NON TIMBER FOREST PRODUCTS RESEARCH CENTRE NON TIMBER FOREST PRODUCT SUB-SECTOR SUPPORT PROJECT

The Role of NTFPs in Poverty Alleviation and Biodiversity Conservation

Proceedings of the international workshop on the theme in Ha Noi, June 2007

The Role of NTFPs in Poverty Alleviation and Biodiversity Conservation

Proceedings of the international workshop on the theme in Ha Noi, June 2007

Editing team

Katherine Warner Edwin McCall Susan Garner

Communication and Publication Support

Nguyen Thi Bich Hue Tran Thi Thu Trang

February, 2008 Ha Noi, Viet Nam The designation of geographical entities in this book, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of IUCN concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication do not necessarily refl ect those of IUCN and other participating organizations. This publication is published with funding from the Royal Government of Netherlands and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH.

Published by: IUCN, Ha Noi, Viet Nam

Copyright: © 2008 International Union for Conservation of Nature and Natural Resources. Viet Nam Reproduction of this publication for educational or other non-commercial purposes is authorized without prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holders. Citation: International Union for Conservation of Nature and Natural Resources, 2008. International Conference Proceedings: The Role of NTFPs in Poverty Alleviation and Biodiversity Conservation. IUCN, Ha Noi, Viet Nam, 260 pp. Design by: Luck House Graphics Ltd. Cover photo: IUCN Viet Nam Printed by: Luck House Available from: The World Conservation Union (IUCN) 44/4 Van Bao street Ha Noi, Viet Nam Tel: 04-7261575 Fax: 04-7261561 Email: offi [email protected] Website: www.IUCN.org.vn Table of Contents Preface i Acknowledgements ii Acronyms iii Overview ix Plenary Opening 1 Opening speech 3 Welcoming remarks 5 National overview 7 NTFPs Conservation and Development: A Strategic Task of the Forestry Sector in Viet Nam 7 International overview 11 Gaining Much from Little: How ‘Minor’ Forest Products Can Have a Major Impact on Poverty Alleviation and Promote Biodiversity Conservation 11 NTFPs project introduction 18 Introduction to a NTFPs Project in Viet Nam 18 Papers of the Conference 23 Theme 1: Making the link - NTFPs impacts on poverty 25 1.1 NTFPs Impact Poverty, National Development and Biodiversity Conservation by Creation of Livelihood Assets 27 1.2 Community Initiatives on NTFPs Enterprises for Poverty Alleviation and Biodiversity Conservation: Multi-stakeholder Perspectives on an Effective and Enabling Environment 31 1.3 The Importance, Role and Value of Non-Wood Forest Products for Laotian Food Security, Nutrition and Livelihoods 32 1.4 Understanding and Supporting NTFPs Market Requirements: Managing Risk, Creating Success 42 1.5 NTFPs/MAPs Management’s Contribution to Livelihood Improvement of the Rural Poor and Lessons Learned from the Churia Programme: The Experience of CARE Nepal 48 Theme 2: Making the link - communication and networking 53 2.1 Viet Nam's NTFPs Network: Looking Ahead 55 2.2 A Cross-Country Exchange Workshop on Non-timber Forest Products (NTFPs) Enterprise Development for Poverty Alleviation, Vientiane, Laos, 24-27 April 60 2.3 An Innovative Approach to Information Sharing from Research on Non-timber Forest Products: Some Experiences from the NTFPs Sub-Sector Support Project in Viet Nam 64 Theme 3: Policy and strategy 73 3.1 Policy on Non-Timber Forest Products in Viet Nam 75 3.2 Placing Conservation & Sustainability before Marketing - the Situation of NWFP Management in Bhutan 83 Theme 4: Medicinal plants 91 4.1 Community-based Enterprises and Market Development for Medicinal and Aromatic Plants (MAPs) in the Greater Himalayan Region 93 4.2 Formulating a Model for Developing Medicinal Plants in Allocated Forest with the Participation of Local Community in the Buffer Zone of Bach Ma National Park 101 4.3 Conservation and Development of Two Valuable and Rare Medical Plants - Holarrhena antidysenterica and Clerodendron infortunatum in Youth Settling Village, Phuc Trach Commune, Huong Khe District, Ha Tinh Province 110 Theme 5: NTFPs models 113 5.1 Planting Medicinal Plants under the Forest Canopy: Solutions for Hunger and Poverty Alleviation and Conservation of Medical Plant Resources in Son La Province 115 5.2 Initial Achievements in Planting Amomum Longiligulare in Quan Chu Commune, Dai Tu District, Thai Nguyen Province 118 5.3 Development of Special Fruit Tree Models from Three Species: Pimela alba, Castanopsis boisii and Anise 123 Theme 6: Sustainable harvesting 127 6.1 Sustainable Wild Collection and NTFPs – the International Standard for Sustainable Wild Collection of Medicinal and Aromatic Plants (ISSC-MAP) 129 6.2 Some Gaps in the Conservation of Lyndera myrrha in Cam Xuyen District, Ha Tinh Province 138 6.3 Sustainable Harvesting of NTFPs in Natural Tropical Forests of India: Challenge Ahead for Livelihood Security of Forest Dependent Tribal Communities 141 6.4 Documentation and Trial of a Participatory Methodology to Sustainably Harvest Non-timber Forest Products 142 Theme 7: Methods 149 7.1 Market Analysis and Development (MA&D): Process, Methods, and Tools for Developing Community-based Enterprises 151 7.2 A Documentation Strategy to Develop the Potential of NTFPs as a Source of Livelihood Diversifi cation for Local Communities in the Batang Toru Orangutan Conservation Programme 157 7.3 Participatory Methodology for Production of NTFPs Training Materials: An Achievement of the NTFPs Project 159 7.4 How Can the Poor Benefi t from NTFPs Enterprise Development? An Exploration by CARE International's CEFM Project in Cho Don District, Bac Kan Province, Viet Nam 160 Theme 8: Business 171 8.1 NTFPs Business in Viet Nam 173 8.2 Community-based Enterprise of Malva Nut Juice in Eastern Thailand 174 8.3 Bridging the Gap – Medicinal Plants Innovation in Viet Nam 178 8.4 SECOIN’s Agarwood Product 187 Theme 9: Products 191 9.1 Great Stercutila (Sterculia foetida L.), the Status of Forest Resources, and Opportunities to Green Sandy Arid Wastelands and Generate Income for Local People in Ninh Thuan and Binh Thuan Provinces 193 9.2 The Role of NTFPs in Poverty Alleviation and Biodiversity Conservation 206 9.3 Palms as Non-timber Forest Products in Viet Nam 208 Closing Remarks 215 Closing Remarks 217 Annexes 219 Annex 1: Conference agenda 221 Annex 2: List of conference participants 229

THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation i Preface Non-Timber Forest Products (NTFPs) play an important role in the livelihoods of the rural poor, as a source of food, medicine, construction materials, and income throughout the world. This is refl ected in the Mekong region; in Viet Nam approximately 24 million people leaving in and around forest areas utilize NTFPs and in Lao PDR about 80% of the population pursue livelihoods within which NTFPs play a signifi cant The International Conference “The Role of Non-timber Forest Products (NTFPs) in Poverty Alleviation and Biodiversity Conservation” was organized in Viet Nam from 11 through 15 June 2007. The Conference attracted the participation of almost 200 participants representing researchers, policy-makers, managers, practitioners, and entrepreneurs from throughout Asia who are involved in NTFPs initiatives. They came to share information, to exchange experiences and to collectively explore the role that NTFPs can play in both reducing poverty and supporting biodiversity. As this Proceedings illustrates, NTFPs initiatives are moving beyond the more narrowly focused programmes and projects of the past to more integrated ambitious approaches that seek to address both sustainable livelihoods and sustainable management and use of NTFPs. The papers, presentations and lively discussions of the Conference highlighted the complexity of such undertakings. As the reader of this Proceedings will fi nd, successful initiatives are the result not only of long term commitment and providing of research and technical assistance, but also linking producers to markets, and enabling access to microfi nance and business development support. Yet even with this wide ranging support, programmes will be ineffective if there are policies and practices that hinder access to resources, markets, and credit. The Conference was an initiative by the Netherland Government funded NTFPs Sub-Sector Support Project Phase II with the support of the World Conservation Union (IUCN) and the Ministry of Agriculture and Rural Development of Viet Nam. The generous sponsor of the Netherland Government to NTFPs research and fi eld projects in Viet Nam and to this Conference in particular is highly appreciated. We sincerely hope that this fi rst international conference on NTFPs organized in Viet Nam has brought the NTFPs into the higher level in the national conservation and development agenda. The discussions, results and recommendations from the conference will help Viet Nam and other countries in developing strategies and setting out action plans in the fi eld of NTFPs in the coming years.

H.E Hua Duc Nhi Dr. Katherine Warner

Vice Minister IUCN Country Group Head Ministry of Agriculture and Rural Development, Viet Nam Cambodia, Lao PDR and Viet Nam ii THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation Acknowledgements

The Ministry of Agriculture and Rural Development of Viet Nam and the World Conservation Union (IUCN) wish to acknowledge the generous support of the Netherlands Government for the NTFPs project, in particular for the international Conference “The Role of Non-Timber Forest Products (NTFPs) in Poverty Alleviation and Biodiversity Conservation”, as well as the publication of these proceedings. For the additional fi nancial contribution from the German Technical Cooperation (GTZ) to the publication of this proceedings we are also grateful. We would like to express our sincere appreciation to His Excellency Hua Duc Nhi, Vice Minister, MARD, for his valuable support and contribution to the Conference. We gratefully acknowledge the support in preparation and organization of the Conference from the Ministry of Agriculture and Rural development (MARD) in Viet Nam and the following departments of MARD: International Cooperation Department Department of Forestry Department of Science and Technology Forest Protection Department Department of Agro-Forestry Products Processing and Salt Industry Forest Science Institute of Viet Nam The Non-Timber Forest Products Research Center Within MARD we would also like to especially thank the following individuals: Mr. Tran Kim Long, Vice Director ICD/MARD; Dr. Pham Duc Tuan, Vice Director, DoF; Dr. Trieu Van Hung, Director of Department of Science and Technology; and National Project Director, NTFPs Project; Prof. Nguyen Hoang Nghia, Director of FSIV, Dr. Nguyen Huy Son, Director of the NTFPs RC. We are grateful to the following agencies who have partnered with us in this initiative: CARE International in Viet Nam (with special contribution from Ms. Fiona Percy, for her active role in facilitation and review of conference papers) The Netherlands Development Organization (SNV) The Regional Community Forestry Training Centre for Asia and the Pacifi c (RECOFTC) The World Wildlife Fund for Nature (WWF) The Swiss Import Promotion Programme (SIPPO) We would also like to thank the NTFPs network for their help in organizing and conducting the conference. Support from IUCN Viet Nam country offi ce staff is also gratefully acknowledged, including Dr. Katherine Warner, Head, Country Group 1; Dr. Vu Van Trieu, Country Representative; Mr. Bernard O’Callaghan, Programme Coordinator; Mr. Nguyen Van San, Senior Technical Offi cer; Mrs. Nguyen Thi Yen, Programme Manager for Forests and Protected Areas; Ms. Sarah Webster, Ms. Susan Garner; Ms. Dinh Thi Minh Thu and Ms. Nguyen Thi Bich Hue, Communications Offi cers; as well as many supporting staff of IUCN Viet Nam for their help in organizing the conference and proceedings. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation iii Acronyms

AFTA ASEAN Free Trade Area

ANSAB Asia Network for Sustainable Agriculture and Bioresources

CASI Civil Action for Social Inclusion program of CARE International in Viet Nam

CBA Cost Benefi t Analysis

CBE community based enterprise

CECEM Centre for Community Empowerment, Viet Nam

CEFM Community Empowerment for Forest Management project (CARE Viet Nam)

CF community forestry

CFUGs community forest user groups

CGMFPF Chhattisgarh Minor Forest Products Federation, India

CITES Convention on International Trade in Endangered Species

CREDEP Centre for Research and Development of Ethnomedicinal plants

CRES Centre for Resources and Environmental Studies Viet Nam

DAFEO District Agriculture and Forestry Extension Offi ce

DARD Department of Agriculture and Rural Development

DED German Development Service

DFO District Forest Offi ce

DNCP Department for Nature Conservation and Protection, Cambodia iv THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

DoF Department of Forestry

DoNRE Department of Natural Resources and Environment

DoST Department of Science and Technology

EC European Commission

ETI Ethical Trading Initiative

EU European Union

FAO Food and Agriculture Organization of the United Nations

FECOFUN Federation of Community Forestry Users Nepal

FFI Fauna & Flora International

FGS Forest governance System

FHR Forest Herbs Research Ltd

FIPI Forest Inventory and Planning Institute, Viet Nam

FLO Fair Trade Labelling

FPC Forest Protection Committee

FSI Forest Science Institute

FSIV Forest Science Institute of Viet Nam

FUG Forest User Group

GAFCP WHO Good Agriculture and Field Collection Practices

GDP Gross Domestic Product

GEF Global Environmental Facility THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation v

GRET Group for Technological Research and Exchange

GTZ German Technical Cooperation

ICARD Information Center for Agricultural and Rural Development

ICIMOD International Centre for Integrated Mountain Development

ICRAF World Agroforestry Centre

IFAT The global network of Fair Trade Organisations

IFC International Finance Corporation

INBAR International Network for Bamboo and Rattan

IPGRI-APO International Plant Genetic Resources Institute – Regional Offi ce for Asia, the Pacifi c and Oceania

IRR Internal Return Rate

ITTO International Tropical Timber Organization

IUCN World Conservation Union

JFM Joint Forest Management

Lao PDR Lao People’s Democratic Republic

LHF Leasehold Forest

MA&D Market Analysis & Development

MAF Ministry of Agriculture and Forestry

MAPPA The Medicinal and Aromatic Plants Programme in Asia

MAPs Medicinal and Aromatic Plants vi THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

MARD Ministry of Agriculture and Rural Development

MPDF Mekong Private Sector Development Facility

MPI Medicinal Plants Innovation

NABP National Agricultural Biodiversity Programme Lao PDR

NAFRI National Agriculture and Forestry Research Institute of Lao PDR

NAFES National Agriculture and Forestry Extension Services

NFP National forest Policy 1988 of India

NGO Non-government organization

NRM Natural Resource Management

NTFPs Non-timber Forest Products

NWFPs Non-Wood forest products

OTOP One Tambon One Product policies of the Thai Government

PARC Creating Protected Areas for Resource Conservation using Landscape Ecology Project

PBP Pacifi c Basin Partnership

PHVA Population and Habitat Viability Assessment

PPAs People's Protected Areas

PROFOR Program on Forests

PVSE poor, vulnerable and socially excluded

RATA Rapid Land Tenure Assessment THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation vii

RCFEE Research Centre for Forest Ecology and Environment

RECOFTC Regional Community Forestry Training Center for Asia and the Pacifi c

RNE Royal Netherlands Embassy

SADU Small-scale Agro enterprise Development for the Uplands Project, Lao PDR

SEANN South and East Asian Countries NTFPs Network

SEDF/IC SouthAsia Enterprise Development Facility

SEED Supporting Entrepreneurs for Environment and Development

SGP Small Grants Programme

SHGs Self-Help Groups

SIMPA Sa Pa Indigenous Medicinal Plants Association, Viet Nam

SIPPO Swiss Import Promotion Programme

SMFE Small and Medium Forest Enterprises

SNV Netherlands Development Organization

SPE Sa Pa Essentials, Viet Nam

STEA Science, Technology, and Environmental Agency of Lao

SUFORD Sustainable Forest Development

TFF Forest Trust Fund

UNCTAD United Nations Conference on Trade and Development

UNDP United Nations Development Programme

US United States viii THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

USAID United States Agency for International Development

USD United States Dollar

VIFA Viet Nam Forest Science Technology Association

VND Viet Nam Dong

WFP World Food Programme of the United Nations

WHO World Health Organization

WTO World Trade Organization

WWF World Wide Fund for Nature THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation ix Overview

The Conference on the Role of NTFPs in Poverty Alleviation and Biodiversity Conservation was convened to provide an opportunity to bring together researchers, practitioners and entrepreneurs from Asia involved in NTFPs (Non-Timber Forest Products) initiatives. While there have been a number of meetings in the region over the last few years on NTFPs, the linkages between NTFPs, poverty reduction and biodiversity had yet to be explored. Consequently, this conference was convened to fi ll this important gap by looking beyond NTFPs as a ‘minor’ product and explore not only the current, but also the potential, contribution of NTFPs to both livelihoods and biodiversity. There is increasing recognition that NTFPs play an important role in the livelihoods of the rural poor as a source of food, medicine, construction materials and income. As noted in a presentation in the conference, it has been estimated that there are 60 million highly forest-dependent indigenous people in Latin America, West Africa, and Southeast Asia, with an additional 400 million to 500 million people directly dependent on these natural products. In this context, it is important to recognise that NTFPs can play a critical role in providing both food and income for the poorest households, notably by creating income and employment opportunities for women. However, while there is growing appreciation of the importance of NTFPs for rural households, especially of the very poor, there are also concerns about the potential impact of NTFPs collection on biodiversity. A number of critical questions are often raised such as under what conditions can NTFPs be sustainably harvested? Can on-farm production of NTFPs result in improved biodiversity conservation? Does the commercialisation of NTFPs result in over-harvesting? There are also often concerns regarding poor people’s access to equity, raising further questions such as what is needed for markets to be pro-poor? Are attempts to develop NTFPs for poverty alleviation really reaching the poorest of the poor? To what extent are these attempts impacting on biodiversity conservation? Such questions raise the important issue of whether pro-poor NTFPs projects, which enable access to markets, result in degraded forests. The conference attempted to both address and explore these concerns and questions. Taking a positive problem-solving approach, the conference worked to identify successful research and development initiatives and businesses that were (or were in the process of becoming) both pro-poor and pro- biodiversity, and to determine what are the critical elements for success. The key anticipated outcomes of the conference were: • An enhanced awareness of the critical elements needed for successful NTFPs initiatives that strive for environmental sustainability and poverty alleviation; and • Identi fi cation of a list of critical gaps in our understanding of NTFPs, including research, appropriate materials for different audiences and communication. It was also anticipated that there would be a revitalised interest in NTFPs in Viet Nam that would not only result in enhanced capacity, but also increase the membership of the NTFPs Network in Viet Nam. The conference also included a small trade fair for NTFPs producers to display and sell their products, and fi eld trips to action research sites in Quang Ninh province. The NTFPs Sub-sector Support Project took the lead in organising the conference. Launched in Viet Nam in 1998 as a capacity building project promoting the sustainable use of NTFPs and now completing x THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

its second phase, the project sought to facilitate a regional exchange of experience and information, and welcomed the opportunity to present some of its key research fi ndings and activities. The conference utilised open plenaries, working groups and informal gatherings (poster sessions and a trade fair), to provide opportunities for exchanging experiences and facilitating discussions. The fi rst day’s sessions focused on identifying the critical elements for successful NTFPs initiatives that provide income opportunities for the poor and support biodiversity conservation. The second day’s focus was on critical elements of successful products, models and methods, while the last session of the conference on day three focused on NTFPs business. Highlights from the conference Through presentations and discussions, a rich picture emerged of the current understanding of the linkages between NTFPs, poverty alleviation and sustainable resource management, which refl ected the lessons learned of past and current research and fi eld-based initiatives. There are successful initiatives that provide economic benefi ts to the poor and incentives for sustainable management While the presentations included examples from countries and organisations throughout the region, the following common elements for success were identifi ed: • Access rights to forest products. These access rights may be detailed within a separate policy on NTFPs or within forest policy; • An integrated approach which recognises that communities were not homogeneous but comprised community members that varied in gender, age, economic status, ethnicity, caste, etc; • Diversifi cation of livelihoods, especially among the poor; • Promotion of forest products that are abundant and available in the long-term, and initiatives that explicitly link harvesting of products to the sustainable use of local ecosystems; • Recognition that NTFPs are shifting from forest to agricultural fi elds to become ‘non-timber farm products’ that are cultivable, desirable, profi table and innovative, especially when there is a strong market demand; • Growing interest in agrobiodiversity and similar approaches to supporting biodiversity outside of protected areas in working landscapes such as farms and fi elds. This supports the shift of NTFPs to on-farm production and provides opportunities for new partnerships between agricultural and forestry agencies and organisations; and • NTFPs can be a ladder or stepping stone in the transition of the livelihoods of rural households. For example, in the dynamic economies of countries in the Mekong region, NTFPs may provide household income for health and education that will then enable its members to fi nd employment and opportunities in other sectors. There are continuing concerns and gaps The presentations at the conference primarily reported on initiatives that were just beginning, or were in the fi rst phase. This refl ects the reality of the short lifespan of projects or initiatives. Projects, especially projects supported by bilateral agencies, are usually only funded for three or four years – a relatively short period for identifying NTFPs and current and potential markets, developing products, and showing tangible results. It is not surprising that projects were more readily able to describe their assessments of the current use of NTFPs, rather than the overall long-term impact of interventions. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation xi

In most countries, there is a continuing gap in policy and procedures regarding NTFPs. Participants stressed the importance of a strategic orientation in the development of NTFPs that encourages policies on producing NTFPs, including establishing, processing and consuming. While there are approaches, methods and tools available – such as the value chain which links all actors, strategic alliances, encourage public private partnerships (PPP), and creates incentives for communication - the effective use of these methods and tools remains an exception rather than the rule. There is an urgent need for more training and capacity building, especially since practitioners/ implementers often have a background in forestry or natural resource management, with relatively little experience in marketing and enterprise development. Therefore, it is not surprising that a lack of marketing and economic analysis is a prevalent weakness in the sector. Programmes, even programmes regarded as being successful, often have a weak analysis of market demand or consumer preference, which in turn results in a period of trial and error that could have been shortened or eliminated if initial market analysis had been conducted. There is all too often a continuing emphasis by researchers and practitioners on assessments of NTFPs current contribution via existing products and markets, rather than linking producer/gatherers to markets and the private sector for tangible economic benefi ts. Also cited in both presentations and discussions was the lack of cost-benefi t analyses, not only for the costs of developing products, but also for understanding which products would provide the greater opportunities for providing benefi ts to the poor, especially marginal groups and women. Linked to cost-benefi t analyses is the need for implementation to go beyond a successful pilot site to justify the expenditure of resources. Assessments of the impact of harvesting NTFPs on natural resources, in order to attribute changes in natural resources to programme activities, are of special diffi culty since NTFPs are often harvested not only by communities in the pilot sites, but also by outsiders and in some instances by workers hired by commercial enterprises. Private sector engagement in programmes (and at the conference) remains weak The weakness in establishing and supporting successful links with the private sector refl ects the limitation of projects designed and implemented by researchers, conservationists and community development specialists. Markets and establishing linkages with the private sector will continue to be a challenge as government agencies, NGOs and the private sector do not have the necessary skills and networks to meet and work with each other. It is interesting that one of the most successful initiatives presented at the conference, the Medicinal Plants Innovation (MPI) Partnership , includes a proactive private sector partner who plays a leading role and works closely with producers, research institutes and NGOs. It is in such partnerships that win-win arrangements can occur in which the poor have an incentive for sustainable management and receive tangible economic benefi ts. Similar private sector partnerships are also needed for certifying products for markets – a key emerging area for NTFPs. The lessons learned from the certifi cation of other products suggests that while the costs of certifi cation remains a challenge, a partnership with a commercial company can result in a win- win arrangement for both the communities and the company. Conclusions The conference provided a forum for a lively open regional exchange of experiences in NTFPs and the following important thematic points emerged: xii THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

• NTFPs are for many a transition to other livelihoods: While there is a high level of dependency on NTFPs, especially by the poor, other opportunities are emerging in the fast-growing economies of the Mekong. By providing income that can be utilised for education and training and networks for the fl ow of information, NTFPs initiatives enable community members to be able to better participate in these new opportunities. • Policies and regulations for NTFPs are urgently needed: Policies and regulations are needed that create a framework for NTFPs conservation, as well as establish and secure rights for local people. These rights include not only access to the forest to harvest products, but also for processing (forming associations for processing and trade) and transporting products without high tariffs and fees. • Partnerships are necessary, but a continuing challenge: While there is on-going interest in NTFPs for poverty alleviation and biodiversity conservation, the partnerships needed for success are not in place. Practitioners in the fi eld need information that may not be of interest to researchers and often neither practitioners nor researchers have the skills and trust to seek and work with private sector partners. The challenge will be to create partnerships where researchers can be more responsive to needs that emerge from the fi eld, and can access information and markets from the private sector. Tools such as value chain analysis can provide a mechanism for those involved in a product to build a better understanding of relative roles and benefi ts, and form mutually benefi cial partnerships.

THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 3

OPENING SPEECH

H.E. Hua Duc Nhi, Vice Minister of MARD

Ladies and Gentlemen, the main factors leading to the successes of NTFPs initiatives and NTFPs production and First of all, I would like to warmly welcome all business activities. participants from Viet Nam, Asia and many other countries to this important conference today. The Government of Viet Nam has promoted rapid and sustainable economic development. As you may know, under the cooperation The country revised its Law on Forest Protection framework between the Ministry of Agriculture and Development in 2004, and the Viet Nam and Rural Development (MARD) of Viet Nam Strategy on Forest Sector Development by and the Royal Netherlands Embassy (RNE), the 2020, which is in line with the new development Non-Timber Tree and Forest Products (NTFPs) trend of the country, and provides a roadmap to Support Project, executed by MARD with active integration of Viet Nam’s socio-economy fi nancial support from RNE and technical support and environment in the context of globalization. from the World Conservation Union (IUCN), MARD also approved the Proposal on NTFPs has obtained many achievements during its Conservation and Development by 2020 and implementation period from 1998 to June 2007. is now reviewing the NTFPs Action Plan by Many of project’s results and achievements, 2010 for fi nal approval. The “NTFPs Support which have been synthesised and documented, Pilot Projects 2007-2010” proposal developed have proven the increasingly important role of by MARD with technical support by IUCN is NTFPs in economic development for residents now being submitted to the Forest Trust Fund living near and in forests, especially for poor (TFF) for funding. The proposal presents the people. In addition, the project has raised Government of Viet Nam’s awareness of the greater awareness regarding concerns about the importance of NTFPs in agricultural and rural impacts of unsustainable NTFPs exploitation on development, as well as in the overall socio- biodiversity conservation. As a project activity, economic development of Viet Nam. the international conference on “The Role of NTFPs in Poverty Alleviation and Biodiversity On this occasion, on behalf of MARD, I would Conservation” is being held today through like to express our sincere thanks to our collaboration between MARD, IUCN and other international friends, who have been cooperating relevant partners in Viet Nam. with us in the past to promote the agro-forest development of Viet Nam in general, and the This conference is an opportunity for researchers, NTFPs sector in particular. Our thanks also go policy-makers, managers, business people from to the RNE and the government and people of different private sectors in Asia and others parts the Netherlands for their support for Viet Nam's of the world, and people involved in NTFPs for sustainable use of natural resources, especially poverty reduction and biodiversity conservation in the sustainable use of timber and NTFPs. to exchange and share methodologies, approaches, information on products, markets Our thanks also go to the IUCN and other and lessons learned from NTFPs conservation government and non-government organisations and development initiatives. This event is also a for their active support in forest protection chance for all participants to further understand and the sustainable conservation of Viet 4 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Nam, among which, the implementation of the On behalf of MARD, I am honoured to inaugurate NTFPs Project from 1998-2007 should receive a the international conference on The Role of special mention. We would also like to express NTFPs in Poverty Alleviation and Biodiversity our thanks for IUCN's help in organising this Conservation. important international conference. May the conference be a great success and I Many thanks must also be expressed to our wish all participants the very best of health and Vietnamese colleagues for their cooperation in happiness in the years ahead! agricultural and rural development, especially in NTFPs development. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 5

WELCOMING REMARKS

Dr. Vu Van Trieu, IUCN Viet Nam Country Representative

Your Excellency, Vice Minister Hua Duc Nhi of the 1998 via the pilot project Sustainable Utilisation Ministry of Agriculture and Rural Development, and of NTFPs 1998-2002. It has also expressed Dr. Katherine Warner, Head of the IUCN Country an interest in continuing to support Viet Nam’s Group I, Viet Nam, Lao PDR and Cambodia, and NTFPs sector through the implementation of a ladies and gentlemen. proposal entitled Pilot Programme for Support to the NTFPs Sub-sector 2007-2010, which was Firstly, on behalf of IUCN, I would like to welcome prepared by MARD with technical assistance from you all to Viet Nam and to the International IUCN. On this momentous occasion, we would Conference on The Role of Non-Timber Forest like to express our sincere thanks to the Royal Products in Poverty Alleviation and Biodiversity Netherlands Government and people, especially Conservation. the Royal Netherlands Embassy in Ha Noi, for This is a very meaningful event as it is the fi rst their continued and meaningful support for NTFPs international conference to be held in Viet Nam initiatives. involving collaboration between the Ministry of We also highly appreciate the efforts and Agriculture and Rural Development (MARD) and commitments of the Viet Namese Government in The World Conservation Union (IUCN), together natural resource management, including NTFPs with other important IUCN members, and partners development and conservation. On this occasion, including GTZ, WWF, CARE International, SNV, we would like to thank MARD for its continuing Sippo and RECOFTC, who have been actively efforts and effective and close cooperation and working to promote the equitable, ecologically collaboration with IUCN in the development, sustainable use and conservation of natural management and conservation of natural resources, including NTFPs, in Viet Nam. resources, especially NTFPs. This international conference is held in the context IUCN is one of the most prestigious global of Viet Nam’s rapid economic development organisations in the fi eld of sustainable and regional and global integration. Therefore, and equitable use of natural resources and environment protection and the sustainable biodiversity conservation. It was one of the management of ecological systems have become earliest organisations to arrive in Viet Nam in the urgent and important issues. The Government of 1980s and has worked closely with Viet Nam on Viet Nam increasingly recognises and is paying the National Biodiversity Conservation Strategy. more attention to the important role of NTFPs in IUCN has been actively working with relevant poverty alleviation and biodiversity conservation, departments, research institutes and universities especially in mountainous, remote and vulnerable of MARD, in order to effectively support the NTFPs areas. sub-sector since 1998. This conference is one of the key activities Within the context of the continuing promotion within the framework of the NTFPs Sub-Sector and expansion of the achievements of the NTFPs Support Project Phase II 2002-2007, which was Project Phase I, the NTFPs Project Phase II (2002- a collaborative project between MARD and IUCN, 07) will be completed by end of June 2007, in with fi nancial support from the Royal Netherlands order to move into a new period of supporting the Government. The Royal Netherlands Government implementation of the National NTFPs Strategy. has supported Viet Nam in the fi eld of NTFPs since 6 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

