consistent quality standards, common brand,and joint publicity).

To begin with, production and marketing testsare recommended directed at micro and small busi-nesses for production of entrance doors. Doorsare a common product for these businesses, butthere is a danger they will be displaced by largerbusinesses that import finished doors. The doorswould be designed in such a way that a small- ormedium-size business could produce parts, leav-ing assembly to micro businesses that can makecustom-made doors to the dimensions needed.To be able to do this, technical and organizationalassistance will be required on both ends. The resultwill be a combination of the technological abilityof medium-businesses with the marketing abili-ties of micro- businesses. This development wouldnot only allow practical experimentation withother species of wood, it would also provide guide-lines for the organization/financing of technicalassistance. In addition, it would allow discoveryof product development problems, distribution po-tential. and potential for cooperation among vari-ous businesses.

Potential partners: In the Atlántida, CUPROFOR

has an excellent administrative and physical in-frastructure for accomplishing tasks of this na-ture. However, they do not have the conceptualor operative ability to carry out this type of activity(i.e. lack of adequate personnel). Here it will benecessary to strengthen CUPROFOR with external

personnel. In Quintana Roo, technical assistancecould be directed by a technical forestry group.

6. Production and marketing tests: Motorsawnand handhewn wood beams and planks

General concept: Conduct systematic market sur-veys and production tests for rough sawn andhandhewn wood beams and planks.

Justification: Traditional markets for roughsawn and handhewn woods are diminishing. Thisweakens communities that do not have the abilityto establish manufacturing processes. At the sametime, these operations are less able to meet modi-fications proposed by potential customers. Dopossibilities for creating production links betweenthese operations and new groups of buyers exist?A beam worked with an axe and planks roughed-out with a chainsaw has a certain esthetic qualitythat the conventionally sawn lumber lacks. Theseproducts could be used for exterior or interior ar-chitectural accents where a rustic effect is desired.

Objectives: Identify new markets for motor-sawn and handhewn wood, and eventually setup the first steps for entry into these markets.

General project description: Identify potentialmarkets for rough cut and handhewn beams andplanks made from heavier lesser-used species.These products were produced for many years incentral Quintana Roo, generally by Mayans, foruse as railroad crossties.

• Analyze production costs and recovery rates.• Assess production potential and limitations

of the community operations, including thepotential to aggregate production of severalcommunities, and their capacity to adaptproducts to specific requirements of newbuyers.

• Identify potential markets and contact in-terested businesses.

• Test market products. Samples would be sentto potential buyers. Verify production capacityof communities and introduce interestedbusinessmen, who would eventually be incharge of the marketing.

Page 124: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Conclusions and Recommendations

129

These activities have the secondary goal of re-inforcing marketing knowledge and abilities in theregions studied. They strongly emphasize learn-ing, which would place heavy importance onmonitoring activities.

Potential partners: Work could be started withproducers in Quintana Roo.

7. Production trials with lesser-used species

General concept: Work with selected secondarymanufacturing businesses to test new wood spe-cies in their production lines.

Justification: In general, businesses have testedmost species that are of interest to them. Thisstudy would help businesses examine species andopportunities that they may not have previouslyconsidered.

Objective: Increase use of certain lesser-usedspecies through practical manufacturing and mar-keting trials with secondary manufacturers.

General project description: Selected busi-nesses would be provided a certain volume oflesser-used species and given the option of tech-nical assistance for particular problems. An ex-ternal consultant and the businesses themselveswould conduct and evaluate the process of intro-ducing the lesser-used species. The actions takenwould outline costs and necessary raw materialsfor substitution of a previously used species. It isproposed to assess substitution of pucté (Bucidabuceras) for chichipate (Sweetia panamensis),for the production of flooring in eastern Guate-mala; malerio (Aspidosperma sp.) and luin(Ampelocera hottlei) for encino (Quercus sp.)for door production in Guatemala. There also areseveral species that the furniture industry is notaware of in Atlántida.

8. Proposed themes for discussion

Potential regional partners, such as communities,businessmen, technicians, officials, and extensionpersonnel-should come together to discuss sev-eral topics in order to come to a consensus aboutdevelopment strategies.

• There is a strong need to discuss and im-prove regulatory guidelines for forestry useand “madereros”in the RAAN and in theAtlántida. The situation is especially difficultin RAAN. where the regulatory authority isdivided among many levels, and indigenouscommunities, who are key participants, lackrepresentation. In the Atlántida, it will be nec-essary to hold discussions regarding the ap-propriate model for technical assistance,regulation of community use, and road con-trol points.

• All the regions need to broaden and fine tuneindustrial development strategies. They aretaking important steps in this direction withdiscussions about “clusters”. Nevertheless,many initiatives have stagnated after poordiagnosis of current situations and uncon-vincing procedures for development of strat-egies (e.g. indiscriminate use of participativemethodologies). There is a need for experi-enced regional industrial development con-sultants to conduct a high-quality regionaldiagnosis.

• Businessmen and communities could im-prove their relationship by discussing the pos-sibility of chains-of custody. Beyond thetechnical aspects of the management of cer-tified wood, this discussion could increaseunderstanding among these regional partici-pants, and facilitate transfer of informationabout market needs and product require-ments.

• It will be important to discuss a different di-vision of labor. Instead of attempting to ownall the production links, from extraction tosecondary processing, communities and pri-vate business should seek specialization andgain economies of scale rather than “valueadded”. To do this, they need to discuss howto reduce costs, transaction risks, and onceagain, how to adapt characteristics of theproduct to requirements of later productionlevels. These discussions should include grad-ing systems, required dimensions, and dis-tribution of deliveries over a year’s time.

Page 125: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

130

9. Proposed technical studies about lesser- used species

• Anti-Fungal and Insecticidal Treatments:Treatments are needed for wood susceptibleto insects and fungus that are economical,effective, and do not require extensive safetyprecautions. On several occasions, localknowledge about treatments have been en-countered, but they are not applied. It is rec-ommended that these local treatmenttechniques are investigated regarding costs andefficacy. In the event adequate treatments can-not be found, other treatments will need to beused, usually involving synthetic chemicals.

• Petén and Quintana Roo: Environmental andsocial impact studies are recommended in or-der to evaluate feasibility of extracting ramón(Brosimum sp.) and chicozapote (Manilkarazapota).

• Quintana Roo: There are information gapsabout the productive potential of smaller di-ameter trees. The first step for their use willbe systematizing the information comingfrom forest inventories. For forests that arenot commercially used evaluation of the for-est potential is needed, since little informa-tion currently exists.

• Market exploration, sales promotions, andproduct development for smaller diameter treesrepresent unavoidable steps to introduce thesespecies and type of wood for sawing and spe-cialty uses. For its use as chips and kindlingthe available technical information should besystematically collected and examined aboutuse of biomass for energy production, andcompared to current energy costs in the re-gion (biomass vs natural gas or oil).

• There are several critical areas that lack data.These include forest growth data, manage-ment systems, forestry operating costs, gen-eral aspects of administration and man-agement, industry information, and productdevelopment. A “bench marking” studywould be useful.

• Estimation of volumes left behind after for-estry extraction operations. It is importantto estimate the volume of potential by-prod-

ucts left on the forest floor after extraction.The estimate should specifically include ma-hogany.

• Technical studies of the following lesser-usedspecies are required:

i. Petén: Adequate description of differencesbetween ramón blanco (Brosimum alicas-trum), ramón oreja de mico (Brosimumcostaricanum) and ramón colorado (Brosi-mum sp.).

ii. Petén: Adequate description of the differencesbetween malerio colorado (Aspidospermamegalocarpon) and malerio blanco (As-pidosperma stegiomeres).

iii. Petén: Description of the technological, es-thetic, and machining characteristics of tem-pisque (Masticodendron capari), jesmo(Lysiloma sp.?), matasano (Casimiroaedulis), luin hembra (Ampelocera hottlei),sacuché (Rehdera penninervia), manax(Pseudolmedia oxyphyllaria), luin macho(Drypetes brownii) and copó (Coussapoaoligocephala). Due to the reduced numberof species with significant volumes that re-main to be described, it will not be neces-sary to set up a laboratory in Guatemala. Itwould be considerably more economical toconduct the technological studies in an ex-isting laboratory in Central America, Mexico,or the United States, and saving money fora marketing promotion center instead.

iv. Atlántida: It’s recommended to establish anofficial list of species, with descriptions of theirtaxonomy and appearance, which would aidin determining species in forest inventoriesand in the sawing operations.

v. Atlántida: A description is needed of thetechnological, esthetic, and machining char-acteristics of jigua (Nectandra hihua) andalmendro (Albizia caribaea).

A critical and relevant point for all the recom-mendations above is establishing strong links be-tween research results and the daily practices ofdecision-makers in forestry and the wood prod-ucts industry.

Page 126: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

BIBLIOGRAPHY

Alatorre Frenk, Gerardo (2000) La construcción de una cultura gerencial democrática en las empresas forestalescomunitarias. Procuraduría Agraria, México.

Arnold, J.E.M.; Chipeta, M. E.; Fisseha, Y. (1987) The importance of small forest-based proccessing enterprises indeveloping countries. Unasylva No. 157/158 volumen 39, Roma.

