PROJECT Why does conventional agribusiness fail at poverty DEVELOPMENT Qreduction and environmental TIPS protection? Conduct adequate baseline research. Target smallholder farmers, raw-material collectors, It lacks an integrated, landscape-level Step 1: Use Community-based Tree and Forest Product and women in the development of the whole supply approach that links smallholders to Enterprises: Market Analysis and Development, and other chain. To enhance project success and ensure maximum Amarkets. Symptoms include: rapid research and business-planning tools to identify social benefit, work to create strategic market linkages and the range of products, issues, opportunities, and players. secure land and product tenure and access rights. Š Narrow focus on typical farm products, poor market and opportunity assessments, insufficient emphasis on small- Step 2: Choose one to two priority Be market driven. Choose products and industries on holders/women, and segmented technical interventions products/enterprises using market, environmental, the basis of market demand and customer needs. that do not address the whole market chain social, and technical/logistical selection criteria. Use private sector expertise for technical assistance. PUBLIC-PRIVATE Step 3: For rach, conduct an in-depth supply chain Conventional assistance is often too generic and “behind the Š Few strategic alliances with industry and buyers, resulting analysis to identify bottlenecks, potential interventions, curve” in terms of market demands and specifications. in product-driven, rather than market-driven, projects and market development opportunities. Foster Orient initial project activities toward improving raw PARTNERSHIPS Š Failure to address policy and business climate issues; partnerships with key players.Tailor an approach to the material quality, price, and delivery to establish a typically, agricultural enterprise development targets unique needs and potentials for each product, industry, credible prior reputation. Import restrictions on novel larger businesses and neglects small rural enterprises and country—boilerplate strategies will not achieve or finished products make it difficult to sell them directly to RAISING Š Cluster Theory-based approaches proven unrealistic—too satisfactory results. North American and European markets.This requires a many products with widely varied needs, too short a time Focus on traditional products first. Draw on the high trusted buyer-supplier relationship, which evolves over time. RURAL INCOMES frame, environmental management issues ignored degree of local knowledge, familiarity, and existing Choose target markets carefully. Domestic/regional production and marketing infrastructure. New or markets often offer the least risk and best potential. Small AND PROTECTING Š Failure to integrate agriculture, private sector unfamiliar products require more start-up resources/time producers can have difficulty achieving export quality for THE ENVIRONMENT development, and environmental goals and carry more risk, especially for a short project time global markets such as the dietary supplement, frame. pharmaceutical, health, and beauty industries. Organic IN VIETNAM AND Accompany business and market development markets are booming and may be easier to access. What is an integrated with environmentally sound production and Establish a realistic time frame and relevant CAMBODIA processing. Carefully consider the environment during indicators of success. Most NTFP and agriculture landscape-level approach, and design so that development does not exacerbate enterprises take from five to ten years to mature into viable why is it better? environmental pressures. entities. Q This approach targets the whole Consult with reputable environmental groups Mainstream product development into national during project design to maximize environmental policy frameworks. Foster the development and market chain and takes into benefits and achieve real sustainability. Use their enforcement of pro-poor policies that keep benefits in the account its myriad influences. By expertise in the product and site-selection process and, hands of smallholders and protect the environment. A developing effective partnerships, potentially, for meeting resource management needs. Biology is the bottom line. Market development must Simply locating projects in strategic areas—degraded not occur without ensuring the sustainability of the everyone benefits—even small rural watersheds, protected-area buffer zones, wildlife resource base. Production and processing must be enterprises. corridors, and areas of rapid deforestation and environmentally sound. migration—can have great environmental benefits. Partnerships grow from mutual need and mutual N FARM PECIALTY ROPS ON TIMBER OREST RODUCTS benefit. Conventional agricultural and private sector O - S C & N - F P programs have good production and marketing skills but

Winrock International received a grant under the U.S. Agency for International often ignore biodiversity, water, and other aspects of the Development (USAID) MOBIS contract (M-OAA-OO4) “Environmental Support to ecosystem. Conservation groups often lack business Raise Rural Incomes in Asia.” The purpose of this award is to provide analysis and savvy and ignore market forces. Smallholders desperately concrete examples of how to more widely raise rural incomes while conserving natural resources in Asia, specifically Vietnam and Cambodia. need support and skills, and end buyers would benefit

USAID contact: Submitted by from greater knowledge of the people and conditions at U.S.Agency for International Winrock International the raw material sources on which they depend. Development 1621 North Kent Street Asia and the Near East Suite 1200 What connects them all is the market chain. A Bureau/Office of Technical Support Arlington,Virginia 22209 USA landscape approach leverages their valuable inputs; Washington, DC USA Contact: Devona Bell, Forestry and develops effective partnerships; and uses technology, Contact: Mary Melnyk, Senior Natural Resources Management Advisor, PhD [email protected] tools, and expertise to create win-win solutions. By Natural Resources Management www.winrock.org applying the right tools and approach, agribusiness and [email protected] rural enterprise development can further environmental and social goals. A SOLID FOUNDATION— SWEET “SUCCESS” UNTAPPED POTENTIAL— RESURRECTING KAMPOT PEPPER BAMBOO FLOORING SUSTAINABLE COCOA EXTENSION SERVICES TREE RESINS lack pepper from the district of Kampot was a he international home-furnishings industry is FOR SMALLHOLDERS ndustrial harvesting of Cambodian dipterocarps was prized specialty crop under the French, and making use of the knowledge and skills of he SUCCESS Alliance grew out of mutual need initiated under the French and all but destroyed under Bcontinues to be recognized there as gourmet spice. TVietnamese smallholdersIETNAM to procure sustainably and mutual benefit. To address pest problems that Ithe Khmer