The NTFPs Project Phase II has achieved a Ladies and gentlemen, in the context of Viet great deal, including helping to develop the Nam’s fast regional and global integration, the National NTFPs Strategy approved in 2006 by Government of Viet Nam has a policy of strongly the government, and the National Action Plan on promoting the socialisation of the forestry sector, NTFPs; establishing two pilot provincial action including NTFPs development and conservation. plans developed for pilot sites in Quang Ninh and We are very happy to welcome to this conference Ha Tinh; and developing NTFPs curriculum and so many different sectors, levels and departments, training programmes at fi ve forestry universities in both central and local, and different geographical Viet Nam, including a model on linking universities, areas, including international participants from all and models on NTFPs contributions to poverty over the region and the globe. We believe that alleviation and biodiversity conservation. These through your active participation and contribution results and lesson learned have been drawn to this conference and NTFPs development and upon and documented and will be shared with conservation, each and every one of you will colleagues in the country, as well as international contribute to the success of this event and ensure partners during this conference. that NTFPs will be equitably and sustainably used We hope that during the next four days, this while contributing to biodiversity conservation. conference will provide many opportunities for the I wish you all a successful conference and the results and experiences drawn from the NTFPs very best in health and happiness! project to be shared with participants. This is also a chance for us to identify the successful elements of NTFPs initiatives in order to apply them to future NTFPs projects. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 7

NATIONAL OVERVIEW NTFPs Conservation and Development: A Strategic Task of the Forestry Sector in Viet Nam Dr. Pham Duc Tuan, Vice Director, Department of Forestry, MARD

INTRODUCTION dated February 5, 2007. The detailed strategies for NTFPs conservation and development are With a monsoon tropical climate and complex presented in the 2006-2020 Forest Development geographical characteristics spanning many Strategy approved by the Minister of Agriculture latitudes, Viet Nam has a wide variety of different and Rural Development in Decision # 2366/QĐ- types of forest and is rich in biodiversity. In almost BNN-LN, dated August 17, 2006. This provides all forests in the country, there are a substantial an important legal basis and the main direction for amount of Non-Timber Forest Products (NTFPs) the Department of Forestry to provide guidance species, including plants and animals. to lower level authorities for the successful Due to the diverse range of species they represent, conservation and development of NTFPs in Viet NTFPs play an important role in enhancing Nam’s forestry industry. biodiversity in Viet Nam. On the other hand, the CURRENT SITUTATION OF NTFPS exploitation of NTFPs is linked to the livelihoods of local communities living in and around the CONSERVATION AND DEVELOPMENT forests. Indeed, in many areas, NTFPs are the IN VIET NAM main source of income for mountainous people. The Ministry of Agriculture and Rural Development Therefore, the harvesting of NTFPs contributes to (MARD) is the government agency in charge poverty reduction, securing both food and income of forest protection and development. Assisting for local communities. MARD in carrying out this task are the Department In recent years, economic reforms in Viet Nam, of Forestry and Forest Protection Department. together with the country’s integration into the MARD is the authorised focal point for CITES in global economy, have opened opportunities for the Viet Nam, which is based in the Forest Protection development of forest products, including NTFPs. Department, while the Ministry of Natural Resources However, as in other developing countries, the use and Environment (MONRE) is the authorised focal of forest products is heavily dependant on existing point for biodiversity conservation. natural resources, and little attention is being paid In terms of global initiatives, Viet Nam has joined to the conservation and sustainable development some international conventions such as CITES, of NTFPs. This is leading to a depletion of forest Desertifi cation and RAMSAR, which are all related resources, decreasing forest biodiversity and to NTFPs conservation. negative impacts on the lives of forest-dependent people. There are now 129 special-use forests in the country, with a total area of more than 2.3 million Viet Nam’s forestry sector therefore considers hectares, accounting for 11.8 per cent of the total the conservation and development of NTFPs forest land and 6.7 per cent of the total natural land. a necessary part of the Forest Development There are 29 national parks in Viet Nam with a Strategy 2006-2020, which was approved by total area of nearly one million hectares, 62 nature the Prime Minister in Decision #18/QĐ-TTg, 8 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

reserves accounting for 1.2 million hectares, and Viet Nam’s NTFPs are sold to nearly 90 countries, 38 protected forests with a total area of more than generating total annual export revenue of $200 100,000 hectares. million, which is mainly derived from bamboo and rattan handicrafts (more than 70 per cent). Currently, Viet Nam lacks a substantial amount However, this export sector is still small and of information on the NTFPs resources of each unstable, leading to fl uctuating prices and an locality and ecological area across the whole uncertain future. country, including data on species, distribution, quantity, depletion and regeneration. NTFPs research, training and forest extension NTFPs production At present, most NTFPs research, training and forest extension is conducted by the Forest NTFPs planting and harvesting in the forests Science Institute of Viet Nam (FSIV), but there occurs in 30 out of 64 provinces in Viet Nam. The are limitations in the institute’s profi ciency and total area of NTFPs harvesting in natural forests equipment. NTFPs research is not comprehensive comprises 1.2 million hectares, while cultivated and cannot address or solve problems relating to areas comprise 500,000 hectares. Major species particular issues or species. planted or harvested include Bamboo, Rattan, Pine, Cinnamon, Anise, Cardamom, Red “boi loi”, There are now 15 forestry training institutions under etc. MARD, 5 Forestry and Agriculture Universities under the Ministry of Education and Training, and Currently, the most important issues that need 19 forestry training institutions at the provincial addressing are that NTFPs production is still level, but none of these agencies are specialised scattered and poorly planned, and breeding in NTFPs development. Indeed, currently a distinct techniques have not been updated. NTFPs curriculum has yet to be developed. NTFPs processing, business and markets Furthermore, the forest extension system is not According to rough statistics, there are now: consistent and faces many limitations in capacity, • 88 bamboo processing enterprises with a capacity resulting in limited training being provided to farmers of 250,000 tonnes per year; in NTFPs techniques, and limited information disseminated to communities on NTFPs markets. • 40 rattan-processing companies with a capacity of 100,000 tonnes per year; NTFPs management • around 700 villages specialising in bamboo/ • Some legal documents relating to the conservation rattan handicrafts, employing a total of 342,000 of rare and valuable animals and trade in wild people; and animals have been issued, as well as documents relating to the management of NTFPs harvesting • 5 pine resin processing factories with a capacity and distribution. However, these documents are of 15,000 tonnes per year. not yet complete or systematic enough for use in In addition, there are many areas involved in the NTFPs management. semi-processing of aromatic and medical plants. • Initiatives to encourage NTFPs development do However, most NTFPs processing is conducted exist in some general forestry policies, but are on a small-scale, is not located in a stable not yet comprehensive or strong enough for resource area, and uses outdated technology and specifically developing the sector. poor equipment. This results in the production of low-quality products with limited packaging and • There are still some gaps in management systems branding and low competitiveness in the market. and there are almost no specialised NTFPs staff in the country. Statistics on NTFPs are not THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 9

distributed or updated and there is currently no o NTFPs sector to employ 1.5 million people NTFPs database. from rural and mountainous areas in NTFPs harvesting, production and training; and VIEWS ON NTFPS CONSERVATION AND DEVELOPMENT o Income from NTFPs to account for 15-20 per cent of the total income of each rural mountainous NTFPs conservation and development is conducted household. under the country’s Forest Development Master Plan. Priority is given to NTFPs development Directions for conservation and development in natural forests; however, it is necessary to of NTFPs during 2006-2020 encourage the domesticiation of NTFPs outside of • Strengthen insitu protection, especially for NTFPs forest areas. populations and species in special-use forests. It is generally agreed that the exploitation and • Promote existing protection solutions in botanical development of NTFPs should be linked with gardens, zoos or rescue centres for NTFPs biodiversity conservation through integrating species currently in danger of extinction. advances in biological technology with sustainable • Develop appropriate and sustainable NTFPs forest product processing. As part of this process, harvesting in natural forests by strictly applying people living near forests must be allowed to harvesting regulations and processes. benefi t from NTFPs development, in line with poverty reduction efforts, which will encourage • Establish NTFPs material areas on appropriate them to protect the forest for future generations. scales, which are linked with processing locations selected on the basis of their comparative NTFPs material sources must be developed advantages over other ecological areas. Typical together with the forestry product processing NTFPs products of each area should be identified industry. Specialised areas need to be established in line with market demands, and sustainable to effi ciently produce NTFPs which are popular harvesting practices utilised. The total area for in international markets, and develop a range of NTFPs cultivation in 2020 should be double products to meet domestic and local markets. that of 2004 (equivalent to three million hectare Targets by 2020 through an average increase of 10 per cent per • Conserve NTFPs species of high economic and year). By this time, the area of natural forest for scientific value and limit the depletion of forest NTFPs harvesting should reach 2.2-2.5 million resources. hectares, while NTFPs plantation forests will reach 700,000-800,000 hectares. • Enhance the capacity and awareness of local people and communities in NTFPs conservation • Encourage activities related to NTFPs planting and development. in natural and special-use forests, and the domestication of NTFPs in argicultural land. • NTFPs to become a forestry sub-sector and achieve the following targets: • Prioritise the development of products from bamboo, rattan, resin, essential and medial o NTFPs production value to account for more plants. than 20 per cent of the entire forestry production value; • Encourage the development of breeding or artificial plantation centres for forest fauna and o Revenue from NTFPs exports to increase by flora, which are authorised to conduct trade 10-15 per cent per year on average, and reach according to market demands. $700-800 million annually (equivalent to 30-40 per cent of revenue from timber exportation); • Focus on developing the infrastructure of small and medium NTFPs processing centres and 10 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

traditional handicraft villages, which use NTFPs The conservation and development of NTFPs is as their main materials. a strategic direction for the forestry sector, which contributes to economic development and poverty • Expand NTFPs markets in the country and abroad reduction by creating jobs for mountainous and rural and promote commercial exchanges on NTFPs people, while conserving the forest biodiversity of to identify important products for development. Viet Nam. • Develop comprehensive, enabling policies that To enable the forestry sector to carry out NTFPs mobilise resources from different sectors, with conservation and development, it is necessary support from the government and international to conduct a range of comprehensive initiatives donors. involving awareness-raising, policy development, • Encourage households, individuals and capacity building, and mobilising resources communities to participate in the sustainable from society to invest in NTFPs development. protecting, planting and processing of NTFPs. Furthermore, international support is crucial for • Improve the capacity and technical infrastructure NTFPs conservation and development in the of institutions and training centres involved in short-term, as well as for the sustainable future of NTFPs research and training. these species. • Enhance the government’s capacity to manage NTFPs. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 11

INTERNATIONAL OVERVIEW Gaining Much from Little: How ‘Minor’ Forest Products Can Have a Major Impact on Poverty Alleviation and Promote Biodiversity Conservation

Dr. Katherine Warner, The World Conservation Union (IUCN)

Until recently, tree and forest products were Now, however, there is a better understanding of mistakenly perceived as providing no more than the potential of forest and tree products for income a minor portion of income to rural communities. generation for both communities and nations.

Table 1: Tree and Forest Products • Fibres and Flosses: bamboo and rattan (furniture, woven products), handicrafts, toothpicks, fi bres for weaving fabrics • Edible Plant Products: fruits (fresh, dried, packaged), bamboo and rattan shoots, vegetables and ferns, nuts, mushrooms, juices, liquors, teas, spices • Resins and gums: pine oleoresin for chemical industry, damar (Dipterocarpus spp.), benzoin (Styrax tonkinensis) for perfumes • Tannin and dyes: many forest plants are used in natural pigments for dyeing cloth • Industrial oils: varnish etc. • Essential oils: Vetiver oil (Vetiveria zizanioides) and eucalyptus oil for fragrance and industry; cinnamon oil and star anise (Illicium verum) for the food and beverage industry • Insecticides: Sassafras (Cinnamomum parthenoxylon), neem (Azadirachta indica) • Medicinal plants: for both human and livestock health • Ornamental Plants: orchids, palms for fl oral arrangements, etc. • Animal Products: foods such as frogs, crabs, lizards, snakes, insects, ant eggs, fi sh, small rodents and mammals; honey, horns, scales and bones used as medicines; feathers for ornamental purposes; sticklac (Laccifer Lacca) used in paints, varnish, dyes, electrical insulation; and mulberry for silkworm production • Wood products: fuel wood, charcoal, briquettes, construction timber, handicrafts, furniture, coffi ns, bee hives and specialized markets such as musical instruments 12 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

There is growing agreement that Non-Timber Tree However, while there is an emerging consensus and Forest Products (NTFPs) play an important that forest resources such as NTFPs can role in the livelihoods of the rural poor as a source play an important role in poverty alleviation of food, medicine, construction materials, and and environment conservation, documented income (see Table 1). It has been estimated successful initiatives are relatively few in number. that there are more than 60 million highly forest- One of the lessons learned is that an integrated dependent people in Latin America, West Africa, approach is needed and that there are a number and Southeast Asia, with an additional 400-500 of factors (and this is one of the key areas of million people directly dependent on these natural discussion for this conference) that are critical for products. success. One of the critical success factors which I will mention here is that initiatives that attempt to Access to forest resources helps rural households link forest conservation and development activities diversify their livelihood base and reduce their requires personnel trained not only in conservation exposure to risk. Earnings from forest products are and production, but also in the processing and often important as a complement to other income. marketing of tree and forest products. Yet training Very large numbers of households generate some and expertise in processing and marketing, of their income from selling forest products, often especially in marketing, is relatively rare. when farm production is not enough to provide self-suffi ciency year round. Income from forest Marketing is not only the movement of goods, but products is often used to purchase seeds, hire also a process of exploring which products potential labour for cultivation, or generate working capital customers will purchase, and then producing, for trading activities. For the poorest households, processing, promoting and distributing them at NTFPs can play a critical role in providing both a profi t. Despite increased interest and greater food and income. need, there is still widespread misunderstanding about the role of marketing and its position in As forested areas throughout the world continue the structure and management of an initiative. to be under pressure through land use changes Marketing is often misunderstood to be the same and logging, their preservation is increasingly as selling. Selling is trying to make the customer being linked to a strategy of integrating forest buy the available product. Marketing includes conservation with sustainable economic activities, not only selling, but also, as noted above, the such as the development of NTFPs enterprises. producing, processing, promoting and distributing An underlying assumption is that tree and forest of products. The essential principle of marketing product entrepreneurs will conserve and protect is that producers (and processors) succeed by forest resources, if they receive the economic producing what can be profi tably sold rather than benefi ts from sustainable forest use. Other easily produced. We need to proactively develop assumptions are that markets for NTFPs are the marketing skills and expertise of communities changing. Free market systems are penetrating and programme and agencies staff so that into rural areas all over the world, including in sustainable economic benefi ts are achieved and countries with a tradition of centrally planned incentives are in place for sustainable resource economic systems. This provides more access management. to national, regional and international markets. The penetration of the market economy extends We do have success stories in which the poor into all aspects of rural life and forest degradation have captured the opportunities provided by is increasing. Therefore, forest dwellers and tree forest products to make meaningful changes in and forest product entrepreneurs will prosper only their lives. These successes highlight integrated if they can adapt to these changes and learn new approaches that look beyond the forests, and skills, thus becoming real economic actors rather address the needs of local communities, including than bystanders or victims. access to forest resources and markets. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 13

A success story from Lao PDR1 implemented a project to promote the sustainable use of NTFPs. In 2006, with funding provided by the About 5 million people, or 80 per cent of the World Bank/ PROFOR, there was an opportunity population, in Lao PDR pursue rural livelihoods, to do a follow-up assessment of the project and within which NTFPs play a signifi cant role in food its impact. The fi ndings were encouraging. In security, income generation, and the provision of one pilot village (Ban Nampheng), food security numerous other non-food and non-cash inputs to has been achieved, annual cash incomes to households. households are signifi cantly higher, people are After rice, wild forest foods dominate the daily diet. healthier and all major development indicators More than 450 edible species have been identifi ed, for the village show marked improvements. and collectively they provide the bulk of animal The benefi ts from the interventions have been protein, leafy green vegetables and micro-nutrient distributed equitably and a signifi cant proportion intake of rural households (Clendon, 2001; Foppes of households have graduated out of a locally- and Kethpanh, 2000a, 2000b, 2004; WFP, 2004). defi ned poverty situation. In remote upland areas, households commonly This was a signifi cant change from 1996 when experience rice shortages for up to three months. the project began. The situation at that time was NTFPs provide food security through either direct one in which NTFPs were being over-exploited consumption or through their barter or sale to and poor prices were being received from traders obtain rice. NTFPs are even more important in because local collectors: bad times when crops fail or are destroyed. • had taken loans from traders2 during rice defi cit A nationwide survey of forest-based food security periods, which were re-paid later with agreed of the World Food Programme (WFP) of the quantities of NTFPs; United Nations in 2004 found that all villages in the country had some dependency on forests for • lacked secure access rights to the forests and food, and that about 41 per cent of all villages had to compete with outsiders during peak were dependent on food obtained from forests collection periods; within and around Lao PDR’s national system of • lacked adequate market information; protected areas (WFP, 2004). • were adding little value to products through Nationwide it has been found that the dependency grading and processing; on forests for domestic consumption and income generation purposes is highest for the poorest • were in open competition with other sellers; households and of greatest importance to and women because they dominate (non-hunting) the • sold valuable NTFPs by the bundle, rather than collection and management of NTFPs (Foppes by weight. and Kethpanh, 2000a, 2000b; Ingles et al, 1999; Broekhoven, 2002; Morris et al, 2004) Utilising an integrated approach, the project’s interventions (see Table 2) included a rice bank, From 1995 to 2001, The World Conservation Union facilitating the formal recognition of rights of access (IUCN) and the National Agriculture and Forestry (including rights of exclusion) to the forest by the Research Institute (NAFRI) of Lao PDR, with community, forming marketing and women’s funding from the Government of the Netherlands, savings group, grading and processing of NTFPs,

1 This case study is drawn from Ingles, A.W., S. Kethpanh, 2 Although the loans provided by traders was seen as a A. S. Inglis and K. Manivong. 2006. Scaling Sideways and negative “service” locking asset and cash poor people into Up-ways: Identifying factors that affect the adoption of forest- low price agreements at vulnerable times of year, some based livelihoods development interventions in Lao PDR. villagers still commented on this service in a predominantly (Draft fi nal report). PROFOR/World Bank, Washington, D.C. positive light. 14 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

providing drinking water supplies, and some doubling of school enrolment rates (gender experimentation with domesticating NTFPs. balanced), and increases in livestock. The village has also benefi ted from new infrastructure, Notable changes include the attainment of food equipment and services that have been supported security, the eradication of child mortality, the

Table 2: Main NTFPs Project Interventions in Ban Nampheng

INTERVENTION & PURPOSE KEY RESULT

Village rice bank: a store of rice and an organisation Replaced the need to over-exploit NTFPs resources established to allow the village to cope with their rice- and sell them too cheaply to traders because of loans defi cit period better and reduce the pressure to collect taken to buy rice during defi cit periods NTFPs to pay off loans to traders.

Forest land allocation and collaborative Provided secure forest access and use rights to a management: land-use planning and an agreement defi ned user group, allowing for (better) harvesting made with the government for village management rules, off-take regulation, and investments in forest of specifi c forest areas and for spatial confi nement of management. shifting cultivation.

Marketing groups: An organisation was established Organised collusion in price-setting, enhanced that developed agreed rules for harvesting and knowledge of market prices, grading and processing selling bitter bamboo shoots (Indosas sinensis) and (see below) and selling by weight using scales resulted cardamom pods (Amomum spp.). The organisation in signifi cant increases in income to households and also created and managed a NTFPs development better returns for labour inputs3. A successful village fund generated through a locally applied tax of 10 per development fund was created. The organisation cent on NTFPs sales. continued to facilitate further development of marketing strategies and facilities.

Grading and processing: Capacity built for adding Signifi cant increase in income from cardamom sales value to cardamom pods (Amomum spp.) used in the because of improvements in the quantity and quality of production of Chinese medicine. the product through drying and grading.

Drinking water supplies: A local drinking water Reduced time spent by women and children in fetching supply scheme was established water, allowing more time for participation in NTFPs collection and in marketing and savings groups.

Women’s savings group: An additional organisation Provided credit for local initiatives and strengthened was created to encourage the effective use of collaboration within the village. additional cash circulating in the village.

Domestication of important NTFPs species: A marginal increase in the resource base and some Planting trials were undertaken for three NTFPs raised awareness about the concept of domestication species Paper mulberry (Broussonetia papyrifera), generally. Cardamom (Amomum spp.), and Eaglewood (Aquilaria spp.)

3 For example, the local price for cardamom was raised from 500 kip per kilogram to 35,000 kip per kilogram in 1998, and although prices later dropped, prices of around 12,000 kip per kilogram were sustained over time (Morris et al. 2004) (US $ 1 = about 10,000 kip) THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 15 by the NTFPs project, the NTFPs development • Additional labour was applied productively to fund established by the marketing group, and the collection and sale of NTFPs. indirectly through private loans made from that In addition to its major role in helping to reduce fund. poverty levels in the village, the NTFPs project’s In regard to forest conservation, both local users interventions also provided a basis for further and government offi cials have consistently economic development through the establishment reported that the condition and productivity of of an NTFPs Marketing Group and NTFPs forests allocated to Ban Nampheng have improved Development Fund that paid for improvements since 1996. Illegal cutting of timber is reported in formal and informal education and provided to have decreased because of increased food credit to support private equipment purchases security and the enhanced returns from NTFPs and investments in agriculture, trading, transport collection. While the value of NTFPs’s from the and animal husbandry. The substantial and forests has increased, increasing the general robust increases in NTFPs-based incomes also pressure for harvesting, villagers believe that they allowed for private investments and livelihood have greater control over such pressure through diversifi cation. the allocation of exclusive use rights It is clear that the NTFPs project’s interventions have to them and the establishment of harvesting rules had a signifi cant, positive and long-lasting impact among the user group (Morris et al., 2004). In on Ban Nampheng village. The combination of the addition, grazing pressure on surrounding forests NTFPs-based interventions and the subsequent has been reduced because of new investments and related activities undertaken by the villagers in animal husbandry that have changed livestock themselves have provided resources, capacity numbers. There are fewer cows and goats, and and options for further development. In this way, instead there are more chickens, pigs and buffalo. NTFPs development has provide households with In 2006, it was found that the sale of NTFPs still an “escape ladder” out of poverty. dominated household income sources, providing Lessons learned approximately 60 per cent of cash income to households, mainly from the sale of bitter bamboo The lessons learned are that properly planned shoots. The next most important source of cash and executed NTFPs interventions are highly income was animal husbandry (20 per cent), appropriate to supporting the sustainable followed by cash cropping (15 per cent) of sesame development of forest-dependent communities seeds and corn. because: When reviewing the long-term results of the • Food security can be achieved through NTFPs- project, it can be argued that the main reasons related interventions; why poverty rates were reduced in Ban Nampheng • Cash income to households from NTFPs sales were that: can be increased and maintained over time, • Food security was achieved, mainly through under collaborative agreements for sustainable the NTFPs project’s rice bank, forest land forest management; allocation and marketing group interventions, • Bene fi ts can accrue equitably within a village which increased the income from NTFPs sales because the poorest groups can use available to buy rice; labour to take advantage of the economic • Available labour increased through improvements opportunities provided by NTFPs development; in health-care and nutrition; • Women can participate readily in NTFPs • Returns on labour from NTFPs collection and development due to existing gender roles, and sale were increased signifi cantly; and through such participation they can address 16 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

specifi c issues concerning women and become is now well recognised and creative mechanisms more politically organised; need to be successfully piloted. • Households can graduate into higher wealth Forming partnerships with the private sector is a classes and maintain the gains based on both key area in which government and non-government commercial and subsistence-oriented NTFPs supported projects are often weak. Community activities; and enterprises are often protected by projects. Products are ‘made to work’ through project • New economic activities can be funded by private support of infrastructure, fi nancing at favourable and common funds generated by enhanced rates, and uncompetitive pricing. While this may NTFPs sales. ‘work’ in the short term, it creates unsustainable Constraints for small-scale enterprises enterprises. As noted above, project personnel It should be noted that in the Lao PDR, as elsewhere, often lack marketing experience and are more communities have not formed a marketing comfortable with project activities and objectives enterprise. Instead, the groups improve harvesting related to conservation or social concerns. Yet and selling. There are signifi cant constraints and it is effective responses to the demands of the barriers for small-scale enterprises to effectively market that will ultimately determine the success link to markets and compete successfully. Low- of small enterprises and the viability of forest income producers face many disadvantages due products as a means for poverty reduction. The to poverty itself, as well as a lack of education and private sector has to be engaged as a partner in infrastructure (Scherr, White and Kaimowitz 2002; poverty reduction. 2004). So the questions now to be asked are: How can we encourage the private sector to How can we make markets work for low-income engage? If we look at this and similar conferences, producers and what is needed to capture the there is scant representation of the private sector. emerging opportunities for forest products by the All but a few of us here are working in the public poor? sector (government agencies, multilaterals, One of the primary concerns is that the poor will bilaterals) or in NGOs. Why is the private sector be pushed aside when commercial opportunities not here? In part, this may be because of our appear. In order to create space for the poor, pro- lack of experience in working with it. Our task poor forest-based projects and programmes need is to identify those that share our concerns and to proactively focus on identifying ‘the measures objectives, and form partnerships. that will enable the poorer to continue to participate’ However, to maintain a successful partnership we (Arnold 2001). Beyond laying the technical have to improve our understanding of the private groundwork, support programmes such as the Lao sector, and what it values in a business partner. case study, can include measures to support the This is particularly relevant in relation to private participation of the poor by providing or enabling sector demands that ‘products are delivered on fi nancial incentives, training, micro-credit, and time in the quantity and quality contracted’ (see market access. Successful programmes have, for also Forest Trends 2003). Such expectations are example, commonly supported the development often a challenge for many enterprises. of local associations and access to fi nancing for Summary local forest-based businesses. NTFPs initiatives have an important role in poverty Microfi nance that supports small-scale producers alleviation and conservation of biodiversity. For is critical, but is often not available in rural areas, this role to realised, an integrated approach is especially for small enterprises whose owner/ needed that includes a wide range of activities. members have few assets. This microfi nance gap We need to promote and support the sustainable THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 17 use of forest resources, with a special focus Partnerships: Identifying Opportunities. Technical on NTFPs, technical assistance, microfi nance, Briefs. Forest Trends, Washington, D.C. business development support, markets that Ingles, A., Saypaseuth, T., Foppes J., Baker, J., ‘work for the poor’, and policies that are not Khetphanh, S., Bounsou S., and Sengkeo K. (1999), barriers to local market participation. We also A Rapid survey of the use and Government regulation have to promote policy and regulatory changes of non-timber forest products (NTFPs) from the Nakai- that will enable small producers to have access Nam Theun National Biodiversity Conservation Area to forest resources and services such as credit, (NNT NBCA), Central Lao PDR. IUCN Vientiane, Lao so that they can effectively manage their natural PDR resources, participate in markets and move out of poverty. Ingles, A.W., S. Kethpanh, A. S. Inglis and K. Manivong. 2006. Scaling Sideways and Up-ways: Identifying factors References that affect the adoption of forest-based livelihoods Arnold, J.E.M. 2001 Forests and People: 25 years of development interventions in Lao PDR. (Draft fi nal Community Forestry. FAO. Rome. report). PROFOR/World Bank, Washington, D.C.