Bárcenas-Pazos, G.M. (1985). Recomendaciones para el uso de 80 maderas de acuerdo con su estabilidad dimensional.Nota Técnica 11. LACITEMA/INIREB, Jalapa, núm. 11, 18pp.

Barahona, T.; Parrilli, M.D.; Narváez, E.; Mairena, R. (1999) El subsector maderero en las Segovias: Hacia la reconstrucciónde una cadena rota. UCA, Managua.

Brazier (1982) “Timber use for joinery in Britain”, en: Tropical hardwood utilization: practice and prospects. Roelof A.A.Oldeman, La Haya, p. 331- 339

Carrillo, Antonio (1987) La producción de carbón vegetal en el marco del Plan Piloto Forestal de Quintana Roo.Reporte técnico para GTZ. Mimeo.

Cámara Costarricense Forestal (1999) Oportunidades de mercadeo y comercialización internacional de las maderastropicales y de sus manufacturas: la experiencia del caso de la melina en Costa Rica y de la unidad de comercializaciónde la C.C.F., Costa Rica.

Chudnoff, Martin (1984) Tropical timbers of the world. Agricultural Handbook 607, Washington, D.C.. US Departmentof Agriculture, Forest Service, 466p.

Chudnoff, M.; Youngs, R.L. (1980) Dynamics of marketing tropical timber: three studies. Unasylva No. 32 (128), p. 26-30.

CUPROFOR (s.f.) Conozcamos la madera de… Serie de 12 boletines técnicos para trabajadores de la madera editados en SanPedro Sula.

CUPROFOR (s.f.) Presenta una nueva especie de madera. Serie de 12 panfletos para el público en general, editados en SanPedro Sula.

CUPROFOR (1999) Diagnóstico general sobre la industria del mueble y la oferta-demanda de maderas tradicionales y notradicionales en San Pedro Sula y La Ceiba. San Pedro Sula. Mimeo.

Echenique-Manriquez, R.; Plumptre, R.A. (1990). A guide to the use of Mexican and Belizean timbers. Oxford ForestryInstitute. Department of Plant Sciences. University of Oxford, Oxford, England, 1990.

Esser, Klaus; Hillebrand, W.; Messner, D.; Meyer–Stamer J.; (1996) Systemic competitiveness. New governance patternsfor industrial development, número 7, 172 s, Londres.

Flores Ricardez, José Hidalgo (1992) Producción forestal y alternativas industriales en la Sociedad de Pueblos IndígenasForestales de Quintana Roo “Tumben Cuxtal” S.C. Tesis para la obtención del título de ingeniero agrónomo, UniversidadAutónoma de Chapingo.

Forest Products Laboratory (s.f.) Wood Technology Transfer Fact Sheet. Hojas descriptivas de la mayor parte de lasespecies descritas en Chudnoff (1984).

Forster, René; Carrillo, Antonio (1998) Selección de especies maderables promisorias y determinación del potencial delrecurso forestal en Petén. Bosquejo Petenero, Serie de publicaciones sobre información básica, documento No. 1.Misión técnica alemana GTZ. Guatemala.

Forster, René; Del Ángel, Magdaleno; Montalvo, Francisco; Terrón, Raymundo (1991) Estudio del mercado nacional demaderas corrientes tropicales, Fideicomiso del Fondo Forestal, México.

Page 127: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical Hardwoods in Mesoamerica

132

Frühwald, Katja (1996) Ersatz von Tropenholz im Aussenbau. Holzverwendung. Hamburgo. Mimeo.

Fuchs, Donatus; Peters, Geert-Adolph (1988) Warum nicht Kotibe? Untersuchung einer Medien-Strategie zur Vermarktungeines “neuen” Holzes für Möbel , en Holz-Zentralblatt No. 7, 15 de enero, Stuttgart.

Galletti, Hugo (1986). Plan de manejo forestal de la sociedad de productores forestales ejidales de Quintana Roo.Chetumal. Mimeo.

Gálvez R., J. (1997). El caso de Guatemala con énfasis en los bosques naturales del Departamento de Petén. Presentadoen el Taller de Comercialización de recursos tropicales maderables no tradicionales de Centroamérica. CATIE,Turrialba, Costa Rica, 20p.

Guillén, Abraham; Detlefsen, Guillermo; Salazar, Mauro; Bianco, Luis: (1994) Resultados del sondeo de mercado paramadera de especies menos conocidas y valiosas del Petén realizadas en El Salvador y México. Flores. Mimeo.

Griffon, Michael (1989) Une application simplifiee du concept de filiere en vue de la definition des politiques agricoles.Montpellier.

Griffon, Michael; (1989) Economie des filieres en regions chaudes, Montpellier.

Hess, Robert y Record, Mary (1950) Foreign Wood Imports, en Tropical Woods No. 96.

Holz-Zentralblatt; (1992) Ist ein Tropenholz-Boykott sinnvoll?, núm. 95, 7 de agosto, Stuttgart, p. 1459-1460.

Holz-Zentralblatt (1995) Amerikanische Laubhölzer erfolgreich in Europa vermarktet, núm. 153, 22 de diciembre, Stuttgart.

Ingram, Denise; Enroth Raija-Riita; (1995) “30 Timber certification prospects”, en Earthscan publications limited, Londres.

Kiekens, Jean, Pierre; (1989) “Timber certification: a critique”, en Unasylva núm. 183, Roma.

Kiernan, M.; Perl, M.; McCaffrey, D.; Buschbacher, R.J.; Batmanian, G. (1992) “Pilot natural forest management initiativesin Latin America: lessons and opportunities”, en Unasylva núm. 169, vol. 43, Roma.

Kukachka, B.F., McClay, T.A. y Beltranena, E. (1968). Propiedades seleccionadas de 52 especies de madera del Depar-tamento del Petén, Guatemala. Proyecto de Evaluación Forestal FAO-FYDEP.

Maynard, Bill; Robinson, Dawn (1998) Quintana Roo Forest Certification Case Study.

Meyer-Stamer, Jorg (1996) Technologie und industrielle Wettbewerbsfähigkeit: Allgemeine Überlegungen undErfahrungen aus Brasilien, bd 109, 301 S.

Montigaud , Jean Claude; (1989) Les filieres fruits et legumes et la grande distribution: Methodes D´Analyse. Montpellier.

Parrilli, M.D.; Barahona, T.; Narvaez, E. (1999) La cadena maderera: en busca de los eslabones perdidos. UCA, Managua.

Pesonen, M. (1999) University-level programmes in forest products marketing, en Unasylva núm. 183, Roma.

Ramírez, E.; Gutiérrez, S; Sánchez, F. (1991) Reporte de la revisión de dos cuadros aprovechados en el ejido Noh-Bec(1984 – 1991). Chetumal. Mimeo.

Reineke, L.H. (1965) Uses for forest residues. US Forest Service Research Note. Forest Products Laboratory, Madison.

Sistema de Información Forestal de Nicaragua (2000) www.sifor.gob.ni

Skog, Kenneth, E.; Ince, Peter J.; Dietzman, Debra J., S.;Ingram, Denise.(1995) Wood products technology trends, enJournal of forestry núm. 12, vol. 93, Madison.

Takahashi, Luis (sf) Estrategia de mercadeo, transformación e industrialización de especies forestales tropicales pococonocidas. Ministerio de Agricultura, Ganadería y Alimentación/Plan de Acción Forestal para Guatemala, Guatemala.

Toledo, Enrique y Rincón, Carlos (1996) Utilización industrial de nuevas especies forestales en el Perú. Cámara NacionalForestal, Lima Perú.

Torrelli, Nikolai (1983). Estudio promocional de 43 especies tropicales mexicanas. 692 p.

Wadsworth, Frank (1997) Forest Production for Tropical America. Washington, D.C.

Westoby, Jack (1987) The purpose of forests. Follies of development. Oxford.

Page 128: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

APPENDIX 1

Glossary

Board feet The basic unit of measure for sawn wood. One board foot is equal to a 1-inchboard, 12-inches in width and 1-foot in length. A logical question is always: Full-sawn or nominal? Full-sawn means that a one-inch board is a full one-inch andmay be slightly more, but never less. Nominal means that the actual size of thelumber is less and has been rounded-up.

Community forestry operation A group formed in a community near or within a forested area to carry out jointactivities of forest management and forest products marketing.Community forestryCommunity forestryCommunity forestryCommunity forestryCommunity forestry as used herein means that the forests are under control of acommunity operation, but not necessarily that the operation has get fullydeveloped technical forestry practices.

Doyle A log scaling system that tends to yield large over-run for smaller logs (i.e. morelumber than predicted using the log scale). It was developed in the late 1800sand is still commonly used in the hardwoods industry in the U.S. South and inGuatemala. The Doyle log scale rule assumes that logs are first squared into acant by reducing the diameter by four-inches to allow for slabs and edgings. Toallow for sawkerf and shrinkage, the cant volume is then further reduced by 25%(Briggs 1994, pp 23-25).

Edger or Edge trimmer A machine used to saw larger pieces of squared-off wood, often called cants,into lumber. It usually consists of several circular saws in a row that can bemanually or electronically set to regulate width of the boards sawn. This machineis usually located immediately after a larger saw (band or circular), which cuts alog into squared-off pieces that will fit into the edger.

