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Village Tree Enterprise in – supporting development of small enterprises based on non-wood forest products

T. Hill, Y. Ouedraogo and L. Conditamde

A review of outcomes, two years on-wood forest products nities remains a familiar characteristic into an initiative to build the (NWFPs) are an important of rural livelihoods in the . TREE capacity of poor rural households Npart of traditional livelihoods AID, a non-governmental organization in Burkina Faso to generate and culture in the West African Sahel (NGO) based in the United Kingdom, has income from tree products. and remain popular not only with rural developed a series of initiatives to help people, but also with recently urban- rural populations in the region take fuller ized populations. Villagers generally advantage of opportunities for commer- have free access to communal forest cial trade in tree and forest products. resources. NWFPs are already an impor- This article focuses on the Village Tree tant source of income for rural house- Enterprise project in Burkina Faso. holds – especially for women, as NWFP harvesting and marketing is a traditional VILLAGE TREE ENTERPRISE preserve of women in Africa. Although PROJECT official statistics are rare, informal evi- In January 2005, various departments dence indicates that trade in NWFPs has of the Burkina Faso Government, local grown in recent years, both domestically and internationally. Selling dried baobab leaves and other forest- Yet isolation from marketing opportu- derived condiments in Fada market, Burkina Faso

Tony Hill is Programme Support Director, TREE #+&7PKVGF-KPIFQO1HſEG$TKUVQN7PKVGF Kingdom. Yacouba Ouedraogo is Programme Coordinator, and Ludovic Conditamde is TREE AID 2TQLGEVU1HſEGT64''#+&9GUV#HTKEC1HſEG , Burkina Faso.

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1 241)4'55+0$74-+0#(#51 Village Tree The MA&D process has been completed Enterprise project sites in 28 villages in Burkina Faso. By the end o f t he first phase, villagers had come up with a short list of 41 tree products with marketing potential. By the end of the process 164 tree product interest groups had emerged, with a total mem- bership of 1 735. Each of these groups has produced an Enterprise Develop- ment Plan. In all, the plans are based on 17 different NWFPs derived from nine tree species plus various flowering plant species (Table). The aggregated income forecast in the 164 Enterprise Development Plans is more than US$1.5 million. While it is important to stress NGOs, TREE AID and FAO joined created in northern in late 2006. that this figure represents potential forces to launch a pilot project for the The Village Tree Enterprise initiative turnover rather than realized profit, promotion of small business develop- will soon be running in 172 villages at it is indicative of the relative value ment based on tree and forest products: 17 sites (Figure 1). of NWFP markets to households with Village Tree Enterprise. The pilot project adopted a Market Analysis and Develop- Forest products targeted in Enterprise Development Plans ment (MA&D) approach (see Box, p. 34) Species Product No. of plans Commercial potential to entrepreneurial organization and based on capacity building at the village level to this product Local National International improve local processing and marketing Vitellaria paradoxa Unprocessed shea nuts 35 of NWFPs. A baseline survey carried out at the project’s start showed that 13 Vitellaria paradoxa Processed shea butter 23

percent of total household income in the Adansonia digitata Edible leaves 23 project area came from tree products. To ensure the project’s policy impact Tamarindus indica Fruit, mostly for juice 14

and the replicability and sustainability Parkia biglobosa Unprocessed seeds 13 of support for village tree enterprises, Soumbala’ condiment Parkia biglobosa 13 the project brought together NGO and from fermented seeds government field staff; they were trained Parkia biglobosa Honey (raw) 10 side by side in the MA&D approach and Soap, produced with oil Balanites aegyptiaca 6 paired up in the field to implement the from seeds approach at village level. Tamarindus indica Edible leaves (dried) 6 Initially the project began work in 29 Acacia Edible seeds 6 villages in eight sites in Burkina Faso, macrostachya (TWKVRWNRQTƀQWT plus another six villages just over the Adansonia digitata 5 mostly used for drinks border in . In April 2005 TREE AID Acacia Gum arabic 5 secured a grant to continue this work and Flowering plant Filtered honey 3 expand it over five years to cover 50 species villages in Burkina Faso and 20 in Mali. Saba senegalensis Dried fruit 3 Additional funding obtained through the European Commission’s Tropical Ziziphus mauritiana Dried fruit 3 Forests Programme has made it pos- Balanites aegyptiaca Unprocessed seeds 2 sible to expand the initiative further in Flowering plant Beeswax 1 both countries. A parallel initiative was species

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What is Market Analysis and Development?