Broekhoven, G. (2002) “Sustainable Management Of Morris, J., Hicks, E., Ingles, A. and Ketphanh S. (2004) NTFPs In Lao PDR: A Discussion Paper for the Forestry Linking poverty reduction with forest conservation: case Strategy to the Year 2020 for Lao PDR” Consultant studies from Lao PDR. IUCN, Bangkok, Thailand report to Sida and FAO, Vientiane, Lao PDR Scherr, S.J., A.White, and D. Kaimowitz 2002. Making Clendon K. (2001) The Role of Forest Food Resources Markets Work for Forest Communities. Policy Brief. in Village Livelihood Systems: A study of three Villages Forest Trends, Washington, D.C. in Salavan Province, Lao PDR, IUCN, Vientiane, Lao Scherr, S.J., A.White and D. Kaimowitz. 2004 A new PDR. agenda for forest conservation and poverty reduction: Foppes, J., and Kethpanh, S. (2000a), Forest extraction Making Markets work for low income producers. Forest or cultivation? Local solutions from Lao PDR, Paper Trends, Washington, D.C. presented at the workshop on the evolution and World Food Programme (2004) Lao PDR: Analysis sustainability of “intermediate systems” of forest of Forest Dwelling Populations and Vulnerability to management, FOREASIA, Lofoten Norway. Food Insecurity at the Village Level. UN World Food Foppes J. and Ketphanh S. (2000b), No more timber, Programme: Vulnerability Analysis and Mapping Unit, more non-timber – discussion paper. DoF-IUCN Vientiane Lao PDR

Forest Trends 2003. Company-Community Forestry 18 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

NTFPs PROJECT INTRODUCTION

Introduction to a NTFPs Project in Viet Nam

Dr. Le Thanh Chien, Forest Science Institute of Viet Nam (FSIV)

BACKGROUND agroforestry extension services did not meet the requirements. There were insuffi cient numbers Policy framework of profi cient technical staff in some scientifi c Forest coverage in Viet Nam fell from 43 per cent research institutions and agricultural producers (14.3 million ha) in 1943 to 28.2 per cent (9.3 were not well equipped with enough knowledge million ha) in 1993. At the time, it was estimated and information regarding their products’ value that around 30 per cent of the population lived in and quality. The management and business and around forests and mainly depended on forest capacity of these organisations and producers resources for their livelihoods. was also low. In Viet Nam, there are three types of forests - Until recently, the benefi ts from forests for production forests, protected forests and special- communities came predominantly from the use forests. In 1991, the Government of Viet production of timber. However, this view Nam issued the Law on Forest Protection and changed when a government decree was issued Development, which was revised in 2004. In July in1997 on natural forest closing. At the time, 1993, the Land Law was issued, which provided insuffi cient understanding of the various values regulations on land management, land use of Non-Timber Forest Products (NTFPs) by planning and forest land allocated for households managers and planners led to a lack of interest and enterprises (this law was revised in 2003). in encouraging local communities to develop and Decision 661/TTg of the Prime Minister was change their approaches to the sustainable use of issued on July 29, 1998 to set out the goals, tasks, NTFPs. Similarly, there was not any recognition policies and organisations involved in the New of the important of forest protection to maintain Forest Plantation Programme, which covered an the ecological conditions for the development of area of 5 million ha. Decision 202/TTg dated May NTFPs. 2, 1994 by the Prime Minister concerned forest Therefore, there was an urgent need to develop a allocation and protection, while in 1995, Viet Nam community participatory NTFPs managing system, issued its Biodiversity Action Plan. which provided support in market analysis and Institutional framework product development. The Ministry of Agriculture and Rural Development PROJECT FORMULATION (MARD) has decentralised some important functions to the lower level of government. For Accordingly, a project on the sustainable use example, the management of the Department of NTFPs in Viet Nam was formulated through of Agriculture and Rural Development’s (DARD) cooperation between The World Conservation Agriculture Extension Centres and Forestry Union (IUCN), the Government of Viet Nam Extension Centres was assigned to the Provincial (through the FSIV) and two local non-government and District People’s Committees. However, organisations (ECO-ECO and CRES). the capacity of these level are limited, thus, the The NTFPs project was divided into two phases. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 19

Phase 1: Project on the sustainable use of and adjusted to suit the Viet Namese context, NTFPs in Viet Nam (pilot project for NTFPs) i.e. NTFPs market analysis and development, Participatory Action Research (PAR); planning Objectives and implementation and use of rural land (LUP); and developing The project’s objective was achieving forest and planting models for six species of NTFPs. biodiversity conservation through promoting In terms of awareness-raising activities, the the use of NTFPs in livelihoods and ecological conservation and development of NTFPs was sustainability. It was scheduled to run from July declared a priority in the Forestry Support 1998 to July 2002, (but was offi cially launched Programme and Forest Plantation Programme, in December 1998), and comprised one national and training was provided for NTFPs users in component and two practical demonstrations in local communities. Ba Be (Bac Kan province) and Cam Xuyen (Ha Tinh province). From experiences gained through the project, 26 lessons learned were disseminated in a fl exible Project initiatives but clear manner to enable other projects to avoid • Capacity building for FSIV and participating similar mistakes. Finally, the NTFPs pilot project organisations. established an effective cooperation mechanism • Set up at each demonstration site the appropriate between project partners comprising government management system to promote and maintain and non-government organisations. the sustainable use of NTFPs. Phase 2: NTFPs sub sector support project in • Develop and carry out activities to enhance Viet Nam awareness of the value of NTFPs, especially for The project was formulated following revisions in the NTFPs users at the field sites. Viet Nam’s socio-economic development policies • Contribute lessons learned to the development and changes in the institutional environment, and improvement of effective NTFPs including the Forest Development Strategy (2002) management systems for forest protection and and Forest Sector Support Programme (2001). rural development. Awareness of NTFPs had changed a great deal and they were increasingly being considered Achievements as tools for poverty reduction and economic For the fi rst time ever, an overview of NTFPs development. sector was developed, including species listings However, there were still some gaps in the sector and an analysis of the existing laws and policies including gaps in knowledge to support NTFPs on NTFPs. A strategic development plan for development and implementation at both the FSIV was developed and the Information national and provincial levels. There were also Management System (IMS) relating to NTFPs gaps in knowledge regarding the conservation of was set up. Staff from FSIV and participating NTFPs species, natural resources and prioritised organisations were trained and provided with species. The current status of resources and knowledge and skills in plan development, Rural supply/demand trends was not known, there was Rapid Assessment (RRA), rural assessment with a lack of models integrating conservation and community participation (PRA), market analysis poverty reduction, and indigenous knowledge and development (MA&D), bioforest techniques of the uses of NTFPs had not been suffi ciently and community forest management. studied. Some methodologies on studying, planning and There were also gaps in the capacity to support providing important support to rural conservation the development and implementation of policies and development based on NTFPs were tested 20 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

at the national and provincial levels. Knowledge • Apply suitable approaches and existing regarding establishing NTFPs development techniques to improve the capacity for NTFPs strategies was lacking, as well as limited capacity conservation and development among partners for conducting impact assessments and analyses and local communities. These approaches are and establishing partnership networks for NTFPs expanded through forestry extension systems. management and information dissemination. • Collect information, experiments and Together with incorporating the lessons from the demonstrations of suitable NTFPs management fi rst phase of the project, a suitable action plan systems in localities. was required, whose effectiveness could be tested • Develop an NTFPs network in Viet Nam. through the project’s activities. Achievements Within that context, the NTFPs Support Project in Viet Nam was established to build upon the In terms of capacity building in planning and positive results achieved during the fi rst phase research, the project has achieved the following in terms of geographic, thematic, methodological outcomes: and ‘action plan-learning’ approaches. • contributed to the development of the Forest Objectives and implementation Sector Support Programme and New Forest Plantation Programme The project was scheduled to run from July 2002 to July 2007, but was not offi cially implemented • supported the Department of Forestry to develop until April 2003. Comprising six project sites over the National Strategy for NTFPs Conservation fi ve provinces (Bac Giang, Quang Ninh, Ha Tinh, and Development by 2020, which was approved Quang Binh and Quang Tri), the objective of in August 2006, and the NTFPs Action Plan by the project was to launch an initiative to support 2010; the Forest Sector Support Programme through • developed an NTFPs Action Plan at the provincial improving organisations/institutions’ capacity for level in Ha Tinh and Quang Ninh provinces research and management by supporting the (approved in June 2007); sustainable and ecologically equitable use of NTFPs for biodiversity conservation. Through • supported five universities in compiling and this focus, the project aimed to improve the living developing curriculums for five subjects standards of poor people living in and around the concerning training NTFPs specialists and forests and develop the national economy. supported students conducting graduate theses on NTFPs; Initiatives • supported 32 different institutions through • Improve policy framework and national strategies two Action Learning Funds in carrying out 44 related to NTFPs development. research projects related to NTFPs management, • Continue to strengthen the capacity of FSIV and conservation and development in 23 provinces; relevant organisations to develop and implement • published the NTFPs Source Book, which national policies and strategies for sustainable contains information on nearly 400 major NTFPs NTFPs development. species in Viet Nam, thereby supporting the • Establish an Action Learning Fund to provide management, conservation and economic financial and technical support to institutions development of NTFPs; and and partners carrying out research in NTFPs • supported the establishment of NTFPs development for poverty reduction and Experimental Stations in Quang Ninh province biodiversity conservation programmes. and a NTFPs library. THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 21

In terms of transferring methodologies for The project generated substantial interest among sustainable NTFPs development, the project local households, with their total participating achieved the following outcomes: time comprising more than 3, 500 hours through activities such as breeding NTFPs, developing • transfered the methodology on NTFPs Market models for NTFPs conservation and development, Analysis and Development, Gender and and exploring processing models. A total of 1,957 Livelihoods to field officers and local staff at field households participated in the three field sites sites; in the central region, while 1,500 households • transferred land planning methodologies at the participated in the north, excluding households village level to households at project sites; under the two Action Learning Funds. • trained trainers provided to forest extensionists In terms of NTFPs awareness-raising, the project in the provinces and districts of the project to achieved the following outcomes: support knowledge dissemination; • A NTFPs network was set up in partnership with • trained thousands of people participating into the the Viet Nam Forest Scientific and Technical project in Participatory Research Assessment Association with the voluntary participation of (PRA), planting techniques, sustainable approximately 50 organisations and individuals, harvesting, and conserving and processing through which experiences and information on some NTFPs species; NTFPs are shared and disseminated; • developed trial models for NTFPs species • Workshops were organised on subjects such as conservation and development in cultivated Viet Namese bamboo, the sustainable marketing forest land and farmland for more than 10 of NTFPs in Viet Nam, and NTFPs conservation species including rattan, Morinda officinalis, and development in Viet Nam; Holarrhena antidysenterica, Pimela alba, • A website was developed, together with a NTFPs rhamnoneuron balansae, dioscorea persimilis, Newsletter, which is issued every quarter; machilus odoratissima, desmodium styracifolium, dianella ensifolia, amomum longiligulare, ardisia • Books were published on Amomum (Sa gigantiflolia, jasminum subtriplinerve, Lyndera nhan), Morinda officinalis (Ba kich), Pine resin, myrrha, etc.); Agarwood (Tram huong), Machilus (Boi loi do) to support researchers and forest extentionists • developed the model for insitu conservation in their work; (reinvigorated a 30ha rattan forest in Van Don, allocated separate land for NTFPs planting on • Planting Technical Guidelines for eight NTFPs a 63-ha area with rattan, morinda officinalis, species in central Viet Nam were developed pimela alba, rhamnoneuron balansae in Hoanh and published, together with the Supporting Bo, supported the rattan sustainable harvesting Document for Forest Extension, which contains plan in a nine-ha rattan natural forest in Minh information on 22 NTFPs species in the north- Hoa, Quang Binh province, and renovated 7.2 west of Viet Nam; ha of mixed garden with NTFPs plants in Cam • 20 traditional herbal gardens were established Xuyen districts); in health stations at the communal level and 10 • developed a model for processing Linh chi botanical gardens were planted at high schools mushroom and Myrica Farguhariana fruit in to improve community healthcare and awareness Van Don, developed a model for a bamboo/ of NTFPs; and handicraft producing village in Van Don and, and • More than 40 bookstores were established at the developed village rattan handicraft production in village level containing more than 300 booklets. Cam Xuyen and Tuyen Hoa; and 22 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

CONCLUSION awareness of the various benefi ts of NTFPs in society. These outcomes strongly support the To sum up, after the two phases of the project, development and successful implementation of which each had different objectives, many socio-economic development policies, the Law valuable results and lessons learned have been on Forest Protection and Development, and the achieved, which actively contribute to raising Forest Development Strategy. Papers of the Conference

THEME 1: MAKING THE LINK - NTFPs IMPACT ON POVERTY

Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 27

NTFPs Impact Poverty, National Development and Biodiversity Conservation by Creation of Livelihood Assets

John Raintree, Nguyen Thi Nghia and Bui Thi An1

The Non-Timber Tree and Forest Product In addressing such goals, international literature (NTFPs) Sub-sector Support Project in Viet Nam gives great prominence to the idea of sustainable seeks to support the use of NTFPs for biodiversity livelihoods. A key element of the Sustainable conservation, improving the livelihoods of poor Livelihoods Framework is the concept of people living in and around forest areas, and “livelihood assets” or “livelihood assets”, of which national economic development. the following fi ve types are recognised2:

TYPE DEFINITION

Skills, knowledge, labour and capacity to work, which vary according to household size, skill Human Assets levels, education, leadership potential, health status, etc. Human capital is a prerequisite for using the other four types of livelihood assets.

he natural resources upon which people rely for their livelihood, such as land, trees, crops, Natural Assets livestock, genetic resources, and natural and agricultural biodiversity.

Social relationships developed through membership, interaction, trust, etc. that increase people’s ability to work together, facilitate cooperation, reduce transaction costs, increase Social Assets access to information, infl uence and empower, activate formal obligations, and support informal safety nets among the poor.

Savings, credit, jobs and employment opportunities, and non-earned income used by Financial Assets people to achieve their livelihood objectives and invest in new livelihood assets.

Assets Infrastructure, equipment and other physical goods that enhance productivity and Physical Assets income.

This is a widely accepted framework, but what Project can help answer this question. The evidence is there that these concepts have purpose of the survey exercise was to obtain the practical relevance in Viet Nam? villagers own assessment of the relevance and impact of NTFPs models and activities promoted The view from the village by the project. To do this, a variety of participatory The results of a recent participatory rapid research techniques were used, including card- assessment survey of a sample of villagers sorting and ranking of models and activities, and participating in the NTFPs Sub-Sector Support open-ended focus group discussions, which were

1 NTFPs Sub-Sector Support Project in Viet Nam 2 Adapted from the Sustainable Livelihoods Glossary http://www.livelihoods.org/info/guidance_sheets_rtfs/sect8glo.rtf 28 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

supplemented by household and key informant a prerequisite for using other asset types, there interviews to obtain unbiased information on the was also a lot of overlap with comments under the villager’s own assessment of the NTFPs models other categories. and activities. People commented that they especially valued the Although the survey was not specifi cally designed increased knowledge and capacity they received with the Sustainable Livelihoods Framework in through the project. Comments about knowledge mind, the results provided surprisingly strong ranged from the specifi c: “knowledge of planting evidence that the NTFPs inputs have had a positive and grafting tram”, “learned from the experience impact on the villagers’ livelihood assets. of planting rattan and huong bai” and “know how to prevent disease among NTFPs species”; The most explicit evidence of this linkage can Making the link - NTFPs impact on poverty to the general: “knowledge of agroforestry be seen in the comments recorded at the end of production”, “knowledge of NTFPs conservation the focus group sessions, when the groups were and development”, “know how to earn [a living], asked to express their feelings about any changes change the cropping system”, and “improved caused by the project. understanding due to use of technical books”. Acquired capacities included: “increased capacity Asset Type # of hits % of total hits for using land and expanding land area to grow Human 59 44% NTFPs species”, “increased capacity for procuring Natural 31 23% assets for the household,” and “increased working Financial 23 17% capacity among commune and village cadres”. Social 21 16% Of special interest were the comments indicating Physical 0 0% the adoption and spread of the new knowledge Total 134 100% (“all HHs made a work plan to plant rattan as a fence around their forest hill garden”), impact on preserving indigenous knowledge (“recovery Of the 103 separate statements expressed by the of knowledge regarding the use of medicinal 16 focus groups in the eight sample villages, 97 plants”), and impacts on children and the value per cent made clear reference to at least one of of knowledge (“children are also interested in the asset types. When the statements were broken NTFPs”, “the rate of children dropping out of down into their basic elements and compared school has been reduced”, “now all children go to systematically with livelihood asset categories, the school”). All of these comments were spontaneous number and percentage of “hits” were as follows: and unsolicited. In the villagers’ assessment, the biggest impact Natural assets through the project was on human assets, followed by natural, fi nancial and social assets. The only All eight villages commented on the project’s asset category not mentioned by the villagers’ was impacts on natural assets. Some of the comments physical assets, which is not surprising since the were about creating new assets (e.g. “project NTFPs project is not an infrastructure project. supplies seedlings and techniques to grow rattan and huong bai”), or changes in the quality of natural Human assets assets through replacing existing crops with higher This asset category permeates the villagers value NTFPs (“rattan and huong bai can replace feelings about the project’s impacts, which is to be poor producing crops like tre hop bamboo and expected since knowledge, skills and the capacity cassava”). These impacts were described as to work in new ways and make more productive use “land-saving” because they return a higher value of household labour are the essence of the NTFPs per unit of land. models and training inputs. As human assets are Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 29

A surprising 84 per cent of the natural assets hits Other comments helped put the NTFPs-related were about the impacts on forest conservation conservation measures into proper historical made possible by the NTFPs models and activities. perspective with respect to wider development This fi nding might seem “too good to be true” if it changes: “Ten years ago, charcoal-making was an were not for the fact that the content of comments important activity for livelihoods, but now there are from widely separated sources triangulate well only three households that make charcoal because with other types of data, are coherent, and have of increased enforcement in the protected area an internal consistency that give them a real sense and because young men can get higher paying of authenticity. jobs in the south (e.g. in dam construction) and are not interested in charcoal-making.” The comments acknowledged impacts from the whole gamut of conservation measures, from Financial assets awareness-raising (“The water source is exhausted, Positive comments about impact on fi nancial and Tau timber is heavily exploited, resulting in assets were volunteered by seven of the eight landslides. That is why it is necessary to protect villages, with 11 out of the 23 hits comprising people’s livelihoods.”), to classical protected area direct statements that the project had created or exclusion measures (“A protected area has been increased income or employment opportunities. established, resulting in outlawing the destruction Early benefi ts were highlighted in the comment that of the forest”), to in-situ conservation (“Local “Beekeeping yields immediate economic benefi ts,” people are changing their awareness regarding while several others emphasized the stable, long- the sustainable exploitation of NTFPs in natural term nature of the employment opportunities forests” and “Forest enrichment counteracts created by NTFPs. Villagers in Kim Trung linked natural forest destruction and preserves natural this to conservation benefi ts by saying that long- forests for the next generation through long-term term income from rattan planting would allow the economic management”), to ex-situ domestication local people to reduce logging in the future (the (“Grow huong bai and rattan instead of going to rattan had not yet reached harvestable age). Links the forest to collect it” and “Can now conserve between gains in fi nancial assets and labour use (a some NTFPs species that are scarce in natural human asset) were fl agged in the comments “Busy forests such as rattan and boi loi”), to livelihood but income increased” and “Landless households substitution measures (“Women have learnt new will have opportunities to sell labour” (the latter techniques to plant NTFPs so they spend their also implies the creation of new social assets). A time gardening and have reduced the time spent more global kind of impact was highlighted in the collecting NTFPs in natural forests”). terse comment from Am village citing “Improved Comments regarding a reduction in the number management and utilization of cash for household of visits to natural forests comprised a dominant economic development.” theme, and many different reasons were cited. Not all the comments were positive. A respondent Perhaps the most succinct summary of the project’s from Kim Trung, the poorest village in the sample, impact on conservation was the statement that commented that the investment from the project “Time spent on the models results in less visits to was too small, which made it diffi cult for some the forest.” households to select a model. This highlights the Others gave more elaborate explanations, such fact that the poorest villagers may in the short- as this one on the impact of high-effi ciency cook term lack suffi cient cash, land, labour and other stoves: “Before the NTFPs project, women had to assets to allow them to develop the long-term collect fi rewood ten times a month. Now they only fi nancial assets of NTFPs. A positive response to spend one time collecting fi rewood in the forest this dilemma was suggested by a woman in Dai and can invest their time in the fruit garden and Lang, whose hope was that the project would selling [products] in local markets.” support handicraft manufacturing in the next 30 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

phase. NTFPs processing does not require land, A generalized impact on social assets at the but it creates domestic employment opportunities community level was also acknowledged in the compatible with child care and other household comment that “Villagers participate in village responsibilities. meetings more readily” and the observation pertaining to the “Increased working capacity of Social assets the commune and village cadres”. Comments All villages had something to say about project relating to the wider national community included: impacts on social assets. Most of the recorded “Conducted study tour to learn experiences from comments identifi ed positive impacts on social other localities,” indicating an expanded network relationships in households, the immediate of relationships beyond the local community; and community, and in the wider national community. Making the link - NTFPs impact on poverty from an ethnic minority village, “Local people are Comments about the household were mainly about happy and believe in the NTFPs project because improved gender relations: “Increased awareness we implemented activities based on what we were about gender equality”, “Gender division of labour told” (this is about credibility and trust). in the family is more reasonable”, “Created Not all of the comments about social assets employment, solidarity in the family, better labour were so positive, however. Some participants arrangement in the household”, and from an ethnic from Group 2, “Poor and Forest Dependent community known for its gender imbalances, “The Households,” and even some from Group 1, “High husband changed his behaviour in supporting his Access Households” in villages with an extremely wife to attend a literacy class.” inequitable land distribution called attention to The gender theme expanded at the community social disparities in benefi ts from the project: “No level with comments such as: “Role and voice of equity between households who have forest land women in the HH and community increased” and and households who have no forest land” and “The “Women are interested in literacy classes and have project does not support all households, resulting more self-confi dence when they attend village in confl ict between supported and non-supported meetings or go outside the village,” indicating the households. Many households don’t know about general empowerment of women. the project”. The land disparity obviously was Another major theme at the community level was not caused by the project, but the livelihood increased interaction and cooperation between opportunities presented by the project certainly households in sharing experiences about the increased the awareness and signifi cance of models: “Local people are very happy; they feel unequal distribution. more friendly sharing experiences regarding One participant suggested a solution to the planting NTFPs with each other. We always ask problem of favouritism in the distribution of project each other ‘Why is your model growing better than opportunities: “Many households don’t know about others?’”, “HHs who have no models can copy the project. It is proposed that villagers should be models from HHs with a model,” “Non-supported informed through the loudspeaker system”. HHs can learn from the experiences of supported References HHs. Up till now, 90 per cent of households have planted khoai mai” (even though only 28 per cent DFID. 1999. Sustainable Livelihood Guidance Sheets. of village households offi cially participated in this Dept. for Int’l Development. London. project model). This last comment is indicative of Raintree, John, Nguyen Thi Nghia and Bui Thi An. 2007. the rapid adoption and spread of this particular NTFPs Impact Assessment Report. NTFPs Sub-Sector model through social interaction at the community Support Project. Ha Noi. level. Even households who are unable to adopt the models need not be left out because, as one person commented, “Landless households will have opportunities to sell labour.” Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 31

Community Initiatives on NTFPs Enterprises for Poverty Alleviation and Biodiversity Conservation: Multi-stakeholder Perspectives on an Effective and Enabling Environment

Dr. Nitaya Kijtewachakul1 ABSTRACT

In the last few decades, community organisations The concepts and tangible practices of these have been strengthened – and, in some cases, few cases have been discussed among many have gained notoriety – for initiatives on NTFPs community forest network representatives, as well enterprises which result in poverty alleviation as staff from government and non-government and biodiversity conservation. These community organisations, who have worked with community networks include the Eastern Forest People’s forestry networks to learn their views and Network and the Inpeang Community Learning perspectives and identify opportunities and risks. Network. This paper will also present their views and These few cases have shown the capacity of concerns regarding linking poverty alleviation local people to domesticate forest resources on and biodiversity through the development of their farms within agro-diversifi ed systems. As NTFPs enterprises. In addition, it will ask whether a collaborative effort between many community it is possible to facilitate the growth of NTFPs organisations coming together as a grassroots enterprises for poverty alleviation under the network, these groups have created value-added existing forestry policies and laws. processing and NTFPs enterprises based on forest To obtain a copy of the full length version of this resources located near their communities, which paper, please contact Dr. Nitaya Kijtewachakul, have resulted in livelihood improvements and in Deputy Director of Walai Rukhavej Botanical turn led to sustainable community development. It Research Institute (WRBRI), Mahasarakham is also interesting that these community networks, University,Thailand, at [email protected] in collaboration with various educational institutes and partners, can attract customers, which in turn creates new markets in the locality. In some cases, they are also able to improve NTFPs product quality in order to meet national and international market standards and attain certifi cation.

1 Walai Rukhavej Botanical Research Institute (WRBRI), Mahasarakham University,Thailand 32 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

The Importance, Role and Value of Non-Wood Forest Products for Laotian Food Security, Nutrition and Livelihoods

Vongvilay Vongkhamsao

INTRODUCTION

Making the link - NTFPs impact on poverty In the symposium on biodiversity for food security organised in October 2004 by the Food and This paper presents a conceptual framework for Agriculture Organisation of the United Nations forest foods and food security linked to forest (FAO) and the Lao PDR Ministry of Agriculture and resource management, based on NWFP research Forestry (MAF), it was agreed that a wide variety projects conducted in Lao PDR and the preliminary of forest products made up a large proportion of results of the Agriculture Biodiversity Programme’s the daily diet of rural Lao families. Over 450 of project entitled ”Enhancing food security through these edible Non-Wood Forest Products (NWFPs) sustainable management plans for NWFPs”. have been recorded so far including edible shoots and other vegetables, fruits, tubers, mushrooms, CONCEPTUAL FRAMEWORK small water animals, wildlife etc. The diversity of FOR FOREST FOODS AND FOOD the NWFPs consumed refl ects the rich agricultural SECURITY biodiversity of the rural landscape in Lao PDR. The direct contribution of NWFPs to food security in The Lao defi nition of food security is “to ensure valuation studies is roughly 50 per cent compared enough food and foodstuffs for every person at all to rice, which is the country’s staple food. Together, times, both in material and economic aspects, with these foods make up around 80 per cent of the total increasing levels of nutritional quality, hygiene and value of family’s subsistence expenditure. NWFPs balance so as to improve health and enable normal also contribute indirectly to food security, as they development and effi cient employment” (NAPP). can be sold to buy rice in times of shortages. NWFPs are estimated to contribute 40-50 per

BLE RESOU cent of the cash income of rural Lao households, AINA RCE T US US E while 50 per cent of an average household’s S FOREST FOOD cash income is used to buy rice (more for poorer RESOURCES families). NWFPs are therefore the most important

DIRECT INDIRECT safety net or coping strategy for the rural poor in Family consumption Exchange. sale and gifts Lao PDR.

FOOD The availability of this safety net is declining quickly SECURITY following rapid deforestation for timber logging and conversion of forests to agricultural areas. The Well-being for households and challenge is to adopt land use systems to keep C O community M T M N enough forests in the landscape while allowing the U E N EM ITY B poor access to forest resources. Another option FOREST MANA is to domesticate wild species in agro-forestry Figure 1: Forest foods and food security link forest resource systems and gardens. Lao forest foods also have management to well being (source: Clindon 2001) potential to be exported as gourmet products to niche export markets. Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 33

Gathering of NWFPs is an important element in the Studies on the importance, role and value of livelihoods of most rural Lao families, especially for NWFPs in Laos those living in upland areas. NWFPs contribute in The largest range of NTFPs species is found two ways to food security (see also Figure 1): among edible plant products, edible animal • Direct consumption of forest foods accompanied products and ornamental plants (mainly orchids). by rice; and These resources and others contribute signifi cantly to the national economy due to their important • The sale of NWFPs to buy rice in times of role in the household economy and in rural food shortages. security, which is one of the government’s main NWFP ACTIVITIES AND PROJECTS IN policy objectives for the agriculture and forestry LAO PDR sectors (Clairon, 1998).

Table 1. Villagers’ ranking of 50 most important NWFPs

Ranking, % Ranking Product Men Women Total 1 Bamboo shoots 13 17 13 2 Fish 13 7 10 3 Vegetables 11 11 9 4 Wildlife 11 6 8 5 Cardamom 7 7 7 6 Rattan canes 6 6 6 7 Damar resin 2 4 5 8 Frogs 5 5 5 9 Mushrooms 3 6 4 10 Yang oil 4 4 4 Total top 10 products 75 73 71 Other 40 products 25 27 29 Total 50 products 100 100 100

Source: The Use of NWFPs in Lao PDR, DoF/IUCN Vientiane, Foppes J., Ketphanh S., November 1997.

The IUCN/NTFPs Project has assessed the shoots, while men prefer products such as wildlife importance of NWFPs for the household economy and fi sh. Most other products seem to be collected in 28 villages of three provinces (see Table 1.). by both men and women. When ranked against other NWFPs, bamboo Household use of NWFPs shoots stand out as the single most important NWFPs play a central role in the rural economy of product. Women usually attach more importance the Lao PDR, and have been studied extensively to products such as vegetables and bamboo (Clendon 2001, de Beer 1991, de Vletter 1997, 34 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Enfi eld et al 1998, Foppes and Ketpanh 1997, National studies have found that sales of NWFPs 2000a, 2000b, Foppes et al 1997, IUCN 2002a, are worth an average of 11 per cent of total cash Lamxay 2001, Raintree and Soydara undated). income, rising to 55 per cent in forest-rich areas It is known that wild plant and animal species (NSC 1999). In many parts of the country, cash provide a wide range of products for consumption income derived from NTFPs is far greater than the and production, including: animal proteins from national average. For example, surveys carried foods such as wild meat, fi sh, frogs, shrimp, out in Houapanh Province found that NWFPs soft-shelled turtles, crabs and molluscs; plant contributed an average of 38 per cent of village foods such as mushrooms, bamboo shoots, wild cash income, rising to as high as 56 per cent for fruits and vegetables, and honey; materials for households living within and adjacent to forests

Making the link - NTFPs impact on poverty constructing house and handicraft production from (IUCN 2002a). On the Nakai Plateau, NWFPs bamboo, rattan, pandanus, broom grass and paper account for over three-quarters of family income mulberry; traditional medicines; and livestock (Foppes et al 1997). fodder and pasturing materials. Although it is diffi cult to aggregate this kind of NWFPs are known to be a particularly important data at the national level due to large variations component of household subsistence, especially in social and cultural systems, livelihoods, forest in terms of food consumption. Villagers rank wild dependency, and access to other sources of foods consistently as the most important forest production and consumption, estimates have been resource (Clendon 2001), and it is thought that generalised for the whole country. On average, wild meat and fi sh are the most important source NWFPs are worth a total of almost $320 per year of protein in most people’s diet (Foppes and for rural households in the Lao PDR, contributing Ketphanh 1997). It is estimated that wild foods about 55 per cent of cash income, or 46 per cent contribute between 61-79 per cent of non-rice food of the total household economy (Foppes and consumption by weight, and provide an average of Ketphanh 2000a). 4 per cent of energy intake, 40 per cent of calcium, These fi gures suggests that NWFPs may be worth 25 per cent of iron and 40 per cent of vitamins A some Kip 2.6 million per household per year, or and C (Clendon 2001). They are also commonly Kip 1,837 billion in total (see Table 2). Firewood, used as buffers against seasonal and emergency fi sh and aquatic resource consumption values are food shortages (de Beer 1991). excluded from this fi gure.

