Conservation through Certification, Markets and Strengthening

DECEMBER 2015 of Small and Medium-sized Forest Enterprise Key outcomes of the IDB/MIF Regional Project ATN/ME-12087-RG Over the last two decades, countries across the tropics have devolved increasing authority over natural to local actors. The ability of those actors to manage forests sustainably and make a competitive land-use choice has therefore taken on a growing importance.

In Latin America, where is relatively advanced in comparison to other regions, Highlights achieved by the project over small and medium sized forest enterprises (SMEs) still five years of implementation include: face a host barriers to increasing their competitiveness and maximizing the benefits of sustainable . This IDB/MIF supported project was designed to facilitate solutions to these challenges, 100+ 90 working with community forests and SMEs in five community forests, communities managing SMEs and second-tier forest certified FSC countries in the region to: organizations supported standards or improved • Grow the area under sustainable forest forest management management by communities US $27,800,000 • Improve social organization, business skills and in sales achieved by 59 enterprise administration assisted SMEs agreements with • Diversify production, increase efficiencies and responsible buyers enhance quality control in domestic and US $9,100,000 international markets • Expand SME access to finance in finance facilitated • Establish alliances with responsible buyers to support enterprise development 64 CFEs applying the project system for MEXICO continual monitoring Atlantic Ocean 458 of competitiveness auditors and other indicators technical service providers The Alliance trained in FSC standards works to conserve 23 Duration: NICARAGUA new products (lesser- and ensure 2010–2015 sustainable livelihoods 1,564,000 known species, value- by transforming land- PERU hectares of forest added products, NTFPs) MIF contribution: certified to FSC standards with market penetration use practices, business US $4,500,000 practices and consumer or improved forest behavior. management Total project budget: Pacific

US $9,000,000 Ocean rainforest-alliance.org No. Case study Location

1 Awas Tingni indigenous Mayangna community North Atlantic Autonomous Region, Nicaragua

2 Moskibatana non-timber enterprise Muskitia, Honduras

3 Ejido El Largo Chihuahua, Mexico

4 CAIFUL cooperative Río Plátano Biosphere Reserve, Honduras

5 Forest management in community concessions Maya Biosphere Reserve, Guatemala

6 Brazil nut production and enterprise Madre de Dios, Peru

7 TIP Muebles Oaxaca, Mexico

8 Tres Islas native community Madre de Dios, Peru

9 Building markets for lesser-known species Maya Biosphere Reserve, Guatemala

10 Financial mechanisms for community forests Maya Biosphere Reserve, Guatemala

The project approached these issues utilizing an to conserving forest resources while also generating integrated approach that placed a high premium on significant social and economic benefits for building internal capacities to improve enterprise marginalized communities. While there is significant competitiveness, working through participatory heterogeneity among the cases—both in terms of processes to articulate business development plans, context and outcomes—the following key messages identify gaps and investments needs, and monitor emerge from the studies: progress over time. • Community forest enterprises (CFEs) can be highly profitable, and can contribute significantly to household livelihoods • CFEs can conserve forest as well as, or better than, protected areas, and implement forest management that will sustain timber and NTFP harvesting over the long term • CFEs can honor community aims and cultural values while creating new structures, professionalizing management and pursuing enterprise competitiveness • New markets for lesser-known species and value- added products can be forged by CFEs, and they can deliver quality products to highly demanding Case Study Highlights markets

One of the outputs of the project was the production • New loan mechanisms for CFEs can be developed, of ten case studies profiling the technical assistance and CFEs can successfully manage credits approach delivered by Rainforest Alliance, and • CFEs can create significant opportunities for the results achieved during implementation. Case women, especially when they diversify their Rainforest Alliance studies were carefully selected to cover all five businesses and build up value-added capacity countries where the project operated, and to Bolivia reflect the full range of partner SMEs—from highly To achieve such outcomes, however, CFEs require: Cameroon incipient community operations, to second-tier Ghana business alliances among multiple well-developed, • A supportive legal and institutional environment Guatemala certified enterprises. Special attention was also Indonesia paid to ensuring representativeness with respect • Solid social foundations and enterprise Kenya to forest ecosystems (temperate and tropical), administration capacities that are continually Mexico tenurearrangement (permanent and concession) and strengthened United Kingdom production focus (timber and non-timber). • Long-term support through technical assistance, USA transcending the typical project cycle Taken together, the ten studies support the growing • Links to responsible markets 233 Broadway body of evidence demonstrating that community- 28th Floor based production forestry is an effective approach • Access to finance tailored to local needs New York, NY 10279 Tel: 212/677-1900 For more information, or to support our work with community forests, please contact Ben Hodgdon at [email protected] Fax: 212/677-2187