Market Analysis and Development (MA&D) is a methodology developed by FAO and the Regional Community Forestry Training %GPVGTHQT#UKCCPFVJG2CEKſE 4'%1(6% VQCUUKUVNQECNGPVTGRTGPGWTUKPFGXGNQRKPIKPEQOGIGPGTCVKPIGPVGTRTKUGUYJKNGEQPUGT ving tree and forest resources. The approach has been especially developed for application in areas where literacy is low and access to markets limited. It enables poor rural households to assess potential returns and risks associated with different strategies for the development of enterprises based on tree and forest products. The MA&D process systematically includes social and environmental concerns alongside consideration of technological, commercial CPFſPCPEKCNCURGEVUQHOCTMGVKPICRTQFWEV+VVJGTGHQTGGPCDNGURGQRNGVQKFGPVKH[RQVGPVKCNRTQFWEVUCPFFGXGNQROCTMGVUVJCVYKNN RTQXKFGKPEQOGCPFDGPGſVUYKVJQWVFGITCFKPIVJGTGUQWTEGDCUG#UUGUUKPINQECNGPXKTQPOGPVCNUWUVCKPCDKNKV[KUCPKPVGITCNRCTVQH identifying and planning potential enterprises. Guidelines have been developed to help determine which products will be most viable in the marketplace. After preliminary planning, the process is conducted in three phases, each broken down into a series of steps: Ŗ KFGPVKſECVKQPQHRQVGPVKCNGPVGTRTKUGUŌVJTQWIJKPXGPVQT[QHGZKUVKPITGUQWTEGUCPFRTQFWEVUTGEQIPKVKQPQHRTQFWEVUVJCVCTG CNTGCF[RTQXKFKPIKPEQOGHQTNQECNRGQRNGCPFGNKOKPCVKQPQHPQPXKCDNGRTQFWEVUŌCPFQHſPCPEKCNQDLGEVKXGUD[NQECNRGQRNG interested in developing enterprises; Ŗ UGNGEVKQPQHVJGOQUVRTQOKUKPIRTQFWEVUKFGPVKſECVKQPQHRQVGPVKCNOCTMGVUCPFFKUEWUUKQPQHOGCPUVQEQOOGTEKCNK\GVJGRTQ- ducts; • preparation of an enterprise strategy and business plan and training through a pilot phase, including learning to monitor progress and to adapt when change is needed. MA&D is a framework that can be tailored to different contexts, purposes and products. Some countries where FAO has used this CRRTQCEJCTG$WTMKPC(CUQ%QNQODKCVJG)CODKCVJG.CQ2GQRNGŏU&GOQETCVKE4GRWDNKE/CNK/QPIQNKC-[TI[\UVCP5GTDKCCPF Uganda.

MA&D MATERIALS #P/#&ſGNFOCPWCN Community based tree and forest product enterprises: Market Analysis and Development (#1 JCUDGGP FGUKIPGFVQIWKFGſGNFRTCEVKVKQPGTUYJQYKNNCUUKUVNQECNRGQRNGKPEQPFWEVKPIVJG/#&RTQEGUU+VEQPUKUVUQHUKZDQQMNGVUCPFC map of the process. Field facilitators guidelinesEQORNGOGPVUVJGſGNFOCPWCNRTQXKFKPIGCU[VQHQNNQYFGUETKRVKQPUQHRTCEVKECNOGVJQFUCPFſGNFVQQNU that may be used to turn villagers into successful small-scale entrepreneurs. The user of the guidelines does not need to be an expert in business management in order to implement them. Also available are case studies sharing the experiences and lessons learned in different countries, illustrating enabling conditions for developing small-scale forest enterprises. All of these materials as well as further information are available online at: www.fao.org/forestry/enterprises 6JGRWDNKECVKQPUECPCNUQDGTGSWGUVGFD[UGPFKPICPGOCKNVQ(1RWDNKECVKQPU"HCQQTI

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to establish fruit-tree orchards faced a Tree nursery techniques particular problem, because under tra- ditional tenure systems it is difficult for Utilization of shea butter equipment individual women to establish secure Harvesting techniques land tenure. However, groups of women Apiculture were better able to negotiate with their Plantation establishment and maintainance village chiefs to secure access to land Financial management on which to plant orchards. The progress to date suggests that the Assisted natural regeneration techniques participatory and iterative nature of the Bush fire management MA&D approach is apt for supporting Product pocessing techniques rural producers in addressing constraints Management and conservation of resources and barriers to enterprise development