Green markets As used in this report, markets where forest products from well- managed forests,often certified by an independent third party, have a competitive advantage interms of buyer preferences.

Heartwood Wood in the inner part of the log, whose cell walls are impregnated with sub-stances that heighten its resistance against rot. Heartwood generally is darkerthan the rest of the log (i.e. sapwood). The resistance and the esthetic character-istics of heartwood are favored by most hardwood lumber grading rules and forthe surface layers of plywood used for higher-value products, such as furniture.This means that sapwood, which comprises anywhere from 20% to 60% or moreof the log, often ends up as scrap.

Lesser-used species Also called lesser-known species. Species whose (regional) forest potential isgreater than its current use. The use of the term lesser-used instead of lesser-known species follows the rationale of the International Tropical TimberOrganization, which states that knowledge about these species is no longer themost important problem to resolve to increase their use.

Maderero This is basically a log trader. In Honduras, madereros deal with motorsawn boardsand posts. Due to the specific characteristics in the forest sector, in eachLatinamerican country the functions and situation of madereros vary. In Nicaraguaand Costa Rica, they are strongly involved in extraction, while in Honduras andPetén, the trading function prevails. Until now, only the Guatemalan authoritieshave fully recognized the importance of madereros for forest products trade.

Mill run The normal output of a sawmill, not sorted for grade or specific lengths or widths.

Page 129: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

134

Motosierrista Literally chainsawyer. Men that legally or illegally fell trees and saw the logs toboards or planks in the forest, either free-hand or with a guide (e.g. “Alaskansawmill“). In a formal extraction team, it is the forest worker in charge of fellingthe tree.

Phenolchlorides Key chemical in certain wood preservative treatments, such as pentachlorophenol(also known as penta). Not allowed in many countries. Its use is also against FSC

standards.Plywood core This term normally refers to the interior layers of veneer in a sheet of plywood,

and has been an important use for light- and medium-weight lesser-used species.Plywood core can also be a combination of veneer and lumber, or reconstitutedwood.

Rate of recovery The relation between the wood raw material input and output of a productionline. For example, in a Mexican sawmill, the rate of recovery is determined bydividing the measured volume of boards, converted from Board Feet to cubicmeters, by the incoming log scale volume (using eather Smalian´s or Huber´sformula).

Sap Wood See heartwood.Scouting (muestreo) The process of searching the forest for suitable trees for felling.Secondary production All production having sawn lumber or plywood as inputs (resawing is considered

part of primary production in this case).Siding Lumber or panel products intended for use as an exterior wall covering, either

horizontal or vertical.Specific gravity The relation of specific density of a certain material and the specific density of

water. All references in the text, unless stated otherwise, use the measurementof specific gravity based upon the weight of ovendry wood and the volume ofgreen wood. Specific gravity is a central physical characteristic of wood, whichdetermines a number of other characteristics and is very important to narrowing-down potential uses for a species. In the text, three specific gravity categorieshave been chosen to classify wood:Light-weight species:Light-weight species:Light-weight species:Light-weight species:Light-weight species: Specific gravity below 0.4. These species generally arelight in color, sensitive to rot, easy to work with, generally low-priced, andcompete with pine. Often used for plywood production (especially core layers)or inexpensive furniture.Medium-weight species:Medium-weight species:Medium-weight species:Medium-weight species:Medium-weight species: Specific gravity between 0.4 and 0.65. Generally lightor reddish color. Mahogany and its substitutes belong to this category. Good forfurniture and interior applications.Heavy (-weight) species:Heavy (-weight) species:Heavy (-weight) species:Heavy (-weight) species:Heavy (-weight) species: Specific gravity above 0.65. Generally dark-colored,frequently attractive, and sometimes difficult to process. Used generally forflooring, and outdoor applications.

Stack Lumber or panel products piled in an orderly manner for drying or shipping.Proper lumber stacking requires use of stickers, which are wood strips of varyingthicknesses, depending on whether the purpose is drying or shipping, and carefulplacement of the stickers.

Trim-end saw/ chop saw Saw, usually circular, used to cut boards and lumber to correct lengths. A chopsaw is used to primarily remove defect from pre-trimmed boards or lumber.

Veneer A thin layer or sheet of wood. Veneer is commonly rotary-peeled (cut on a lathe)for commodity plywood products and plywood core (see above), but can alsobe made by sawing or, as is often the case in Mesoamerica, sliced with a largeblade. Higher value species are often sliced for use in the visible or surface layerof a piece of plywood.

Page 130: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

APPENDIX 2

Scientific and common names of important Mesoamerican species

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Acalypha diversifolia Euphorbiaceae Palo de sangre

Acer skutchii Acereceae Alamo plateado,

arce

Albizia caribaea Leguminosae Guanacaste blanco Almendro

Alchornea latifolia Euphorbiaceae Cotón de caribe

Alnus acuminata Betulaceae Aile

Alseis yucatanensis Rubiaceae Son Wild mamee Papelillo 0.64

Ampelocera hottlei Ulmaceae Barremillo, Luin hembra Bullhoof Luin 0.66

Manteco, Vaca

Anacardium excelsum Anacardiaceae Espavel Espave 0.40

Andira inermis Leguminosae Almendro del río Almendro colorado Angelin Maquilla

Apeiba aspera/ Apeiba tibourbou Tiliaceae Peine de mico/ Burillo/ 0.24

Tapabotija

Aspidosperma spruceanum Apocynaceae Cañamito 0.53

Aspidosperma megalocarpon* Apocynaceae Ñambaro blanco Malerio colorado Mylady Pelmax 0.78

Aspidosperma stegomeres* Apocynaceae Malerio blanco Bayo

Astronium graveolens Anacardiaceae Quitacalzón/Ronron Ciruelillo, ronrón, Jobillo Palo mulato, 0.75

gateado gateado

Avicennia germinans Verbenaceae Palo de sal 0.75

Blepharidium mexicanum Rubiaceae Popiste

Blomia prisca Sapindaceae Tzol

Bombacopsis quinatum Bombacaceae Pochote Cedro espino

Brosimum alicastrum Moraceae Ojoche Masiquilla, masico, Ramón blanco Breadnut Ramón 0.73

(syn. B. terrabanum) masica

Brosimum costaricanum Moraceae Ojoche blanco Ramón oreja de mico 0.73

Brosimum sp Moraceae Ramón 0.73

* The two Aspidosperma species are synonyms. The differences observed empirically (diferent heartwood color) that have led to different common names

(malerio blancomalerio blancomalerio blancomalerio blancomalerio blanco – malerio coloradomalerio coloradomalerio coloradomalerio coloradomalerio colorado in Guatemala and bayo bayo bayo bayo bayo – pelmaxpelmaxpelmaxpelmaxpelmax in Mexico) could be due to a facultative heartwood development, but could also

indicate the existence of subspecies. 1/7

Page 131: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

13

6

2/7

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Bucida buceras Combretaceae Pucté Bullet tree Pucté 0.85

Bursera simaruba Burseraceae Jiñocuabo/Indio desnudo Indio desnudo Chacaj colorado Chacah, chacah rojo 0.33

Byrsonima crassifolia Malpighiaceae Nancite 0.59

Byrsonima spicata Malpighiaceae Pepenance 0.44

Caesalpinia granadillo Leguminosae Partridge wood

Caesalpinia velutina Leguminosae Mandagual, Aripin

Calocarpum mammosum Sapotaceae Zapote Zapote mamey 0.53

Calophyllum brasiliense Clusiaceae Santa María, María Santa maría, María Santa María Bari 0.52

Calycophyllum candidissimum Rubiaceae Colorado, Salomo Camarón

Carapa guianensis Meliaceae Cedro Macho Cedro macho Bastard Mahogany 0.47

Carya ovata Juglandaceae Nogal motudo

Cedrela odorata Meliaceae Cedro real Cedro Cedro Cedar Cedro Rojo 0.33

Ceiba pentandra Bombacaceae Ceiba Ceiba Ceiba Ceiba 0.36

Cojoba arborea Leguminosae Barba de Jolote 0.61

Copaifera aromatica Leguminosae Camibar 0.62

Cordia alliodora Boraginaceae Laurel Laurel blanco Salmwood Hormiguillo 0.44

Cordia bicolor Boraginaceae Muñeco 0.36

Cordia diversifolia Boraginaceae Roble

Cordia dodecandra Boraginaceae Ziricote

Cordia megalantha Boraginaceae Laurel negro

Coussapoa oligocephala Moraceae Copo

Cybistax donnell-smithii See Tabebuia donnell-smithii

Cymbopetalum penduliflorum Annonaceae Orejuelo

Dalbergia retusa Leguminosae Ñambar/Cocobolo Granadillo 0.80

Dalbergia stevensonii Leguminosae Rozul Rosewood

Dalbergia tucurensis Leguminosae Granadillo Granadillo 0.53

Dendropanax arboreus Araliaceae Cuajada Mano de león Mano de danto/ 0.41

Sac Chacah

Dialium guianense Leguminosae Comenegro, Tamarindo silvestre, Guapaque Ironwood Paque 0.85

Tamarindo Paleto

Didymopanax morototoni Araliaceae Mano de león Morototo/ Candelero 0.53

Dipholis salicifolia Sapotaceae Bustic

Dipholis stevensonii Sapotaceae Guaité

Page 132: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

13

7

* The three cited Guarea species are synonyms, G. glabra being the most widely accepted name. However, the common names cedrillo hoja grandecedrillo hoja grandecedrillo hoja grandecedrillo hoja grandecedrillo hoja grande and

cedrillo hoja pequeñacedrillo hoja pequeñacedrillo hoja pequeñacedrillo hoja pequeñacedrillo hoja pequeña could indicate the existence of subspecies.

