Ecological Economy (2008)4: 24-34 Empirical Study

Eco-certifi cation of non-timber forest products in China: address- ing income generation and biodiversity conservation needs Marco Stark 1 *, Dong Min 2, Yang Yongping 1

1. Kunming Institute of Botany, Kunming, Chinese Academy of Sciences, Kunming 650204, P. R. China 2. School of Natural Resources, Southwest Forestry College, Kunming 650224, P. R. China

Abstract: Non-timber forest products (NTFPs) can play a key role in sustainable rural development due to their ability to support rural livelihoods while contributing to environmental objectives, including biodiversity conserva- tion. However, systematic understanding of their role and potential in conservation and development remains weak. Studies have pointed to important knowledge gaps that may lead to serious exploitation and unsustainable use of the natural resource “NTFP” in China, such as (1) lack of basic knowledge on germplasm and non-existing or incom- plete inventory, (2) no in-depth and long-term monitoring and institutional arrangements to ascertain sustainable extraction levels, (3) insuffi cient market transparency for communities, (4) incomplete knowledge of NTFP domesti- cation and its effects on product quality and price and the conservation of wild sources, and (5) no existing research on the full length of the commodity chain for major non-timber forest products and the various actors in the chain. This paper presents initiatives toward balancing poverty reduction and biodiversity conservation goals in China's remote mountain regions through the sustainable management of NTFPs. The potential and challenges of organic, ecological and Fairtrade certifi cation schemes in the context of smallholder farmers are discussed in more detail. Keywords: Biodiversity; Eco-certifi cation; Fairtrade; Non-timber forest products; Yunnan

1. Introduction started addressing the issue of sustainable utilization of NTFPs, even though it may be the leading country Non-timber forest products (NTFPs) are de- in the world in terms of processing and trading NT- fi ned as goods of biological origin other than wood, FPs. derived from forests, other wooded land and trees Non-timber forest products have long been an outside forests [1]; they include products used as food important component of the livelihood strategies of and food additives (edible nuts, mushrooms, fruits, people living in or adjacent to forest areas. Several herbs, spices and condiments, aromatic plants, game), million households worldwide depend heavily on fibers (used in construction, furniture, clothing or these renewable resources for subsistence and/or utensils), resins, gums, and plant and animal products cash income, and the FAO estimated that 80% of the used for medicinal, cosmetic or cultural purposes [2]. population of the developing world use NTFPs to Despite more than a decade of research, systematic meet some of their health and nutritional needs [2]. understanding of the role and potential of NTFPs in However, NTFPs are seldom the primary source of conservation and development (i.e. how to enlarge its household income, since their supply is largely sea- benefi ts for rural communities and the environment) sonal. While over 150 NTFPs worldwide have been remains weak. This is especially true for China where identified as significant commodity in international research and development efforts have just recently trade (the most important tropical products are rattan, brazil nuts, gum arabic, bamboo and spices) it is more difficult to quantify national trade, which may be Received April 12, 2007; Accepted July 18, 2007 very substantial [3]. This is also true for China where * Corresponding author. E-mail address: [email protected] NTFPs normally do not enter offi cial government sta- Authos: Marco Stark (1964- ), male, German, PhD, agronomist, tistics. An exception is some high-value products that specialized in sustainable natural resource management, and are exported, such as the Matsutake mushroom. ecological and Fairtrade certifi cation. NTFPs have attracted considerable interest as

