socioeconomic factors in non timber forest product (ntfp) management mike jacobson penn state
TRANSCRIPT
Socioeconomic factors in non timber forest product (NTFP)
management Mike Jacobson
Penn State
Rural poor
•“Non timber forest products mobilized to bridge regular gaps in income or need, and when there is a catastrophic downturn in household economies”
Emery 1998
• 56% of rural involved in some informal activity
• E.g., Firewood, maple syrup, other forest products
Non-timber forest products (NTFPs)
• Non-timber forest products are not defined by what they are, but rather by what they are not.
• Very diverse group of products – Also referred to as:
• Nontraditional, secondary, minor, non-wood, specialty
• USDA Forest service term = special forest products
• Natural products – untapped markets
Ginseng
Ginseng
NTFP characteristics• Relatively low yield and returns for hard work• Substitution and competition• Short-term trends or fads,
– but often require long-term resource investment – Most NTFPs are only present in small volumes and
therefore unlikely to attract market investment • The informal, invisible trade
• Poverty trap or stepping stone?
Integration into cash economy (%)
1007550250
Pro
duct
con
trib
utio
n in
to h
ouse
hold
inco
me
(%)
22
21
8
57
56
53
28
25
20
34
38
48
50
47
37
46
45
19
1817
16
36
7
41
11
3
40
15
30
105
32
55
5451
39
13
6
1
52
27
9
31
2
61
35
14
6059 4
24
23
49
58
44
12
43
42
2926
33
100
75
50
25
0
R2 = 0.861 y=e0.0439x
Coping
Integrated
Supplementary
Household strategy
Specialised_Cultivated
Specialised_Natural
Integration into cash economy (%)
1007550250
Pro
duct
con
trib
utio
n in
to h
ouse
hold
inco
me
(%)
22
21
8
57
56
53
28
25
20
34
38
48
50
47
37
46
45
19
1817
16
36
7
41
11
3
40
15
30
105
32
55
5451
39
13
6
1
52
27
9
31
2
61
35
14
6059 4
24
23
49
58
44
12
43
42
2926
33
100
75
50
25
0
R2 = 0.861 y=e0.0439x
Coping
Integrated
Supplementary
Household strategy
Specialised_Cultivated
Specialised_Natural
Coping
Integrated
Supplementary
Household strategy
Specialised_Cultivated
Specialised_Natural
Marula beer
Woodcraft
Fruit juices and jams
Thesis
• Instead of ignoring the informal sector, one needs to develop appropriate measures to help them move forward, become more ‘commercial’ – the enabling environment– Political-legal framework– Local rules, traditions, customs– Livelihood/diversification/poverty reduction
Paradoxes to commercialization
• Conditions for commercialization are not met in poor areas
• Process of commercialization may have an anti-poor bias
• Intensification may have negative biodiversity implications
• But small-scale producers need– technical assistance– access to information, technology, credit– institutions
Enterprise Country Reason for selection
EcoProductswww.ecoproducts.co.za
South Africa Individual entrepreneur who established an extensive community based network of raw material suppliers. Young business, organic certification, unique product.
IIala Weaverswww.ilala.co.za
South Africa Family business with an extensive network of community producers. Well established 30 year old export business.
Fordoun Spawww.fordoun.com
South Africa Unique combination of a well developed commercial business with community linkages. Use of indigenous knowledge as investment capital.
Heiveld Cooperativewww.heiveld.co.za
South Africa Young cooperative established out of a need to improve the conditions of local producers. Focus on organic and fair trade certification.
TCT Industrias Florestais LDAwww.dalmann.com
Mozambique
Well established family owned forestry, sawmilling and furniture manufacturing business based on the sustainable management of a timber concession area.
MEL de MOZAMBIQUE Mozambique
Producers cooperative established by Government and NGOs.
Community lodges – HELVETAS/LUPATinti Gala Community Lodge Covane Community Lodge Madjadjane Community Lodge
Mozambique
Community based enterprises established by NGOs with the objective to conserve the environment.
Success and factors
• Strong entrepreneur
• Community partners
• Geographic location
• Product
Common risks and reasons for failure
• Substitute products• Nature• Wrong people• Business establishment• Breakdown in relationships• Logistics
– Transport and manufacturing– Location
• Capital• Market
Bangladesh: Chittagong Hill Tracts
Prices along market supply chain: Case Study of Menda bark
Raw bark: 7- 12 BDT/KgDry bark: 25- 32 BDT/Kg
Tabu powder: 32- 52 BDT/Kg
0 50 100 150
Mean time spent by HH to collect NTFPs (Hour/ year)
Wild vegetable
Bamboo shoot
Bamboo
Broom grass
Menda bark
Medicinal plant
NTFP income
% of total annual HH income
28%
1%
3%20%9%
37%
0%
2%
Total raw forestincomeProcessed forestproducts incomeFish income
Wage Income
Business income
Agricultural income
Livestock income
Other income
NTFP and forest dependence
02468
1012141618
1 2 3 4 5
Income quintiles
Rel
ative
NTFP
inco
me
(%)
05
101520253035
1 2 3 4 5
Income quintile (poor to rich)
Relat
ive
fore
st in
com
e (%
)
Stakeholders’ income from NTFPs: Case Study of medicinal plants
“Forest farming” in Pennsylvania
Lentinula edodes
Shiitake
As many 50 eastern North America forest plants traded annually in medicinal markets
Rural income form NTFPs
• “The extra income I speak of brings Christmas to the mountains – keeps the children in school, buys medicine, buys food, pays bills and taxes.”