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Dipteryx panamensis Leguminosae Almendro 0.85

Drypetes brownii Euphorbiaceae Luin macho

Enterolobium cyclocarpum Leguminosae Guanacaste Guanacaste Conocaste Tubroos Guanacastle, Parota 0.38

Ficus involuta Moraceae Amate

Ficus radula Moraceae Chimon

Genipa americana Rubiaceae Genipa 0.66

Gliricidia cacahuananche Leguminosae Cacahuananche

Gmelina arborea Verbenaceae Melina 0.47

Guaiacum sanctum Zygophyllaceae Guayacan Guayacan 1.24

Gordonia brandegeei Theaceae Coloradito 0.64

Guarea excelsa* Meliaceae Cedrillo hoja grande 0.52

Guarea glabra* Meliaceae Carbón blanco Cramantee Cedrillo

Guarea tonduzii* Meliaceae Cedrillo hoja pequeña

Guatteria anomala Annonaceae Zopo

Guatteria leiophylla Annonaceae Cedrillo

Guazuma ulmifolia Sterculiaceae Pixoy 0.57

Hieronyma alchorneoides Euphorbiaceae Nanciton Urucurana 0.61

Homalium racemosum Flacourtiaceae Areno amarillo 0.74

Huertea cubensis Staphyleaceae Cedrillo 0.37

Hura crepitans Euphorbiaceae Possum wood Habillo

Hymenaea courbaril Leguminosae Guapinol Guapinol Courbaril/ Guapinol 0.78

llex skutchii Aquifoliaceae San juan areno

llex tectonica Aquifoliaceae San juan arena 0.46

Inga edulis Leguminosae Cushin 0.54

Jacaranda copaia Bignoniaceae Guachipilin Jacaranda, zorra Copaia Samarapa 0.38

Juglans olanchana Juglandaceae Nogal Nogal 0.40

Lecythis sp. Lecythidaceae Pansuba

Libocedrus decurrens Cupressaceae Pencil Cedar

Licania platypus Chrysobalanaceae Hoja tostada Urraco Sunza Monkey Apple Mesonzapote 0.58

Liquidambar styraciflua Hamamelidaceae Liquidambar Liquidambar Liquidámbar 0.49

Lonchocarpus castilloi Leguminosae Manchiche Machiche 0.79

Guayacán, lignum vitae

Guacimo de ternero

Rosita, Nance de montaña

3/7

Page 133: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

13

8

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Lonchocarpus hondurensis Leguminosae Palo gusano, machiche

Luehea seemannii Tiliaceae Guacimo Colorado Yayo 0.52

Lysiloma acapulcensis Leguminosae Tepehuaje

Lysiloma bahamensis Leguminosae Tzalam Tzalam

Lysiloma sp Leguminosae Jesmo

Maclura tinctoria Moraceae Fustic Mora

Macrohasseltia macroterantha Flacourtiaceae Huesito, Tempisque 0.62

Magnolia schiedeana Magnoliaceae Magnolia

Magnolia yoroconte Magnoliaceae Redondo, Yoroconte 0.52

Manilkara achras (syn. M. zapota) Sapotaceae Nispero Chicle, Zapotillo, Chicozapote Sapodilla/ 0.85

Níspero Chicozapote

Manilkara sp Sapotaceae Chiquibul

Masticodendron capari Sapotaceae Tempisque

Matayba oppositifolia Sapindaceae Zacuayum Zacuayum

Metopium brownei Anacardiaceae Chechen negro Chechem, chechen 0.7

negro

Minquartia guianense Olaceae Manu/Palo de piedra 0.75

Mirandaceltis monoica Ulmaceae Cenizo Chicharra, rosadillo 0.7

Misanteca peckii Lauraceae Pimientillo

Mortoniodedron anisophyllum Tiliaceae Barrenillo 0.37

Mosquitoxylum jamaicense Anacardiaceae Jucucuao, San juan Pajulté

pedrano

Myroxylon balsamum Leguminosae Bálsamo

Nectandra hihua Jigua

Ochroma pyramidale Bombacaceae Balsa/Guano/ 0.10

Tambor

Ocotea caniculata Lauraceae Aguacatillo

Ocotea lundellii Lauraceae Sosni

Ocotea sp Lauraceae Sacalante

Ocotea veraguensis Lauraceae Canelo 0.64

Orbignza cohune Arecaceae Corozo

Ormosia sp. Leguminosae Carolillo/ Caroquillo 0.54

Ormosia toledoana Leguminosae Hormiga, colorín

4/7

Page 134: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

13

9

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Otoba novogranatensis Myristicaceae 0.44

Ouratea luncens Ochnaceae Sierra

Pachira aquatica Bombacaceae Zapote bobo Provision tree Apompo 0.51

Peltogyne pubescens Leguminosae Amaranth

Pentaclethra macroloba Leguminosae Gavilan 0.54

Persea americana Lauraceae Aguacate, Anise Aguacate

Pimenta diodica Myrtaceae Pimienta 0.86

Pinus caribaea Pinaceae Pino 0.43

Pinus maximinoi Pinaceae Pino 0.43

Pinus oocarpa Pinaceae Pino Pino 0.55

Pinus patula/tecunumanii Pinaceae Pino 0.57

Piscidia communis Leguminosae Jabin

Pithecellobium arboreum Leguminosae Quebracho Barba de jolote Cola de coche Barba jolote, frijolillo 0.65

Pithecellobium leucocalyx Leguminosae Guaciban Red Fowl Guacibán 0.52

Pithecellobium saman Leguminosae Genizaro/Cenizaro Carreto, Cenicero 0.53

Platymiscium dimorphandrum Leguminosae Machimbo, hormigo, Hormigo 0.69

Palo de marimba, Toncontín

Platymiscium pinnatum Leguminosae Coyote Palo santo Panama Rosewood 0.58

(syn. P. polystachyum)

Platymiscium yucatanum Leguminosae Granadillo

Podocarpus guatemalensis Podocarpaceae Ciprés

Poulsenia armata Moraceae Masamorro

Pouteria amygdalina Sapotaceae Silion 0.72

Pouteria campechiana Sapotaceae Caniste Kaniste 0.78

Pouteria izabalensis Sapotaceae Celillón 0.71

Pouteria mayeri Sapotaceae Zapotillo hoja fina

Pouteria sp Sapotaceae Zapotillo Zapotillo 0.85

Prioria copaifera Leguminosae Kativo/Cativo 0.45

Prosopis juliflora Leguminosae Mesquite

Protium copal Burseraceae Copal

Protium panamense Burseraceae Alcanfor 0.45

Pseudobombax ellipticum Bombacaceae Amapola Amapola 0.35

Pseudolmedia oxyphyllaria Moraceae Manax

5/7

Page 135: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

0

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Pterocarpus hayesii Leguminosae Sangre blanco Palo de sangre 0.45

Pterocarpus officinalis Leguminosae Sangregrado blanco 0.36

Pterocarpus sp. Leguminosae Sangregrado Sangre 0.45

Quararibea funebris Bombacaceae Molinillo, molenillo

Quercus sp. Fagaceae Oak Encino, Roble

Quercus skinneri Fagaceae Bellota, roble de montaña Oak Encino

Rehdera penninervia Verbenaceae Sacuche Oak Encino 0.75

Rheedia edulis Clusiaceae Joco mico

Rhizophora harrisonii Rhizophoraceae Mangle rojo 0.86

Rollinia microcephala Anoonaceae Sufricay

Roseodendron donnell-smithii See Tabebuia donnell-smithii

Sacoglottis trichogyna Humiriaceae Rosita/Manteco 0.72

Schizolobium parahybum Leguminosae Tambor, zorra Plumajillo Quamwood Picho

Schoepfia vacciniiflora Olacaceae Areno blanco 0.47

Sebastiana longiscuspis Euphorbiaceae Chechen blanco Chechem blanco 0.51

Sickingia salvadorensis Rubiaceae Saltemuche Chacahuanté 0.6

Simarouba amara* Simaroubaceae Aceituno Negrito Aceituno 0.38

Simarouba glauca* Simaroubaceae Aceituno Aceituno, Negrito, Pasaque hembra Negrito, Pasa-ak 0.35

Negritón

Spondias mombin Anacardiaceae Jocote, Jobo Jobo Hogplum Jobo 0.39

Sterculia apetala Sterculiaceae Panama Bellota 0.33

Swartzia cubensis** Leguminosae Llora sangre Corazón azul, Katalox 0.78

Swartzia lundellii** Leguminosae Catalox

Sweetia panamensis Leguminosae Bilihuete, Chichipate Chate, Chichipate BillyWebb Chakté 0.79