24 Stark M., et al. / Ecological Economy (2008)4: 24-34 a component of sustainable development initia- version Program (SLCP), many upland communities tives in recent years due to their ability to support have lost a signifi cant income source (from timber). and improve rural livelihoods while contributing Many upland households have substituted this loss by to environmental objectives, including biodiversity intensifying the collection of NTFPs from natural and conservation. The eco-friendly and people-friendly planted forests. This has led to a severe decline of connotations associated with NTFPs have supported some products and, thus, poses an increasing threat to some products to fi ll in a niche in international trade, biodiversity. As most collectors of NTFPs lack basic such as the small, but rapidly growing Fairtrade mar- market knowledge and rely on traders to sell their ket. However, despite this positive image, there is no produce, they only earn a small income from NTFPs. guarantee of a benefi cial outcome and the utilization One of the potential solutions that can benefit and of NTFPs requires the same measure of planning bridge economic and environmental goals is product and control that is required for timber in order to be certification under organic, Fairtrade or sustainable sustainable. Decisive factors in the sustainable use of forest management schemes. NTFPs that can be NTFPs include government involvement, the ability dried, further processed and stored, such as nuts, me- of local people to claim and enforce use rights (NTFPs dicinal plants and mushrooms for example, may be are in most cases openly accessible), market transpar- particularly suited since distance to markets poses a ency and access, and pressure on the resource [3]. serious logistical challenge. At present, the relatively Higher value is often associated with higher wealthier consumers of certified products are only harvest levels and more intensive management. Un- found in the big cities in the east of the country or like the larger number of less valuable NTFPs, those abroad. with a high market value are often not harvested in The objectives of this paper are to review the ma- a benign way, and many are lost to the poor as other jor knowledge gaps and present initial research and stakeholders take over control. An example from development initiatives related to the natural resource Southwest China is the case of Taxus wallichiana, a “NTFP” in mountainous Southwest China. More tree species whose bark is used to extract an active specifically, the paper aims to evaluate and discuss ingredient against cancer. Maximizing the harvest by the potential and constraints of certification for the stripping off as much bark as possible kills the trees sustainable management of NTFPs and for improving and has terminated the resource in a short period of incomes among some of the poorest upland commu- time. nities in China. Domestication of NTFPs can be a way to inten- The paper does not aim to offer a detailed litera- sify production (through higher yields, improved and/ ture review of the topic, but rather provide a base for or more consistent quality, and control over timing of discussion. Information presented in this paper from harvest), secure producer rights and reduce pressure literature reviews is limited largely to the English lit- on wild resources. Its risks are that domestication erature and focuses mainly on Yunnan Province. Re- of products originally harvested from the wild can search on the commodity chains of some of the most lead to genetic homogenization, reduce the economic important NTFPs in Yunnan Province is ongoing. value of wild systems (up to the point where natural So are development efforts to build capacity among forest land is being cleared to grow domesticated NT- upland communities and development facilitators to FPs on a larger scale) and lead to transfer of benefi ts explore and implement smallholder group certifica- from one group of stakeholders to another [4]. tion for organic, fair and sustainable management of In China, products from natural and planted for- valuable natural non-timber forest resources. ests play an important role in the household economy, especially in the more remote mountain area in the 2. Yunnan: a global biodiversity and NTFP-“hot- southwest of the country that lacks other business op- spot” portunities. With the enforcement of a strict logging ban in 2000 on all natural forests and the gradual The rich varieties of non-timber forest products conversion of land above 25 degrees of slope from in Southwest China, many of which have been used annual into tree crops under the Sloping Land Con- by people for centuries, have been well-documented

25 Stark M., et al. / Ecological Economy (2008)4: 24-34 in Pei [5, 6], and Zu and Jiang [7] to name just a few. natural or planted forests is normally not restricted, Zu and Jiang point out that more than 6,000 plant they have been increasingly exploited to compensate species growing in China are being used for medi- for those production losses without a long-term view cal purposes, among which more than eighty% grow towards their sustainable use. wild in the forest. However, the fast process of mod- Northwestern Yunnan has become of particular ernization, urbanization and globalization (and as- research interest in recent years because the moun- sociated climatic changes) not only increasingly adds tain watersheds harbor great biological and cultural more entries to the list of extinct species (i.e. rapidly diversity, and is one of just a few places on earth reduces biodiversity), but also leads to the gradual recognized as both a Global Biodiversity Hotspot [9] and irretrievable loss of indigenous knowledge on the and Global 200 Priority Ecoregion [10]. The area was uses of medicinal plants and other NTFPs. Despite declared a World Natural and Cultural Heritage site the rich knowledge on medicinal plants for example, by the United Nations Educational, Scientific, and past research and development efforts have rarely Cultural Organization (UNESCO) in 2003 (see http:// thought of setting up an inventory and monitoring whc.unesco.org/en/list). Northwest Yunnan (an area system, nor have they addressed management issues covering almost 70,000km2, with an elevation rang- related to these and other NTFPs in China. ing from below 1,000m up to 6,700m above sea lev- Among the many non-timber forest products that el) is the home to more than 15 offi cially-recognized are being extracted by rural households from natural ethnic groups. These groups pursue complex liveli- and planted forests and plantations in the mountains hoods – based on a wealth of knowledge, beliefs, of Yunnan Province, mushrooms and medicinal and institutions – that maintain the region's diverse plants (both in many species and varieties), as well landscapes and natural resources. Forests account for as walnuts, pine nuts, wild vegetables, eucalyptus oil more than 60% of the land area of northwest Yunnan, and honey play an important role in the household and provide crucial economic and ecological ser- economy. Examples exist for institutional arrange- vices, including wildlife habitat, water retention and ments aimed at the sustainable utilization of NTFPs regulation, and soil erosion control. in communal forests for those products that are valu- Based on case studies conducted in northwestern able (and thus threatened by over-exploitation), such Yunnan, Xu and Wilkes [11] conclude that biodiversity as Matsutake mushroom. These are good examples loss in the region is mainly driven by land use and to learn from and improve upon and as emphasized land cover change and that market driven loss is cur- in FAO's State of the World's Forests [8]: “If benefi ts rently a major threat, especially for NTFPs. Cross- are to be provided on a sustainable basis to local border trade with the southeast Asian neighbors plays communities and to countries at large, more effective a significant role. Xu and Wilkes observe this as controls may be required to maintain populations of indicative of what is occurring in many global biodi- NTFPs at productive levels. The means to accom- versity hotspots. They point out that market informa- plish this will vary, but they must be built on sound tion is primarily supplied by outsiders who engage in economic and ecological principles, and often on tra- collection or procurement of local produce and who ditional institutions”. are unconcerned about sustainability of harvesting. Since enacting a logging ban in all natural forests However, buyers and traders are in many cases the in China under the Natural Forest Protection Program only link for rural communities (especially in remote (NFPP) in 2000 people that traditionally use forest areas) to the market. Xu and Wilkes also point out products (i.e. wood and non-timber products) for sub- that NTFPs are liable to agricultural product tax, but sistence and income needs, have seen their resource enforcement has been diffi cult. base diminish substantially. The Sloping Land Con- The Kunming Institute of Botany (KIB), China's version Program (SCLP; started in 1998) has further leading institution in the fields of biodiversity and reduced upland farmers' production options as SLCP ethnobotany in China, has recently intensifi ed its ap- land cannot be used to grow other crops in-between plied research work in partnership with the World the trees, even when trees are young and leave plenty Agroforestry Center (ICRAF). In 2004, ICRAF and of space for intercrops. Since the use of NTFPs in KIB jointly founded the Center for Mountain Ecosys-