Table 2: Annual value of NWFPs for household income and subsistence $ per household Kip per household Kip billion total Household subsistence 223 2,209,680 1,582.66 Household income 36 354,470 253.89 TOTAL 259 2,564,150 1,836.55

Trade in NWFPs Sterculia lychnophora), sugar palm (Arenga pinnata, Dialium indum), and stems (bamboo, NWFPs also have a high industrial and trade value. rattan, broom grass) (Lamxay 2001, SoE 2000). The most important components of the commercial NWFP harvest are mainly plant exudates (resin, NWFPs trade is mainly conducted through oleo-resin, Siam benzoin), medicinal plants, spices middlemen, who travel to different villages to buy and condiments, plant barks (paper mulberry or the products from villagers. In some cases, the “po sa” - Broussonetia papyrifera, Persea kurzii sale of products goes through a long chain of and Boehmeria malabarica), fruits (Malva nuts/ middlemen before reaching export companies. Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 35

Most NWFPs from the Lao PDR are exported to average of Kip 64 billion. China, Viet Nam and Thailand, although certain Among all the exported products, medicinal plants products are also exported to Japan and Europe. score highest at about 70 per cent of the total China has been the biggest importer of medicinal export value, followed by fi bre products (15 per products from the Lao PDR (Ingles et al., 1998). cent), resin (8 per cent), edible products (6 per Much of the commercial harvest of NWFPs is cent), and incense (2 per cent). However, the total exported to neighboring countries, where it is actual export value is suspected to be higher than often processed and sometimes re-exported to the fi gure presented in the table, as data for some other parts of the world. The reported export products such as orchid stems, berberin vine, and value of NWFPs was about $6.3 million in 1993, Smilax glabra are still missing. representing 3 per cent of the country’s total export NWFPs market surveys value (Sengdara. & Ketphanh 1996, cited by Ingles et al., 1998). This dropped to 2 per cent in 1996. The results of provincial surveys on NWFPs trading in three pilot provinces of the NWFPs Marketing Between 1994 and 1998, recorded exports of System Development Project (TCP/LAO/3002) NWFPs were worth almost $160 million, or an are shown below. average of $31.8 million a year1 (World Bank, Sida, and Government of Finland 2001b). Annual • Luang-Prabang province is rich in NWFPs, and export values however varied greatly over this trading is important within the province but also period (between $1.1 million and $73.2 million), with Thailand, China and Viet Nam. The potential and have now declined substantially from a high of NWFP products listed for increased production over $70 million a year in the mid-1990s. and marketing are: mulberry, keam, pearkmek, peaek kea, bitter bamboo shot, sugar palm, Estimates of the quantities, values and current chandai, orchid, pearkhat, marpee, bamboo prices of major NWFP exports would suggest that (shoots and canes), cardamom, orchids, aquatic today offi cial NWFP exports are worth between and wild vegetables, fruits, insect larva, fish, $6-7 million a year (Lamxay 2001, World Bank, berberin, mushrooms, ngaka, medicine plants, Sida, and Government of Finland 2001a), or an marko and Kikang. • Savannakhet province is located in a strategic position between Thailand and Viet Nam. The China NWFP products currently traded and identified by the survey are: rattan (six species), lang namtha Hua Phan mushroom (eight species), bamboo shoots (six species), sang, orchid, cardamom, wild Viet Nam fruits, wild vegetables, damar resin, honey, Luang Xieng Bokeo persia (Bong), insects, fish, frogs and birds. Thailand Proy ince Prabang khuang Proy ince • Champasak province is also rich in NWFP Xa ya bouly resources and NWFP trading is an important source of income for the province. The main products identified during the survey are: Vientiane provice rattan (Wai Ta Leuak, Wai Sa Vang, Wai Deng/ Vientiane Cabital Kam Lao, Wai Hangnou), malva nut, bamboo (shoots and canes from four species), damar resin, berberin vine (Haem), cardamom, 1 In addition, a large proportion of commercial extraction and trade takes place unoffi cially. It is however impossible to oleoresin, kha douk, frogs, fish, and birds, wild obtain reliable data on the scale or value of this utilisation fruits, mushroom (three species), aromatic 36 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

snails and wild vegetables. NTFPs trade from by provincial and district offi cers, were: the poor Champasak is mainly done with Thailand quality of raw materials; and fl uctuating prices. and Viet Nam but also with the Lao capital Moreover, the Lao taxation system is complex with Vientiane. Handicraft (bamboo and rattan) many levels of taxation, which are not often clear production is becoming an important activity for the private sector. in the province and increasing numbers of NWFPs nutrition study villages have started to develop rattan and bamboo handicrafts. Forest foods have higher nutritional value than domestic animals or garden foods (FAO, 1996). The companies interviewed in the three provinces A chemical analysis of some traditional Katu foods mentioned that there is no capacity (skills and corroborates this (Krahn 2005). Many wild plants Making the link - NTFPs impact on poverty equipment) in value-adding techniques and and animals provide food with greater nutrient processing, product quality management, and densities than alternative foods imported through marketing. Some companies mentioned that they market networks in remote mountain areas. need capacity building training either through the In some areas of Laos moreover, market food government or through a project on processing supplies are highly restricted and there are many and other value addition techniques, product days when even bananas are not available. Table development and marketing. Two important issues 4 presents the key nutritients of NWFPs. raised by most of the trading companies, but also Table 4. Key NWFP nutrients1

Food Groups Examples Key Nutrients Leaves, ferns, bamboo, Carbohydrates, beta-carotene, Leaves, stems and sprouts rattan, etc. iron, zinc, calcium Polyporaceae and Mushrooms Calcium, iron, protein Russulaceae species, etc. Fresh water snails, crabs, Thiara aspernata protein, fat, calcium, iron, Vit E shrimp Termites, dung and long Insects proteins, fat, iron, calcium horn beetles

Marketing system development for non-wood Agriculture and Forestry Institute (NAFRI) in the forest products project implementation of a project entitled Marketing System Development for NWFPs. The project NWFPs play an important role for Lao people, began in September 2004 and was completed particularly those in rural areas who depend in September 2006 after implementing activities on natural resources for their livelihood. This in three provinces, including Luang Prabang, is particularly the case during shortages of Savannakhet and Champasack. agricultural foods, as people can collect NWFPs for consumption and for sale to buy rice. Lao forest The project’s objective was to establish a resources are also in better condition currently model for developing marketing systems for compared to the neighbouring countries such as priority NWFPs through the Market Analysis & Thailand and Viet Nam. Development (MA&D) approach, which enables local communities to identify potential products FAO, in partnership with SNV, assisted the and develop markets that will promote income Forest Research Centre (FRC) from the National

1 Extracted from Important Key Nutrients of Traditional Upland Non-rice Foods Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 37 generation through strengthening the capacity of Activity funded through the FAO-Netherlands stakeholders for NWFP marketing and sustainable Partnership Programme (FNPP) management of NWFP resources. Developing NWFPs and other terrestrial biodiversity are and strengthening environmentally and socio- one of the fi ve main components of the National economically sound market development with Agricultural Biodiversity Programme (NABP), which enhanced marketing systems provides income as aims to support national priorities for food security well as incentives to local communities to manage and development. The project team prepared a NWFP resources in a (more) sustainable way. project proposal to continue the development of Consequently, it contributes to reducing pressure a marketing system for the NWFP project in Phin on existing natural forest resources. district, Savannakhet province, and implement it The six project villages were located in the in fi ve villages, including one site of the previous poorest part of the country, where average project. The activity will focus on enhancing annual household income varied from $200 to food security through developing a sustainable $800. The project helped villagers gain more management plan for NWFPs. benefi ts from the sale of NWFPs while practising The development objective of the project is to sustainable harvesting and production. Overall, assist the Government of the Lao PDR in reducing the MA&D approach resulted in the establishment rural poverty and promoting the sustainable use of 10 community-level enterprises (involving 239 and management of forest resources through the people), creating employment and income for development of an appropriate NWFP management local residents. Out of the 10 pilot enterprises, two plan associated with a sound marketing system. enterprises worked on paper mulberry production, More specifi cally, it is important to understand three enterprises produced mushrooms, three the strong links that exist between food security, enterprises produced bamboo handicrafts and two forest foods and resource conservation and to enterprises focussed on rattan handicrafts. incorporate this understanding into sustainable The benefi ts that villagers earned from the pilot village forest management strategies. enterprises varied from village to village and The specifi c objectives of the project are to: ranged from $5 to $70 per household (depending on the product, and covering only the six-month • demonstrate to policy-makers the importance of pilot period). This additional income was invested existing NWFP biodiversity and its importance in the enterprise and also used for buying food for food security, as well as poverty alleviation, and paying school fees and medical expenses. In and the need to integrate NWFPs into forest addition, village development funds were set up to management plans to ensure long-term access fi ll the gap in fi nancial services and help villagers to food for rural communities; implement the pilot enterprises. • demonstrate to local communities the importance During the implementation of the project, the of NWFP biodiversity in regards to the socio- capacity of national, provincial and district staff economic development of the village (food, was strengthened in marketing and management, culture, medicine, incomes); and collaboration and networking. They will form the • demonstrate the usefulness to policy-makers and core team to assist and support the villagers to provincial and district staff of the MA&D approach sustainably manage the rich sources of NWFPs in tested by the Marketing System Development the project areas. for NWFPs in supporting local communities to 38 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

manage NWFP resources for food and income Kham Noy, which was a pilot village in the above- generation in a sustainable manner. mentioned project. The total period of project is 14 months from October 2006 to November 2007. The expected outputs of the project are: By the middle of 2007, the project had conducted • a model approach to integrating NWFP resource PRA and MA&D training and will soon fi nalise the management into forest management plans sustainable NWFP management plan, as well as and village development plans to ensure food nutrition study regarding forest food and NWFPs. security and the sustainable socio-economic Through implementing this activity, the project development of villages; and expects to demonstrate to policy-makers the • to increase awareness among policy-makers importance of NWFPs for food security and, through Making the link - NTFPs impact on poverty (district, province and national level) of the fi eld visits and documentation, show how villagers importance of existing NWFP biodiversity and can manage their NWFP resources sustainably. help them realise the need to integrate NWFPs The conceptual framework is presented below. into forest management plans to ensure long- Activities will take place around Dong Kapok forest term access to food for rural communities. areas in Pine district, Savannakhet province. Through conducting field activities and together Around 60 households in fi ve villages, estimated with the Forestry Strategy 2020 and National at approximately 360 people, will benefi t from this Biodiversity Agriculture Programme, such project. increased awareness is expected to encourage policy-makers to support and replicate the above- Through integrating NWFP resource management mentioned model approach. into forest management plans and village development plans, the project aims to contribute The main tools that will be used in this project to food security, adequate nutrition and the are the MA&D approach, Participatory Rapid sustainable socio-economic development of the Appraisals (PRA), interviews and NWFP forest villages. surveys, and planning fi eld activities with all project stakeholders.

The project will operate around Dong Kapok Activities completed forest area (Evergreen/Dipterocarp forest) and will involve fi ve villages, including Ban Alouay The following activities have already been conducted.

Preparation of Field Activities 1 Objectives, training, planning month

Data Collection and analysis by villagers 4 Interviews, forest transects, etc months Analysis and presentation of the results Understanding by local communities on the importance of conserving NWFP as source of food and incomes Set-up of NWFP village forest 6 management plan months Based on opportunities and example from mushroom and bamboo existing group

2 Understanding by Policy Report and Field visit and meeting with months makers on the importance of Policy makers conserving NWFP as source of food and cash incomes for the local 1 Workshop and fi nal Report months Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 39

• an assessment was conducted by the villagers situation, traditional knowledge and culture, regarding the NWFP resources available in the land use, NWFP resources and also marketing surrounding forest, including seasonal calendar, opportunities (using the Product Assessment forest transect, forest food resource matrices for Table and others tools from MA&D). dry and rainy seasons, participatory resource • awareness session was conducted for the mapping, livelihood system diagram, etc. An village target group on the presence of NWFP NWFP inventory methodology will be developed biodiversity in the forest, their use in the home in the future, depending on the NWFP products garden and their importance to food security, identified. nutrition and cash incomes at the village level. • a presentation was compiled comprising the • villagers have been assisted in identifying activities survey results and identification by the villagers based on the constraints and opportunities through listing, group meetings etc. of the main identified for the selected NWFPs according to: (i) NWFPs and their importance to food security and food security; (ii) natural resources; (iii) marketing; nutrition, as well as their roles in the livelihoods (iv) social and policy; and (v) technology. of the villagers (source of cash income to buy food etc.). The project team also evaluated Future activities the potential and constraints of the products, Within the next phase of the project, villagers and and prioritised them based on local conditions, DAFEO will develop, together with the project such as ecological systems, socio-economic team, NWFP sustainable forest management

Main fi ndings of the survey • more than 50 per cent of poor groups in the fi ve villages rely on NWFPs for their livelihoods • 21 main species of NWFPs are used for food, sale, household consumption and border trade • 10 species are used for selling and generating income for households (damar resin, mushrooms, orchids, ant eggs, frogs, rattan, roots of kham pair-climber, fi sh, wild vegetables and aroma snails). • Laos is currently experiencing a boom of rubber plantations by private companies from neighbouring countries. The forest around one of the project villages was totally cut down in April 2007 for a rubber plantation. While destroying the forest that people depend on, the uncontrolled spreading of plantations poses a severe threat to the food security and livelihoods of rural people. The project has to change its original workplan of supporting community-based rattan management. Instead, the project has to plan for a baseline survey to be able to evaluate the impact of the plantations on agro-biodiversity (in particular NWFP resources), impact on the health of the villagers (their livelihoods and food security), and other cultural and socio-economical impacts. plan for villages, including community-based sustainable forest management plan. NWFP harvesting rules and multi-village NWFP The project team will conduct training on conservation rules for selected NWFPs, which domestication and/or replanting (enrichment) in will be linked with the forest management plan natural forests, depending which NWFP species and village development plan. Working group are selected by villagers, and a nutrition study meetings between the representative groups of regarding forest food and food security in project each selected village will be organised, as well as villages. The study will be done in collaboration village cluster management groups, who will be with the Ministry of Health. responsible for the implementation of the NWFP 40 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

In order to demonstrate to policy-makers, as well the private sector. There is a need to formulate a as people living in the rural areas of Lao PDR, the project to study this issue by testing key commercial importance of NWFPs, the project will produce NWFP species in different phases. information material and conduct workshops and The major constraint on NWFP utilisation and fi eld trips regarding the model approach (MA&D development is lack of knowledge. There are framework). The project will also present the critical gaps concerning propagation, silviculture, NWFP village sustainable forest management plan enrichment, harvesting and sustainable to policy-makers, and policy recommendations management of wild populations of NWFPs, as in order to expand the approach. Field visits and well as information regarding their domestication. meeting between villagers and policy-makers will There is also a need to identify NWFPs species

Making the link - NTFPs impact on poverty be organised to present the results and lessons with importance for food security, commerce learnt from the fi eld activities. and biodiversity conservation, and to determine CONCLUSION which of these are currently threatened so that appropriate interventions may be taken. Knowledge To enable NWFPs to be addressed in national for developing in-situ conservation efforts is also policies as a component of agricultural biodiversity, needed. it is important that all NWFP activities, particularly forest management, be linked to all national The extent and nature of the domestic utilisation, development programmes such as the National trade and markets for NWFPs is unknown. Forestry Strategy 2020, National Growth and Similarly, the market forces driving unsustainable, Poverty Eradication Strategy, National Socio- as opposed to sustainable, use of NWFPs are economic Plan 2006-2010 etc. poorly known and there is little information on prices, quality standards and international market It is important to build capacity and extension access requirements. This limited capacity to programmes at all levels to raise awareness and observe, identify, measure and control NWFP encourage action by promoting and expanding trade has a negative effect on the sustainable use successful cases of NWFPs e.g. the MA&D method of NWFPs by providing conditions under which tested in the two projects mentioned above. trade in prohibited products has fl ourished. It is also important to obtain support from Currently, there are few government offi cials governments, donors, development organisations responsible for NWFP development, and these and non-government organizations for NWFP are split among a number of agencies with limited research and NWFP projects to ensure continuing capacity, in terms of both human resources and support for this important sector. equipment, to undertake the tasks required. In general, NWFPs play an important role for Therefore, the implementation of policies national economics and the livelihoods of rural regulating the marketing and development of people. Particularly during the periods of rice NWFPs resources will require substantial capacity shortages, NWFPs are an essential source of food building both within government and with respect and income for people living in rural areas. However, to other stakeholders, including villagers, traders NWFP trading in Laos is concentrated mostly on and processors. raw materials and there is no capacity (skills and/ or equipment) in value-adding techniques and processing, product quality management and References marketing. Nafri, Nafes & Noul. Improving livelihoods in the uplands of The taxation system is extremely complex with the Lao PDR, Volume 1 Initiatives and Approaches. page multi-level taxes, which are often not clear for 93, Key concepts of Food Security, page 105 Community Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 41

Perceptions of Forest Food Resource Management, and NWFP Marketing System Development Project (TCP/ page107 Upland Food security and Nutritional Diversity. LAO/3002), 2004. Project activities: Preparatory National Agriculture and Forestry Research Institute. Work for Implementation of Market Analysis and Vientiane, 2005 Development. Nov 2004 - January 2005.

Ministry of Agriculture and Forestry. Proceedings of Symposium on Biodiversity for Food Security. 2004

MAF/STEA. National Biodiversity and Action Plan., 2003. 42 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Understanding and Supporting NTFPs Market Requirements: Managing Risk, Creating Success

Aaron Becker & Mark Barnett

BACKGROUND often beyond the scope of most NGOs. Market considerations (i.e., with substantial research, In March 2007, a letter of invitation was sent out business plans and real support connections) Making the link - NTFPs impact on poverty to the broader NGO/Non-Timber Tree and Forest need to be placed at the beginning of projects and Products (NTFPs) community, asking that any new enterprises. Certainly, target markets should group with products that wanted or needed help be well considered, understood and/or developed establishing overseas (US and Japan) markets, before thousands of poor farmers are convinced please describe: a) the product they have; b) on limited or negligible information to replace the quantities and cost of the products (small staple or home food crops. quantities were acceptable); and c) if there was any special story attached to the product1. Thus, if your project’s aim is income generation (which can be related to, but is different from the Only two replies were received, with both groups pure conservation of species), you must strive to still in the very early stages of processing. Given understand and make market connections at the that many donors supported NTFPs projects in the beginning, so that you can know clearly what your region over the last two decades, one might ask, aim is, and what possibilities and obstacles you’ll “Why weren’t increasing numbers of substantive face in meeting market quality requirements. replies received?”. Certainly, there are a number Furthermore, it is clear most NGO/NTFPs projects of reasons for this. For one, perhaps these groups need support and skills for building functioning, already had well-established markets? Perhaps profi table community businesses. There are they had buyers asking for more than they could numerous avenues to this, but all require diligent currently supply, or had no access to email, or research, some risks and trial and error. This risk were in the early stages of product development can be mitigated in part by attending niche-product and more focused on cultivating a niche market, trade shows, fi nding and hiring entrepreneurial keeping it small, and would consider expanding staff with business experience, giving staff room later into external market considerations? While to explore, innovate and gain entrepreneurial uncertain of the causes for the lack of responses, experience, or even developing links with for-profi t this paper’s authors suspect it points to the organisations that already understand business fact that, while many of these projects proclaim and markets. Whether acting from some corporate goals of “boosting farmers incomes,” they were responsibility to communities, or if only out of their unprepared to present basic product information, own self-interest, for-profi ts can provide functional had yet to target specifi c markets, and were likely linkages, technical training and perhaps even failing to adequately consider or address even the fi nancial assistance. For example, handicraft co- most basic of market requirements. operative development through Ba Nhat, Mekong Indeed, to create new niche markets for little- provided a means of training and “stepping-into” known products can be a big challenge, and it is higher value niche markets.

1 Becker, Aaron email to enviro-vlc List (from the Australian- Viet Nam Science-Technology Link). Subject: “Looking for sustainably-produced niche products ready for export.” 23/3/07. Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 43

SCOPING STUDY OF POTENTIAL Furthermore, many decision makers in these PRODUCTS & PARTNERSHIPS IN countries realise that “donor aid” will not (and LAOS, VIET NAM AND CAMBODIA need not) last forever, and that current aid can and should be better linked to private Aaron Becker was asked in 2005 by Viet Nam's enterprise. Similarly, as Viet Nam, Laos and largest spice exporter of cassia, pepper and other Cambodia are eager for access to external spices, Pacifi c Basin Partnership (PBP)/Son Ha markets and commercially viable products and Spice Co., to review and summarise existing have development programmes which do and raw materials for spices, oleo resins, food safe might further support NTFPs development and products and related opportunities suitable for expansion, it is realised that there are potential potential PBP investment and/or expansion in opportunities for private companies to make Laos and Cambodia. With Mr. Mark Barnett’s money while doing “good”, thereby making donor permission (PBP’s Managing Director), they have money more sustainable and “real”. allowed the basic background of this study to be presentation in this paper. And yet, while many of the groups and individuals interviewed at that time talked about their Investment opportunities in that 2005 study were eagerness to enter into the for-profi t realm and viewed primarily in terms of potential for production markets, there was very little pro-active movement, and processing of spices/agricultural products for commitment and real support for developing such export from these countries. 'End of spectrum business sectors. While most NGOs stuck to their food-safe products' were studied for products PBP own agendas, government funds were focused was already dealing with, and for which markets/ on drug eradication without concrete replacement clients already exist. Further scoping work was crop ideas, and infrastructure and education at undertaken to: the farm level were quite low. • analyse the diversification of supply to circumvent Little in the way of accurate national statistics potential risks and issues for Viet Nam through was available on either the production or trade of its current products; many NTFPs species, and inference was often • explore the development of new products, with drawn through observation, talks about “common new soil/weather/climate conditions available in sense” with individuals/companies dealing in Laos/Cambodia; and “related products”, and their exposure to what were largely informal market systems2. Often, • explore attractive opportunities, including the most basic information on products, seasonal ethical issues such as making donor-money availability, production, economies, and demand/ “real”, providing technology to support opium consumption were not present. More support eradication, supporting local communities, for substantive research in this regard would be proper management of resources, etc. useful for prioritised NTFPs, as would support for The major source of livelihoods in Viet Nam, NTFPs market development. Cambodia and Laos is, in simplest terms, Notably, important information is not available agriculture. It employs a good majority of the in many regards for spices and nutraceuticals, work force and provides about half of the three yet we’re told that “there is a huge demand” for countries GDPs (fi gures vary around Viet Nam 20 certain products. Certainly this appeared true for per cent, Laos 57 per cent, and Cambodia 37 per certain crops such as corn and soybeans, and for cent). It should make sense then that agriculture NTFPs and other medicinal plants in China and and related opportunities are, for a variety of Thailand. But we should be cautious in accepting reasons, a major focus of the Laos, Viet Nam and Cambodian governments and subsequently, of 2 For certain products, written statistics and documents are most donor-aided development programmes. available. 44 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

“common sense” - is this demand coming from do not commit to such initiatives unless someone a single company with vague plans to set up a is watching. Therefore the following questions processing facility in the province? Does it warrant remain: local extensionists advising farmers to replace and • How can real commitments be made between plant crops of amomum, coffee or cashews to the farmers and companies? point of oversupply? Does this single company simply wish to offset potential political risks in a • What mechanisms can be developed to ensure country on the other side of the world, or do they meaningful contracts? really intend to develop the local community? • How can real commitments be gained from Again, specifi cs are needed and must be sought. trading markets for our goods? Making the link - NTFPs impact on poverty Broadly speaking, “good or bad” agriculture and WHAT’S AT RISK? VILLAGE-LEVEL NTFPs production are practiced at a very low NTFPS PRODUCTION CAPACITIES level in the region i.e., it is generally not highly mechanised, there is not a particularly strong Farmers want stable incomes. A stable income plantation or garden culture, and typically it occurs is critical to most of us, and particularly so to the on home plots of half-to-two hectares. Thus, the well-being of poor farmers and to maintaining production quantities of most NTFPs in these their active interest in NTFPs and conservation countries tend to be relatively small, with the initiatives. Farmers worldwide basically want majority of the production often produced for local/ two things: a) to be able to produce enough/earn regional markets and local consumption. Despite enough to satisfy their own subsistence needs; this, certain NTFPs are being developed and hold and b) producing a surplus to sell at the highest larger and wider market potential. As agriculture is price and at the lowest cost to themselves. the main source of income for villages, and people Surmounting this challenge starts with a frank have practiced it for centuries, certainly this sector acknowledgement of the diffi culties related to has the potential to become a bigger source of establishing NTFPs product niches and markets3. revenue, as well as a greater contributor towards And yet, there are individuals and companies that well-planned buffer zone development and the are willing to help - and it is in their own long-term conservation of species. Considering population interest to do so. If real trust is built, and if done and economic growth alone, one would expect thoughtfully, real win-win situations can and are demand for NTFPs products, by both legal and being created. illegal means, to continue to grow. Within Indochina, while demand for certain Entrepreneurs in Indochina have begun to tap species and products (such as handicrafts, select this potential with start-up projects. Furthermore, rattans, bamboos, medicinals and melaleluca) are new farm contract-mechanisms have been relatively strong, there are numerous limitations piloted and are working for a number of projects to these and other smaller/niche products. While and companies (eWikul soybeans, peer-group diversifi cation of agricultural and NTFPs species contracts of GTZ in Cambodia, etc.). This is important for managing risk (i.e. so that “all the advance is important, as for many for-profi ts, they eggs are not placed in one basket”), as well as are hesitant to work with NGO and community- for local food security, because NTFPs are often based projects. From their experience, farmers propagated as supplementary crops or harvested and communities often do not honour binding (often illegally) in the wild, important “economies contracts. Market forces are quoted as being the reasons for lack of commitment. In all fairness, EU 3 Becker, Aaron & Goldman, Emily. 2000. The Challenge and US companies also “talk” about ideas such as of Risk Management within Analog Forestry Interventions. community support and fair trade, but also often Sustainable Development International, Fourth Edition. P. 73. London: ICG Publishing, Ltd. Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 45 of scale” available to monoculture species may able to overcome them. It should be the role of be lost. Unless your product is extremely special, implementers to help them manage and minimize co-operative mechanisms capable of amassing a such risks. Such factors as environment disasters particular product across numerous sites may be and political upheavals affecting global prices are considered as one means for regaining benefi ts diffi cult to contend with, but there are a few ways in this regard. implementers are successfully minimizing risks: Limitations to NTFPs products in this region may • A platform and process of mutual learning generally summed up in the following manner: should be established between the farmer and extension agent. This process requires project • The “wild cards” presented by the weather, officers to “be honest and reliable with farmers, unknown markets, land-tenure and socio- to be a partner and to build with farmers”.4 political factors. This dialogue, over time, will help to increase • Small-scale farm operations: farmers with limited the farmer’s confidence in project officers' access to land, irrigation systems, suitable crop capabilities and methodologies. varieties and new technologies. • In kind, it also requires that farmers maintain • Low yields, high production costs, and the contracts with the extensionist or company. “seasonality” of certain NTFPs supplies, as well The best relationships are developed between as a lack of knowledge related to the propagation people sharing trust, which means capable and of best-suited species. competent partners who don’t break contracts. • Limited market knowledge, access and leverage: The development of supporting or enforcing prices of products can fluctuate greatly and mechanisms to ensure contracts are not broken there is a real need to know and establish prices should be considered. for products through legitimate channels that • One must understand carefully the unique set support communities and conservation. of circumstances, values and tolerance in the • Poor natural resource management practices community, as these traits shape how each leading to declines in productivity, degradation household will perceive and respond to risk. While of resources, and loss of species. maintaining focus, seek ongoing consultation and practice flexibility with farmers. Only continuous • Poor infrastructure, leading to difficulties in dialogue, with critical thinking and negotiation transporting products from remote areas. This between farmers and implementers, is capable factor may also discourage certain companies, of producing critical thinking. trainers and buyers from wanting to do business with certain products or communities (i.e. costs • It’s important that farmers are kept adequately outweigh benefits). informed, and are able to participate in important decision-making processes. This rapport • The majority of people focus on rice and requires time to develop. Ownership may be vegetable production and are not familiar with further strengthened as farmers contribute their NTFPs propagation. resources, time, labour, etc to the project. • Farmers breaking contracts. • Focus on the use of resources that farmers REDUCING RISKS TO FARMERS AND already have. Interventions should be simple BUILDING REAL COMMITMENT and meet a perceived need. • Develop NTFPs nurseries. Propagate the The commitment and willingness of farmers to species for both conservation and a controlled adopt a particular NTFPs regimen or resource management protocol will depend on the perceived risks involved and their confi dence in being 4 Analog Forestry Network, 1997. Analog Forestry Manual. Knowlesville, New Brunswick: Falls Brooke Centre. 46 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

supply chain to ensure there is neither great irrigation facilities, what soil improvements are disturbance nor destruction of ecosystems. For needed, is electricity required for processing? example, Viet Nam is one of the world’s largest etc.). Whether it is a short- or long-term plan, the manufacturers of wood products, and yet imports more individualized a farm plan is, the more the up to 80 per cent of the timber it uses. Supply/ farmer will be able to move their land through nursery development needs to be addressed successive stages with confidence, as they will to develop a closed circuit that can be built, be able to predict their labour and input costs developed and managed locally. Don’t “export” more accurately.6 the problem. • Access to credit may be necessary for the • Make sure food security concerns are well farmer to undertake improvements. Investment Making the link - NTFPs impact on poverty addressed. Farmers should not depend solely is required for the for-profit marketing arm as on tenuous foreign markets. Households can well. rely on and support themselves with the right • Continuously and honestly monitor and evaluate information if they have access to it. the programme's progress and discuss any • Only after market footholds are achieved positive changes that occur. locally and on a pilot basis should larger venues of regional, national and international REDUCING RISK TO FOR-PROFITS markets be targeted. This steady, though FOR SUCCESSFUL PARTNERSHIPS tempered, progression allows for issues such Risks occurs not only for farmers, but all along the as understanding and meeting contracts to be value-chain – from the farmers to the processors, dealt with while keeping farmers’ expectations factories and marketing and distribution companies realistic. It also provides a manageable way by that have work forces to support - all the way to the 5 even larger goals can be aimed for. end consumer. If NTFPs projects are concerned • Risk can be reduced using limited scale pilot with developing incomes, then several things need models and farmer-to-farmer exchanges and to happen. At the most basic level, the following trainings, whereby innovations and lessons requirements are needed: learned can be attempted, evaluated and, if • Contracts must be honoured. There is a need successful, incorporated more broadly into a for legal structures to make investments with programme. farmers and guarantee deliveries. • Consider addressing important issues not wholly • Local People's Committees must make related to NTFPs, such as access to safe water guarantees that can be relied upon. and improved health, so that perceived risk is dealt with holistically. This builds local “buy-in” • Buyers in destination countries need a genuine and confidence in your abilities to take on more commitment to support rural development and challenging or “less appealing” work (such as equality. We see lack of sincerity, even at the peak with conservation). of the coffee pyramid. Fair Trade is a certificate, not a commitment. For example, Southern Sudan • Co-operative mechanisms can help to achieve is the origin of much of Germany's hibiscus. It greater level of economies of scale. arrives in the US labelled as Egyptian. Buying • Site-specific land/resource management plans: from countries with child labour violations and tailor the solution as closely as possible to the weak human rights records (such as hibiscus local situation and to farm-specific variables from Khartoum, or cocoa from the Ivory Coast) (does this household or group have access to while asking Indochina to sell products at lower prices is ethically inconsistent.