Swietenia humilis Meliaceae Caoba del pacífico 0.71

Swietenia macrophylla Meliaceae Caoba Caoba Caoba Mahogany Caoba 0.45

Symphonia globulifera Clusiaceae Leche Maria Amarillo, Barillo Varillo Waika chewstick 0.56

Tabebuia donnell-smithii Bignoniaceae San Juan Guayapeño Palo Blanco Primavera

Tabebuia guayacan Bignoniaceae Cortez Cortez 0.85

Tabebuia rosea Bignoniaceae Roble/Macuelizo Macuelizo, Apamate, maculis 0.57

Roble de sabana

* Some sources cite both Simarouba species as synonyms.** The cited Swartzia species are synonyms, S. cubensis being the most widely accepted. However, the common names llora sangrellora sangrellora sangrellora sangrellora sangre y cataloxcataloxcataloxcataloxcatalox, discerned bylocals in Guatemala, could indicate the existence of subspecies. 6/7

Page 136: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

1

Scientific name Scientific name Scientific name Scientific name Scientific name FamilyFamilyFamilyFamilyFamily NicaraguaNicaraguaNicaraguaNicaraguaNicaragua HondurasHondurasHondurasHondurasHonduras GuatemalaGuatemalaGuatemalaGuatemalaGuatemala BeliceBeliceBeliceBeliceBelice MexicoMexicoMexicoMexicoMexico SWSWSWSWSW

Talauma mexicana Magnoliaceae Jolmashte, pirinola

Talisia floresii Sapindaceae Coloque 0.86

Talisia olivaeformis Sapindaceae Guaya Guaya 0.89

Tapirira guianensis Anacardiaceae Piojo Southern wild 0.42

mahogany

Tectona grandis Verbenaceae Teca 0.57

Terminalia amazonia Combretaceae Guayabon Cumbillo, Guayabillo Canchan Nargusta canshán 0.66

Terminalia sp Combretaceae Guayabo negro, 0.51

Guayabo de charco

Tetragastris panamensis Burseraceae Kerosen Kerosen 0.70

Trattinickia sp Burceraceae Caraño 0.41

Vatairea lundellii Leguminosae Mora Amargoso Danto Bitterwood Amargoso 0.62

Virola koschnyi Myristicaceae Sebo/Banak colorado Sangre Real Banak 0.36

Virola sebifera Myristicaceae Sebo/Banak blanco

Vitex gaumeri Verbenaceae Bimbayan Yaxnik Fiddlewood Ya-axnik 0.52

Vochysia ferruginea Vochysiaceae Manga Larga/ San Juan Colorado 0.38

Zopilote/botarrama

Vochysia guatemalensis Vochysiaceae San juan peludo 0.41

Vochysia hondurensis Vochysiaceae Palo de Agua San juan peludo, San juan Yemeri, Maca 0.34

San juan blanco, blanca

San juan de la costa

Vochysia jefensis Vochysiaceae San Juan Rojo 0.44

Wimmeria bartletti Celastraceae Chintoc

Zanthoxylum beliziense Rutaceae Cedro espino, Teta Lagarto PricklyYellow Lagarto 0.43

Zanthoxylum elephantiasis Rutaceae Naranjillo

Zanthoxylum sp. Rutaceae Chinche/Lagarto 0.51

Zuelania guidonia Flacourtiaceae Pellejo de vieja Tamay Trementino 0.65

7/7

Page 137: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

APPENDIX 3

Promising lesser-used woods of Mesoamérica*

LIGHT-AND MEDIUM-WEIGHT SPECIES

SpeciesSpeciesSpeciesSpeciesSpecies Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Market demand/Actual usesMarket demand/Actual usesMarket demand/Actual usesMarket demand/Actual usesMarket demand/Actual uses Potential usesPotential usesPotential usesPotential usesPotential uses CitationCitationCitationCitationCitation

This wood can take a beating,can be used as cement formsfor roof contruction more often(4 to 5 times) than pine (only1 to 2 times)

Easy to saw

Good workability, certainfungi add character to thegrain

Light-brown heartwood

Heartwood color is reddishchestnut, very similar tomahogany, can substitutedirectly for mahogany

Easy to work, color verysimilar to mahogany

Wide potential boarddimensions, color and grainpattern (rays in tangentialview) very similar to beech(Fagus silvatica)

Very durable, attractive color and grain

Attractive heartwood color(light-brown with darkerstripes)

General workability ispoor, except moulding,which is easy and good

None

Susceptible to fungi

None

Moderately difficult towork because of crossgrain and hardness,difficult to dry

None

Very soft wood withcoarse texture

Moderately easy to workbecause of cross grainand lateral hardness

None

Little demand/consideredcommercial in Costa Rica

Little demand/cabinetry

Steady demand belowforest potential/used inMexico and Guatemala forplywood and someinexpensive furniture

Little demand/generalcabinetry

Good demand below or nearforest potential/cabinetry ingeneral, as substitute formahogany, plywood,construction

Demand is increasingrapidly in Nicaragua asdirect substitute formahogany, sometimes beingalready locally overused

Little demand for plywood

Little demand/fine furniture

High demand near forestpotential (species oftengrows in pasture land)/carpentry, cabinetry, fineforniture, cabinets

Construction, inexpensivefurniture

Construction

Construction, cement forms forroof construction, siding,inexpensive furniture, boxes,pallets

Carpentry, boxes, door andwindow frames

Doors, windows, veneer,staircase tread, handrails

Doors, windows, cabinets, ingeneral, all the uses formahogany

Boxes, toys, siding, decorativeveneer (could be potentialplantation species)

Handles for tools and sportingequipment

Turnings, flooring, veneer,plywood, gunstocks, lightconstruction, interior finishing

Anacardium excelsumEspavel (Nica)Espavel (Nica)Espavel (Nica)Espavel (Nica)Espavel (Nica)SG: 0.40 FN DC: low FN

Aspidosperma spruceanumCañamito (Hon)Cañamito (Hon)Cañamito (Hon)Cañamito (Hon)Cañamito (Hon)SG: 0.53 CH DC: low CH

Bursera simarubaChacá (Mex)Chacá (Mex)Chacá (Mex)Chacá (Mex)Chacá (Mex)Chaca colorado (Guate)Chaca colorado (Guate)Chaca colorado (Guate)Chaca colorado (Guate)Chaca colorado (Guate)SG: 0.33 GK DC: low ME

Byrsonima spicataPepenance (Hon)Pepenance (Hon)Pepenance (Hon)Pepenance (Hon)Pepenance (Hon)SG: 0.44 PS DC: low PS

Calophyllum brasiliensisSanta María (Guate andSanta María (Guate andSanta María (Guate andSanta María (Guate andSanta María (Guate andNica); María (Hon)Nica); María (Hon)Nica); María (Hon)Nica); María (Hon)Nica); María (Hon)SG: 0.56 CU DC: medium FN

Carapa guianensisCedro Macho (Hon y Nica)Cedro Macho (Hon y Nica)Cedro Macho (Hon y Nica)Cedro Macho (Hon y Nica)Cedro Macho (Hon y Nica)SG: 0.52 FN DC: medium FN

Ceiba pentandraCeiba (all regions)Ceiba (all regions)Ceiba (all regions)Ceiba (all regions)Ceiba (all regions)SG: 0.30 FN DC: medium FN

Cojoba arboreaBarba de Jolote (Hon)Barba de Jolote (Hon)Barba de Jolote (Hon)Barba de Jolote (Hon)Barba de Jolote (Hon)SG: 0.61 CH DC: low CH

Cordia alliodoraLaurel negro (Hon)Laurel negro (Hon)Laurel negro (Hon)Laurel negro (Hon)Laurel negro (Hon)Laurel (Nica)Laurel (Nica)Laurel (Nica)Laurel (Nica)Laurel (Nica)SG: 0.44 FN DC: medium FN

FNWWTT

CHDHTT

WWMETT

PSTT

CUCHFNWWTT

FNWWTT

FNTT

CHPSFN

CHFNWWTT

1/7

Page 138: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

4

Dendropanax arboreusSacchacá (Mex)Sacchacá (Mex)Sacchacá (Mex)Sacchacá (Mex)Sacchacá (Mex)Mano de León (Guate)Mano de León (Guate)Mano de León (Guate)Mano de León (Guate)Mano de León (Guate)SG: 0.40 TT

DC: low ME

Ficus sp.Higo (Mex)Higo (Mex)Higo (Mex)Higo (Mex)Higo (Mex)Amate (Guate)Amate (Guate)Amate (Guate)Amate (Guate)Amate (Guate)SG: aprox. 0.45 (estimate)DC: no data

Guarea grandifoliaMarapolan (Hon)Marapolan (Hon)Marapolan (Hon)Marapolan (Hon)Marapolan (Hon)SG: 0.56 CU

DC: low CU

Hieronyma alchorneoidesRosita (Hon)Rosita (Hon)Rosita (Hon)Rosita (Hon)Rosita (Hon)Nancitón (Nica)Nancitón (Nica)Nancitón (Nica)Nancitón (Nica)Nancitón (Nica)SG: 0.63 CU DC:medium CU