01020304050 based on the sustainable use of NWFPs. However, the approach is demanding No. of groups of time and resources. Skilled facilita- 2 tors, adequate investment in training +FGPVKſGFPGGFUHQT users to address issues such as access (around six days for each of the three technical training to and control of forest resources, phases of the MA&D approach) and conflict management, tree cutting adequate field support and supervision an average annual income of around regimes, tree product harvesting are particularly important. As MA&D US$1 000. rules and bush fire management. is not a quick approach, it should best Support needs identified in the Enter- be seen as an investment in long-term prise Development Plans include the CHALLENGES FACED sustainability. following. The first participating villages took • Loan finance. All but five (159) of about 18 months to produce their draft SUPPORTING PRODUCERS TO the groups seek loans, for a total of plans and another six months to finalize IMPLEMENT THEIR ENTERPRISE US$177 000. Most loans are intended them. The process was slowed by the lack DEVELOPMENT PLANS to meet requirements for working of experience among all stakeholders, The next immediate priorities for the Vil- capital, with suggested repayment the challenges of coordinating inputs of lage Tree Enterprise initiative are to: periods of 6 to 12 months. government agencies and NGOs, and • negotiate agreements for provision • Natural resource management. seasonal unavailability of local people of credit services; Many plans spell out needs for ma- engaged in agricultural fieldwork. • consider direct support for procure- terial and technical support for the The main technical difficulty faced ment of major capital items; establishment of tree nurseries, or- by partner NGOs and villagers was in • provide relevant training inputs; chards (64 ha total) and protection of the assessment of NWFP harvesting • secure additional financial support existing forests (extending to 213 ha) rates that could be sustained without for forest management components – suggesting the potential for NWFP degrading the resource base. Another of Enterprise Development Plans enterprises to stimulate local invest- challenge was many participants’ expec- through TREE AID charitable do- ment in sustainable management of tation of direct material or financial nors to enable village enterprises forests and woodlands. An important assistance from donors, which other to invest in better management of aspect of the identified need is for projects in the area had provided. In forests and woodlands; technical training (Figure 2). some project areas product targeting • recruit local staff and international • Organizational development. Plans had to be revisited because the initial specialists to incorporate new enter- outline needs for training in financial selection centred on the products’ per- prise development skills in the TREE management, cooperative manage- ceived social value, rather than on its AID management team. ment and improved literacy, along economic viability as a basis for enter- Recognizing that secure access to and with technical support to facilitate prise development as emphasized by the control of forest resources for poor fami- local resource management agree- MA&D approach. Another challenge NKGUYKNNDGETKVKECNKHVJG[CTGVQDGPGſV ments. Producers foresee a need was effective involvement of poorer from NWFP development, TREE AID is for local agreements among forest households and women. Women wishing GODCTMKPIQPCOCLQTſXG[GCTRTQLGEV

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• How can the outcomes of the ini- tiative be sustained within exist- ing, traditional social structures, with a strongly established hierar- chy, while fostering representative producer groups and ensuring that the individuals or groups with the most political or economic power and influence do not capture all the benefits? • How can it be ensured that an ap- propriate portion of returns are rein- vested in sustainable forest manage- ment? TREE AID Field training for Market • What is the best way to facilitate Analysis and Development ket information and communication effective communication within and (MA&D) facilitators, services to support the passage of among geographically isolated pro- Kogyende Village, Barsalogho, Burkina Faso producers from local to national and ducer groups and networks? international markets and to connect • How can conflicting interests – e.g. (with funding from the United Kingdom them to service providers and policy- relating to allocation of human and Department of International Development makers. financial resources to support grow- [DFID]) to create a favourable policy envi- These plans will be taken forward in ing enterprises, and different inter- ronment and institutional framework for partnership with FAO and the Inter- ests of men and women – be resolved forest governance in Burkina Faso. Rather national Institute for Environment and at the household level? than policy change, the main concern is Development (IIED) through the Forest • How can government be encouraged effective and participatory implementa- Connect initiative (see www.fao.org/ to develop NWFPs to maximize not tion of existing national policy for decen- forestry/site/42297). only export earnings, but also bene- tralized natural resource management and Government trade policy has not sur- fits for poor rural households? of the Forest Code. This project will work faced as a critical issue yet, but potential Yet the Village Tree Enterprise initia- with new decentralized government struc- emerging issues are official and unoffi- tive has already helped rural communities tures and civil society organizations at cial barriers to regional trade, local taxa- analyse opportunities, structure enqui- the village or commune (township) level, tion policies of recently established com- ries and overcome immediate problems government service providers and local mune-level government, market access in accessing information, finance and NGO partners at the department (sub- for imported tree product substitutes services. It has also helped them to com- provincial) level, relevant government and regulation of international trade for municate with each other and recognize ministries at the national level, and forest major tree product exports such as shea mutual interests. As such it represents a governance learning groups in neigh- nuts/butter and gum arabic. step towards creating viable enterprises bouring Mali and Ghana. that can help alleviate poverty. X In the medium term, TREE AID also (14(746*'4914- plans to: The Village Tree Enterprise initiative is • develop new partnerships with agen- a work in progress, and many questions cies in Burkina Faso to bring a wider are still to be resolved. For example: range of skills and experience to the • What is the right level of incentives process of supporting small enter- to support entrepreneurs faced with prise development; financial capital constraints, without • provide additional support for newly encouraging dependence? established producer groups and as- • How can growing enterprises se- sociations in business development cure access to increasingly valuable components of their Enterprise De- resources without depriving other velopment Plans; users or being squeezed out by more • develop national and regional mar- powerful interests?

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