5 Becker, Aaron & Goldman, Emily. The Challenge of Risk Management within Analog Forestry Interventions. P. 77. 6 As above. P. 76. Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 47

• Pragmatically: While businesses may not care • For-profits want to know clearly what a product about the poor living conditions of producers, is, what reliable quantities can be guarantee, they do care about products that arrive in a poor and if there a special story attached. condition and un-sustainable supply lines. • For-profits also seek and require knowledge and • Planning, establishing, supporting and enforcing access to new markets and clients. producer contracts are the beginning. A real • Are resources available on the ground and what commitment to supply chains with consistent investment is required? What resources and deliveries and reliable qualities is a start to investment are available? At the most basic profitable operations for consumer industries. level, nobody gets something for nothing - there • Using the Ethical Cachet of Third-party must be something to offer. Certifications should add to consumer acceptance of products and confidence in companies. This is a message for the users of agricultural goods. While NGOs, governments and producers might assist in building awareness of a certificate’s value, it is a message that needs to be built up from the consumer side (i.e., “No one in Tokyo or New York is going to fall at our feet just because we wear feathers in our hair.”). 48 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

NTFPs/MAPs Management’s Contribution to Livelihood Improvement of the Rural Poor and Lessons Learned from the Churia Programme: The Experience of CARE Nepal

Rajendra Khanal and Krishna B. Bhujei Making the link - NTFPs impact on poverty INTRODUCTION in particular are considered as having immense potential for employment and income generation Rich plant diversity found in Nepal’s forests for the rural people (Edwards 1996, Kanel 1999). and other vegetated lands harbors hundred of medicinal and aromatic plants (MAPs). There The role of NTFPs in the livelihoods of the rural are more than 7000 vascular plant species where population has increased signifi cantly in recent 2000 plants have medicinal properties, and 1463 years. This is evident form the fact that 4,700,000 species are used locally in Nepal (Shreastha and households are involved in the commercial Shreastha, 1999). The rural people are largely collection of NTFPs and the participation of the dependent on forests for food and medicines. With poor within this is even higher (Olsen, 1998). the increasing contribution of non-timber forest As a project focusing on natural resources under products (NTFPs) to the Nepalese economy, the CARE Nepal Churia portfolio programme, the particularly the contribution to the household NTFPs/MAPs are identifi ed as the best forest- economy of rural people, the value of NTFPs based economic intervention for poorer groups in has become widely recognized (Bhattarai et al the community and larger society. One of CARE’s 2003; Edwards 1996). The economic viability development objectives within the Churia areas of NTFPs can be achieved in both in situ and ex is to improve the livelihood security of the poor situ conditions, applying proper and cost effective and vulnerable people in the Churia/Siwalik and harvesting and domestication techniques. Bhabor foothills regions of Sarlahi and Mahotarri However, sustainable NTFPs management largely districts by improving watershed conditions and depends on the way in which social issues are promoting greater equity. Another objective of the addressed. There is always the risk of rejection Churia programme is to achieve the sustainable of a technology by local people if the function and management of natural/watershed resources by requirements of NTFPs management processes community groups and individuals in the project confl ict with social values, norms, behaviors and areas in a manner that leads to greater equity institutions (Poudyal, 2004). and better income for marginalized families. The poverty reduction agenda within forest Based on the above objectives, the project has management becomes meaningless until and focused on sustainable management of NTFPs/ unless there are tangible mechanisms and means MAPs, targeting the poor, vulnerable and socially with which employment and income can reach the excluded (PVSE) groups. local people. The Ninth and Tenth plans for the The Churia area is rich in biodiversity and also has Government of Nepal as well as the community a high potentiality of NTFPs, therefore the project forestry vision have pursued poverty reduction as has done studies to fi nd out the status of NTFPs a major objective (NPV, 1997; 2003: Acharya t al in the Churia districts. Based on this study, 138 1998). Forest resources in general and NTFPs species (both aromatic and medicinal) were found Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 49 within the project area. Traditionally, all domestic level for ensuring NTFPs marketing and rights materials have been made of bamboos, rattans, • Conducting market sub-sector analysis and and other NTFPs, which are widely available in value chain analysis the Churia area. Similarly, the local economy has increased through the selling of these products Target population in the local bazaar. The sustainable use and The programme is targeted to PVSE users of CF, management of resources is a crucial point to LHF, and private forest. The users were identifi ed attend to. Increased demand for handicrafts also through use of a tool to rank well-being. The has attracted small-scale cottage cooperative and interventions start from the list of the poorest of affi liated poorer groups. The scale-up scheme the group’s members. converting into enterprise all such cooperative groups has required support in developing their Major intervention capacity as well as market networks. A study • Capacity building, training, and workshops shows that 93% of people lack awareness and 41% of users had no idea about future planning • Establishment of a demonstration plot for with regards to NTFPs. (Chhote et al 2002). extension Therefore, market analysis and development • Support for nursery beds (technical and training along with elimination and mapping of financial) products based on continuous supply on a large • Market analysis and sharing workshops among scale and business planning activities, etc, will producers, traders, and other concerned add to the value of such groups/cooperatives. stakeholders The project was initiated the cultivation of • Strengthening the NTFPs network medicinal and aromatic plants (MAPs) with an aim of mainstreaming NTFPs (especially MAPs) Major stakeholders within community forests (CF), leasehold forest CF, LHF groups, private forest farmers, NTFPs (LHF), and private forest with the involvement networks, district forest offi ces (DFOs), district of PVSE groups to improve lives and livelihood development committees (DDCs). security. Similarly, the longer-term Churia Area Programme Strategy and Forestry Sector Plan, Benefi ts sharing system and the fi nal evaluation of the Churia programme, The users of CF, LHF, and private sector have have also recommended increasing the scope of adopted the following benefi ts system in NTFPs NTFPs in the Churia area. Looking at the situation management: of poverty stricken people, including the landless, also benefi ts from CF and LHF. The LHF concept • In Cuffs: 2-10% of benefits of total income are is specifi cally focusing on poorer and landless shared with CF communities and other over the people within CF, giving patches of CF land for 90% o benefits which go to users the maximum period of 45 years. • In LHF: 100% of benefits go to users Specifi c Objectives • in private sector/forest: 100% of benefits go to • Building the capacity of users users • To make users self dependent for production of Major achievements seeds, seedlings, and marketing • 145 users gained knowledge and skills in NTFPs • To develop as a part of income generating management through various kinds of trainings, activities for CF, LHF, and private forest farmers, workshop and general exposure especially targeting the PVSE • 4 nursery beds have been established by • To develop and strengthen the network at district communities and are producing seedlings 50 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

• A total of 114-hectare area has been cultivated some commitments assuring products, markets, and/or covered with NTFPs (especially MAPs) and rights of users. in CF, LHF, and private sector, where 314PVSE Major issues/challenges households are involved and are receiving benefits. Out of them, 35% are from ethnic The following pertinent issues have arisen during castes and nine are from Dalits (so-called the sustainable NTFPs management [project]. The untouchables). issues are analyzed using ecological, economical and social frameworks, linking them with existing • Two district level NTFPs networks have been policies and practices. established and are functioning well, especially focusing on NTFPs cultivation (production, Issues related to ecological integrity Making the link - NTFPs impact on poverty harvesting, processing, and storage), marketing • Poor knowledge and skills regarding identifi cation, promotion and ensuring rights of users. abundance and uses • Two selling centres for NTFPs established in • Inadequate technology appropriate for rural Sarlahi and Mahottari districts to ensure that the people local market is doing well. • Lack of indigenous knowledge system and • NTFPs network of Sarlahi district has developed its proper handover from one generation to meaningful coordination with the local government another (DDC) and DDC allocated $7500 for promoting the NTFPs, targeting the PVSE. As a result, • Biodiversity maintenance three user groups formed in CF and planted • Effects of climate change 0.1 million Asparagus species. 45 households are involved, of which five households are form Economic issues Dalit and the rest are women, ethnic and other • Limited enterprises and lack of business castes. development plans • In collaboration with the National NTFPs • Lack of economic incentives marketing and promotion centre and district • Limited availability of market information forest office, the project was able to organize two national level NTFPs market promotion and • Lack of quality assurance for individual analysis workshops. The organizers where also products able to garner the participation of producers • Unscienti fi c royalty and inappropriate taxation (users), traders/entrepreneurs, and other government and non-government institutions Issues related to socio-political acceptability including research institutes. The objective of the • Lack of civil society and private sector roles in workshop was to share experiences of NTFPs policy formulation technologies, local knowledge skills, practices and dissemination of learning and sub-sector • Weak coordination, communication and analysis and value chains. The information monitoring mainly focused on production status, marketing • Bureaucratic hassles aspects of products, demand (national, regional, Opportunities and at a global level) and opportunities. The workshop was also able to publish its declaration. The following opportunities are found in the project The major outcomes of the workshop included area for improving livelihoods through sustainable familiarization with prominent MAPs that could management of NTFPs. be cultivated, marketed, as well as declaring • High potential in the region of project area to Making the link - NTFPs impact on poverty THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 51

develop sustainable NTFPs/maps in cf, lhf and prime concern within the community. Similarly, private forest as a main source of income with an appropriate technology suited to the local the involvement of pvse groups situation and considering the benefi ciary groups (poor, vulnerable, socially excluded, landless and • More employment opportunities at the local level women) is required at all levels of the production through establishment of local resources-based cycle. The key issues and challenges also need cottage industries and enterprises targeting to be addressed adequately. For this, supportive pvse policies, appropriate technology, and an • It is possible to ensure the local market through economically viable and environmentally sound increasing local and outside uses, which package need to be developed. A market and/ ultimately encourage cultivation and enterprise or sub-sector analysis and value chain analysis development is also equally important to contribute to poverty • In the project area over 2000 hectares are public reduction and improvement of the livelihoods of and degraded lands, (dfsp 2006), with the high the most marginalized groups within society. potential to become areas for management Finally, a comprehensive and coherent policy of NTFPs/maps with the involvement of for the Churia and biodiversity conservation, pvse through different forest management and cultivation, management, and marketing of approaches potential NTFPs/MAPs should be in place. • Reduce the out-migration and secure livelihoods To obtain a copy of the full length version of within rural communities this paper, please contact Rajendra Khanal at • Biodiversity maintenance and conservation [email protected] CONCLUSION Developing tangible means and mechanisms reaching to the chronically poor through sustainable management of forest is a vital part for a signifi cant reduction of poverty within the country. The Churia area is rich in terms of biodiversity and natural resources, including NTFPs/MAPs. A prudent use of such resources, which are abundantly available, is of

THEME 2: MAKING THE LINK - COMMUNICATION AND NETWORKING 54 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation Making the link -Communication and networking Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 55

Viet Nam's NTFPs Network: Looking Ahead

Nguyen Huy Phon1 & Nguyen Thi Yen2

BACKGROUND OF NTFPS NETWORK also supported the establishment of a nationwide IN VIET NAM NTFPs network to “encourage and strengthen NTFPs information-sharing and cooperation The Non-Timber Forest Products Project (NTFPs among organisations, individuals, and Project) funded by the Royal Netherlands Embassy communities inside and outside the country to (RNE) in Ha Noi with technical assistance from contribute to NTFPs conservation and sustainable IUCN and implemented by the Forest Science development in Viet Nam”. Institute of Viet Nam (FSIV) under the Ministry of Rural Development (MARD) has the overall goal: Under such favourable conditions, the NTFPs “To achieve forest conservation and biodiversity Network in Viet Nam was established in December through capacity building for the management and 2003 with organisational support from FSIV and sustainable use of NTFPs, both ecologically and fi nancial support from the NTFPs Project. economically, with benefi ts equitably distributed Participating parties in the establishment of the among all target groups, especially the poor living NTFPs Network include the NTFPs Project, near and inside forest areas’’. the Viet Nam Forest Science and Technology The project has been implemented from 1998 Association (VIFA) and FSIV. The Network to 2007 under two phases: Phase I (1998-2002) Executive Board (NEB) has been elected, entitled Sustainable Uses of NTFPs; and Phase II including representatives from the forestry, (2002-2007) entitled NTFPs Sub-sector Support health, conservation, development and enterprise in Viet Nam. sectors. Following its establishment, the NEB collected ideas and contributions from network The objective of Phase II is: “To strengthen the members in order to revise the draft regulations capacity of research and management institutions for the network’s operations, develop a workplan in Viet Nam to support the ecologically sustainable and arrange for the workplan's implementation. and equitable use of Non-Timber Forest Products (NTFPs) to contributes to: biodiversity According to the regulations agreed upon by all conservation; improved livelihoods for poor people members, the network has fi ve functions and residing in and around forest areas; and local and tasks: national economic development”. • Collect, exchange, update and disseminate At the beginning of the new millennium, more information on NTFPs both inside and outside importance was attached to the role of NTFPs. Viet Nam. Many activities related to NTFPs carried out by • Facilitate policy dialogues and support for national organisations and international projects developing policies related to the sustainable throughout the country have identifi ed the urgent development, conservation and management of need for information-sharing and cooperation in NTFPs. the development of NTFPs. Therefore, in addition • Facilitate technology transfers and cooperation to the capacity building activities for NTFPs in NTFPs research. research agencies, the NTFPs Project Phase II

1 NTFPs Network Chairman 2 IUCN Viet Nam 56 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

• Contribute to awareness-raising regarding the approval. The approved activities are put into the role of NTFPs in conservation, bio-diversification annual workplan of the project and are funded by and livelihood improvements for communities. the project for implementation. A NTFPs network workshop has been organised for the end of • Connect organisations and individuals working each year since 2003, which allows network in the NTFPs sector in Viet Nam with regional members to summarise the activities conducted NTFPs networks. in each year, share lessons learnt and develop a • The above-mentioned functions and tasks have workplan for the following year. been carried out in four fields of activities as • In addition to providing financial support, follows: the NTFPs project also provides necessary • Members cooperated to establish a NTFPs information and data for the network, while IUCN database at the NTFPs resource centre and provides technical assistance. IUCN provides

Making the link -Communication and networking publish the NTFPs data and documents, this assistance through its full-time staff and according to demands identified by members. short-term international and national consultants, • A forum was organised to discuss technical especially staff and managers of the forest issues and NTFPs policies, and training courses, conservation and reservation area programme workshops, study tours inside and outside the under the IUCN's national representative office in country were conducted, according to demands Ha Noi (which is a member of the NTFPs NEB), identified by members and the NTFPs NEB. IUCN's Asian Forest Conservation Programme in Bangkok and IUCN's Forest Conservation • Support was given to identify directions and Programme based in Switzerland. research topics under the framework of the two NTFPs project funds, as well for NTFPs • The network received coverage in a publication technology transfer activities; and e-bulletin of the NTFPs project, and also has a section on the project's website (www. • Awareness-raising activities were coordinated for ntfp.org.vn). communities about the roles of NTFPs through the existing communication instruments of each Implemented activities member organisation and the mass media. The NTFPs network in Viet Nam has officially NTFPS NETWORK ACTIVITIES SINCE been in operation from 2003 until 2006 and has carried out the following activities. ESTABLISHMENT • Provided technical advice for the NTFPs project's Network operating mechanism research fund (RF) and action learning fund • There are no full-time members of the (ALF). netowrk's NEB and even the secretary of the • Disseminated technical scientific information board has another role as the NTFPs project through contributing to and distributing the Communication Officer. She has been working following publications: part-time in the role and as the link between the NEB and NTFPs project. The network does - NTFPs newsletter in Viet Namese and not have its own office and has used NTFPs english (one issue per six months and project facilities for meetings, discussions and then one per quarter) in both hardcopy establishing contacts. and electronic format; • A long-term workplan for the network has - NTFPs Source Book for detailed been developed in accordance with NTFPs information on nearly 400 NTFPs project considerations and an annual workplan species in Viet Nam (published in first is developed and submitted to the project for quarter of 2007); Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 57

- Q&A manual for bamboo and bamboo diversification and improving livelihoods. shoot plantation and tending techniques • Established an e-list for sharing information and (published) connecting network members (this e-list is now - technical manual for essential oil available on the network's e-bulletin). extraction (published) • Assigned members to attend a network workshop - technical manual for awareness-raising relating to NTFPs in the region to learn from and protecting valuable medicinal herbs other countries' experiences and disseminate (published in first quarter of 2007); and this knowledge to local NTFPs network members (workshop on community forestry network in - overview of NTFPs sub-sector in Viet Nepal in 2006). Nam (in cooperation with the NTFPs project training group), published in the • Learn from the experiences of nepalese second quarter of 2007. colleagues and with the active support of IUCN, the NTFPs network established a network • Participated or led the following workshops, under working group in April 2007, which comprises the project’s framework, to provide advice on international organisations concerned with techniques and NTFPs development policies: NTFPs development and nature conservation in - workshop on establishing mechanism for Viet Nam. Apart from meeting each two months information-sharing inside and outside for information sharing, the working group will the network; help the NEB to develop strategies and maintain - workshop on introducing the RF and its activities. Though newly established, the ALF funds and a workshop on lessons working group is expected to have an important learnt from the implementation of the role in strengthening Viet Nam's NTFPs two funds in the first round of the NTFPs network. project; ASSESSMENT OF THE - participated in developing the national EFFECTIVENESS OF NTFPS strategy of NTFPs conservation and NETWORK ACTIVITIES development 2006-2020 and the National Achievements Action Plan on NTFPs Conservation and Development 2007- 2010; • Contributed to the implementation of the NTFPs project phase II (technical advice for the - organised a forum to collect ideas implementation of RF and ALF, disseminated and contributions from local areas for some achievements of the project through the drafting the National Action Plan on NTFPs newsletter, developed the national NTFPs conservation and development strategy on NTFPs together with the project). 2007- 2010; and • Carried out some of the functions detailed in the - participated in assessing and revising network’s regulations such as: the design of the NTFPs project. - collect, exchange, update and • Organised study tours for some members of the disseminate NTFPs information (e.g. network to local areas and enterprises to learn held a workshop to identify a mechanism from successful NTFPs activities. to share information and cooperate with • Introduced NTFPs resources and activities and mass media agencies); related issues to many media agencies, who - facilitate policy dialogues and support will help to disseminate and raise awareness the development of policies related to the about the roles of NTFPs in conservation, bio- sustainable development, conservation 58 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

and management of NTFPs (e.g. held the long-term and active participation of its a forum to gather comments on the members. National NTFPs Action Plan); Lessons learnt - Facilitate technology transfers and The network is a kind of open, fl exible and social cooperation in ntfps research (e.g. networking tool. To ensure its effective operation, Provided technical advice and workshops it is important to pay special attention to closely on lessons learnt for the implementation cooperating with various state management of the two project funds); and agencies and specialised organisations and - Update, disseminate information, and individuals. connect organisations and individuals in The achievements described above were due to: Viet Nam working in the NTFPs sector (e.g. issued the NTFPs newsletter and • active and effective support from the NTFPs Making the link -Communication and networking some technical extension materials). project, IUCN, FSIV, VIFA; Constraints • dynamic and efficient cooperation among some members inside and outside the country on • The member network is not stable and relations sharing scientific and technological information, between members are still not close. The and implementation, management and network's mechanism is not clear and the organisational skills; and management board does not have enough experience in terms of organisation and being • appropriate selection of activities (newsletter, active in making proposals and managing the electronic news, manual hand book, information network’s activities. Therefore, many items in exchange forum and study tour in close the workplan cannot be implemented. cooperation with mass media). • While it is a national network, it lacks participation However, the operational regulations of the from representatives of different territories, network are not yet appropriate and there is a specialised sectors and organisation types (i.e. lack of clear stipulations on the obligations and NGOs, international and national projects, and interests of members. Therefore, the network is private enterprises with experience in organising not yet organised as a tight system and cannot and managing networks, NTFPs production, attract organisations and individuals to actively processing and marketing), as well as adequate participate in network activities (especially in fi nancial contributions to fund the activities of the information-sharing among network members). network in the long-term. This may threaten the sustainability of the network. • Recent activities conducted are limited in their links with the NTFPs Project, as the network is In addition, for the past three years, the network only one component of the project. They have has only had one sponsor for its activities - the not been applied nationwide and therefore the NTFPs Project Phase II. Seeking a substitute NTFPs Network’s voice and contribution to the sponsor after the project is fi nished will be a great development of NTFPs in recent times is still not challenge to maintain the network's operations. clear. A diversifi cation of funding through attracting contributions from various donors, as well as • The key motivation to join the network is the ongoing technical and fi nancial support from sharing of useful information, but in fact the agencies, organisations, projects and individuals information provided by the network is not can be seen as the decisive factor ensuring the practical or timely, particularly in terms of market meaningful and sustainable performance of the information, which is very necessary for the network. network's members. Therefore, it cannot attract Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 59

TOWARDS A NTFPs NETWORK initiatives, in order to effectively contribute to THAT EFFECTIVELY AND NTFPs development and conservation in viet SUSTAINABLY CONTRIBUTES nam in the coming time. TO NTFPS DEVELOPMENT AND • Combine activities and actively contribute to CONSERVATION the implementation of government strategies, plans and programmes such as the viet nam After three years of operation, the NTFPs Network forest development strategy for 2006 -2020, of Viet Nam has obtained some achievements, national ntfps proposal 2006-2020, national partly contributing to the development and ntfps action plan 2007-2010, and ntfps support conservation of the country's NTFPs. Its pilot programme 2007- 2010. activities have been encouraged by national and international organisations, however its sole • Improve the quality of information and strengthen source of funding – the NTFPs Project Phase II - the mechanism for appropriate information- will end in June 2007. To maintain the activities of sharing among network members. the network, the founders and the network working • Prioritise activities aimed towards community group have initiated the following activities. and hunger poverty alleviation through ntfps Objectives conservation and development. The general objective is that by the end of 2007/08, • Strengthen international cooperation it is expected that a more effective and sustainable activities. network will be established to contribute actively Future activities towards the implementation of the National NTFPs Strategy. • The network conference will be held at the end of June 2007 in order to consolidate the institution, Short-term objectives include: adjusting the approve the revised regulations, select a new regulations and organisation of the network executive board and ratify the action plan. to strengthen the effectiveness of network's operation; and developing an action plan for the • The working group and new executive board network in 2007 with a vision towards 2008 to shall actively discuss combining and integrating facilitate the transition of the network. the network's activities with line agencies such as the Forestry Department and MARD so as General direction contribute to the implementation of policies • Strengthen the network's organisation to expand issued by MARD and the government. the scale and fields of operation, including stricter • Further maintain information-sharing activities regulations for members of the working group. such as meetings, publishing the NTFPs • Seek a new funding source while diversifying newsletter, etc.` financial support sources. Identify a new financing mechanism and involve the active participation from related organisations in implementation, technical and financial support so as to ensure the sustainable and effective operation of the network. • The working group of the network will play an important role during the transition period to assist the neb to seek support, formulate activities and promote information-sharing and cooperation among organisations, projects and 60 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

A Cross-Country Exchange Workshop on Non-timber Forest Products (NTFPs) Enterprise Development for Poverty Alleviation, Vientiane, Laos, 24-27 April Joost Foppes1

INTRODUCTION The world forestry agenda has evolved from social forestry to small forest-based enterprises Making the link -Communication and networking The National Agriculture and Forestry Research (SMFE). New markets are evolving that favor Institute of Laos (NAFRI) organised a cross- SMFE such as furniture, pulpwood, ecotourism, country exchange workshop on Non-Timber medicinal plants and fair trade products (Sophie Tree and Forest Product (NTFPs) enterprise Grouwels, FAO). development for poverty alleviation in Vientiane on April 24-27, 2007. The event was supported In Nepal, 50,000 families have doubled their by the Forest Programme Facility (Rome), SNV, income from NTFPs such as medicinal herbs CIAT, FAO and WWF and had the following main and handicrafts over the last 10 years (Bhishma objectives: Subedi, ANSAB Nepal). • to exchange lessons learned and discuss new The bamboo fl ooring industry in Indochina could issues identified from experiences in NTFPs employ fi ve million people through a variety of value enterprise development; and chains. Bamboo fl ooring products seem to have the best potential for large-scale value adding and • to generate options for developing effective a multi-stakeholder approach for promoting the approaches to build on positive experiences and bamboo sector in Indochina has been proposed deal with emerging issues. (John Marsh, Oxfam Hong Kong). Some 60 participants attended from a wide range Posa paper mulberry plantations in Laos could of countries including Nepal (1), Thailand (6) cover 30,000 ha, providing incomes for 200,000 Viet Nam (6), Cambodia (2) and Laos (40). The people. However, more support is needed to workshop consisted of two days of meetings expand successful village enterprise development and a one-day fi eld trip to Sangthong district, a models and link them to local traders and investors. bamboo growing area 50km west of Vientiane. Business development services (BDS) providers, The methodology comprised a mixture of short such as input suppliers and tool producers, are presentations with group discussion exercises, key catalysts for this process (John Connell, along the lines of the “world café” technique. CIAT, Laos). KEY OUTCOMES OF THE The price of rattan canes in Laos increased by 10 WORKSHOP times over the last 10 years as natural resources continued to be rapidly depleted. Farmers should NTFPs have good potential for large-scale capitalise on this development by starting rattan impacts on income generation for poverty plantations, which can be expected to yield high alleviation revenues in the medium- to long-term (Bouaphet Bounsourath, WWF, Laos).

1 SNV Laos Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 61

Key approaches for large-scale NTFPs sub-sector In Laos, the private sector is best placed to fi nd development include: markets, promote crops and fi nd viable modes of production, and invest profi ts in technology. • an integrated value chain approach; For example, since 2000, Friends of the Upland • scenario studies; Farmer (FUF) has invested $500,000, creating • impact assessments; incomes for 1,400 families producing cardamom, broom grass and maize for export (Peter Dutton, • building producer organisations; and FUF, Laos). Yet private sector companies face • sector-wide investments. many issues. Field projects yield valuable lessons on how Time-consuming, complicated government to achieve such impacts trade regulations are a key bottleneck to NTFPs enterprise development. During the workshop, In Thailand, NTFPs enterprises are set up in rural cases were presented on analysing complex areas, responding to urban demands for herbal chains of fees in the bamboo sector (Latsamy and organic products. Visionary group leadership, Boupha, NUOL, Laos) and developing supportive establishing links with herbal health centres, quota and taxation systems for arenga palm fruits networking and advocacy are key factors of (Phongxiong wanneng, SNV, Laos). success (Nithaya Khiyawatchakul, Mahasarakham University, Thailand). A lack of BDS is a second obstacle preventing successful NTFPs enterprise development. A In Viet Nam, the IUCN-NTFPs Project has case study showed how bottlenecks in trade from supported thousands of families to create new Laos to China could be removed by establishing livelihoods from producing NTFPs in gardens and bulk drying and bulk storage facilities, basic handicraft training. Local awareness is also being market information systems that disseminate raised through local herbal medicine centres (Cao quality standards, and improving consultation Thanh Hung, NTFP project, Viet Nam). between stakeholders in trade policies (Khamphou In Laos, a village group producing pickled Phouyavong, NAFRI, Laos). bamboo-shoots managed to increase their income Development projects should work more with signifi cantly from improved product packaging, the private sector and expand local capacity to which improved the shelf-life and the quality of their facilitate trade at the district level. Governments product (Phouvong Bounsou, Oxfam Belgium). need to simplify the export process, standardise Also in Laos, the IUCN presented a study on tax laws nationwide, increase their transparency how the results of a successful example of a and ensure the sanctity of contracts. village group selling fresh bamboo-shoots could MAIN RECOMMENDATIONS be measured in many ways. There was huge potential for 'vertical up-scaling', as the case We have good methodologies for NTFPs served to put NTFPs on the national development enterprise development, but more support is agenda. 'Horizontal up-scaling', or the replication needed to expand such activities of the model by many other villages, was limited Two key approaches from Laos were presented: by factors such as the effort it takes to develop the Marketing Analysis & Enterprise Development a strong producer group. (Latsamay Silavong, (MA&D) approach developed by FAO, RECOFTC IUCN, Laos). and NAFRI (Vongvilai Vongkhamsao, NAFRI); A lack of an enabling policy environment and and the Agro-Enterprise Approach, developed by BDS stand out as key bottlenecks to NTFPs CIAT-SADU and NAFRI (Ounkeo Phattamavong, enterprise development CIAT-SADU). These approaches have a number 62 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

of common elements: (1) identifying target • Cross-boundary village group exchange visits groups, products; (2) value chain analysis; (3) should be arranged; linking producers to markets; (4) training, building • A regional directory of suppliers of NTFPs seed producer organizations; and (4) linking marketing material and advice on domestication techniques with innovative resource management. should be compiled; These approaches have been fi eld-tested and • A regional training network should be created for Lao-language training manuals are available. It the development of best practices in partnership was stated that they are now ready for up-scaling with local capacity building providers (e.g. in agricultural extension projects/programmes. ANSAB, Universities); A case was also presented on testing the causal • Development and distribution of supportive mapping approach in the case of the “posa” paper e-forums, e-newsletters etc.; and mulberry sub-sector in Laos. This approach can Making the link -Communication and networking identify critical points of intervention and can • Increasing the number of regional exchange also help to overcome differences in perceptions events. between stakeholders (Maria Miquel Ribeiro, A FRAMEWORK FOR ACTION BOKU). In summary, a simple framework is proposed We need more investment in innovative as a tool for identifying the key conditions and approaches to establish a supportive policy priority actions needed for successful NTFPs environment and BDS enterprise development. The key conditions While there are now good methods available are: (1) secure access to natural resources; (2) for assisting producer groups to develop small sustainable NTFPs production systems; and (3) NTFPs enterprises, new NTFPs enterprises still effi cient marketing systems to generate income face many challenges to negotiate a supportive from NTFPs production. policy environment and gain access to BDS. Governments, the private sector, donors and Researchers, donors and governments need to NGOs can contribute to securing these conditions invest more in innovative approaches to establish through three main types of interventions: (1) good models of these two supportive elements. establishing an enabling policy environment; More support is needed for cross-border (2) providing basic services; and (3) targeted cooperation to develop NTFPs sub-sector investments. development approaches Most of the above groups are currently active in only Presentations were given on recent and upcoming a few of the six fi elds of action in the table below. regional NTFPs exchange events. The following NTFPs enterprises in poor rural communities suggestions were made in discussion groups for need support in all six fi elds. Covering just a few future cross-border cooperation: more fi elds in the future may mean the difference • Cross-boundary value chain studies should be between failure and success for such initiatives. conducted on selected products; Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 63

Enabling Policy Key conditions Basic Services Investment Environment

1. Secure access • Clear rights to use land, • Land use registration and • Special funds for to natural forests, water mapping services regulated access resources systems in priority • Independent courts of vulnerable areas (e.g. appeal national parks)

2. Sustainable • Policies that recognise and • Documenting and • Invest in delivery of basic production protect local knowledge exchanging local services knowledge • Tax incentives for • Invest in incentives for sustainable forest • Delivery of planting sustainable production management materials

• Mandatory EIAs for • Information and training investments services on best cultivation practices

3. Generating • Uniform, clear and effi cient • Value chain analysis • Investment in value- income through trade and tax regulations adding processing including market research, marketing industries Clear regulations on • market information systems contract farming • Sectoral feasibility Improved communication studies for pro-poor • Clear rights for producer systems investment groups to organise themselves • Basic business skills • Micro-credit schemes for training SMEs • Development of national quality standards systems • Strengthening producer associations • Regional agreements on reduced tariffs • Production and supply of inputs and equipment • Policies promoting SMEs • Impact assessments, • Sectoral strategies baseline monitoring, statistics etc. 64 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

An Innovative Approach to Information Sharing from Research on Non-timber Forest Products: Some Experiences from the NTFPs Sub-Sector Support Project in Viet Nam

Sharon Brown1 and Fernando Potess2

BACKGROUND and marketing is also needed. The socio-economic

Making the link -Communication and networking aspect of NTFPs for livelihoods improvement would Research institutions working in the forestry depend signifi cantly on this knowledge, tailored to sector in Viet Nam have the mandate to develop a very wide range of plant and animal species in practical research outcomes that can be an assortment of environmental niches. readily used to improve the livelihoods of local communities or householders living in and around The NTFPs Sub-Sector Support Project forest areas, and contribute to local and national Research agencies in Viet Nam often lack the socio-economic development. Researchers, capacity to undertake research and analysis that foresters, economists, and conservationists have will answer the pressing needs of farmers and recognised that Non-Timber Forest Products forest-dependent households. In some cases (NTFPs) are vital for the subsistence lifestyle research does not take into account existing and cash generation by poor people living in knowledge, particularly indigenous knowledge mountainous areas and within forest landscapes. about NTFPs, or consider gender issues in the It is suggested that well-organised small, medium, design of research trials. The NTFPs Sub-Sector and large enterprises based on the use of NTFPs Support Project, executed by the Forest Science have the potential to generate economic benefi ts Institute of Viet Nam and implemented by the IUCN through local, regional and international markets. Programme in Viet Nam, has utilised an innovative NTFPs researchers have a formidable task. They approach in researching NTFPs in order to deal need to advise on how forests can be managed with these diffi culties. It entailed the establishment in an ecologically sustainable way and how of two small-scale research initiatives, or NTFPs the equitable use of NTFPs can contribute to Research Sub-projects. The fi rst - a ‘Research biodiversity conservation. They must consider Fund’ - was designed to help strengthen the a diverse range of topics such as the ecology, capacity of research agencies, while the second - biology, genetic improvements, agronomy, and an ‘Action Learning Fund’ - provided researchers post-harvest technologies for planted species. with a vehicle to work directly with end users, thus If species are harvested from natural forests, allowing them to modify approaches as the project knowledge of methods for sustainable harvesting evolved. are also needed, as well as an understanding of National institutions were invited to apply for these how not to exceed the carrying capacities of the funds and a multi-disciplinary team composed of resource base. Irrespective of the source of the over 100 scientists from 28 different institutions, NTFPs, knowledge about socio-economic issues including government and non-government organisations (NGOs) and community groups, 1 University of Queensland were selected to undertake a total of 44 projects. 2 NTFPs Sub-Sector Support Project Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 65