Huertea cubensisCedrillo (Hon)Cedrillo (Hon)Cedrillo (Hon)Cedrillo (Hon)Cedrillo (Hon)SG: 0.37 CU DC: low CU

Ilex tectonicaSan Juan Areno (Hon)San Juan Areno (Hon)San Juan Areno (Hon)San Juan Areno (Hon)San Juan Areno (Hon)SG: 0.46 PS

DC: medium PS

Licania platypusSunza (Guate)Sunza (Guate)Sunza (Guate)Sunza (Guate)Sunza (Guate)SG: 0.58 GK DC: low ME

Lysiloma bahamensisTzalam (Mex, Guate)Tzalam (Mex, Guate)Tzalam (Mex, Guate)Tzalam (Mex, Guate)Tzalam (Mex, Guate)SG: 0.63 TT

DC: medium ME

MacrohasseltiamacroteranthaTempisque, Huesito (Hon)Tempisque, Huesito (Hon)Tempisque, Huesito (Hon)Tempisque, Huesito (Hon)Tempisque, Huesito (Hon)SG: 0.62 CU

DC: medium CU

Magnolia yoroconteRedondo (Hon)Redondo (Hon)Redondo (Hon)Redondo (Hon)Redondo (Hon)SG: 0.52 CU

DC: low CU

Excellent technical substitute formahogany, has no taste

Wide dimensions possible,rapid growth, interestinggrain pattern

Durable

Very attractive violetheartwood, but color changeswith exposure to sun toreddish-brown

Attractive color, easy to work,light weight

Very easy to work

Pronounced grain pattern dueto cell structure, easy to plane

Easy to work, attractive walnutcolor, significant volumes inMexico and Guatemala

Attractive whitish-rose color

Easy to work and dry

Steady demand belowforest potential/ Tonguesuppresors, plywoodand furniture

No current demand

Moderate demand/Fine furniture, doors,windows

Little demand forcarpentry work

Little demand/furniture

High demand for furniture,interior cabinetry, technicalsubstitute for mahogany(normally stained)

No current demand

Growing demand, stillbelow forest potential /Flooring and furniture

Moderate demand belowforest potential / Interiorcabinetry and generalcarpentry

High demand, partiallyover forest potential /General cabinetry

Siding, furniture, furniture frames,upholstery frames, and toothpicks

Furniture with large dimensions,inexpensive furniture. As with manyother light-weight species, moreeffective and economic treatmentsto prevent sap stain are needed

Decorative veneer, residentialflooring, general carpentry

Cabinets, decorative veneer,window and door frames,staircase tread, handrails,flooring

Doors, windows, cabinets, veneer,moldings

Flooring, stair tread, handrails, doorframes

Flooring, inexpensive furniture

Beams, posts, framing, doors,handrails

Heavy construction, residential andindustrial flooring, beams, railroadcrossties, tool handles

Residential flooring, decorativeveneer

MEWWTT

CHCUWWTT

CHCUFNPSWW

CUCHWW

CHFNPS

MEGKTT

METT

CHCUFN

CHCUFNWW

SpeciesSpeciesSpeciesSpeciesSpecies Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Market demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual uses Potential usesPotential usesPotential usesPotential usesPotential uses CitationCitationCitationCitationCitation

Susceptible to sap stain

Extremely sensitive tosap stain, texture is verycoarse and porous

None

Cross grain slightly affectsworkability, color changeswith exposure to sun

None

Susceptible to sap stain

Coarse texture, high silicacontent

Tannins cause dark stainsin contact with ironhardware and fasteners

Moderately difficult tomachine due to crossgrain and hardness

None

2/7

Page 139: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

5

Attractive color

Versatile, attractive heartwoodcolor, easy to work

Clear brown color, versatility

Normally easy to work with goodresult, attractive color andstreaking grain pattern

Easy to dry, straight grain, and finetexture

Reddish light-brown color thatsome people like and others not,wide board dimensions possible,interesting pattern due toparenchyma bands in darker color,difficult to distinguish frommahogany when stained

Outstanding carving characteristicsdue to fine texture, excellentplaning, sanding, and finishingcharacteristics, wood remainscherry color in shade, sapwood isyellow, over time, both sapwoodand heartwood acquire the samecolor (opaque honey), sapwood ispretty resistant to insects and fungi

Easy to work

Versatile wood for“inferior“ uses

Attractive grain and is easy towork, wood is economical andsuited for general carpentry,windows, doors, plywood

Little commercial demand

Steady demand by artisans,furniture, flooring

Moderate demand (widelyused in Costa Rica) /Furniture, pallets

Steady demand fromartisans / Furnitureand flooring

Little demand / Furniture

Steady demand belowforest potential / Used inMexico and Guatemala forplywood, regional use ininexpensive furniture,interior door parts, and asa low quality substitutefor mahogany

Little demand / Has beensuccessfully exported,major barrier to increasinguse is high pricederived from its lowsawing yield

Little demand /Inexpensive furniture

Little demand / Used forplywood

Moderate demand /General cabinetry, indoorand outdoor, plywood,sawn construction lumber

Flooring, decorative veneer,turnings

Wide range of potential uses

Wide range of potential uses, withthe potential for higher value uses

Artisan products, musicalinstruments, decorative veneer,flooring

Parquet flooring, plywood, generalcarpentry

Furniture in which its larger potentialdimensions are useful, siding,packing crates, pallets (steamingtrials might reveal other productpossibilities because of colorchanges)

Furniture, artisan products, andmoldings (studies are needed todetermine methods to reduce colorchanges)

Wide range of potential uses, fromconstruction uses to kitchen articles

Wide range of potential uses, fromconstruction to siding, furniture,kitchen accesories, and boxes

Decorative veneer, doors, windows,heavy constructions, beams, flooring,and tool handles

Pentaclethra macrolobaGavilán (Nica)Gavilán (Nica)Gavilán (Nica)Gavilán (Nica)Gavilán (Nica)SG: 0.54 FN

DC: medium FN

Pithecellobium arboreumQuebracho (Nica)Quebracho (Nica)Quebracho (Nica)Quebracho (Nica)Quebracho (Nica)SG: 0.59 FN DC: ?

Pithecellobium samanGenízaro (Nica)Genízaro (Nica)Genízaro (Nica)Genízaro (Nica)Genízaro (Nica)SG: 0.53 FN DC: low FN

Platymiscium sp.Coyote (Nica)Coyote (Nica)Coyote (Nica)Coyote (Nica)Coyote (Nica)SG: 0.58 FN DC: medium FN

Podocarpus oleifoliusCiprés de montaña (Hon)Ciprés de montaña (Hon)Ciprés de montaña (Hon)Ciprés de montaña (Hon)Ciprés de montaña (Hon)SG: 0.53 PS DC: low PS

Pseudobombax ellipticumAmapola (Mex y Guate)Amapola (Mex y Guate)Amapola (Mex y Guate)Amapola (Mex y Guate)Amapola (Mex y Guate)SG: 0.35 ME

DC: medium ME

Sickingia salvadorensisChactekoc (Mex)Chactekoc (Mex)Chactekoc (Mex)Chactekoc (Mex)Chactekoc (Mex)SG: 0.52 TT

DC: high ME

Simarouba glaucaPasa´ak (Mex)Pasa´ak (Mex)Pasa´ak (Mex)Pasa´ak (Mex)Pasa´ak (Mex)SG: 0.38 TT DC: medium ME

Spondias mombinJobo (Mex , Guate y Nica)Jobo (Mex , Guate y Nica)Jobo (Mex , Guate y Nica)Jobo (Mex , Guate y Nica)Jobo (Mex , Guate y Nica)SG: 0.40 GK

DC: low ME

Symphonia globuliferaVarillo, Amarillo Barillo (Hon)Varillo, Amarillo Barillo (Hon)Varillo, Amarillo Barillo (Hon)Varillo, Amarillo Barillo (Hon)Varillo, Amarillo Barillo (Hon)Leche María (Nica)Leche María (Nica)Leche María (Nica)Leche María (Nica)Leche María (Nica)SG: 0.56 CU

DC: low CU

SpecieSpecieSpecieSpecieSpecie Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Market demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual uses Potential usesPotential usesPotential usesPotential usesPotential uses CitationCitationCitationCitationCitation

None known

Sometimes planes poorly

Sometimes fuzzy grain

Unknown

None

Very soft and susceptibleto insects and fungi

Splits easily, color changefrom intense rose to asomewhat opaque honey,low saw yield, highsapwood percentage

Sensitive to fungi thatchange the color of thewood

Sensitive to fungi thatchange the color of thewood

None

3/7

FN

MEWW

FNWWTT

FNTT

CHPSTT

MEGKWW

METT

METT

MEGKWWTT

TTCUFNPSWW

Page 140: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

6

Some demand becausesimilar color to mahogany /Furniture or furniture parts,and door parts

Moderate demand / Exteriorand interior cabinetry

No current uses

Sporadic in-countrydemand for flooring

Consistent demand belowor near forest potential /Veneer, inexpensivefurniture, cabinets, moldings,and picture frames

Little demand forgeneral carpentry /Inexpensive furniture,veneer, plywood

Little demand and notfound in managed areas /Inexpensive furniture,cabinets, plywood