26 Stark M., et al. / Ecological Economy (2008)4: 24-34 tem Studies (CMES) to collectively work towards un- conducted in 2003 in one of the poorest villages in derstanding the causes and effects of past and current Yunnan, Yangliu township. Seven valuable medicinal landuse changes in biologically and culturally diverse plants species were identifi ed that local farmers were mountain areas in Southwest China. Joint research interested to try growing on their land, recently con- has been conducted in northwest Yunnan that aims to verted to tree crops under the Sloping Land Conver- generate concrete recommendations for development sion Program. Agricultural land converted in China and policy on improved community-centered natural under the SLCP to tree crops (mainly peach and wal- resource management. nut trees) are prohibited from being used for growing Studies conducted by KIB, ICRAF and partners annual crops, even during the early establishment point to important knowledge gaps that may lead stage of the trees when there is ample space between to serious exploitation and unsustainable use of the them. To compensate for the income loss farmers natural resource “NTFP”, such as receive payment for each hectare of land converted • lack of basic knowledge on germplasm and to trees, for up to 8 years. However, medicinal plants non-existing or incomplete inventory, are not classified as annual crops and can thus be • no in-depth and long-term monitoring and insti- grown in-between the trees. It is commonly observed tutional arrangements to ascertain sustainable extrac- that trees in similar agroforestry system benefi t from tion levels of major NTFPs, the more intensive land management (weeding, fer- • insuffi cient market transparency for communi- tilizer application to crops) compared to leaving the ties (in terms of quality, price, markets for NTFPs), land fallow (and simply slashing the weeds). • only general, superficial knowledge of NTFP Starting from the spring in 2004, 6 farmer house- domestication and little understanding of the effects holds participated in this action research and tried of domestication on product quality and price and the growing the medicinal plants on a total area of 2ha. conservation of wild sources, They intercropped the medicinal plants with the ex- • no existing research on the full length of the isting young pear and walnut trees. After 18 months commodity chain for major non-timber forest prod- most species were ready for harvesting. Initial expe- ucts and the various actors in the chain. rience has shown that some medicinal plants have a high potential for domestication (such as Dipsacus 3. Toward improved NTFP management in north- daliensis, Foeniculi fructus and Pinellia ternata) and west Yunnan that a major constraint is lack of knowledge among farmers in the management of growing medicinal The two most important on-going research and plants on-farm. Since 2006, the action research has development projects of the Center for Mountain been extended to more villages and other parts of Ecosystem Studies related to the sustainable manage- mountainous Yunnan and CMES has cooperated with ment of NTFPs are presented and discussed in the the extension staff of Southwest Forestry College in following sections. The second, i.e. commodity chain promoting the growing of medicinal plants on SLCP analysis, is a prerequisite for development efforts land more widely. aiming for eco-certifi cation. It should be emphasized that the domestication of wild plant resources requires an iterative process of 3.1 Domestication of non-timber forest products: re- action research and basic scientifi c studies. Now that ducing pressure on natural resources the first medicinal plants have been ear-marked as performing well when grown on-farm, as a next step One strategy to reduce pressure on NTFP re- their active chemical ingredients need to be quanti- sources in their natural environment and create more fi ed and compared to those plant specimens growing income opportunities for farmers is domesticating in the wild. If this analysis confi rms that the quality them, i.e. growing them on-farm. CMES has pursued of the plants growing on-farm is satisfactory, produc- this option together with the Department of Forestry tion on farmers' fi elds can be confi dently promoted. in Baoshan prefecture, northwest Yunnan. As the fi rst In addition, inventories of wild resources over time step, a participatory survey of potential NTFPs was will need to be conducted to confi rm the claim that