These sub-projects covered six major topic The action learning approach was originally areas, including genetic resources, propagation, developed to support the implementation phase cultivation, sustainable harvesting, post-harvesting, in project development. It uses a cyclical process and marketing. The sub-projects covered a large of planning, acting, observing, and refl ecting geographic area with most of the nine ecological during implementation. The design allows the regions in Viet Nam represented. The overall fl exibility needed to change practices following programme of research sub-projects aimed to regular reviews of progress in the fi eld. This foster partnership building, the institutionalisation “learning by doing” approach allows farmers of effective resource use, and improve gender to learn along with the researchers and allows responsiveness in project implementation within them to adapt their methods in order to achieve host and partner organisations and in project the desired result. Extension is often achieved outcomes. This paper discusses the achievements through farmer-to-farmer interactions. For these and lessons learned through this programme and reasons, the action learning approach has been makes recommendations for future approaches widely accepted by researchers, particularly in research and development projects, and in the those who work with farmers or communities to communication of research outputs. The results develop new livelihood enterprises and those who and discussions presented have been compiled need community cooperation to improve natural following an analysis of surveys and evaluation resource management systems. The traditional data collected from each of the research sub- approach to research, on the other hand, answers projects undertaken by the NTFPs Sub-Sector clearly defi ned questions using robust scientifi c Support Project. methods. After the research results have been developed, the new technical knowledge must How do action learning, research and extension then be transferred to other researchers and to differ? end users. There is no doubt that there is a need The fi nal assessment of the NTFPs Sub- for both approaches and that the results from Sector Project showed that in general, there basic research should form the basis of action was little distinction between the contents and research projects. implementation methods of the Research Fund Results and the Action Learning Fund. Funded sub- projects under both programmes were mainly The fi nal evaluation team for the NTFPs Action oriented towards implementing fi eld trials with Learning Fund and Research Fund visited a total of farmer assistance. Although most of the projects 21 projects, interviewed researchers and farmers, produced results in the fi eld that were appreciated and inspected fi eld sites. Table 1 is a summary by farmers, it appeared that about 70 per cent of the responses to key questions from 19 of the of these attempted to generate new knowledge Action Learning Fund Sub-projects. Question through research, while the rest focused on one was assessed by two senior scientists from extension (Table 1). the assessment team and questions two-to- eight were answered by farmer participants and The percentage of sub-projects lacking a total implementers who were involved in 19 of the focus on innovative research for knowledge Action Learning Sub-projects. Answers were generation shows a certain level of confusion about ranked as – excellent, good, acceptable, or not the distinction between research approaches and acceptable. The table indicates the number of extension, which is not limited to Viet Nam but is answers of excellent or good as a percentage of widespread throughout developing countries (Dr the total. Don Gilmore Pers. Com., 2007). 66 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Table 1. Summary of responses to key questions from 19 Action Learning Fund Sub-projects

% classifi ed as excellent Questions or good

1 Was this project innovative – was this new research? 68

2 Was the methodology appropriate for the activities being implemented? 74

3 Was the technical support provided during the project adequate? 69

4 Was communication and dissemination of new information effective? 63

5 Were the activities continued by farmers without project support? 58

6 Was indigenous knowledge used by researchers? 42 Making the link -Communication and networking

7 Were gender issues addressed by the project? 31

8 Are the activities introduced by the project sustainable? 32

The results show that the project methodology the appropriateness of information skills that were was effective in delivering much-needed strengthened by Research Sub-project activities. technical knowledge support to poor farmers. Gender and indigenous knowledge It is also encouraging that a signifi cant number of implementers have continued with project Although there was a mandate to do so, many of activities after assistance from the project had the Research Sub-projects did not deliver as well fi nished. This supports a report commissioned on gender issues or use indigenous knowledge as by the project and prepared by Raintree et al. in much as had been hoped. This is not an isolated 2007 entitled “NTFPs impact on poverty, national problem. It is common for projects to intend to development and biodiversity conservation undertake work on these issues but fail to do through creating livelihood assets”. The survey so. The importance of involving women in the and report was designed to obtain the villagers' success of projects can be illustrated through the own assessment of the relevance and impact of experiences of one of the Action Learning Fund the activities promoted by the project. The survey Sub-projects entitled “Cultivation and development interviewed more than 100 people from eight of ginger and saffron in the forested areas of Ha sample villages. Survey results also showed that Tinh province”. The excellent fi eld trials and the participants in project activities highly valued high level of farmer interest led the evaluators to the project’s provision of knowledge and skills, assess this project as one of the most successful including advice on how to work in different ways in the programme. Table 2 below summarises the and make more productive use of household many components that participating farmers and labour. This fact is also somewhat corroborated in evaluators considered key factors contributing to the above table, as questions two-to-fi ve indicate the success of the project. Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 67

Table 2. Cultivation of Ginger and Saffron in the forested areas of Ha Tinh Province

Reasons for success in order of importance 1. The farmers were interested in the topic 2. A group of farmers formed a club – The Forestry Perfume Club. 3. The club was composed of mainly women members 4. The site conditions were suitable for growing the two species 5. The local people know about these species and routinely harvest them from nearby natural forest 6. Low capitol inputs needed 7. There is a good market for the products and the farmers know the buyers 8. The price paid for these products provides good economic returns for labour input 9. The project approach was good with a large emphasis on fi eld work 10. The trainer - a. Used appropriate training topics b. Had good technical knowledge c. Understood the needs of farmers d. Able to relay information in a simple manner (few words and pictures)

Flexibility and Cost Benefi t Analysis in this case was the lack of a cost benefi t analysis. The high cost of materials relative to the price Researchers sometimes miss good opportunities paid for mushrooms, and the ready availability because they follow the original project document of alternative labour in the city, led to this lack of too rigidly and fail to modify activities to suit the uptake by farmers. If the project implementers had conditions or new knowledge gained as the project responded to this information, and transferred the evolves. One example of this is a project on the project to an agricultural area where raw materials production of mushrooms in Ha Long City. On one (wood and rice straw) are readily available and off- hand the project was a great success with over 200 farm labour is scarce, activities would have most farmers trained and able to grow mushrooms at the likely been continued, making the sub-project a end of the training. All of the project activities were success. Table 3 assesses this project according completed on time and within budget. However, to the criteria established in Table 2 above. only one of the original 200 farmers continues to grow mushrooms. The reason for the poor result 68 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Table 3. Production of mushrooms in Ha Long City

Criteria Yes/No Comments

Farmer interest in the topic Yes There was wide farmer interest

A group of farmers formed a club No No farmer club formed

Mainly women participants Yes Mainly women

The price of raw materials needed for growing mushroom Site conditions were suitable No very high in city areas (but cheap in the country)

Mushroom growing is highly technical and not commonly The local people know about these No undertaken in the area. However the technical training was species

Making the link -Communication and networking suffi cient to overcome these problems.

Low capitol inputs needed No Investment is needed for sterilisation equipment

There is a good market Yes There is a good market in Ha Long city

Good economic returns for labour The returns were less than the local people could get for No input locally available jobs

Farmers were trained and provided with all of the necessary Large emphasis on fi eld work Yes equipment

The quality of training was very high and did not contribute The trainer was good Yes to the disappointing results of the project

Topics were appropriate and the farmers were able to grow Training topics were suitable Yes mushrooms at the end of the training

The trainer had good technical Trainers had good technical knowledge at the level needed Yes knowledge by the farmers

The trainer understood the needs of Trainers delivered the training in a manner that could be Yes farmers understood by the trainers

Flexibility and markets from the budget. There have been reports of large international projects commissioning expensive It is well known that attention should be paid to socio-economic surveys and then ignoring the markets before embarking on a new project. But, information that they contain (Mr Hieu, ICARD, in many projects, any detailed study of markets MARD, pers. com). is usually not undertaken until the project has been written and approved. Another common In contrast to the mushroom project, which had problem within the general research community good local markets, a project promoting the is a reluctance among implementers to react to cultivation of lemon grass had very low farmer market information during the implementation uptake because implementers did not heed the phase of a project, as doing so would not allow market information. The project is assessed in them to achieve the agreed milestones, which Table 4 below. would then cause diffi culties in the release of funds Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 69

Table 4. Planting Citronella (Lipia citrodora) and extracting its ethereal oil

Criteria Yes/No Comments

There was wide farmer interest because there are few Farmer interest in the topic Yes species that will grow on sandy soils in the area

A group of farmers formed a club No No farmer club formed

Mainly women participants No Mainly men

Site conditions were suitable Yes Lemon grass grew well on these diffi cult soils

The local people know about these No Growing lemon grass in these areas is not common species

Low capitol inputs needed No Investment is needed for distillation equipment

There is a good market No There is no good local market for the product

Good economic returns for labour No, the price of oil is very low and does not provide a No input return on the labour required

Large emphasis on fi eld work Yes Good fi eld trials were established

The quality of training was very high and did not The trainer was good Yes contribute to the disappointing results of the project

Topics were appropriate and the farmers were able to Training topics were suitable Yes grow the products and prepare them for processing

The trainer had good technical Trainers had good technical knowledge at the level Yes knowledge needed by the farmers

The trainer understood the needs of Trainers delivered the training in a manner that could be Yes farmers understood by the trainers

Need to understand the needs of different (i) Upper income households do not spend much socio-economic groups time collecting or growing NTFPs but they are most likely to be traders. The project commissioned a Participatory Rapid Assessment survey of cooperating householders A good use of resources for this group would be to that provides a clear understanding of the degree support post-harvest activities such as processing of dependence on NTFPs by different economic and quality control. Both of these latter activities groups within a community (“Household income have the potential to lead to improved local income and the Role of NTFPs” by Raintree et al. 2007). for the same product, and some of the benefi ts of This classifi cation of community by economic the additional jobs created are likely to fl ow down status provides development workers with to the poorest group. Households of this income key guidelines on how to integrate activities to level are also the most prone to taking risk, and best support different groups across the whole therefore are key subjects for assimilating and community. expanding the results of project interventions (pers. obs. By Potess, PARC Project – Viet Nam, NRM Project – Indonesia, Amacayacu Project – Colombia/ Brazil, other.) 70 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

(ii) Middle income households are more reliant by donors, researchers and implementers of on NTFPs and tend to be the most responsive to research and development projects. project activities such as domestication and ex Projects should: situ cultivation of NTFPs. • clearly define the differences between research The best investment of resources for this group and extension and how this relates to the project may be to assist them to cultivate high-value objectives; NTFPs and help them develop access to the most profi table markets. Households under this income • be flexible so that changes can be made in the level are usually able to take risks in adopting new light of new knowledge; technology related to activities promoted through • pay more serious attention to gender issues and project interventions. Villagers in this category take advantage of indigenous knowledge; and are key innovators and leaders in the adoption of Making the link -Communication and networking modalities (ibid. personal observation by Potess; • tailor project activities in line with the and Raintree Pers. Com.). implementation capacity and potential risk adoption and innovation among participant (iii) The poorest households are typically most households. dependent on forest resources and the most active collectors of NTFPs. This fi nding is supported by Some ways to assess projects that aim to work earlier work which showed that 78 per cent of poor with communities and farmers are to determine people exploited forest areas compared to 63 per if: cent among non-poor (Mekong Economic Ltd, • farmers are interested in the topic; 2005. Rural Economics Baleline Survey for the Tam Dao National Park Buffer Zone; Technical • farmers have formed a farmer group or club; Report for GTZ-Viet Nam, GTZ-Viet Nam, Ha • the project includes women participants; Noi). Both reports highlight poor villagers' lack of • there are suitable site conditions; suffi cient cash, land, labour and other assets to allow them to develop long-term ventures and, • the local people know about the species being as a result, they are likely to continue to rely on promoted; harvesting NTFPs from natural forests. • low capital inputs are needed; The best investment for the poorest group may • there is good market access; be to provide an understanding of sustainable harvesting practices and some investment in • there are good economic returns for the labour forest enrichment. Households in this category input; are seldom able to take the risks involved in • there is a large emphasis on field work; and adopting new technologies, and usually follow the lead from households who have the means • the project has high-quality trainers who provide and capacity to do so. This means households suitable topics, have a good and appropriate mainly in the middle-income bracket, which are technical knowledge (not necessarily academic willing to take cautious risks when adopting new experience), and understand the needs of measures (ibid. personal observation by Potess; farmers and how to convey information. and Raintree Pers. Com.). Projects need to be fl exible and act upon cost Conclusion benefi t analyses. Farmers will not continue project activities without support if they do not earn An analysis of the lessons learned from this project enough to justify the labour input. Implementers has provided important insights that can be used also need to react fl exibly to market information Making the link - Communication and networking THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 71

rather than simply generate it as part of a project’s • Middle income households: provide support activities. for the cultivation of NTFPs Projects must be based on an understanding of • Poorest households: provide an the needs of different socio-economic groups understanding of sustainable harvesting involved in NTFPs. A project survey provided practices and some investment in forest valuable guidelines on how to disperse project enrichment assets according to economic circumstances and identifi ed the following key activity delineations. • Upper income households: provide support for post-harvest activities such as processing and quality control

THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 73

THEME 3: POLICY AND STRATEGY

Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 75

Policy on Non-Timber Forest Products in Viet Nam

Pham Xuan Phuong1

BACKGROUND legislative, policy and social issues. Nevertheless, this paper will attempt to address the above In Viet Nam, the use of Non-Timber Forest questions by analyzing and assessing current Products (NTFPs) is often closely associated NTFPs policies, and proposing future policy with the livelihoods of forest-based communities. orientations for NTFPs in Viet Nam. Within the last decade, traditional trade villages that use NTFPs have been rehabilitated and The paper consists of 4 parts: have undergone rapid development. In addition, • Major legal documents relating to NTFPs policies the country's international economic integration in Viet Nam process has created signifi cant opportunities for enterprises, households, individuals and trade • NTFPs policy development process in Viet Nam villages involved in NTFPs production and trade. • Implementation and impact of NTFPs policies However, Viet Nam, like many other developing • Recommendations to NTFPs policies in Viet countries, has focused on exploited mainly Nam for the years to come timber in the past, and paid less attention to the management, preservation and development of MAJOR LEGAL DOCUMENTS NTFPs. Therefore, as the country's natural forest RELATING TO NTFPS POLICY IN area has been depleted, NTFPs resources have VIET NAM also been greatly reduced, resulting in signifi cant Until recently, there has been no specifi c impacts on the lives of forest-dependent legislation framework for NTFPs in Viet Nam. communities. However, due to the increasing need to address In this context, the following questions emerge: the issue, policies on NTFPs have been mentioned in some legal documents. Between • How are policies relating to NTFPs developed in 1954 and 2007, the Viet Namese Government Viet Nam? issued more than 50 legal documents relating • What is the legal framework for NTFPs, and what to NTFPs policy. By May 2007, 29 of those legal are the effects of these policies? documents were still in valid comprising: six laws • What is the role of NTFPs in creating incomes, and ordinances; nine government decrees, fi ve jobs and developing the socio-economy of Prime Minister documents; and nine ministerial- central and mountainous areas? level documents. • What are the obstacles to preserving and Specifi c policies on NTFPs are only mentioned developing NTFPs? briefl y in some chapters, articles or items of the above-mentioned documents, and in general, • How can NTFPs policy development be improved focus on the following issues: in the coming time? • Tax adjustments for NTFPs exploited from In order to answer these questions natural and artificial forests; comprehensively, there is a real need to conduct further research into economic, technological, • Investment and credit policy for NTFPs afforestation and processing;

1 Legislation Bureau, Ministry of Agriculture and Rural Development 76 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

• Policies on NTFPs exploitation and utilisation collecting tax on the use of forest resources. and the beneficiaries involved; and Every organisation and individual who exploited the forest had to pay an amount of money to Policy and strategy • Policies on distributing NTFPs. use forests protected and developed by the NTFPS POLICY DEVELOPMENT government. Eighty per cent of this money was PROCESS IN VIET NAM kept by local authorities for forest protection and developing the locality, while the remaining 20 per Period from 1954-1990 cent was paid to the central budget to fund general For a long time, timber was considered the main forest protection and development activities. The forest product, and NTFPs were thought of as tax rate was calculated according to a percentage 'sub-forest products'. Forestry policies were (5 per cent) of a product's sale price, regardless of mainly concentrated on regulating the income whether it came from natural or cultivated forest. sources from natural forest products in order to However, this previous 'forest growth tax' has increase the state budget through license granting now been incorporated into the tax on natural and tax collecting. No attention was paid to the resources, and there are currently no separate preservation and development of forest products, regulations on contributions for forest protection including NTFPs. and development. In 1954, Inter-ministerial Decree No. 8-CN-TC, Period from 1990 - 2007 issued by Ministry of Finance and Ministry of Agriculture, regulated the method for calculating From 1990-2007, policies on NTFPs concentrated prices for selling forest products. This document on the following issues. also stated that all the products derived from national Management and preservation of NTFPs forests were state assets; therefore exploiters had to forfeit a percentage of income they generated In 1992, the government issued Decree No. 18/CP, from such products to the government. This rate which included a list of precious and rare species was determined by a percentage of the market of forest fl ora and fauna, as well as regulations price of the forest product concerned and only for managing and protecting these endangered applied to some types of forest products such as species. In 2002, the government issued Decree bamboo, neohouzeaua (a special kind of bamboo), No. 48/CP, which provided revisions and additions rattan, etc. From 1956 to 1957, the government to Decree No. 18/CP. added certain types of seeds, vegetation oil, On March 30, 2006, the government issued forest rubber and fresh bamboo shoots to the list Decree No. 32/2006/NĐ-CP, which replaced of forest products subject to taxation. For 'sub- Decree No. 18/CP and Decree No. 48/CP, and forest products' (or NTFPs) cultivated by farmers stated that areas with forestry vegetation, or forest on public land where agricultural tax has not been areas where precious and rare animals are living, paid, the tax rate stood at 7 per cent of the average must be clearly specifi ed on the nation's map. In market price. addition, the regulation declared that forest areas At the beginning of the 1980s, the government with abundant forestry vegetation, areas that still maintained a policy of regulating the benefi ts contain endangered animals, or species on the derived from natural forest exploitation, including verge of extinction, must be considered for being NTFPs, however, attention began to be paid to declared specialised forest areas. protecting and developing natural forest resources, Forest vegetation and animals on the verge of including NTFPs. extinction, and precious and rare species of forest In 1981, the government changed its policy from fl ora and fauna were arranged in two groups: collecting tax on the sale of forest products to • Group I - vegetation of type (IA) and animals Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 77

of type (IB), which have special scientific, use rights and forest use rights to organisations, environmental or economical value, and have households and individuals for long-term and small populations in the wild or are in serious sustainable use. These regulations on assigning danger of becoming extinct; and and transferring ownership rights among land and forest users (forest holders), as well as the policy • Group II - vegetation of type (IIA) and animals on renting land and forest areas, has created of type (IIB), which have high scientific, favourable conditions for the formation of forest environmental or economical value, and have product material areas, including NTFPs. small populations in the wild or are in serious danger of becoming extinct. Policies on investment and credit The regulations prohibit trade in fl ora and fauna The Investment Law and implementation from both groups I and II, and permission is guidelines regulate forest use in general, including required from the Ministry of Agriculture and growing NTFPs trees, forest product processing, Rural Development (MARD) to use any of the and trading in traditional fi ne art. Various groups species described. Scientifi c research is allowed benefi t from preferential investment treatment, for Group II in specialised forest areas, however including trading businesses (list A), mountainous international agencies must seek permission to areas or areas facing socio-economic diffi culties use any of the fl ora and fauna described. Control (List B), and areas facing special socio-economic of Group IIA species is specifi ed within the diffi culties (List C). Regulations on Timber and Other Forest Product According to the regulations of this law, NTFPs Exploitation, approved by MARD. For forest afforestation activities enjoy preferential animals within Group IIB living outside special investment treatment, including a reduction in land areas, permission for any activities aside from use fees (50 per cent reduction in general areas research must be sought from relevant central or and 75 per cent reduction or total exemption in provincial departments. areas facing diffi cult or extremely diffi cult socio- Policies relating to production, processing, economic problems). In addition, such activities trading and marketing of NTFPs will be exempt from land rental costs for between three-to-six years from the date of signing the land Plan for forest product areas, including NTFPs lease. In areas of socio-economic diffi culty, this Decision No. 661/QĐ-TTg (dated July 29, 1998), exemption extends to between 11 and 15 years, issued by Prime Minister for a new 5-million while for areas facing extreme socio-economic hectare afforestation project (Decision 661 diffi culties, a complete land rental exemption for short), strongly affected the formation of applies for afforestation projects. forest material areas, including NTFPs areas. Currently, most NTFPs afforestation activities are This document regulated incentives for forest carried out in diffi cult or extremely diffi cult socio- regeneration activities, including planting NTFPs economic areas. Thus, such activities satisfy in protected and cultivated forests, and considers preferential treatment criteria for both type of natural forest regeneration as an important tool activity and location. for forest rehabilitation, including NTFPs. Other legal documents also encourage the development Credit policies of NTFPs trees for making fi ne art products. There are currently two types of credit relating Policies on land and forest allocation to NTFPs afforestation, namely government preferential credit and trade credit. According to regulations stated in the Land Law (2003), and the Forest Protection and Government preferential credit is provided for Development Law (2004), the state delivers land NTFPs afforestation projects, processing facilities, 78 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

and bamboo and handicraft producing units. Such their management. The regulations also state that groups are allowed to receive loans with interest the exploitation of NTFPs (except bamboo and rates equivalent to 70 per cent of the average neohouzeaua, which have specifi c regulations) Policy and strategy medium- and long-term interest rates of the state must have no negative impact on the growth and commercial banks, with a maximum loan duration development of each species. of 15 years. The total loan must not exceed 70 per NTFPs exploitation in protected natural forests cent of the group's total investment capital. Specifi c regulations exist for bamboo and In terms of trade credit policy, banks can loan neohouzeaua forests, which must have a forest up to VND10 million to households processing coverage of over 80 per cent and a maximum forest products or producing bamboo, rattan and exploitation speed of 30 per cent. DARD handicraft products. Borrowers are not required to approves the application documents and grants mortgage any property, but must attach their land permits to forest owners belonging to provincial use rights certifi cate to the application for the loan. organisations. General corporations approve Up to VND20 million can be loaned by state banks and issue exploitation permits to their members to households or individuals operating farming who are forest owners, while district People’s businesses. Again, borrowers are not required Committees provide households, individuals and to mortgage any property, but must attach their rural communities with exploitation permits. land use rights certifi cate to the application for the loan. Other NTFPs exploitation and harvesting issues are decided by the forest owner, but any activities NTFPs exploitation conducted must not affect the protective capability Exploitation of NTFPs in natural production forest of the forest. Special regulations exist for the exploitation of Benefi t policy bamboo and neohouzeaua in natural production Households and individuals who are provided forest areas. These areas must have a covering with natural forest for production are allowed to of over 70 per cent, with long- and medium-term exploit bamboo and neohouzeaua, according trees making up more than 40 per cent of the total to current technical procedures. After paying fl ora. The exploitation cycle ranges from two to taxes, households and individuals can keep four years and allows one-quarter to two-thirds of 95 per cent of the revenue they earn, while the the total trees to be harvested, provided they are remaining 5 per cent must be paid to the state more than two years old. budget (commune budget). Households and In term of submission and approval procedures, the individuals who are provided with forest land, Department of Agriculture and Rural Development which is not already being used for production or (DARD) approves an application document and afforestation activities, have the right to make their grants a provincial exploitation permit to forest own decisions regarding: the aim and method of owners who are members of a corporation or afforestation (eg. promotion of regeneration or general corporation. The People’s Committee at new afforestation); selection of trees for planting; the district level provides exploitation permits to and the exploitation and use of forest products. All forest owners who are households, individuals or exploited products must be freely circulated. rural communities. Circulation and consumption of NTFPs Other NTFPs exploitation and harvesting issues Current documents regulate the inspection of are decided by forest owners, while permits for forest product processing and transportation exploitation and harvesting are provided by the procedures. According to the regulations, rattan, communal People’s Committee for forests under Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 79 bamboo, reed products, planted wooden products, IMPLEMENTATION, ORGANISATION wooden handicrafts (comprising a mix of rattan, AND IMPACT OF NTFPS POLICIES bamboo and reed) and other forest plant NTFPs are allowed to be processed for export. The There are almost no specifi c policies on NTFPs import and export of wild animals and plants for in any province in Viet Nam. Some provinces, commercial purposes is prohibited, as stated in based on general policies on NTFPs issued by Appendix I of the CITES Convention. The import the government, have carried out preservation and export of wild animals and plants, which are activities and developed NTFPs in line with their artifi cially reproduced for commercial purposes, location conditions. However, currently a database is permitted, as stated in Appendix I of CITES of authorised bodies at the state level in charge of Convention. The import, export and re-export NTFPs management is not available in Viet Nam. of wild animals and plants with a legal basis for Current situation of NTFPs development exploitation can only occur if relevant certifi cates Presently, suffi cient statistical data regarding are issued by authorised CITES control bodies. NTFPs development is not available in Viet Nam. Taxes imposed on NTFPs trade However, reports prepared by some provinces Agricultural land use tax showed that: Laws on agricultural land use tax came in force • by 2005, approximately 30 out of 64 provinces on January 1, 1994, and other legal documents had planted and harvested NTFPs, with a total regulate land for economic afforestation, under area of 1,630,896 hectares, accounting for 13 per which NTFPs afforestation has a tax rate of 4 per cent of existing forest area within the country. cent of the exploited product's value. From 2003 • most types of cultivated NTFPs are concentrated to 2010, organisations and individuals investing in the Northeast, Northwest, North Central, in NTFPs development are exempt, or enjoy Central coast, Western highlands and Southeast reduced, agricultural land use tax. of Viet Nam. Tax on exploitation of natural resources • some provinces have planted large areas of The ordinance relating to taxing natural resource NTFPs such as: Thanh Hoa (bamboo, rattan); Ha exploitation activities regulates products produced Tinh (rattan); Quang Binh, Nghe An and Quang from natural forest, under which the tax rate Ninh (pine); and Lam Dong (bamboo, bamboo imposed on bamboo, neohouzeaua, reed species, with long stems and large leaves). However, only bamboo (for ropes), bamboo with long stems and six of the 30 provinces have NTFPs areas over large leaves, and apricots is 10 per cent. The tax 100,000 hectares (Thanh Hoa, Ha Tinh, Kon rate imposed on rattan products is 5 per cent of Tum, Lam Dong, Phu Yen, and Binh Thuan). the exploited product's value. • in recent years, the planting of NTFPs has Value added tax (VAT) developed strongly, thanks to technical guidance from agricultural and forest expansion VAT regulates a wide range of products and organisations, especially socio-economic services, including afforestation products which development projects in mountainous areas. have not been processed into other products, Many types of NTFPs species have been planted or have been only primarily processed by as part of these projects such as cinnamon and organisations and individuals. A tax rate of 5 per Truc Sao. cent is imposed on products exploited from natural forests, including rattan, bamboo, neohouzeaua Many kinds of plants have been imported and (which has not been processed commercially), planted in trial household gardens such as bastard and products made of jute, rush, bamboo, cardamom, oppositifolium yam, codonopsis, and neohouzeaua and rattan. species of bamboo, etc. At present, some wood 80 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

oil plants in hill and forest gardens have brought NTFPs-based enterprises is that they are small- positive about effects in terms of socio-economic scale, scattered and have a low capacity, while and ecological impacts (cinnamon areas, anise many state enterprises are larger and are very Policy and strategy areas, etc.). However, NTFPs planting is still focused on particular products. conducted in a scattered manner, without In terms of external markets, between 2000 adequate information on using and creating and 2005, the export growth rate was not high, breeds and planting techniques. reaching an average of 17-27 per cent per year. Present status of NTFPs processing, trading The gross NTFPs export turnover in 2004 was and marketing almost $200 million, excluding products exported through the northern border, which have not At present, the capacity for bamboo processing yet been estimated. Some NTFPs exports have in Viet Nam is 250,000 tonnes per year, plus increased in volume but most traditional products four bamboo board factories with a capacity of have remained static. Knitted rattan products 4,000m3 per year, while the capacity for rattan have an average growth rate of 31.25 per cent processing stands at 100,000 tonnes per year. In annually, and honey has a high growth rate, while recent years, bamboo and rattan manufacturing cinnamon, anise and medicinal NTFPs have not has developed into a sub-sector of forest increased signifi cantly since 2000. production activities. However, though facilities and equipment are modern, the products are still Viet Nam exports NTFPs to almost 90 countries, simple and production is dependent on the market however, the development of the sector is and available resources. scattered. Japan and Taiwan purchase the largest amount of Viet Namese NTFPs and are There are currently several factories in Viet Nam quite stable markets. NTFPs exports to the US with processing equipment to producing good have grown since 2001 and have great potential quality products for export, such as Binh Dinh and for expansion, however, exports to former Soviet Quy Nhon. Bamboo and rattan-based products Union markets have not returned to their previous include bamboo screens, mats, tables, chairs, levels. skiing sticks and boards. Paper manufacturers produce 340,000 tonnes of products per year, Advantages, constraints, opportunities and and the Forestry Cooperation has 11 forest-based challenges enterprises. Some advantages of the current NTFPs policy In terms of other NTFPs, there are currently 115 situation in Viet Nam include the fact that Viet state enterprises, 10 joint-stock companies, 36 Nam has signed many international protocols limited companies and 170 private enterprises relating to forest conservation, including NTFPs. producing medicines, many of which are involved In addition, the government has issued policies in exporting and importing medicinal plants and on land and forest land allocation, creating pharmaceutical products. favorable conditions for NTFPs development and conservation. Together with with these initiatives, The country's fi ve pine resin manufacturers policies have been developed to encourage the have a capacity of 15,000 tonnes of resin per restoration of traditional handicraft villages using year. Some enterprises have also recently been NTFPs, which have promoted the development developed that specialise in producing chemical of the private sector and attracted a considerable products with natural origins and essential oils workforce to NTFPs planting and processing. with botanical origins. Moreover, there are a It is fortunate that Viet Nam also has traditional wide range of processing and trading enterprises markets in household items and handicrafts made focused on NTFPs foods. from NTFPs. One of the most common characteristics of Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 81