Little demand / Generalcabinetry, light construction,cabinets

Little demand / Fineturnings, fine furniture

Little demand / Columns,beams, flooring

Low demand / Inexpensivefurniture that is treated

SpeciesSpeciesSpeciesSpeciesSpecies Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Market demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual usesMarket demand /Actual uses Potential usesPotential usesPotential usesPotential usesPotential uses CitationCitationCitationCitationCitation

Gum in the woodsometimes makesprocessing difficult

Moderately difficult towork because of raised,cross, and sometimeswavy grain, and mediumhardness

Very poor log form resultsin low sawing yield

Coarse texture, saw dustaffects many workers

Very sensitive to termiteattack

Difficult to dry and notdurable

Difficult to dry

None

Moderately easy to work

None

Very sensitive to blue stainand insects

Attractive reddish-brownheartwood

Some people think the grainpattern and color are veryattractive (reddish stripes ongreenish background), durable

Very good working properties

Some like its greenish color,parenquim bands lead to adistinctive pattern when cuttangentially

Heartwood is attractive pale—to pinkish— brown, goodmolding properties

Heartwood is attractive rose topale brown, very easy to process

Heartwood is attractive palebrown

Easy to work, attractive brightreddish color

Heartwood is strong reddish-orange and has pronounced grain

Fine texture and high luster

Very easy to work

CHCU

TTCUPSFNWW

MEGKTT

MEGK

CHCUFNWWTT

CHPSFNWW

CHPSFNWW

CHPS

CH

CH

Cabinets, profiles, moldings

Heavy construction, agriculturaltool handles, veneer, and sportsequipment

Tool handles

Construction, siding, flooring,railroad crossties

Boxes, matches, molding

Cabinets, profiles, moldings,furniture, and general carpentry

Confection handles,toothpicks, fruit packing boxes

Veneer, boxes, moldings,general carpentry

Carved doors, handles andhandicrafts

Bridges, parquet flooring, plywood,rustic stake furniture

Cabinets, toothpicks, confectionhandles, fruit packing boxes

Tapirira guianensisPiojo (Hon)Piojo (Hon)Piojo (Hon)Piojo (Hon)Piojo (Hon)SG: 0.42 CU

DC: low CU

Terminalia amazoniaCumbillo, GuayabilloCumbillo, GuayabilloCumbillo, GuayabilloCumbillo, GuayabilloCumbillo, GuayabilloNaranjo (Hon)Naranjo (Hon)Naranjo (Hon)Naranjo (Hon)Naranjo (Hon)SG: 0.62 CU DC: low CU

Vitex gaumeriiYa´axnic (Mex)Ya´axnic (Mex)Ya´axnic (Mex)Ya´axnic (Mex)Ya´axnic (Mex)SG: 0.52 GK DC: medium ME

Vatairea lundelliiDanto (Guate)Danto (Guate)Danto (Guate)Danto (Guate)Danto (Guate)SG: 0.62 GK

DC: medium ME

Virola koschnyiSangre (Hon y Guate)Sangre (Hon y Guate)Sangre (Hon y Guate)Sangre (Hon y Guate)Sangre (Hon y Guate)Sebo/ Banak (Nica)Sebo/ Banak (Nica)Sebo/ Banak (Nica)Sebo/ Banak (Nica)Sebo/ Banak (Nica)SG: 0.41 CU

DC: low CU

Vochysia ferrugineaSan Juan Colorado (Hon)San Juan Colorado (Hon)San Juan Colorado (Hon)San Juan Colorado (Hon)San Juan Colorado (Hon)Zopilote (Nica)Zopilote (Nica)Zopilote (Nica)Zopilote (Nica)Zopilote (Nica)SG: 0.38 FN DC: high FN

Vochysia hondurensisSan Juan Peludo (Hon)San Juan Peludo (Hon)San Juan Peludo (Hon)San Juan Peludo (Hon)San Juan Peludo (Hon)Palo de Agua (Nica)Palo de Agua (Nica)Palo de Agua (Nica)Palo de Agua (Nica)Palo de Agua (Nica)SG: 0.34 FN DC: medium FN

Vochysia jafensisSan Juan Rojo (Hon)San Juan Rojo (Hon)San Juan Rojo (Hon)San Juan Rojo (Hon)San Juan Rojo (Hon)SG: 0.44 PS DC: low PS

?Granadillo Rojo (Hon)Granadillo Rojo (Hon)Granadillo Rojo (Hon)Granadillo Rojo (Hon)Granadillo Rojo (Hon)SG: 0.53 CH DC: ?

?Manchado (Hon)Manchado (Hon)Manchado (Hon)Manchado (Hon)Manchado (Hon)SG: 0.61 CH DC: low CH

?Vaca, Barrenillo, MantecoVaca, Barrenillo, MantecoVaca, Barrenillo, MantecoVaca, Barrenillo, MantecoVaca, Barrenillo, Manteco(Hon)(Hon)(Hon)(Hon)(Hon)SG: 0.37 CH DC: low

4/7

Page 141: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

7

Ampelocera hottleiLuin hembra (Guate)Luin hembra (Guate)Luin hembra (Guate)Luin hembra (Guate)Luin hembra (Guate)SG: 0.66 GK

DC: medium ME

AspidospermamegalocarponMalerio colorado/ blancoMalerio colorado/ blancoMalerio colorado/ blancoMalerio colorado/ blancoMalerio colorado/ blanco(Guate) Bayo/Pelmax (Mex)(Guate) Bayo/Pelmax (Mex)(Guate) Bayo/Pelmax (Mex)(Guate) Bayo/Pelmax (Mex)(Guate) Bayo/Pelmax (Mex)SG: 0.78 GK

DC: medium ME

Astronium graveolensJobillo (Guate)Jobillo (Guate)Jobillo (Guate)Jobillo (Guate)Jobillo (Guate)Quita calzón (Nica)Quita calzón (Nica)Quita calzón (Nica)Quita calzón (Nica)Quita calzón (Nica)SG: 0.75 TT

DC: low ME

Brosimum alicastrumRamón (Mex/ Guate)Ramón (Mex/ Guate)Ramón (Mex/ Guate)Ramón (Mex/ Guate)Ramón (Mex/ Guate)Masica (Hon) OjocheMasica (Hon) OjocheMasica (Hon) OjocheMasica (Hon) OjocheMasica (Hon) Ojoche(Nica)(Nica)(Nica)(Nica)(Nica)SG: 0.73 GK

DC: low to medium ME

Bucida bucerasPucté (Mex y Guate)Pucté (Mex y Guate)Pucté (Mex y Guate)Pucté (Mex y Guate)Pucté (Mex y Guate)SG: 0.85 GK

DC: high ME

Caesalpinia platyloba Chakteviga (Mex) Chakteviga (Mex) Chakteviga (Mex) Chakteviga (Mex) Chakteviga (Mex)SG: ?DC: ?

Chlorophora tinctoriaMora (Nica)Mora (Nica)Mora (Nica)Mora (Nica)Mora (Nica)SG: 0.88 FN

DC: low TT

Dialium guianenseCome Negro (Nica)Come Negro (Nica)Come Negro (Nica)Come Negro (Nica)Come Negro (Nica)SG: 0.72 FN

DC: medium FN

Tendency to split, someuncertainty about thedifference betweenmalerio blanco andmalerio colorado

Tendency to split

Very sensitive to fungiattack (tree very seldomdevelops a heartwood),high silica content, dryingproblems reported

Difficult to dry (twistsand bends)

With sunlight, colorchanges from orange orreddish to a rather dullbeige

None known

High silica content,difficult to work

Outstanding processingcharacteristics for its highspecific gravity

Good workability for its specificgravity, bright brown color

Very attractive grain and color,(reddish yellow to reddish brownwith darker stripes), good woodfor carving, good workability

Large volumes in the forests,bright cream color, interestinggrain, near branches is rosecolored, fine grain, excellent forturning

Greenish color resemblesSweetia panamensis and isattractive to many people(although some do not like it),crossgrain seen by quarter-sawingmakes it look “lively”

High lateral hardness, highnatural durability

High lateral hardness, colorgolden yellow to red

No current demand

Incipient demand in foreignmarkets

High demand for sawnwood used for furnitureand artisan products

Little demand / Incipientdemand for floors, used forplywood

Little demand

Little demand / Smalldiameter logs (less than 25cm) are sold as posts forrustic tourist structures

Incipient demand forconstruction (plywoodmanufacturers use speciesthey call “mora”, but thatmost probably is notidentical with Chlorophora)

Demand for construction(principally for posts)

Construction, window and doorframes, flooring, tool handles, artisanproducts

Non-structural interior uses, such asframes, railings, stair tread, toolhandles, artisan products

Flooring, decorative veneers, high-quality furniture, artisan products

Flooring, tool handles, rafters andbeams, non-structural lumber,furniture (note: there may be concernabout commercializing this speciesbecause of its use as a food sourcefor animals, and at times, forhumans)

Flooring, heavy construction, railroadcrossties

Flooring, tool handles

Heavy construction, posts, bridges,railroad crossties, furniture

Heavy construction, marineconstruction, railroad crossties,posts, fence palings, structuralexterior construction