• “I remember well that my fathers income was quite modest and we supplemented same with trapping during the winter months and harvesting as much as a pound of dried ginseng per season, which value of $60.00 was a great boost to our economic situation.
• “Ginseng when I was a kid was ¼ of our living. All day digging was generally 8 to 10 lbs green.
Aug 2008: ¼ lb. root from PA (124
grams)
Potential advantages/benefits:Societal & ecological
Income Stewardship Integrity
Potential advantages/benefits:
Production cost savings
$12,000-$25,000/acreCarrying cost
Average price of American ginseng (Panax quinquefolius) root
(1968- 2003)
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
1968
1974
1976
1978
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
Ave
rage
pri
ce p
aid t
o co
llec
tor/
grow
er Wild/ Wild-simulated
Woods-cult ivated
Field-grown
Collector/grower
Local buyer or “country dealer”
Regional consolidators
Bulk distributorManufacturer
General market network for North American forest botanicals
Consumer
Profit potential of 8 forest crop candidates
• Discounted cash flow and sensitivity analyses – Discount rate (4%, 6%, 8%)– Propagation method (seed vs. transplant)– Prices (1990-2005 mean, mix, max)– Growing period (early vs. average yrs to harvest)– Production costs (fixed and variable)– Yields (per 1,000 m2 and per root)
Scientific name Trade nameTrade volume (lb/yr/dry): 1997-2005
Actaea racemosa black cohosh
Caulophyllum thalictroides
Chamaelirium luteum
Dioscorea villosa
Hydrastis canadensis
Panax quinquefolius
Phytolacca americana
Sanguinaria canadensis
blue cohosh
false unicorn root
wild yam
goldenseal
American ginseng
poke
bloodroot
Botanicals
Net Present Value ($US, 4% discount rate)
Species
Price received
<12,731>**
Mean Min Max
<12,888>** <12,485>**
<15,609>**
<14,137>*
<12,971>**
<10,518>*
15,261**
<7,782>*
<13,441>*
<15,662>**
<15,454>*
<15,495>**
<12,720>*
<13,044>** <12,810>**
<12,084>* <8,423>*
4,610*
<7,816>*
<14,234>*
32,030**
<7,707>*
<12,632>*
* = seed ** = transplant
Black cohosh
Blue cohosh
False unicorn root
Wild yam
Goldenseal
American ginseng
Poke
Bloodroot
$384
$577
$196$154
$194 $209$165 $152
$110
$51
$253
$57$53
$0
$100
$200
$300
$400
$500
$600
$700
MEAN
MIN
MAX
6 yr
EH (4)
NSCNAC
EH, NSC, N
AC4
yr
EH (3)
NSCNAC
EH, NSC, N
AC
Pri
ce
($
US
/lb/d
ry w
t)
SeedHistoric prices Transplants
Break even prices: American ginseng
EH Early harvestNSC No stock costs NAC No annual costs
$2 $3
$77
$57
$76$69
$60$56
$39
$25$26$28
$1$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
MEAN
MIN
MAX
6 yr
EH (4)
NSCNAC
EH, NSC, N
AC4
yr
EH (3)
NSCNAC
EH, NSC, N
AC
Pri
ce
($
US
/lb/d
ry w
t)
SeedHistoric prices Transplants
Break even prices: black cohoshEH Early harvestNSC No stock costs NAC No annual costs
Break even prices- woods cultivated
$20
$54
$168
$241
$14
$58
$2 $8 $1 $1
$170
$18
$0
$50
$100
$150
$200
$250
$300
Black
cohosh
Bloodroot Goldenseal Mayapple Burdock Ginseng
Current price Break even price
Yield increases would help economics for certain species (e.g. Goldenseal) but…..
Common themes
• Neglected sector • Need recognition (political will and legislation reform)– Recognize complexity– Minimize regulatory barriers
• Lack of technical assistance/education– Regional service centers– Build on what is there– Livelihoods vs. enterprises (not just profit)
• Facilitate effective intervention– Organizations and markets – Service oriented client based approach– Diversification– Harvesters in management decisions
• communication channels• Way of life/tradition/culture
• non-monetary benefits