While the advantages listed above provide a for NTFPs production and trade. There should foundation for sustainable NTFPs management be transparent policies regulating transaction and use, there still exist many constraints to such fl ows and NTFPs marketing, and research must development, including insuffi cient, unclear and be done on national and international NTFPs incomplete policies, and a lack of incentives for consumption. Finally, capacity building on NTFPs organisations and communities to participate management at the national and provincial levels in NTFPs protection, production and trading is another vital component for the sustainable activities. In addition, there is a perceived lack of development of NTFPs. harmonisation between NTFPs development and NTFPs policies must ensure that forest conservation regulations. populations are benefi ting from NTFPs, both in Opportunities exist in many forms. Viet Nam’s terms of income generation and forest protection. current trend towards international integration This must be the goal in order to harmonise the creates nation-wide opportunities for export conservation and development of NTFPs, which growth, as well as NTFPs plantations, rehabilitation should be community-based, according to each and processing. Open policies that encourage area's comparative advantages. Improved links export activities have provided opportunities to between resource area development and forest attract foreign investment to modernise NTFPs enterprises and markets could also be benefi cial processing facilities and make the sector more to overall NTFPs development. competitive in a global marketplace. Main policies However, it must be said that there are a great Regarding NTFPs development and conservation many challenges ahead for the development and planning, three main points need to be conservation of NTFPs in Viet Nam, including considered: the lack of information, weak implementation of laws, insuffi cient organisation and lack of well- • First, the effective establishment, organisation, trained staff in NTFPs production and marketing, and management of national parks in as well as tough competition in the market. Other conservation areas is of prime importance. challenges include the lack of fi nancial resources • Second, planning for NTFPs resource areas to develop methodologies, the deteriorating must be focused and production-oriented, environment (including the loss of endangered and should link these areas with overall forest NTFPs), and the lack of control over illegal trade production development plans. This brings into in NTFPs. Furthermore, small NTFPs enterprises play regional comparative advantages and are not linked effectively to resource areas, while encourages the production of specifi c products national markets for NTFPs products are scattered in each area, which suit market needs, while and unstable. utilising resources in a sustainable manner. RECOMMENDATIONS FOR FUTURE • Finally, farming and breeding sites for export NTFPS POLICIES should be planned and developed to provide sustainable seed and seedling sources for Some objectives for NTFPs policies should include expanding NTFPs export markets. the development of a complete policy system to enable local populations and communities to Land and forest allocation policies can benefi t from have access to, harvest, utilise and sustainably extending the leasing and tendering of land for develop NTFPs, thereby contributing to poverty NTFPs production, and ensuring that leasers and reduction in rural and mountainous areas. tenderers utilise the land according to regulations. Ownership needs to be identifi ed for forest Another important step is encouraging the owners, creating a better leasing environment establishment of forest farms, including NTFPs 82 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

trees, through improving land conversion rights, products and marketing. Research on planting in land transfers, leasing, and capital sharing with protected forests should ensure both protection equal land use rights. The allocation of forest land and production through forest rehabilitation, Policy and strategy and granting of land use rights should be legalised and forestry extension services to households for to local farmers and city dwellers who wish to and individuals should be fostered, providing a invest in NTFPs planting in specifi ed areas. variety of training in NTFPs techniques. Lastly, investment in processing technology is required Some recommendations regarding policies on to improve the economic value of NTFPs and investment and credit include: allowing households, provide the sub-sector with a competitive edge, who contribute or buy shares in organisations that both nationally and internationally. plant NTFPs trees, to borrow funds directly from banks; adjusting interest rates or providing a one- Market policies should encourage sectors at all time refund after the production of a key product; levels to participate in the market and create a fair and simplifying the loan process. In addition, the competitive environment that avoids monopolies. government should establish a fund to support NTFPs areas and forest-based enterprises NTFPs. There should also be a incentive policies should be linked to encourage growers to sell to attract foreign direct investment to modernise their products directly without mediators. Joint forest-based enterprises. Cooperation between businesses should be formed between producers, sectors and with international partners should collectors, and traders of NTFPs. Furthermore, be allowed and encouraged in order to improve commercial promotion is vital, in order to seek out production facilities and develop forest-based and extend NTFPs markets globally. enterprises for export. Regulations should be completed on harvesting, Policies on science and technology should utilising and trading NTFPs, and simple and consider that the suitability of a NTFPs species transparent guidance provided to key stakeholders. to a specifi c location is key to its production A common mechanism should be implemented success. This suitability relates to both the for planting, breeding and artifi cially transplanting forest production needs, as well as the needs of rare fl ora and fauna. Lastly, a benefi ts mechanism the local people. Key plants with rapidly rising for forest and land users should be completed to economic value should be identifi ed, and there encourage the development of protected forests. should be standards developed for silviculture, Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 83

Placing Conservation & Sustainability before Marketing - the Situation of NWFP Management in Bhutan

Marianne Meijboom1

BACKGROUND Bhutan has a land area of 38,394 km2, which can be divided into three zones according to elevation: Bhutan is a landlocked country in the Eastern the Himalayas, the hills and the plains. Roughly, Himalayas, which borders China in the north and the Himalayas are located in the northern part India in the three other directions. of the country, the hills in the central region, and The country has a population of 635,000, of the plains in the south. Bhutan’s topography is which 69.1 per cent live in rural areas (Offi ce of characterised by steep, precipitous slopes that the Census Commission, 2005). According to the descend rapidly into narrow river valleys. Some 45 poverty analysis report of 2004, on average, 31.7 per cent of the land area has an elevation of more per cent of the Bhutanese live under the poverty than 3,000 m. Only 8 per cent of the country’s line, with a higher incidence in rural areas (38.3 area is suitable for agricultural production, with per cent). Poverty is most marked in the east, the largest area of the country categorised as where some 48.8 per cent of the population lives forest land (72 per cent). Of this land, just 14 beneath the poverty line. The poor typically rely per cent is economically accessible. In Bhutan, on subsistence farming, which provides limited 26 per cent of the land area is Protected Areas income and employment opportunities. (National Parks and Wildlife Sanctuaries), 9 per cent is Biological Corridors, 8 per cent is Forest Bhutan opened its doors to the rest of the Management Units and 8 per cent of the land has world in 1961. Before then, it was a closed potential for Community Forestry. More than one- country and entirely dependent on subsistence third of the country’s area is thus set aside for production. Since 1961, Bhutan has undergone nature conservation. All forest land is classifi ed as a major transformation and the development of Reserved Forests. Bhutan has a rich biodiversity health care, education, infrastructure, transport, and for this reason has been declared one of the communications, electricity and major progress world’s 10 most important biodiversity hotspots in agriculture has linked Bhutan to the rest of (Royal Government of Bhutan, 1999). the world. The impact of development progress is clearly visible in the life expectancy of the Bhutan is unique in the attention it gives to Bhutanese; in 1960 the average life expectancy environmental conservation. Though the was 35 years, by 1977 it had increased to 46.1 natural heritage is still largely intact, the Royal years and in 1999, average life expectancy Government of Bhutan does not take its in Bhutan had extended to 66.1 years (Royal continued preservation for granted. Environmental Government of Bhutan, 1999). In 2003, Bhutan conservation is not treated as a “sector” but rather moved on the Human Development Index (HDI) as a set of concerns that are mainstreamed from the category of 'Low' up to 'Medium' (HDI is into the development of the country and are 0.53; Royal Government of Bhutan, 2005). supported by the force of law (Royal Government of Bhutan, 1999). In the late 1980’s, His Majesty King Jigme Singye Wangchuck propounded the 1 SNV Bhutan Bhutanese concept of Gross National Happiness, 84 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

which is the foundation for the nation’s approach horn, antler, tusk, bone, bile, musk, honey, wax to development. The concept of Gross National and lac, insect; and boulders, stone, sand, gravel, Happiness is based on four pillars: rocks, peat and soil.” Policy and strategy • Promotion of sustainable and equitable socio- Bhutan is rich in NWFPs; to date more than 600 economic development; medicinal plants, 97 mushrooms, 97 fruits and nuts, 34 bamboos, 14 canes, 25 oil/resin species, • Preservation and promotion of cultural values; 20 spices, 38 fi bers, 70 ornamental plants, 181 • Conservation of the natural environment; and fodder species, 36 dyes, 12 food crops (yams) • Good governance. and 77 forest vegetables have been identifi ed and described (Forest Resources Development The importance of the environment is further Division, 2006). The scientifi c names of many illuminated in the constitution of Bhutan, which more NWFP species are still unknown. states that 60 per cent of the land area will remain under forest cover for all time. FOREST POLICIES Bhutan’s vast forest severely limits the amount Before 1969, access to forest resources in Bhutan of land suitable for agricultural production. With could be described as “open access”, in which all almost 70 per cent of its population living in rural people were entitled to enter the forest and utilise areas, forest resources, including Non-Wood products as desired. That said, in many areas, Forest Products (NWFP), form a major source of people self-regulated utilisation through traditional peoples’ livelihoods. This is also refl ected in the management systems that regulated the impact private sector. Employment in the private sector is of harvesting on forest resources. The traditional mainly generated in the manufacturing sectors. In systems were closely related to strong beliefs 2003, 17 per cent of registered enterprises were and respect for local deities (ladam/ridam). For based on agricultural products, whereas some example, under a traditional system, entry to the 46 per cent were forest-based (Tashi Wangyal, forest is restricted during several months of the 2005). Bhutanese lunar calendar in the belief that to do so would disturb the deities, which could in turn bring The contribution of NWFPs to peoples’ livelihoods disaster to agricultural crops. The “open access” and the potential for commercialisation has been of the forest resources came to an end with the widely acknowledged in Bhutan over the last nationalisation of the forests as stipulated in the decade. As a result, the Royal Government of fi rst “Bhutan Forest Act” in 1969. Bhutan has identifi ed the development of NWFPs as one of its major priorities in the 10th Five Year After 1969, all forests were nationalised and Plan 2008-2013, and has high-lighted the potential people were no longer permitted to extract forest role of NWFPs in poverty alleviation. products freely. A system of permits and royalties was put in place in order to control and mitigate the NWFPs IN BHUTAN negative impacts of forest extraction. According According to the Forest and Nature Conservation to the post-1969 procedures for the utilisation of Rules 2006, “NWFP shall mean: resin, varnish, forest resources for commercial purposes and rural katha, kutch, plants, fl owers, seeds, bamboo, timber supply, one has to request the Divisional bulbs, roots, fruits, leaves, barks, grasses, Forest Offi cer at the district level for a permit. The creepers, reeds, orchids, cane, fungi, moss, Divisional Forest Offi cer assesses the request herbs, medicinal plants, leaf-mould or other and forwards it to the Department of Forests in vegetative growth, whether alive or dead; wild Thimphu. The Director General of the Department animals (including fi sh), and parts or products of of Forests reviews and sanctions the request, and wild animals, including the skin, hide, feather, fur, ascertains whether the amount of the species Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 85

requested for harvest can be sustainably extracted The Community Forestry Management Group is (the amount sanctioned could be less than that authorised to manage the community forest in originally requested). The approved request is accordance with a management plan approved then sent back to the Divisional Forestry Offi cer. by the Department of Forests. The Divisional Offi cer is then responsible for the In late 2006, a national workshop was held on allotment and the person who made the original the 'Development of NWFPs in Bhutan'. During request may then harvest the forest products. After this workshop, it was further decided that the harvesting, royalties are paid by the harvester, as development of NWFPs should be based on three instructed by the Forest Information Management guiding principles (FRDD, 2006): Section, Department of Forests. 1. Existing policy, legal and regulatory frameworks The Bhutan Forest Act of 1969 was revised several should form the basis for further development times thereafter and was eventually replaced by of NWFPs. the Forest and Nature Conservation Act of Bhutan 1995. Under the act, the Ministry of Agriculture 2. NWFP harvesting should be based on resource stipulates the requirement of a management availability and sustainable management plan prior to any commercial forestry activity, and principles and not be market-driven. provides rules for Social Forestry and Community 3. Resource utilisation should be community Forestry. based and not be based on individual efforts Medicinal plants were banned for export purposes – i.e. the community should profit from the by the Director General of Forestry in 1988 resources and not individuals only. (Subba, etc.). The diffi cult component of the implementation of The Forest and Nature Conservation Act of 1995, the forest policies related to the management of as mentioned above, has been further elaborated NWFPs in Bhutan is the resource assessment, and refi ned a number of times. The latest Forest which is needed to gauge the availability of the and Nature Conservation Rules 2006 provides a products concerned and is a mandatory part of legal framework for the sustainable management the required management plan. Forest (timber) of timber and NWFP resources. The rules inventories are not suitable for the assessment of reiterate that an approved management plan, NWFP resources because of the nature of NWFPs including a resource availability assessment, (different life forms, different parts of plants that is required before commercial utilisation of are sometimes diffi cult to detect, seasonality, forest products can take place. With regards to and scattered/and or clumped distribution). Community Forestry, the rules state that a group Therefore, inventory methodologies for NWFP of at least 10 households willing to establish, resource assessments have to be developed per control, and manage a forest area (for wood or NWFP species separately in most cases (Wong, NWFPs) as a Community Forest, in accordance Thornber and Baker, 2001). It was only in late 2006 with a number of requirements, can form a that the Department of Forests started working Community Forest Management Group. The size on the systematic development of guidelines for of the Community Forestry area depends on the inventory methods and resource assessments for area available in and around the villages of the priority NWFPs. Currently, no formal guidelines group, with a maximum of 2.5 ha per household. have been released by the department and it will This size can be exceeded for the management take time before these formal guidelines can be of NWFPs, according to the availability of land. developed and put in place. 86 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

CURRENT STATUS OF NWFPs NWFP utilisation for commercial purposes UTILISATION IN BHUTAN In Bhutan, the strict and sometimes cumbersome Policy and strategy NWFP utilisation for subsistence use and local regulations and procedures for harvesting marketing forest products for commercial purposes have discouraged people from harvesting products. NWFPs are important for rural consumption and The manufacturing of incense provides a valid local marketing to support rural family incomes. At example. The incense industry uses more than the subsistence level, NWFPs such as fern heads, 40 herbs and aromatic plants as ingredients for wild asparagus, wild orchids, bamboo, cane manufacturing incense sticks. Although 90 per shoots, betal leaves, herbs, thatching grasses, cent of these species grow and are available in wild fruits, mushrooms, incense materials and Bhutan, the industry obtains 80 per cent of them spices are harvested and immediately consumed. from India because of the cumbersome, time- Rural families also earn a large proportion of their consuming process for getting the permits and cash income through collection and sale, mostly products in time and in the desired quantities, if to the local markets or middle-men. Over 100 at all, in Bhutan (Chimmi Pelmo, 2006; Tideman, different NWFPs are sold in the weekend market 2006). in Thimphu such as cane shoots, fern heads, wild walnut, seeds of Zanthoxylum rehtsa, wild garlic, Another example concerns the harvesting of bamboo products, wild tea, several species of seedpods of Illicium griffi thii, a species of star mushrooms and many others (Chandrasekharan, anise, by local people in Aja Nye (Mongar district). 2006). A study conducted on the role of bamboo Requests for permits to harvest the seedpods in the Zhemgang district revealed that bamboo have been made for several years, but have been and cane products accounted for about 66 per rejected because of the lack of proper resource cent of village household income (Moktan et al., assessments. As a consequence, local people 2004). According to the forest policies, no permits did not harvest and maintain the forest and many and management plans are needed for NWFP young and small trees are getting established in harvesting for the purpose of subsistence use, the area (see Figure 1), competing for sunlight and while a management plan, including a resource hampering productivity, which clearly illustrates assessment, would be required for marketing the current under-utilisation of the seedpods. purposes. However, the harvesting of NWFPs in In order to increase the productivity, a thinning small quantities for local markets is often tolerated is now necessary to let the sunlight penetrate by the Department of Forests without an approved and encourage trees to produce seeds. At the management plan in place. There are only a few moment, local people in Aja Nye are framing a situations known where the utilisation of NWFPs management plan in order to obtain the legal right for subsistence use and local marketing has led to to utilise and manage the area. depletion of resources; i.e. in the case of certain cane species. Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 87

Figure 1: Picture of Illicium griffi thii forest and corresponding DBH class distribution fi gure.

DBH class distribution figure of Illicium griffithii

5000 4550 4500 a 4000 3500 3000 2500 2000 1500 1000

Number of Illicium treesper h 470 500 200 90 90 40 20 10 10 0 < 3 3-6 6-9 9-12 12-15 15-18 18-21 21-24 24-27 cm cm cm cm cm cm cm cm cm DBH classes

NWFP utilization by the Institute of Traditional The lemon grass oil industry in Bhutan started in Medicine Services 1981, and is at present carefully managed by the Essential Oil Development Program of the Ministry The Institute of Traditional Medicine Services of Trade and Industry in collaboration with the currently experiences no diffi culty in obtaining Renewable Natural Resource-Research Centre in permits for collection and is usually granted Mongar, Eastern Bhutan. The oil fetches a good a permit within seven-to-10 days without an price in the United Kingdom ($12.5 per kilo) and approved management plan (Tideman, 2006). provides an additional income to more than 1,000 This institute is responsible for the development people. The total lemon grass production from and provision of quality traditional medicinal 1995 to 2004 amounted to 105,581kg with a value care and there are 25 Traditional Medicine Units of more than $1.3 million (Dorji Wangdi and Galey attached to district hospitals within the country. In Tenzin, 2006; Prommegger, et. al, 2005). The 2005, they procured 12.5 tonnes of raw materials, research centre in Mongar carefully monitors the and this quantity is expected to double within the availability of the wild lemon grass resources and coming years because of commercialisation plans. is currently undertaking research on the impact The Institute of Traditional Medicine Services is of forest fi re on resource availability. Unless the therefore closely cooperating with the Ministry of results of the research reveal otherwise, burning Agriculture in the cultivation of medicinal plants of lemon grass areas will continue to be strictly and training of farmers in good collection practices forbidden as a method of stimulating grass to ensure the sustainable production of medicinal growth. plant resources (Phurba Wangchuk, 2006). Exports of Matsutake mushrooms started in NWFP utilisation for export 1991, with a peak of 11,470kg in 1997. Since The most commercially important NWFPs then, exports have declined to less than one- for export in Bhutan include lemon grass oil fi fth (Ministry of Agriculture, 2003). In 2005, (Cymbopogun fl exuosus), Matsutake (Tricholoma only 1,663kg of Matsutake mushrooms were matsutake; a high-value mushroom in Japan), exported to Japan (Hikojiro Katsuhisa, 2006). and Cordyceps sinensis. Other export markets include Singapore and 88 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Malaysia. The sharp decline is mainly due to Swertia chiryata, Cordyceps sinensis, Matsutake reduced market demands, and the lower quality mushroom (Tricholoma matsutake), bamboo of Bhutanese mushrooms because of quality loss (Neomicrocalamus andropogonifolius) and cane Policy and strategy during the long transport process. The National (Calamus acenthospathus and Calamus altifolius). Mushroom Centre has developed rules to ensure All of the respective management plans contain a the sustainable management of the Matsutake detailed resource assessment, and all consider mushroom resources, which include start and end both domestic use and commercial purposes. dates for the collection season, minimum size Other factors infl uencing NWFP availability in limits, and improved collection techniques (Dawa Bhutan Penjor, 2006). The strict rules and regulations related to Cordyceps sinensis is called “Yar-tsa Guen-bub” harvesting forest products for commercial in Dzongkhag which literally means “summer purposes have strengthened the conservation grass-winter worm” and can be found at altitudes and sustainable management of many NWFP of around 4,000 to 5,000m. asl. Cordyceps is a species. However, it is not only strict regulations highly valuable product and one that and enjoys that have ensured continuous availability of forest substantial international market demand (and a products and NWFPs. willingness by those markets to pay), with prices ranging from $2,000 to $5,000 per kilo. Until 2004, Where other Asian countries struggle to maintain harvesting of Cordyceps was illegal, and therefore their biodiversity, Bhutan has been able to attracted many blackmarket collectors from across conserve its rich natural resources. A number of the border with China. Under the royal command reasons outside of forest policies can be attributed: of the Fourth King, the collection of Cordyceps was the very recent “opening up” of the country to the legalised in 2004 for a period of one month during rest of the trading world; the inaccessibility of the the Cordyceps season based on careful studies country due to its mountainous terrain and long (Namgyel 2003; Namgyel and Tshitila 2003). The walking distances; the relatively small population; Renewable Natural Resource Research Centre in the high respect for the law and its offi cials by local Yusipang does extensive research on Cordyceps, people; the relatively low incidence of corruption; including biological studies and studies related to and the strong infl uence of Buddhism, which sustainable harvesting and habitat preservation, includes a deep respect for nature and animals. and explores methods for cultivation (Kunzang The following is an example to illustrate the strong Choden, 2006). In 2006, 507kg of Cordyceps was infl uence of Buddhism. Dramitse, in Mongar auctioned for a total value of just over $1 million. district, eastern Bhutan, is an area famous for Community-based management of NWFPs for its vast lemon grass (Cymbopogon fl exuosus) domestic use and commercial purposes expanses. At present, the number of lemon grass distillers is dwindling. Among other reasons, this According to the Social Forestry Division, at is due to the reluctance of local people in this present four out of the 42 approved Community religious area to produce lemon grass oil, which Forests focus on the management of NWFPs, kills numerous insects in the distillation process including: the endemic bamboo species (Borinda (Dhanapati Dhungyel, pers. communication, grossa); lemon grass (Cymbopogon fl exuosus); a 2007). pepper species used for medicinal purposes (Piper pedicentilitum); and bamboo and cane (scientifi c CONCLUSION name unknown). At least nine other Community Bhutan’s forest policies place conservation Forests are in the pipeline for the management and sustainable management above all of a number of NWFP species, including lemon other considerations. Harvesting NWFPs for grass (Cymbopogon fl exuosus), Illicium griffi thii, Policy and strategy THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 89 commercial use is, in general, only permitted if likely to increase with the growing population, an approved management plan is in place, which the increasing per capita income, and improved must include a scientifi c resource assessment. infrastructure. With strict forestry policies already The implementation of resource assessments of in place and being implemented, the relative NWFPs is complicated because traditional forestry inaccessibility of the country due to its mountainous inventory methods are not suitable. NWFPs also terrain, small population, high respect for the cover a wide array of products/species with law and offi cials by local people, relatively low different life forms, different parts of plants, different incidence of corruption and the strong infl uence of seasonality and different distribution patterns, Buddhism, the future looks promising for Bhutan and are sometimes diffi cult to detect. Therefore, to be able to capitalise on its NWFP resources in inventory methodologies need to be developed a sustainable way. separately for most NWFP species. At present, References the Forest Resources Development Division is developing forest inventory methodologies for a Chandrasekharan, C., 2006. A strategy Analysis for number of species, however it will take some time Development of Non-wood Forest products in Bhutan. before these inventories can be put in place and Worldwide Fund for nature, Thimphu, Bhutan. applied nation-wide. This has led to a situation Chimmi Pelmo, 2006. NWFPs – Nado Incense where resources in high economic demand Factory. In: Proceedings of the National Workshop on are still under-utilised. The focus on economic Development of Non-wood Forest Products in Bhutan. development and commercialisation of NWFPs, as Department of Forest, Ministry of Agriculture, Royal stated in the 10th Five Year Plan 2008-2013, will Government of Bhutan further accelerate the pressure on the preparation of inventory and harvesting guidelines for NWFPs Dawa Penjor, 2006. Wild mushroom management – that permit local people to legally harvest NWFPs National Mushroom Center. In: Proceedings of the for livelihood improvement in a sustainable way. National Workshop on Development of Non-wood Forest Products in Bhutan. Department of Forest, In line with Bhutan’s policies, a number of Ministry of Agriculture, Royal Government of Bhutan communities have formed Community Forestry Management Groups to manage NWFP resources Department of Forests, 2006. Forest and Nature for domestic and commercial purposes. The Conservation Rules of Bhutan 2006. Royal Government number of such Community Forests for NWFP of Bhutan management is increasing rapidly and shows Dorji Wangdi and Galey Tenzin, 2006. NWFP workshop good potential for livelihood improvement. presentation – Ministry of Trade and Industry. In: Furthermore, there are a number of NWFP Proceedings of the National Workshop on Development species that are exported under the watchful of Non-wood Forest Products in Bhutan, Department eye of, and in close cooperation with, the Royal of Forest, Ministry of Agriculture, Royal Government of Government of Bhutan. These species, such Bhutan as lemon grass, Matsutake mushrooms and Forest Resources Development Division, 2006. Cordyceps are carefully monitored by Bhutan’s Proceedings of the National Workshop on Development research centres. of Non-wood Forest Products in Bhutan, Department Bhutan is thus slowly and carefully opening of Forest, Ministry of Agriculture, Royal Government of up to the NWFP market and realises that the Bhutan sustainable use of NWFP resources will lead to Hikojiro Katsuhisa, 2006. A strategy analysis for better conservation and improved livelihoods. development of NWFPs in Bhutan – FAO. In: Marketing opportunities for NWFP resources are Proceedings of the National Workshop on Development 90 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

of Non-wood Forest Products in Bhutan, Department Phurba Wangchuk, 2006. Processing and utilization of of Forest, Ministry of Agriculture, Royal Government NWFPs by Menjong Sorig Pharmaceuticals- Institute of Bhutan of Traditional Medicine Services. In: Proceedings of Policy and strategy the National Workshop on Development of Non-wood Kunzang Choden, 2006. Forest Research Program, in Forest Products in Bhutan, Department of Forest, development of the NWFP sector in Bhutan – RNR-RC Ministry of Agriculture, Royal Government of Bhutan Yusipang & RNR-RC Whengkhar. In: Proceedings of the National Workshop on Development of Non-wood Prommegger W., Budur K., Dorji, and P.B. Chhetri, Forest Products in Bhutan, Department of Forest, 2005. Lemon grass distillation in Eastern Bhutan- a Ministry of Agriculture, Royal Government of Bhutan scenario analysis. RNR-RC Jakar/CORET, SDF and RNR-RC Whengkhar. Ministry of Agriculture, 2003. Sustainable harvesting and marketing of matsutake mushroom. Proceedings Royal Government of Bhutan, 1999. Bhutan 2020: A of a seminar organized by the Agricultural Marketing vision for peace, prosperity and happiness, Planning Section and the National Mushroom Center. Ministry Commission, Royal Government of Bhutan of Agriculture, Royal Government of Bhutan Royal Government of Bhutan, 2005. Millennium Moktan, M.R., Norbu, L., Dukpa K., Rai T.B., Dhendup Development Goals. Progress Report 2005 Bhutan. K. and N. Gyeltshen, 2004. Bamboo and cane: Department of Planning, Ministry of Finance, Royal Potential of poor man’s timber for poverty alleviation Government of Bhutan. and forest conservation: A case study from Bjoka, Subba, K.J., ..Overview of Non-wood Forest Products Zhemgang Central Bhutan. YREP/2004/2. RNR-RC in Bhutan, Forest Resources Development Section, Yusipang, Royal Government of Bhutan Department of Forest, Royal Government of Bhutan Namgyel, P. and Tshitila 2003. Rare, endangered, Tashi Wangyal, 2005. Cottage and small enterprise over-exploitation and extinction of plant species. development in Bhutan: Prospects, Status and Putting Cordyceps – a high value medicinal plant – to Recommendations. Ministry of Agriculture, Royal test. Council of Research and Extension and Bhutan Government of Bhutan Trust Fund for Environmental Conservation. Thimphu, Bhutan Tideman, K. 2006. Bhutanese incense, feasibility study for raw materials procurement, processing, and Namgyel P., 2003. Household income, property marketing in bulk in one central unit for all licensed rights and sustainable use of NTFPs in subsistence incense manufacturers in Bhutan. SNV/Department mountain economy: The case of Cordyceps and of Industry, Ministry of Trade and Industry, Royal Matsutake in Bhutan Himalayas. Council of Research Government of Bhutan and Extension, MoA. Wong, J.L.G., Thornber, K. and N. Baker, 2001. National Statistics Bureau, 2004. Poverty Analysis Resource assessment of non wood forest products: Report Bhutan, Royal Government of Bhutan. Experiences and biometric principles. NWFP Series Offi ce of the Census Commission, 2005. Population 13. FAO. Rome and Housing Census of Bhutan 2005. Royal Government of Bhutan THEME 4: MEDICINAL PLANTS

Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 93

Community-based Enterprises and Market Development for Medicinal and Aromatic Plants (MAPs) in the Greater Himalayan Region

D. Choudhary1, R.B S. Rawat2 and N. Bhattarai3

BACKGROUND Non-timber Tree and Forest Products (NTFPs) NTFPs are an integral source of livelihoods, comprise a broad category of natural products providing food, medicine, dyes, tannins, gum, and include a large group of medicinal and construction materials, etc., and source of cash aromatic plants (MAPs). The Himalayan region income for poor and landless communities in the is a treasure trove of MAPs and associated mountain regions. NTFPs have been recognised traditional and indigenous knowledge (Karki, widely as a source of signifi cant livelihood value, 2004). Two global biodiversity hotspots - Indo- especially for poor rural people, as they provide Burma and South Central China - are located cash income, local medicines, supplementary in the Greater Himalayan region and contain a food and other products required daily. NTFPs large number of endemic MAP resources. Local of the Greater Himalayas are drawing increased people, especially poor and ethnic minorities, attention from both development planners and derive a substantial portion of their income and environmentalists due to their multiple functions products for their livelihoods and basic health care and potential contributions in improving the needs from medicinal plants (Karki, 2002). In the livelihoods of rural communities (Rawat and northern mountains of Nepal, up to 50 per cent of Uniyal, 2005). the household income is derived from the harvest The International Centre for Integrated Mountain and sale of high-value MAPs such as Jatamansi Development (ICIMOD) has found that subsistence (Nardostachys grandifl ora), Kutki (Neopicrorhiza agriculture is increasingly becoming unsustainable, scrophulariifl ora), Yartsagumba (Cordyceps both economically and environmentally. However, sinensis), Chirata (Swertia chirayita), etc. (Karki, niche products can serve as a basis for diversifying 2000). the incomes of mountain communities. NTFPs Herbal products originally used for home remedies, have been identifi ed by various agencies as subsistence purposes and small-scale trading one of the sub-sectors with the potential to by rural communities are now in high demand generate additional local income and employment from industry and external trade. Studies show opportunities through participatory approaches in that certain MAP species or groups of species remote mountain regions. are being over-exploited, leading to extinction. REGIONAL TRADE SCENARIO Conservative estimates put the monetary value of MAP-related global trade at around $63 billion, India is the centre of South Asia’s export trade which is estimated to grow at the rate of 7 per cent in medicinal plants, and it is estimated that the per annum (Nagpal & Karki, 2004). collection and processing of medicinal plants

1 Marketing and Enterprise Development Specialist, ICIMOD-MAPPA ([email protected]) 2 Regional Programme Coordinator, ICIMOD-MAPPA ([email protected]) 3 Conservation and Research Specialist, ICIMOD-MAPPA ([email protected]) 94 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

contribute to at least 35 million person days of implications on the sustainability of resources employment per year. Currently, 960 species are and pro-poor MAP-based livelihoods. In the Medicinal plants traded in India with a total consumption of 312,516 Himalayan region, 90 per cent of medicinal plants tonnes, including 123 species with a demand of are extracted from the wild, which often involves more than 100 tonnes per year (GOI, 2001). destructive harvesting. Most of the collected plants are exported in raw form with very little processing In Bangladesh, it is estimated that around 12,000 in their area of origin. Producers and collectors tonnes of dried medicinal plants worth around are often disorganised and have poor access to $4.5 million are sold from the rural collection and technology, credit and market information, and production areas that contribute signifi cantly to have critical disadvantages in terms of quality the rural economy (SEDF/IC, 2003). The annual control and bargaining power. The marketing import of MAPs to Bangladesh has been estimated system is disorganised and secretive. In such a at Tk 500 million (Non Wood News, 2007). scenario, poor collectors in remote regions receive In Nepal, an estimated 20,000 tonnes of MAPs a meager share of the fi nal value of the products worth $18-20 million are traded annually and about they harvest. On average, this share of the fi nal 90 per cent of this collection is exported mainly price paid by the consumer is as low as 10 per to India in raw form. Some 20 high-demand and cent (Karki et al., 2003). Although the cultivation high-value products constitute about 80 per cent of MAPs has been proposed as a viable option to of the volume and value in trade (Bhattarai and diversify farming practices, forward and backward Olsen, 2000). linkages are yet to be adequately developed, and In Pakistan, dried medicinal plant material worth studies of the impacts on the landless to date are $30 million per year is used in the country, while a inadequate. substantial quantity of crude plant drugs and their THE MEDICINAL AND AROMATIC derivatives are exported to developed countries. PLANTS PROGRAMME IN ASIA The scenario of MAPs in Bhutan is not very (MAPPA) different from that of other countries of the region. MAPPA is a programme comprising strategic About 300 species are harvested from the wild and research, collaboration and networking on MAPs. the cultivation of a few selected species has only It develops, provides and promotes appropriate been initiated very recently. However, medicinal options, methods, strategies and technologies plant farmers have been highly encouraged to and other sustainable solutions to provide direct supply medicinal plants to the traditional medicine benefi t to poor and marginalised people and manufacturing units of the government. Therefore, help conserve critical medicinal plant-related a signifi cant proportion of the cultivated products biodiversity wealth for use by future generations. are used domestically for the preparation of traditional herbal medicines, while the majority is The emphasis of the program has been on action exported in crude forms. research that has the potential to benefi t the rural poor and indigenous communities. MAPPA In China, 8.5 million tonnes of MAP resources network projects aim to infl uence policy-making in are used every year, which are mainly collected/ the areas of biodiversity conservation, sustainable harvested from the wild. There are also records livelihoods and improved primary health, using the of signifi cant trade of MAPs from Afghanistan and MAP sub-sector as the model. The programme Myanmar. works closely with national governments and has ISSUES IN COMMERCIALIZING MAPS facilitated policy and institutional reforms and IN THE HIMALAYAN REGION evolutions specifi cally targeted in MAP areas in the Hindu Kush Himalayan and South Asian The increasing use of MAPs in natural products, regions. health foods, cosmetics and nutraceuticals has Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 95