HEAVY-WEIGHT SPECIES

SpeciesSpeciesSpeciesSpeciesSpecies Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Actual demand / UsesActual demand / UsesActual demand / UsesActual demand / UsesActual demand / Uses Potential usesPotential usesPotential usesPotential usesPotential uses LiteratureLiteratureLiteratureLiteratureLiterature

MEGK

MEGKTT

FNWWTT

GKMEFNWWTT

WWGKMETT

FNWWTT

FNWWTT

5/7

Page 142: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

8

Dipteryx panamensisAlmendro (Nica)Almendro (Nica)Almendro (Nica)Almendro (Nica)Almendro (Nica)SG: 0.85 FN

DC: high FN

Genipa americanaJagua (Hon)Jagua (Hon)Jagua (Hon)Jagua (Hon)Jagua (Hon)SG: 0.66 WW

DC: mediumWW

Gordonia brandegeeiColoradito (Hon)Coloradito (Hon)Coloradito (Hon)Coloradito (Hon)Coloradito (Hon)SG: 0.65 DC: medium

Hymenaea courbarilGuapinol (Nica)Guapinol (Nica)Guapinol (Nica)Guapinol (Nica)Guapinol (Nica)SG: 0.78 FN DC: medium FN

Lonchocarpus castilloiMachiche (Mex y Guate)Machiche (Mex y Guate)Machiche (Mex y Guate)Machiche (Mex y Guate)Machiche (Mex y Guate)SG: 0.79 GK DC: medium ME

Manilkara achrasChicle, níspero (Hon yChicle, níspero (Hon yChicle, níspero (Hon yChicle, níspero (Hon yChicle, níspero (Hon yNica) Chicozapote (Mex)Nica) Chicozapote (Mex)Nica) Chicozapote (Mex)Nica) Chicozapote (Mex)Nica) Chicozapote (Mex)Chico (Guate)Chico (Guate)Chico (Guate)Chico (Guate)Chico (Guate)SG: 0.85 TT

DC: medium FN

Metopium browneiChechén (Mex)Chechén (Mex)Chechén (Mex)Chechén (Mex)Chechén (Mex)SG: 0.74 ME

DC: medium ME

Piscidia communisJabín (Mex)Jabín (Mex)Jabín (Mex)Jabín (Mex)Jabín (Mex)SG: 0.74 ME

DC: medium ME

Pouteria izabalensisand P. amygdalinaSilión (Guate)Silión (Guate)Silión (Guate)Silión (Guate)Silión (Guate)Celillon (Hon)Celillon (Hon)Celillon (Hon)Celillon (Hon)Celillon (Hon)SG: 0.68 WW

DC: ?

Sacoglottis trichogynaRosita (Nica)Rosita (Nica)Rosita (Nica)Rosita (Nica)Rosita (Nica)SG: 0.72 FN

DC: high FN

SpecieSpecieSpecieSpecieSpecie Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Actual demand / UsesActual demand / UsesActual demand / UsesActual demand / UsesActual demand / Uses Potential usesPotential usesPotential usesPotential usesPotential uses LiteratureLiteratureLiteratureLiteratureLiterature

Difficult to process,sometimes has fuzzygrain

Relatively easy to work

Relatively easy to work

Unfavorable dimensionalstability

In some regions, woodtends to be brittle andbreaks easily

Splitting is a problemwith dried wood, woodis frequently damageddue to earlier chicletapping

Reduced heartwood yielddue to high percent ofsapwood, planingproblems due to curly fiber

Fiber tends to break,leaving small holes whenplaned

High silica content,unattractive reddish browncolor, strong tendency tosplit during drying

Attractive reddish-brownheartwood

Rather high natural durability

Atractive grain and color(reddish-brown)

Very atractive grain and color,acquires silvery patina whenoutdoors

Generally straight grain,attractive color, finishes well

Very attractive wood withvariable colors (brown, reddish,greenish), finishes well,interesting sapwood, although itis sensitive to insects and fungi

High natural durability, beigecolor with veins due toparenquima bands

Natural durability, plentiful inforest

Attractive dark reddish browncolor

Incipient demand forconstruction, commercialspecies in Costa Rica

Little demand, cabinetry,carpentry, boxes, wire /cable spools

Little demand / Heavyconstruction

Demand near or over forestpotential / Commercialflooring, exterior furniture

Steady demand belowforest potential / Flooring,furniture

Little demand / Columns,roof beams, posts,construction walls, finefurniture, general carpentry,flooring

Increasing demand stillunder forest potential /Flooring, expensive furniture

No major current use, otherthan posts

Little demand / Heavyconstruction, railroadcrossties

Incipient demand forflooring

Heavy construction, railroadcrossties, tool handles, truckplatforms and truck stake sides

Construction, tool handles, door andwindow frames

General carpentry

Decorative items / Artisan products,heavy construction, outdoor uses,boat and ship construction

Tool handles, artisan products,exterior construction

Marine constructions, tool handles,molding, handicrafts and novelties

Artisan products, sapwood can beused for furniture (need to find usesfor sapwood)

Flooring, tool handles, artisanproducts

Industrial flooring, roof beams, toolhandles, coal

Structural interior and exterior uses,flooring, railroad crossties

FN

CHPSWWTT

PSWW

FNWWTT

GKMETT

FNCHMETT

ME

ME

PSWW

FN

6/7

Page 143: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

14

9

Heartwood nearly blackviolet, has beenproposed as a substitutefor ebony, strongcontrast betweenheartwood andsapwood is interesting

Attractive color, veinedgrain

Swartzia cubensis syn.LundeliiKatalox (Mex)Katalox (Mex)Katalox (Mex)Katalox (Mex)Katalox (Mex)Llorasangre (Guate)Llorasangre (Guate)Llorasangre (Guate)Llorasangre (Guate)Llorasangre (Guate)SG: 0.86 GK DC: medium ME

Tabebuia guayacanCortez (Nica)Cortez (Nica)Cortez (Nica)Cortez (Nica)Cortez (Nica)SG: 0.85 FN DC: high FN

Tetragastris panamensisKerosén (Nica)Kerosén (Nica)Kerosén (Nica)Kerosén (Nica)Kerosén (Nica)SG: 0.70 FN DC: high FN

SpeciesSpeciesSpeciesSpeciesSpecies Processing problemsProcessing problemsProcessing problemsProcessing problemsProcessing problems StrenghtsStrenghtsStrenghtsStrenghtsStrenghts Actual demand / UsesActual demand / UsesActual demand / UsesActual demand / UsesActual demand / Uses Potential usesPotential usesPotential usesPotential usesPotential uses LiteratureLiteratureLiteratureLiteratureLiterature

Artisan products, high qualityfurniture, tool handles

(Need to find uses for sapwood)

Interior and exterior structural uses,marine uses, high-end furniture

Interior and exterior uses, marineuses, railroad crossties, flooring

Little demand / flooring

Consistent demand forflooring, furniture, andartisan products

Incipient demand, somemanufacturers know a lessheavy “Kerosén”

Reduced heartwoodyield, planningproblems whenblades are notperfectly sharp

GKTT

FNTT

FNTT

* This list was compiled based on two independent criteria: available volume and potential uses. For a detailed description of technological and other characteristics ofthese species, please refer to the publications cited.The vernacular names used are the ones most commonly used in the countries cited (Guate = Guatemala, Hon = Honduras, Mex = Mexico, Nica = Nicaragua). “Actualuses” refers to the countries cited.SGSGSGSGSG = Specific gravity (oven dry to green volume)DCDCDCDCDC = Dimensional change. The classification of the publication cited is provided.

Information is cited from the following publications:

MEMEMEMEME- Echenique/ Plumtre (1994)PSPSPSPSPS - Prospect (database)CUCUCUCUCU – Boletines técnicos CUPROFOR (n.d.)GKGKGKGKGK – Kukachka (1968)DHDHDHDHDH - Manual de DendrologíaWWWWWWWWWW - Woods of the World (database)FNFNFNFNFN- Fichas técnicas de maderas nicaragüenses. Alvear (1992 a 1994)CHCHCHCHCH – Catálogo de 100 especies forestales de HondurasTTTTTTTTTT – Chudnoff (1984) / U.S. Forest Service, Forest Products Laboratory Database

7/7

Page 144: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Study regions

Study regionsTropical lowland forestTropical mountain forestPine forestSwamp forestDry forestNo dataPredominantly community managed forestsProtected forests where wood extractionis not allowed

Río Plátano

Biosfera Maya

Sian Ka’an

Atlántida

Source: elaborated by authors based on World ConservationMonitoring Centre (1996).

Page 145: Forest communities and the marketing of lesser-known species …pdf.usaid.gov/pdf_docs/PNACY401.pdf · Hugo Galletti Orlando Lacayo Spencer Ortiz Forest communities and the marketing

Forest Communities and the Marketing of Lesser-used Tropical

Hardwoods in Mesoamerica was printed and bounded in October,

2003, at Editorial Ducere, S.A., Rosa Esmeralda 3-bis, Col. Molino

de Rosas, México, D.F.; the edition was in charged of Tecnigraf,

Campeche 108-Altos, Col. Roma, México, D.F.