27 Stark M., et al. / Ecological Economy (2008)4: 24-34 domestication is reducing pressure on the natural re- ough understanding of the commodity chain of NT- source base and, thus, supports biodiversity conserva- FPs – from producer/collector, trader and processor tion. Impact of domestication on market prices need up to retailer and consumer – is an essential base for to be examined as well. strategic development interventions at the local level However, since domestication of medicinal plants as well as a crucial source for sound policy recom- and other NTFPs is not applicable for the majority of mendations. The study used key informant interviews species, equal importance needs to be placed on the as the major tool. Target respondents were the main development of sustainable wild-collection systems. producers/collectors, traders/wholesalers, processors Certification of wild-collection can be an option to and retailers of the most important NTFPs from the provide incentives for conservation and sustainable study area, as well as local government staff. Inter- use and can strengthen local economies. Yet, the rich views were complemented by secondary data from diversity of NTFP species (among the group of me- government offices, such as information on trade, dicinal plants alone) and complex ecological interac- export and relevant legislation. tions, make certifi cation of wild resources a far more Major results, conclusions and recommendations challenging endeavor than the certifi cation of agricul- of this study are summarized below: tural crops (see http://www.fl oraweb.de/map-pro for NTFPs are of great importance in terms of more information). cash income for the majority of smallholder house- holds, and the market demand for all surveyed prod- 3.2 Commodity chain analysis of major non-timber ucts is stable or increasing. In the poorer villages, forest products: a prerequisite for market interven- medicinal plants constitute a key income source for tion most households who can derive up to 75% of their annual cash income from this activity. Walnuts and Agricultural crops have been well studied and pine-nuts are increasingly adding to household in- promoted by the Chinese government and interna- come as more of the planted trees start bearing fruits. tional research organizations worldwide. Non-timber A significant contribution to household income in forest products, on the contrary, have not yet received the wealthier villages comes from the collection of the attention they deserve. A better understanding high-value forest mushrooms, such as the Matsutake of their value in the household economy as well as mushroom (Tricholoma matsutake) that is largely in domestic and international markets (including re- exported to Japan and truffl e (Tuber sinensis) chiefl y gional cross-border trade) is needed to demonstrate sold to Europe. A single household can earn up to ten their importance for rural incomes and sustainable times the average annual per capita income from col- resource management. This information is also an es- lecting and selling Matsutake mushrooms. sential base for pursuing eco-certifi cation. Under this Over-harvesting is a threat to biodiversity premise we conducted a study in 2006 that focused conservation and to the sustained supply of NTFPs on the analysis of commodity chains of selected com- as a source of cash income. Collectors and traders mercially important non-timber forest products col- observed a steady decline for a range of medicinal lected and harvested in two townships (Yangliu and plant species, resulting in their increased value on the Shuizhai townships) in Baoshan prefecture. market. While for medicinal plants and truffl es it is Objectives of this research were to (1) identify a resource with free access to everyone (i.e. without those NTFPs that are the most important commodi- any control of over-harvesting), the case is different ties for farmers/collectors in Baoshan prefecture, (2) for Matsutake mushroom. Communal forest areas are document details of the commodity chain for the se- sub-dived and each household in the village has the lected NTFPs, and (3) identify opportunities and as- use rights to a certain piece of the forest. The high sociated strategies for improving rural communities' value of this particular NTFP has made it clear to benefi ts from NTFP management, harvest, processing users that a decline or complete loss of this resource and marketing, while preventing an over-use of the would harm their household economy and an infor- resource base. mal system of sustainable management has evolved The underlying research hypothesis is that a thor- (through privatized control over the resource).