Rouge. It is slowly rebounding today, and While production is still low, the industry is slowly producedV bamboo. Local factories are overcoming a lack of Tthreatened the global supply of cacao, industry provides income and employment for 100,000 forest- rebounding in nearby districts through the efforts of market linkages and outdated infrastructure to meet high worked with USDA and USAID to reach thousands of dependent people. TheAMBODIA resins are used for a variety of outside investors and small growers and traders close to the smallholder farmers in Southeast Asia. In Vietnam, Cpurposes including caulk, candles, paint, varnish and Vietnamese border, many of whom are women. domestic and export demands. Such efforts draw on the thousands of rural families traditionally engaged as innovations in cocoa production now allow the crop to aromatic oils. Both domestic and regional demand is high; collectors, processors, craftspeople, and traders while help reclaim environmentally degraded areas and ensure the annual export income is an estimated US $6 million. Project Cornerstones helping protect a threatened resource and source of income sustainability of the industry as a whole. As smallholders With a strong tradition of customary ownership of Due diligence: conduct adequate background research on in impoverished rural areas. migrate to forest areas, cocoa production offers exciting individual trees, extraction is done on a sustainable basis. supply chains, markets and demand issues including new opportunities, but not at the expense of the Laws protect resin trees and international buyers, prices, grades, qualities, standards, Partners environment. and competition Cornerstones of Success customary rights but are not Partners: none at Product choice: bamboo is Partners: none at IKEA enforced. The main constraints to present Build capacity of the Cambodia easily harvested in a Cornerstones of Success Status: present Mekong Private Sector development are the high informal Herb and Spice Trade Association Status: growers sustainable manner; a high Development Industry-driven: USDA/USAID support accelerated environmental fees paid to officials and the lack of organizations to improve quality, increase organizing a trade degree of local technical Facility/International Finance previous industry activity association Corporation enforcement of existing laws. conducting baseline quantity, and develop sound knowledge and infrastructure and fostered environmentally research The Bamboo Factory Partners government and industrial development policy and exists and socially sound Governments of Vietnam, Masterfoods, Inc. Project Cornerstones practices production Project targets the whole Luxemburg, Netherlands USAID Due diligence: conduct background research on market Focus on direct exports into niche and specialty markets, market chain and smallholder National processing companies Product choice: Cocoa is USDA chains, export markets, processing requirement, Local communities World Cocoa Foundation not commodity markets in Vietnam farmers/collectors well-suited to smallholders competition, prices, key players, policy and regulatory ACDI–VOCA and easy on the issues, resource management practices and needs (see Encourage organic/integrated production methods in The right partners involved from the beginning Government of Vietnam/Ministry environment—grows well in of Agriculture and Rural Wildlife Conservation Society www.wcs.org and agroforestry systems—they may actually be more Enabling government policies and business climate small agroforests that Development Cambodian Development Research Council economical in addition to the environmental benefits enhance biodiversity and Nam Long University www.cdri.org.kh for more information) Bottlenecks identified and resolved: better market watershed protection EDF Mann and Cargill Increase yields by improving growing and harvesting linkages, updated technology, and environmentally Good governance: enforce laws that protect resin trees practices sustainable production methods using quick-growing The right partners, trust, and communication from logging, provide a legal basis for customary ownership, and protect harvesters and small enterprises native species, managed and restored natural stands, Long-term regional scope involves Vietnam, Indonesia, Women, NTFPs, and On-farm Specialty Crops— from the numerous and exorbitant informal fees that sustainable harvesting practices, resolution of tenure and The Philippines What's the Connection? conflicts impede development omen in Vietnam,Cambodia, and around the world play Targets the whole market chain: environmentally sound More information: www.mpfd.org The right partners: involve conservation groups, reputable a central role in rural agriculture and trade. In South growing and processing; local “cocoa clubs” formed and Vietnam, women are the commodity traders and local businesses and harvester associations, regional and W empowered; state research and extension services oversee local commerce in coffee, cacao, and pepper. As farmers international buyers and end-users and craftspeople, they grow cocoa and make products out of a strengthened; domestic, regional, and global linkages wide variety of non-timber forest products (NTFPs) including Tools and Resources fortified; policies mainstreamed and institutions developed Transboundary approach: foster legitimate transboundary bamboo, medicinal and dye plants, silk, and other botanical for long-term production and marketing assistance relations between businesses and communities to increase resources. In Kampong Cham Province of Cambodia, women Š Trade Shows: Natural Products Expo (USA,Asia, Europe); Supply Side (USA), market share/volume, develop a regional brand identity, traders and farmers of Muslim heritage dominate the pepper trade. Biofach (USA, Germany) Health Ingredients Europe (Paris), Fancy Foods More information: [email protected] Around the globe, developing sustainable rural industries based on Š Trade Associations:American Herbal Products Association (www.ahpa.org); and foster sustainable harvest and processing practices at NTFP and specialty products and emphasizing American Spice Trade Association (www.asta.org) the landscape level the involvement of women can have a Š Community-Based Tree and Forest Product Enterprises: Market Analysis and direct, immediate effect on the family Development. Field Facilitator Guidelines www.fao.org/forestry/site/25491/en while protecting forest cover, Š The Ecology and Management of Non-Timber Forest Resources,World Bank biodiversity, watershed function and Technical Paper #322 other environmental services. Š Making Markets Work Better for the Poor Program,Asian Development Bank http://www.markets4poor.org Š Non-Wood Forest Product Digest-L www.fao.org/forestry/site/12980/en PROMISING PARTNERSHIPS Š Global Development Research Center: http://www.gdrc.org/sustbiz/index.html Š Coalition for Environmentally Responsible Economies: http://www.ceres.org FROM FIELD AND FOREST