Commercialization of non-timber forest products: factors influencing success

Commercialization of non-timber forest products (NTFPs) has been widely promoted as an approach to rural development in tropical forest areas. However, donor investments in the development of NTFP resources have often failed to deliver the expected benefits in terms of poverty alleviation and improved conservation of natural resources. It is important to understand the conditions under which NTFP commercialization can make a positive contribution to the livelihoods of the poor. This publication presents the findings of the CEPFOR project, a multidisciplinary research initiative involving partners from the UK, Mexico and Bolivia.
The research team, through socioeconomic and market research, examine the impact of different NTFP commercialization networks (value chains) on poverty reduction, women’s livelihoods, natural resources and rights and access of the poor, in eight communities in Bolivia and ten in Mexico. The structure and function of 16 NTFP value chains are analysed, enabling identification of the attributes that make a chain successful.

Key findings of the CEPFOR project are:

• Successful commercialization means different things to different people
• NTFP activities provide an important opportunity for poverty reduction
• NTFP activities often involve poor people but may also involve the less poor
• NTFP activities can provide women with a greater sense of self-confidence and improved status within the household and the community
• In the majority of cases, increased commercialization initially leads to overexploitation of the resource
• There is little policy or legislation specific to NTFPs in either Mexico or Bolivia
• NTFP value chains are highly dynamic
• Lack of market information is a key barrier into NTFP trade

Recommended interventions at government-level:

• Rural livelihood support policies that support NTFP activities as part of a diversified livelihood strategy.
• A clear statement of which laws apply to NTFPs, under which circumstances and who is responsible for implementing them.
• Encouraging lending institutions to recognize the commercial potential of NTFP enterprises.
• Policy interventions that improve access to education and information, thereby increasing entrepreneurship.
• General improvements to transport and communications infrastructure that will facilitate market access.

Recommended interventions at community-level:

• Enhancing community organization to increase the market power of NTFP producers and processors
• Provision of opportunities for greater involvement of women in NTFP activities
• Building the business capacity of potential entrepreneurs.
• Provision of technical know-how and organizational skills to ensure sustainable resource management and harvesting, domestication and product processing.