28 Stark M., et al. / Ecological Economy (2008)4: 24-34

Collectors and smallholder producers face ment and group certifi cation have been key topics in major constraints to maximizing income benefits related training activities and workshops as described from NTFPs. In general, producers and collectors do in the following section. not have access to market knowledge (such as de- mand and price) and sell their produce individually to 4. Current certification initiatives in China: op- local (i.e. from within the village) or outside traders. portunities and challenges for smallholder farm- For the lack of a local production and marketing or- ers ganization there is also no processing (value adding) at the village level. Another issue is that the planting Certified organic agricultural production began of tree crops, such as pear and walnut (resulting from in China around 1990, after the Rural Ecosystems heavy government promotion), is not based on well- Division of the Nanjing Institute of Environmental founded knowledge of market development for the Sciences (now the Organic Food Development Cen- products. The large number of mature pear trees have ter of China [OFDC] under the State Environmental in recent years already led to an over-supply of fruits Protection Administration [SEPA]) became China's on local markets and a decline of prices, to the extend fi rst member of the International Federation of Inter- that fruits are not harvested. With the large number of national Agricultural Movements (IFOAM) in 1988 walnut trees planted in recent years it remains to be [12]. Since then, organic food production in China has seen whether an over-supply will result in drop-off in grown rapidly, mainly driven by demand from over- prices in six to eight years from now. seas markets in Europe, Japan and the USA. In recent Opportunities and needs for intervention are years demand for organic products on the domestic (1) building capacity among community members to market has been increasing, as the wealthy middle access market knowledge and explore joint market- class in China is rapidly growing (mainly in the big ing and processing initiatives, (2) investigating the cities in the east of the country) and consumers are potential benefi ts of group certifi cation under organic, increasingly becoming aware of the health benefits Fairtrade or sustainable forest management schemes of eating organic food. China's fi rst supermarket for to access alternative (so-called “niche”) markets and organic products opened in Shanghai in 2005. maintain valuable and ecologically important NTFP Aside from the Chinese certification agencies, resources, (3) building capacity within forestry exten- namely the Organic Food Development Center of sion services to promote the planting of a wider range China (OFDC) and the China Organic Food Certifi - of tree species (based on a thorough survey of market cation Center (COFCC), a number of international demand and prediction of future market develop- certifiers are now present in China (such OCIA, ments) and sound management systems (including ECOCERT, BCS, IMO, JONA, and others). The domestication of selected NTFPs), and (4) making certifi cation of farms growing crops for the overseas NTFPs more visible, i.e. draw government attention organic market by international certifi ers has started to the many important commodities that have not yet in 1995. entered offi cial statistics due to a lack of clear classi- Unlike in many other countries, where farmers fi cation and challenges in conducting inventories and were the drivers behind organic agriculture move- in monitoring home-use and informal trade; this will ments (at least during the early development stage), form the basis for improving legislation on sustain- organic food production initiatives in China were able management and the equitable share of revenues originally organized and managed by the govern- from NTFP resources. ment (state fi rms). While the government has moved Concurrently with the commodity chain analysis away from direct ownership and private firms have described above, CMES has started working with taken over now, smaller companies and smallholder government and NGO partners to build capacity farmers in poorer and remote areas, such as those in among facilitators (extension staff and community mountainous Southwest China, will need more gov- development workers) and farmer leaders to engage ernment support to overcome constraints to participa- communities in Southwest China in more profession- tion in the growing organic food market in China and al marketing initiatives. Improved quality manage- abroad. Even today, farmers are not the primary force

29 Stark M., et al. / Ecological Economy (2008)4: 24-34 behind the growth in organic production, but trad- market development for organic and natural products ing companies. These typically initiate certifi cation, in China. It does this through policy advice, estab- provide technical advice, organize needed input sup- lishing networks for dialogue and exchange, trainings ply, and take care of processing and marketing. This for all actors in the commodity chain, market devel- mode of operation also prevails in poorer regions and opment, and raising public awareness. It also aims to in wild-collection areas. Most of the certifi ed organic connect the Chinese organic sector with the interna- wild-collection of food and medicinal plant resources tional markets using the other BioFach events in Ger- is managed/controlled by a few large companies that many, Japan, United States and Brazil to promote the typically also are engaged in managing a number of Chinese organic industry. A yearly annual BioFach- organic farms. China product fair was launched in May 2007. The following sections report of three on-going Since the middle 2006, two training seminars innovative strategies that specifically address the for smallholder groups and supporting organiza- needs related to certifi cation of smallholder producers tions have been jointly realized by CMES, BioFach- and collectors of non-timber forest products and that China and OFDC. The first seminar and workshop have a direct bearing on biodiversity conservation. provided a platform for people from various fields These few examples draw a clear picture of the scale and professions (i.e. research/academe, government, of the challenge that most mountain farmers and the business, NGO sectors) currently involved in pro- supporters of such smallholder initiatives are cur- moting or doing organic farming and Fairtrade to rently facing. exchange views and ideas on opportunities and key challenges in Southwest China. It is obvious from the 4.1 Creating more opportunities for smallholder or- facts that were presented and discussed that organic ganic producers farming and Fairtrade have a great potential in China. Key challenges in Southwest China where mountain In 2005, CMES, the BioFach China project and farmers cultivate remote hilly lands of relatively the Organic Food Development Center of China low productivity (compared to the lowland areas in (OFDC) started their cooperation based on the as- the middle and east of the country) are (1) access sumption that the development of domestic market- to knowledge in production technology, processing ing and distribution business of organic agricultural and marketing, (2) access to markets (due to poor and non-timber forest products contributes to the infrastructure and lack of information), and (3) cost improvement of the socio-economic situation of of certifi cation (including those associated with com- smallholder mountain farmers in Southwest China. plying to certification requirements). The seminar- Joint capacity building initiatives have supported workshop also confirmed that organic food produc- building knowledge and skills among communities tion by smallholder farmers (in contrast to large-scale and development organizations to strengthen related farm enterprises and state-owned farms in the middle local initiatives, as well as raising awareness among and eastern part of the country that largely produce Chinese consumers regarding the benefi ts of organic for the export market), and more so Fairtrade, are still food production and Fairtrade. relatively new concepts in China. This is especially The BioFach China project is a public-private true for provinces in the southwestern part of the partnership project coordinated by the Nurem- country. berg Global Fairs with support from the Deutsche The focus of the second training was based on Investitions-und Entwicklungsgesellschaft (DEG, the conclusion from the first seminar: Community under the KfW banking group) and accompanied by facilitators, extension workers and local commu- the International Federation of Organic Agriculture nity/farmer group leaders need more knowledge on Movements (IFOAM) as the patron of BioFach fair the specifi c requirements rural producer groups need (for more information see URL: www.biofach-china. to follow and the skills they need to attain to engage com). The BioFach is the leading annual international more professionally in the production and marketing product fair for certifi ed organic products. The Bio- of their farm or non-timber forest produce. Quality Fach China project aims to contribute to the domestic awareness, internal control systems and smallholder

