NTFP commercialisation

What influences success?

The commercialisation of non-timber forest products (NTFPs) has been widely promoted as a successful approach to rural development in tropical forest areas. But the benefits of poverty alleviation and natural resource conservation can be hard to achieve.

NTFP commercialisation is about people earning money from the sale of a locally harvested and/or processed product beyond their community.

A CEPFOR research initiative, led by the United Nations Environment ProgrammeWorld Conservation Monitoring Centre, examined the impact of NTFP commercialisation on poverty reduction, women’s livelihoods, natural resources and poor people’s rights and access, in 18 communities in Bolivia and Mexico.

The research also examined the structure and function of 16 different NTFP market chains to identify the conditions under which trade may contribute to poor people’s livelihoods more effectively. Findings include:

NTFP commercialisation can be beneficial

• It can provide up to 95 percent of annual household cash income and act as a financial ‘safety net’ when other income sources fail.
• It can give women greater self confidence and improve their status within households and communities by contributing to food security and generating income.

NTFP market chains are dynamic and demand-driven

• Producers, processors and traders are resilient to external shocks such as market fluctuations.
• The ability to negotiate prices and define trade rules is vital in determining satisfaction levels in NTFP market chains.

A lack of market information is the main barrier into NTFP trade

• Market intermediaries and entrepreneurs can play a vital role in facilitating access to markets by providing market information, as well as skills and financial support.
• However, the concentration of power among a few individuals is likely for highly processed or perishable products for international markets.

The ability to negotiate prices and define trade rules is vital in determining satisfaction levels in non-timber forest product market chains

Increased commercialisation initially leads to over exploitation of resources, regardless of tenure, in most cases. Land tenure arrangements influence the strategies used by communities and individuals to ensure that NTFP supply meets the demands of increased commercialisation. While this can lead to over harvesting, the research shows:

• Communal resources are managed and harvested more sustainably.
• Individuals domesticate NTFPs on a small-scale where land is held privately and the plant can be easily propagated.

Despite potential benefits for national economic development, local livelihoods and conservation, there is little policy or legislation that is specific to NTFPs in Mexico or Bolivia. Communities are often left to trade in the informal sector, unable to meet the legal requirements of formal sector commercialisation. This leads to unsustainable practices, increased dependence on other income sources, and loss of traditional knowledge.

Governments, NGOs and the private sector should provide direct assistance to communities, which:

• addresses constraints on small enterprise development
• enhances community organisation to increase the market power of NTFP producers and processors and decreases their vulnerability to external risks and shocks
• creates more opportunities for women in NTFP activities
• builds the business skills of potential entrepreneurs and improves access to education and information
  provides technical knowledge and organisational skills to ensure sustainable resource management and harvesting, domestication where appropriate, and product processing to add value locally.

Elaine Marshall, Kate Schreckenberg and Adrian Newton

Elaine Marshall, Chemin de la Foret, 16, Givrins 1271, Vaud, Switzerland
marshallelaine@googlemail.com