30 Stark M., et al. / Ecological Economy (2008)4: 24-34 group certifi cation were key topics during the train- wide that promote and market the Fairtrade label in ing. Participants were staff members of government their countries. FLO members currently operate in agencies, non-governmental organizations, research 15 European countries as well as Australia, Canada, institutions, certification agencies and the private Japan, Mexico, New Zealand and the United States. business sector directly involved in supporting or At present, FLO regularly inspects and certifi es about collaborating with rural communities. The IFOAM 508 producer organizations in more than 50 countries manual for setting up internal control systems, or in Africa, Asia and Latin America. The major stra- ICS, in the context of smallholder group certifi cation tegic intent of FLO is (1) to deliberately work with was translated into Chinese language and used for the marginalized producers and workers in order to help seminars. them move from a position of vulnerability to secu- In addition, the topic “Poverty Alleviation and rity and economic self-sufficiency, (2) to empower Organic Agriculture” has been introduced during producers and workers as stakeholders in their own several events in 2005/2006. In December, 2006, the organizations, and (3) to actively play a wider role in topic was presented during the first BioFach China the global arena to achieve greater equity in interna- Conference in Shanghai in order to create more tional trade (see http://www.fairtrade.net). awareness and to bring interested companies in con- In China, only two pilot Fairtrade projects exist so tact with small farmer initiatives. One of the core far (as of mid 2006), but many more producer groups experiences is that no functioning and successful or- have approached FLO to participate in the scheme. ganic smallholder project exists in China right now. As with organic certifi cation, the motivation to start a While certification under national and interna- Fairtrade producer group has come from companies tional organic labeling schemes has been the major interested in exploring this market niche for Chinese focus of this joint initiative, also alternative ways of tea. There is no awareness at farmers' level about marketing agricultural and non-timber forest products the existence of a market for Fairtrade products. The on the Chinese market will be explored in the future. export company assisted producers to form an asso- Alternative approaches to market organic products ciation and develop more technical, managerial and could be those that forego the need to obtain the label organizational skills. The tea associations have made of an accredited certifier (and thus reduce cost) by great progress in terms of embracing and applying all building consumer trust, i.e. develop localized direct- principles of Fairtrade and their communities have marketing schemes and promote products under a benefited greatly from the extra money (Premium) unique brand name. This may build on successful received from the sale of their FLO-certified tea examples in other parts of China, such as Hongkong, overseas. This can also be attributed to the annual and abroad (e.g. Thailand). inspections and resulting recommendations for im- provement given by FLO. 4.2 Emerging Fairtrade initiatives in China It may be time for scaling up the concept in Chi- na. The fi rst seminar organized by CMES, BioFach- Unlike certified organic production, Fairtrade China and OFDC (see previous section) has already certification is a relatively recent concept that con- raised considerable interest among NGO groups in tributes to sustainable development by supporting Southwest China to know more about the concept and better trading conditions for small-scale farmers in discuss it with the communities they work with. Re- the developing world. Higher prices paid by consum- cently, CMES has also been approached by the West- ers (mainly) in developed countries for a product that ern Academy of Beijing, an International School, to has been produced according to Fairtrade standards jointly promote Fairtrade in China's capital. means more income for producers and development support for their entire community. 4.3 Sustainable forest and NTFP management: For- Fairtrade Labelling Organizations International est Stewardship Council certifi cation (FLO) is the leading Fairtrade standard setting and certifi cation body. FLO was established in 1997 and The Forest Stewardship Council (FSC) is an is an association of 20 Labelling Initiatives world- international network whose mission is to promote

31 Stark M., et al. / Ecological Economy (2008)4: 24-34 environmentally appropriate, socially benefi cial, and portunities for other products (such a walnut, pine- economically viable management of the world's for- nut, truffl e, medicinal plants, etc.) to increase in value est. It provides a system for different stakeholders in- through FSC or any other certifi cation, will need to terested in forest issues to work towards responsible be confi rmed through further research. forest management. Through the FSC system, the for- est owners, managers, forest product manufacturers, 5. Summary discussion and conclusions local communities, non-governmental organizations and other interest groups are given equal access and The demand for certified products from well- voice (see http//:www.fsc.org). managed forests and agroforestry landscapes is on In 2001, WWF-China helped establish the Na- the rise. Smallholder producers and collectors of non- tional Working Group on Forest Certifi cation with 28 timber forest products are benefi ting from this trend representatives from the government, NGOs, enter- as has been observed in various parts of the world. prises, media, research institutions and trade organi- Recent studies conducted by the Center of Mountain zations. The main task of the Working Group is to put Ecosystem Studies show that NTFPs are an important forward strategies for forest certifi cation development source of household supply and cash income for the in China. A draft version of Chinese Forest Certifi ca- majority of upland farmers in Southwest China. Sus- tion Standard has since been completed, and a review tainable management is possible – as the case of Mat- is in process to ensure it satisfies the requirements sutake mushroom shows – but it does not normally of national laws, regulations and policies, while also exist for the majority of non-timber forest resources, meeting Forest Stewardship Council requirements. such as medicinal plants and truffle. The incentive The FSC China National Initiative was launched in for communities to develop a mechanism to regulate March, 2006 (see http//:www.forestandtradeasia.org). the access to natural resources does only exist when FSC certification can include non-timber forest producers or collectors understand and can enjoy resources as well (the most widely-know is Brazil the economic and environmental benefi ts from such nut). All NTFPs that bear the FSC logo must come intervention. While resource privatization can lead from fully FSC certifi ed forests and the management to sustainable management of NTFPs – as observed system must be evaluated for each NTFP. However, with Matustake mushroom growing in Baoshan even though the NTFP Working Group of FSC has prefecture, Northwest Yunnan – it can also create or been attempting to put NTFP certifi cation into prac- enlarge disparity in income levels within the commu- tice since 1996, experience with the certification of nity, as only a fraction of all households benefi ts from NTFPs is still relatively new. Ecological, economic the valuable resource. Government regulation, such and social implications related to controlled harvest- as taxation of the mushroom trade, can help improve ing of the large variety of plant species in complex the existing system so that every community member eco-systems and to adding value to these natural re- will benefi t. sources are still not well-understood. In many coun- Domestication of NTFPs is one way to generate tries, land tenure or long-term land use rights compli- income and reduce pressure on natural resources; it cate the issue. That FSC-certified NTFPs command is, however, only applicable for plants that can be a price premium in the market is also not yet proven easily grown on-farm, such as some medicinal plants. for the majority of products. Besides, if plants that demand a good price in the The Center for Mountain Ecosystem Studies market can be easily domesticated, more people will has started discussing with WWF-China and FSC to grow them or even companies might start production start a pilot project on community-managed forest on a much larger scale. This may cause fi erce compe- and NTFPs in Southwest China. So far, only forest tition and is likely to change market prices. plantations have been granted FSC certifi cation in the Certifi cation may be a more effective way to bal- country. Presumably the Matsutake mushroom that ance income needs and biodiversity conservation is harvested by the community from the community- goals on a larger scale. Certifi cation systems relevant owned pine forest may fetch higher prices in Japan, for NTFPs include organic agriculture, sustainable once it bears the FSC label. This, as well as the op- forest management (FSC) and Fairtrade. While FSC

32 Stark M., et al. / Ecological Economy (2008)4: 24-34 certifi cation may be the most “natural” scheme for a are working with poor communities where no such forest product, it is also the most diffi cult certifi cation company-farmer scheme exists to develop or advance to obtain, in terms of the evaluation process and cost. local business models by integrating economic, social In addition FSC-certified NTFPs may initially not and ecological benefits. They build capacity among sell as well as products that bear a well-recognized producers of agricultural or handicraft products or organic certifi cation label; most consumers may have collectors of NTFP to work together and jointly never heard about FSC-certifi ed non-wood products. market their produce to enlarge profits. However, Recent discussions regarding combining certifi ca- improved market access is the major goal, certifi ca- tion schemes to reduce time and cost (see http://www. tion just one of several potential pathways. Trainings isealalliance.org), have not been held in China yet that have been initiated by the BioFach-China project since only organic certifi cation is more widely known in cooperation with Center for Mountain Ecosystem in the country. Combining certifi cation schemes, i.e. Studies and the Organic Food Development Center of organic, Fairtrade and sustainable forest management China support building the knowledge base needed certifi cations, makes progressively more sense as all by community development facilitators, local leaders are moving towards holistic approaches, i.e. incorpo- and certifiers to develop capacity among communi- rating ecological, social and economic aspects in their ties to set up and run a market-oriented association. It respective standards. Therefore, the overlap between needs to start from the basics of organizational man- standards of all three major certifi cation schemes is agement, including quality assurance and internal increasing. NTFPs have played a key role in this dis- control systems in smallholder groups. A producer cussion since they can be certifi ed under any of the and marketing group will need this fundamental three major certifi cation schemes. knowledge, whether the group likes to pursue certifi - It is a positive development that certifi cation has cation or just wants to improve its marketing power. become more affordable in the developing world Aiming for certification may not always be the since group certification became available and IF- best option, as the domestic market for certified OAM published a guidance manual for producer NTFP is limited and the challenges to export beyond organizations applying for smallholder group certi- solution for many small producers groups, and with fi cation in 2004. The challenges for smallholders in Fairtrade still in its infant stage in China. Alterna- China's mountainous southwestern provinces, how- tive pathways need to be explored with equal vigor. ever, are still more profound. Right now, no function- Developing a brand name for community products ing and successful organic smallholder project exists from sustainably managed farm and forest land, link- in China. The government-promoted “Farmers plus ing with consumers and building trust are steps that Company Model” has worked well and without major need to be explored. Groups and facilitators need to confl icts where it has been applied in the past. Trad- learn from outside experiences, such as the successful ers and processing businesses have contributed their government-supported promotion of upland village skills, fi nancial resources/investments (e.g. in storage products in Thailand. and processing facilities) and their established busi- The initiatives presented above (Section 4) pro- ness connections, all of which rural communities usu- vide new directions and alternative models for more ally do not have. This is also how the Fairtrade pilot genuinely helping smallholder farmers and collec- projects were initiated (i.e. through the initiative of tors engage in production and marketing in line the export company) and are still functioning today, with environmental and Fairtrade standards. Outside with a notable increase in empowerment of the pro- facilitators, especially non-governmental organiza- ducer associations over time, however. In any such tions, can play a decisive role in moving such initia- case, there is no fast way for communities to take tives in China forward by helping communities attain over the role that the company has played. And not the needed technical, organizational and managerial many may have the desire to do so as it requires com- skills. Successful examples can be extrapolated and mitment, time and patience at the start, and hence, are implemented with the lead of local governments and satisfi ed with the status quo. extension staff, and findings can be shared through Many NGOs, especially in Southwest China, national and international networks to enhance

33 Stark M., et al. / Ecological Economy (2008)4: 24-34 mutual learning. Drafting of policy recommendations KIB Kunming Institute of Botany and discussion papers – based on thorough evalua- NFPP Natural Forest Protection Program tion of initial successful cases and approaches – can NGO Non-Governmental Organization enhance discussion and exchange, and scale up im- NTFP Non-Timber Forest Product pact. However, more needs to be done. NTFPs need OCIA Organic Crop Improvement Association to be duly recognized and monitored like any other OFDC Organic Food Development Center commodity by the government, and use rights need SLCP Sloping Land Conversion Program to be improved. Research organizations have a role SEPA State Environmental Protection Administration to play in helping understand the ecology, reproduc- UNESCO United Nations Educational, Sci- tive capacity over time and sustainable management entifi c, and Cultural Organization of NTFPs. Moreover, consumer awareness need to be WWF World Wildlife Fund raised, and innovative partnerships sought with the business sector (such as looking at effective public References private partnerships and corporate social responsibil- ity) to make the production and marketing of NTFPs [1] FAO. Towards a harmonized defi nition of non-wood forest a successful endeavor, from an economic, social and products. Unasylva 1999; 50 (3): 63-64 [2] FAO. State of the World's Forests 1997. Rome, Italy: Food environmental perspective. and Agriculture Organization of the United Nations; 1997

[3] Tropenbos International. Digital reference guide: non- Acknowledgements timber forest products. Accessed on 20th June 2005 from Tropenbos International website: http://www.tropenbos. The research is support by the Centrum fuer In- nl/DRG/NTFP.htm. ternationale Migration und Entwicklung (CIM; www. [4] Belcher BM. What isn't an NTFP? International Forestry cimonline.de). The development work described in Review 2003; 5 (2): 161-168 the paper was mainly funded by MISEREOR and the [5] Pei SJ. Preliminary study of ethnobotany in xishuang banna, Ford Foundation. people's republic of china. Journal of Ethnopharmacology 1985; 13(2): 121-137 Appendix A: List of acronyms [6] Pei SJ. Ethnobotany of indigenous non-wood forest prod- ucts in Xishuangbanna of Yunnan in Southwest China. In: Jain SK (editor). Ethnobiology in human welfare. New CIM Centrum fuer Internationale Migration und Delhi, India: Deep Publications; 1996 Entwicklung [7] Zhu Z, Jiang C. Non-timber forest products and forest bio- CMES Center for Mountain Ecosystem Studies diversity in China. Beijing, China: International Academic COFCC China Organic Food Certifi cation Center Publishers / Beijing World Publishing Corporation; 2001 DEG Deutsche Investitions- und Entwicklungsge- [8] FAO. State of the world's forests 2003. Rome, Italy: Food sellschaft and Agriculture Organization of the United Nations; 2003 FLO Fairtrade Labelling Organizations [9] Myers N, Mittermeier RA,et al. Biodiversity hotspots for FSC Forest Stewardship Council conservation priorities. Nature 2000; 403: 853-858 ICRAF World Agroforestry Centre (formerly: Inter- [10] Olson DM, Dinerstein E. The global 200: priority ecore- national Centre for Research in Agroforestry) gions for global conservation. Annals of the Missouri Bo- ICS Internal Control System tanical Garden 2002; 89 (2): 199-224 [11] Xu J, Wilkes A. Biodiversity impact analysis in northwest IFOAM International Federation of Organic Agri- Yunnan, southwest China. Biodiversity and Conservation culture Movements 2004; 13: 959-983 IMO Institute for Marketecology [12] Giovannucci D. Organic agriculture and poverty reduction JONA Japan Organic & Natural Foods Association in Asia: China and India focus. IFAD Offi ce of Evaluation: KfW Kreditanstalt fuer Wiederaufbau Rome, Italy; 2005

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