MAPPA covers three principal themes: solutions. MAPPA/ICIMOD follows a knowledge- based approach in developing integrated and • Conservation of biodiversity through sustainable transparent supply chain arrangements. use; CBEs – A viable option for pro-poor growth • Expansion of livelihood opportunities through equitable commercialisation; and The basic concept of the CBE structure is to organise the collectors/producers into a common • Safe and efficacious traditional medicine system platform to produce and market value-added for primary health care. products and elevate them from subsistence With respect to the theme “expansion of livelihood to value-added resource management. This is opportunities through equitable commercialisation”, important in the context of MAPs, as they are ICIMOD-MAPPA has found that if people can used in a diverse range of products that require benefi t fi nancially from enterprises that depend on different storing, processing and quality control forests and other natural habitats, they will take techniques. action to conserve and sustainably use them. Appropriate CBE structures ensure that producers The objective of this paper is to highlight the receive dependable and immediate cash returns efforts of ICIMOD-MAPPA in promoting NTFPs/ for their produce, promote local value addition, and MAP commercialisation through community- share the profi ts generated by the business with based enterprises (CBE) for promoting local value relevant stakeholders. These activities remove addition for species in trade, as well as to provide some of the chronic problems like disorganised incentives to conserve resources in Chhattisgarh, and secretive supply channels, high-volume and India and establish cooperatives and endowment low-return distress sales, and illegal harvesting. funds in West Nepal. In addition to developing long-term relationships STRATEGIES FOR MAPS- with buyers, well organised producer enterprises improve the supply of quality raw materials and BASED PRO-POOR LIVELIHOOD also command better prices for their produce. OPPORTUNITIES CBEs are formed from within decentralised Supply chain management of MAPs resource management groups like joint forest MAPPA focuses on the supply chain management management (JFM) in India and community (SCM) of MAPs as an imperative in developing forestry (CF) in Nepal. As part of the process, the MAP sub-sector to meet the objectives of primary and secondary MAPs collection and conservation, quality production and accessing dispatch centres are developed in rural areas as regional and international markets. The CBEs. development of CBEs and effi cient supply chains Quality control under MAPPA is being done in a strategic manner by keeping in mind the current operating nature In order to balance collection with cultivation of and structure of the sector, and acquiring specifi c endangered MAPs, quality planting materials are knowledge of the institutional capacities, modes being produced and multiplied in state-of-the-art of operation, and internal linkages found in the nurseries. The project partners and community domestic and regional MAP sectors. groups have been trained and familiarised with various types of good practices and international Understanding the constraints to growth, including guidelines, especially the WHO Good Agriculture existing market information and infrastructure, and Field Collection Practices (GAFCP), organic linkages, market arrangements and access, and production etc. The key factors in quality control, the level of services provided to the poor, enable especially in minimising microbial contamination, the development of sustainable and need-based comprise post-harvest handling, adequate 96 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

labeling protocols and ensuring the right storage grinding process more user-friendly and hygienic. conditions are met for quality maintenance. These Amla is being processed in good quality vessels Medicinal plants are of critical concern to the production process and boiling and drying is conducted under strict and are continuously disseminated to the growers hygienic conditions. Improved machines have and MAP collectors, and compliance monitored. been introduced to make Baichandi chips and Chains of custody cards have been developed people are using them with great enthusiasm. and distributed to members of 357 households These machines produce clean and uniform- covering fi ve villages in Chhattisgarh, India. sized chips, which are more accepted in the target markets. Marketing of MAP products – experiences from India After processing, three quintals of Tikhur powder, fi ve quintals of Baichandi chips and 60 quintals In Chhattisgarh, India, the MAPPA project, being of Amla have been sold for Rs.30000 ($681), implemented by the Chhattisgarh Minor Forest Rs.10,000 ($228) and Rs.150,000 ($3,400), Products Federation (CGMFPF), identifi ed 11 respectively, in 2005. species after detailed surveys were conducted on organic collection, processing, value addition and More than 100 Kamar tribe families earn their marketing. The various components leading to livelihoods from collecting honey from the project CBE development, value addition, and marketing area. The earlier crude and unhygienic methods are highlighted below. have been replaced with improved collection methods, and the participants now sell honey to a Institutional mechanism for local value small processing plant established by the project addition at Sankara town. To date, 500kg of honey has In Chhatisgarh, the restructuring of adequate been collected and sold under a brand for Rs marketing facilities has safeguarded the interests 24,000 ($545). of poor collectors and producers. This has been Forty hectares of lemon grass have been planted done by setting up self-help groups (SHGs) from and a distillation unit has been established. within the forest protection committee (FPC) Plates out of the leaves of Bauhinia vahlii are members, which comprise of both males and being manufactured by women's groups and sold females managing MAPs processing centres. In in local markets at Raipur, the capital city of the order to generate a revolving fund, each member state. Income generated from these products deposits Rs 10/month into the SHG funds. Workers goes to the participating FPCs. in the processing centres are paid on the basis of the quantity of raw materials processed per day. Proper and hygienic collection, drying, grading and storage of selected MAPs has increased Value addition through appropriate the incomes of producer groups in the project technology area. Kalmegh (Andrographis paniculata), The project further prioritised fi ve species Dhwaiphool (Woodfordia fruticosa), Nagarmotha out of the initial 11, namely Tikhur (Curcuma (Cyperus scariosus), Amla (Phyllanthus emblica) angustifolia), Baichandi (Dioscorea hispida), and Baibidung (Embelia ribes) in project area Satawar (Asparagus racemosus), Amla have yielded much better prices for collectors (Phyllanthus emblica) and honey, which were than before the project intervention. MAPPA being processed by very crude methods and intervention has shown an increasing price trend, mostly under unhygienic conditions. which is detailed in the table. For the processing of Tikhur powder, mechanical Retailing of branded MAP products and motorised grinders were introduced to The project has integrated the value chain for the replace the stone-grinding practices and make the Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 97

Price after Project Price before Project Increase in Name of species Intervention Intervention (INRs/kg)* Percentage (%) (INRs/kg)

Andrographis paniculata 1.50-2.50 3.00-5.00 100

Woodfordia fruticosa 1.00-1.50 3.00-5.00 300

Cyperus scariosus 3.00 5.00 66

Embelia ribes 20.00 30.00-40.00 50-100

Phyllanthus emblica 10.00-15.00 20.00-25.00 100-166

*(1USD=42 INRs) development of MAP products in the project area. Innovations in MAP institution building and In order to take the products to the consumers, a fi nance in Nepal herbal retail outlet called SANJEEVANI has been The Federation of Community Forestry Users established in Raipur, the capital city of the state, Nepal (FECOFUN) is one of the country's with branches in other districts. SANJEEVANI leading institutions in community-based natural buys the fi nished products from the community- resource management. Functioning as a network managed processing centres. of community forest users, presently FECOFUN The project is also facilitating the manufacturing covers 74 of the 75 districts of Nepal and involves of 19 different types of traditional medicines 11 million people through 14,300 forest users based on traditional knowledge and the prevalent groups. It directly manages over 1.3 million diseases in the project area. These medicines hectares of community forests in the country and are also sold through SANJEEVANI outlets as generates additional benefi ts by producing an over-the-counter drugs and have been very well average revenue of Rs. 914 million (approximately received by the market. All profi ts from the sale $22 million) per year. of MAP-based products contribute to the FPCs MAPPA is working with district FECOFUN and fi nancial accounts. community forest user groups (CFUGs) in the Mainstreaming MAPs marketing Baitadi and Darchula districts of West Nepal. The main activities of the project in West Nepal The project has also developed markets for MAP- have been the development of MAP cooperatives based products beyond the state. Proper collection, with local traders and the establishment of a storage, drying, processing and value addition capitalisation fund to benefi t the collectors and have encouraged better prices and acceptance traders. of MAPs in the project areas. The competitive rates offered by the project to collectors have Marketing information not only developed a marketing system within Members of the CFUGs in the project area have the project area, but have also created a system been trained in various aspects of markets and of competition between traditional traders and marketing, including major herbal market studies middlemen, who normally exploited collectors by and agricultural/herbal trade fairs in Nepal and offering low prices. This has directly contributed to India. improving MAPs collectors' incomes by more than 100 per cent. 98 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

The district-level Project Coordination Committee enterprises. A total of 206 males and 174 females is represented by the district-level herbal traders, were offered loans between NRs 500 to NRs 4000 Medicinal plants in addition to other stakeholders. A mechanism in the two districts. In Baitadi, members from three has been developed for the district FECOFUN to CFUGs produced 1,538kgs of NTFPs and earned obtain market prices and other herb trade-related NRs 36,983. In Darchula, four CFUGs earned information from various sources, which is then NRs 52,000 from interest paid by the repayment disseminated to the village-level stakeholders and of loans. With the above interventions over the community groups, including CFUG members. last fi ve years, the CFUGs in Baitadi and Darchula Local traders have provided market information produced 500 tonnes of NTFPs and MAPs worth and guidelines on primary processing and provided NRS 4.558 million. guidance on how to buy MAPs from community Gender and social inclusion managed cooperatives. Out of the total benefi ciaries in the project in Nepal, Marketing cooperatives 53 per cent are male and remaining 47 per cent With strong components of community-based female, while 19 per cent of the male members research, capacity building and exposure, and 14 per cent of the female members are dalits communities in remote regions are gaining from (socially backward castes). In total, 2,576 male collective action in maximising the benefi ts gained and 1,683 female members constitute the 4,159 from community forestry. Marketing cooperatives MAP collectors/producers in the project districts. with endowment funds have been set up in A comparative study between 2005 and 2006 Baitadi and Darchula districts in the far western revealed that the male producers increased region of Nepal for mainstreaming the collection by 17 per cent (from 1,186 in 2005 to 1,390 in and marketing of MAPs, which are backed by the 2006), while the female producers increased by development of collection and dispatch centres. 22 per cent (from 725 in 2005 to 888 in 2006). The cooperatives have also been providing micro- Dalit producers have also increased by 3 per cent credit to primary collectors and producers, and during this period. created a business platform for value addition and marketing. More than 200 tonnes of NTFPs/MAPs Through such fi gures it can be realised that the worth NRs 1.55 million was collected/produced project's focus on including poor people, dalit in the two project districts during 2005. Simple and women in capacity building and income interventions have resulted in a 50-per cent enhancement has been effective. In terms of increase in the price of products at the local level. income, aggregated household incomes grew As the result, community members, especially from Nrs 4,227 in 2005 to NRs 5800 in 2006. women's groups, have initiated group farming Gender disaggregated data will be developed at efforts on some commercial MAPs in degraded the end of the project. community forest and land. The number of women LESSONS LEARNED practicing MAP cultivation in home gardens and farms is also increasing considerably. The MAPPA pilot projects have demonstrated the use of sustainable marketing mechanisms that Capitalisation fund benefi t local collectors by up to 100 per cent in Capitalization funds worth NRS 80,000 were comparison to the pre-project intervention stage. provided to 18 CFUGs to provide necessary credit Basic principles on good harvesting practices and and fi nancial support to participate in MAP-based value addition, including the semi-processing and programmes. The funds were used to provide processing of raw materials, have to be followed. loans to individual members and self-help groups The required knowledge for these techniques to initiate cultivation of MAPs and establish micro needs to be provided to primary collectors and Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 99 producers through appropriate stakeholders, References: as well as through the documentation of useful Bhattarai, N.K. and Olsen, C.S. (2000) Towards knowledge and practices in the fi eld of production, a generic framework for investigating national processing and marketing. importance of medicinal plants trade. In: Amatya, While developing CBEs for livelihoods, an S.M. Ed. Proceedings of the third regional workshop understanding of markets plays a signifi cant on Community Based NTFPs Management, South role in ensuring success. Lessons learned from and East Asian Countries NTFPs Network (SEANN). the projects suggest that CBE models should be Institute of Forestry, Pokhara, Nepal. pp. 336-346 based on integrating value chains to reach the end GOI. (2001). Report of the task force on the conservation consumer through a multi-stakeholder approach or and sustainable use of medicinal plants. Planning by linking enterprises to the value chains of larger Commission, Government of India, New Delhi, India. enterprises. Community mobilisation and capacity building is important to ensure compliance with Karki, M. (2000) Development of Bio partnership for standards and protocols. It has been observed Sustainable Management of Medicinal and Aromatic that certifi cation is extremely important for export Plants in South Asia: Paper presented in the 21st markets, but it is not an end in itself. While IUFRO Congress, Kuala Lumpur, August 6-12, 2000. certifi cation is often expensive for CBEs, local Karki, M.B. (2002). The organic production of medicinal group certifi cation bodies, whose standards are and aromatic plants: A strategy for improved value harmonised with national standards (organic addition and marketing of products from the Himalayas. products, GMP, etc.), can provide a good base to In: Y. Thomas, M. Karki, K. Gurung, D. Parajuli (Eds). start from. Proceedings of the Regional Workshop on Wise FUTURE PLANS Practices and Experiential Learning in Conservation and Management of Himalayan Medicinal Plants, Based on the lessons learned, ICIMOD-MAPPA is December 15-20, 2002, Kathmandu Nepal. pp. 56-69. promoting CBEs that produce quality products in Karki, M.B. (2004). Community Based Approaches in demand by the private sector. These enterprises Medicinal and NTFPs Plants Resource Management: have to be formed in clusters and will be linked Key Lessons for Community Based Natural resource to centralised common facility centres to produce Management. In: P. Deki, D. Tsering, M. Ghimire, P. consumer products and provide support services. Namgyel, S. Duba, T. R. Gurung (Eds). Proceedings of Value addition at every stage is proposed to the Regional Workshop on Community Based Natural ensure enhanced bargaining power for growers resource Management, NRTI, Lobyesa, Bhutan, and collectors, and better returns. It is envisaged November 4-7, 2003. pp. 114-121. that Public Private Partnerships (PPPs) will be developed to ensure mainstreamed production Karki, M., Tiwari, B.K., Badony, A.K. and Bhattarai, N. processes, adequate marketing infrastructure, and (2003). Creating Livelihoods - Enhancing Medicinal increased investment in the sector through better and Aromatic Plant-Based Biodiversity-Rich Production quality and enhanced brand awareness of MAPs Systems: Preliminary Lessons from South Asia. Paper products. The entire process is aimed at ensuring presented at the 3rd World Congress on Medicinal and the conservation and sustainable utilisation Aromatic Plants for Human Welfare (WOCMAP III), 3-7 of MAPs resources through MAP enterprise February 2003, Chiang Mai, Thailand. promotion in Bangladesh, Bhutan and Nepal, Nagpal, A., and Karki, M. (2004). A study on marketing towards the further expanding of the initiative opportunities for medicinal, aromatic and dye plants in the Greater Himalayan region to address the in South Asia. International Development Research livelihoods problems of poor communities. 100 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Centre (IDRC), South Asia Regional Offi ce (SARO), (eds.). Himalayan Medicinal and Aromatic Plants, New Delhi, India. Balancing Use and Conservation. His Majesty’s Medicinal plants Government of Nepal, Ministry of Forests and Soil Non Wood News (2007). Non Wood News, Issue 14. Conservation, Kathmandu, Nepal. pp. 499-501. Food and Agriculture Organisation, Rome, Italy. SEDF/IC (2003). Medicinal Plants Marketing in Rawat, R.B.S. and Uniyal, R.C. (2005): Sustainable Bangladesh. SEDF/Inter-corporation – a Swiss use and management of medicinal plants in Himalayan Development Foundation study. region. In: Y. Thomas, M. Karki, K. Gurung, D. Parajuli Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 101

Formulating a Model for Developing Medicinal Plants in Allocated Forest with the Participation of Local Community in the Buffer Zone of Bach Ma National Park

Le Thi Dien & Tran Nam Thang1

BACKGROUND Following a preliminary survey, it was found that local residents were concerned about developing More than 50 per cent of Thua Thien Hue’s natural medicinal plants at the household level due to area comprises mountainous terrain, which is fears about their products being accepted in directly affected by the monsoon season. Thanks the market. It was then agreed that research to the area’s complex topography and climate, was urgently required to identify comprehensive Thua Thien Hue has a diverse and unique range solutions for developing an effective model for of fauna and fl ora, including various species of cultivating medicinal plants in allocated forests. valuable trees and special forest products such This research identifi ed a promising new direction as medicinal plants. However, local communities for solving many of the diffi cult problems currently are currently harvesting medicinal plants from the facing the forestry industry. The experimental forest without considering the need to address models formulated through the research provide such practices in a sustainable manner. good examples for individuals, organisations Changes in government policies at the national and regions to learn from our experiences and level regarding the exploitation of forests have apply the models, in order to achieve sustainable had both negative and positive impacts on development in the area, as well as build up green forest resources in Thua Thien Hue. Among the corridors for the conservation of Bach Ma National policies that have affected local forest resources Park. in recent years, the decentralisation of forestry RESEARCH GOALS AND authority has had profound impacts, particularly in terms of the exploitation of timber. In light of OBJECTIVES such changes, new sources of income, such as General objectives Non-Timber Forest Products (NTFPs), need to be The development of medicinal plant resources in identifi ed for local people living near or in forests, allocated forest land in the area aims to help local of which medicinal plants are considered a viable people improve their use of forest and forest land and potentially effi cient alternative. through diversifying the NTFPs products they Ha An village is located in Huong Phu commune, produce. Through such an initiative, the production Nam Dong district, Thua Thien Hue province, and ability of forest areas would also be increased, lies in the buffer zone of Bach Ma National Park. local people’s incomes improved and pressure It was chosen by the Forestry Faculty of the Hue reduced on forest resources, leading to substantial University of Agriculture and Forestry as a long improvements in the overall management and term study site for faculty students to explore ways development of forest resources in the buffer to help local people to increase their income from zone of Bach Ma National Park. forest and forest land without losing or degrading forest resources.

1 Hue University of Agriculture and Forestry 102 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Concrete objectives about the land and forest, check the household conditions of those who participate in the model Medicinal plants • Establish models for medicinal plant cultivation development, and choose the location for at the household level in allocated forest, which implementing the models produce good, high-quality fast yields, involve simple techniques and low inputs, and meet the • Participatory rural assessment (pra) methods long-term demands of the market. such as using boards, questionnaires and group discussions were used to survey the market, • Compile a collection of the medicinal plant genes choose plant species, identify nursery and in the area in order to provide a good resource tending techniques, and select harvesting and for forestry, natural resource management and processing procedures pharmaceutical students from universities in thua thien hue province. • Participatory research (pr) and participatory technique development (PTD) were used in • Increase the capacity of forestry staff and local designing, implementing, monitoring, evaluating people in identifying and developing medicinal and communicating the models plant resources, as well as raise awareness about the value of medicinal plants in the buffer RESEARCH RESULTS AND zone of bach ma national park. DISCUSSION • Establish fixed propagation techniques for some Current status of medicinal plants in study of the major medicinal plant models, and develop area a proposal to expand these models into areas in the buffer zone of bach ma national park. Through the preliminary survey, the study team identifi ed 130 common medicinal plant species RESEARCH METHODOLOGIES distributed in the study area, belonging to 59 fl ora Background research families. Of the total, 30 medicinal plant species were associated with their scientifi c names. The • Review literature on NTFPs and medicinal plants Euphorbiaceae family had the highest number (10 from the world, region and Viet Nam, especially species), followed by the Rubiaceae family (nine concerning the buffer zone of Bach Ma National species), the Araliaceae family (eight species), Park and the Fabaceae family (eight species), while • Study documents on the natural, social and various other families had between one-to-fi ve economic conditions of the research area species. Thus, the composition of medicinal plant species in the study site was found to be diverse, • Examine reports of forestry programmes and providing a good seed base for developing development projects in the area medicinal plant models in the area. Specimen survey However, some species, such as Ba kich, La khoi, • Conduct surveys of transects and standard plots Kim tuyen and Binh voi, were found to be on the in the field to identify the practical conditions verge of extinction due to over-harvesting and the required to group the targeted objects degraded local ecosystem. It is therefore urgently required that methods are developed to conserve • Identify the species and volume of medicinal and develop these species before they vanish plants in the study area altogether. Social surveys Low-yield medicinal plant species made up the • Rapid rural assessment (rra) tools such as highest number of species surveyed (47 species, historical surveys, transect studies and village representing 36.15 per cent of the total surveyed), inventories were used to collect information followed by average-yield medicinal plants (31 Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 103

species, occupying 23.85 per cent). There were were not used very much by local people (four 29 species of rare medicinal plants (representing small tree species and six average tree species). 22.31 per cent of total), while common medicinal This means that local people only concentrate on plant species had the lowest proportion at 23 harvesting trees distributed in the lower canopy species (17.69 per cent). Keeping these fi gures of the forest, without greatly affecting the upper in mind, seeds and seedlings should be provided forest canopy. Nevertheless, harvesting large for models on a fl exible basis, with rare species amounts of these plants will affect the forest’s only being developed conservatively in order to biodiversity. Thus, the sustainable conservation ensure natural seed stocks are not depleted. For and development of these resources will not only this reason, it is recommended that large amounts improve access to available resources for disease of seeds or valuable species be purchased from treatment, but also provide more products for properly equipped centres. markets, scientifi c research and ecotourism. Following further research, it was found that Traditional experiences on harvesting and despite the diversity of medicinal plants in the utilising medicinal plants in the study area area, local people only knew how to use 62 of Research found that the overwhelming majority the total 130 species identifi ed (47.69 per cent). of medicinal plant species are harvested from This proved that local people lacked knowledge, the natural forest (52 species out of 62 species as well as experience, in utilizing the valuable harvested by local people, representing 83.87 per medicinal plant species that grew naturally in their cent), while only one medicinal plant species was area. Of the 62 medicinal plant species exploited harvested from plantation forests (1.61 per cent). by local people, only 14 were commonly used The number of medicinal plant species harvested (22.58 per cent). These were plants mainly used from home gardens comprised groups of species to create water infusions such as Chan chim, Che planted by local people such as Dinh lang, Gac, vang, Ngay, Buom bac, Tho phuc linh, Kim cang, Sa, Nghe den, Nghe vang, and San day. Most and Mam nem. Commonly planted species in the of the households tend not to harvest medicinal home garden included Sa, Gung, Nghe den, Nghe plant species in large amounts, but instead only vang, and San day. Species used on average harvest the plants when needed. comprised 14 species (22.58 per cent), with 22 species used sporadically (35.48 per cent). Rarely In the natural forest, some medicinal plant species, used species made up 12 of the total (19.35 per such as Buom Bac, Chac Chiu, Ngay, and Chan cent). Chim, are abundant and have strong regeneration abilities, as local people conduct clear-cutting and Classifi cation of medicinal plants leave the stumps for regeneration. However, the Of all medicinal plants identifi ed, the most harvesting techniques used in the local community abundant group was the standing herb (27 depend on the distribution of species. species, representing 20.77 per cent); followed Ailments that can be effectively treated by local by bush tree (25 species, representing 19.23 per medicinal plants are diverse and include six groups cent); small tree (23 species, representing 17.69 of diseases. The largest number of species is used per cent); average tree (20 species, representing to treat stomach aches and digestive complaints 15.38 per cent); and fi nally the small or bush tree (31 out of 62 species, representing 50 per cent), (two species, representing 1.54 per cent). while the other disease groups can be treated by Local people mainly use standing herb (15 between 20 and 24 species. Local people also species), climbing herb (14 species) and bush use these traditional medicinal plants to improve tree (14 species) NTFPs. Small and average tree general health and increase the body’s immunity groups comprised large numbers of species but system, as well as treat diseases in livestock. 104 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Most of the traditional medicinal plants species Households in Group III lead a lifestyle dependent in the area are harvested for home use and only on cultivation and grazing in hilly areas, and but Medicinal plants a small proportion is sold. Processing generally also earns additional income from harvesting consists of drying the plants, which are then used medicinal plants (VND1,550,000, representing by different groups of people in the community. 1.33 per cent of total income). Role of medicinal plants in household income Group IV mainly uses medicinal plants for household use, but also sells some products In order to understand the roles of medicinal plants (3.9 per cent of total yearly income). The method in households in the study area, 48 households involves clear harvesting, drying the plants in the were interviewed, which were spilt into the sun, packaging, and selling the product in 25- following categories: rich households Group I; kg packages for VND50,000. Group IV’s ratio of wealthy households Group II; average households income from cultivation stands at 30.83 per cent, Group III; and poor households Group IV. while grazing and hired labour generates 65.28 According to the survey, Group I’s income from per cent of yearly household income. The market medicinal plants stands at VND2,000,000, per channel for medicinal plants in Thua Thien Hue year, which is very low compared to the total According to interviewees, sources for medicinal income of the household (0.54 per cent). In general, plants within the province are unstable, and are these kind of households only plant monotonous heavily dependent on the season and providers. species for household use, and rarely for sale; Medicinal plants harvested in Thua Thien Hue are thus the income from this source is very low. much more available in the dry season, therefore Group II uses more medicinal plants than Group pharmacists have to buy from outside the province I, mostly for water-based infusions, but also earns in the wet season. Moreover, local people only a greater percentage of its income from the plants harvest for immediate use or primary processing (1.85 per cent, second-highest of all groups). It is and do not pay attention to the demands of the important to recognise that the value of medicinal market. Thus, in order to develop a stronger and plants to these types of households is not only more effective market for medicinal plants, training expressed by the amount of money earned, but is required for local people to process and store also by the degree to which they are used in the common and valuable medicinal plants. daily lives of local people. Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 105

Figure 1. Medicinal plant consumption in Thua Thien Hue

Medicinal source Medicinal source (Inside) (ourside)

Transportors Transportors

Traders State Agent 1

Pharmacist Pharmacist Pharmacist

Consumers

Major Minor

Types of medicinal plants consumed in Thua Thien Hue The survey of medicinal plants consumed in Thua Thien Hue was based on 53 questionnaires conducted throughout the area. It identifi ed 95 consumed species, highlighting the diverse nature of the medicinal plant market. However, the amount of each species consumed varied greatly and depended on the medical properties of medicinal plant. Based on the amount consumed, the medicinal plants species were divided into the following fi ve groups: • Group I: 1,000-5,000 kg/year consumed, including 15 species; • Group II: from 500 to less than 1,000 kg/year consumed, including 12 species; • Group III: from 200 to less than 500 kg/year consumed, including 23 species; • Group IV: from 100 to less than 200 kg/year consumed, including 18 species; and • Group V: under 100 kg/year consumed, including 27 species. 106 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Most of the medicinal plants surveyed are present Local people fully participated in training workshops, naturally in the study area and Thua Thien Hue and actively contributed ideas for improving the Medicinal plants province, especially in natural forest environments. harvesting, planting and sowing techniques for the This proves the huge potential of medicinal plants medicinal plants. The participants absorbed new in Thua Thien Hue to not only meet the demands knowledge quickly, as most of them could base it of the province, but also act as a valuable product on their own experiences, and some had already for export to other provinces and markets. participated in other projects in the area. However, in order to transform medicinal plants in Through the research project, descriptions for Thua Thien Hue into valuable, high-income earning identifying species and a guide to sowing, planting, goods in the market, a comprehensive market tending, harvesting and processing 29 common, development strategy must be developed. high-value medicinal plants was developed and distributed in the study area. Developing a medicinal plant model Living and growth ratio of species Based on the set criteria, and together with the local people, the research team chose 20 • Home garden model: the model of planting households to participate in developing medicinal medicinal plants in fruit tree gardens and hilly plant models comprising: shaded fruit tree garden; tree areas generated some income for local hilly garden; fi ve households under plantation people. for wealthy and experienced households, forest model; and three households under the approximately one hectare of a home or natural forest model. hilly garden can produce vnd7-8 million from medicinal plants planted with fruit trees such as The medicinal plants used in the models lemons and oranges. however, the development included: of the model encountered difficulties after • Home garden model: nghe vang, kim ngan, nhan harvesting because local people did not receive tran, gung, sa, nghe den, kim tien thao, san day, support from outside, and actually did not cho đe, tia to, ich mau, coi xay, mo long, co hoi, consider the development of medicinal plants as rau meo, ke đau ngua, lo hoi, ngai cuu, rieng, bo an economical activity. chinh sam, bo cong anh; • Plantation forest model: a total of 11 species • Plantation forest model: nghe vang, tho phuc grew in an average density level of 1,100 plants linh, kim ngan, khoai mai, gung, bong bong, per hectare. the growth of supplementary nghe den, lac tien, kim tien thao, y di, cho de, species occurred under the average level of coi xay, rau meo, lo hoi, ha thu o đo, ba kich, bo perennial species such as ba kich, do bau, buom cong anh, la khoi; and bac and sam bong because they are affected by • Natural forest model: tho phuc linh, khuc khac, the shading at the acacia plantation or excessive kim cang, thien nien kien, sa nhan, thach xuong light at the rubber plantation. in the first year, bo, ha thu o đo, binh voi, la khoi, nghe vang, annual species such as sa, san day and gung nghe den, khoai mai, Bong bong, Mia gio, Gung, had good growth because they were planted in Bo chinh sam, Cau tich, Buom bac, Chac chiu, the open canopy and suited the conditions of the Ngay. plantation. Technical solutions were selected based on the • Natural forest model: similar to the plantation suitable habitats (home garden, hilly garden, forest model, the density and number of species plantation forest and natural forest) for each planted under natural forest fulfilled the demands species and on the experiences of local people of the project design, despite having to change integrated with modern techniques. some species due to a lack of seeds/seedlings. Some annual species were planted on the forest Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 107

edges such as Nghe den, Nghe vang, Gung, Sa • Hold more training workshops on species and San day, and have been harvested. San identification and uses, planting, tending and day was replanted but destroyed by a storm. processing techniques for medicinal plants in Other species such as Ba kich, Do bau, Sam the study area. bong, Buom bac and Chan chim died in large • Continue doing research on the propagation of numbers because of damage from falling debris new species, especially rare and precious species from the upper canopy of the natural forest. of high economical value, and communicate this These species grew at an average level, except knowledge to local people. for annual species such as Sa and Nghe den, or well-tended species as San day. • Identify the main high-value species such as san day, gung, sa, nghe vang, ba kich, binh voi, nhau, LESSONS LEARNT chac chiu and la khoi, in order to expand the From the result of the medicinal plants models scale of the models, especially the development under plantation and natural forests, the following of medicinal plants in natural forest areas. lessons can be identifi ed: • Encourage local people to identify the market • Because ba kich plants were transported from demands for medicinal plants in the area, as well quang ninh, they did not suit study area, leading as the surrounding area. to a high death ratio. the species needed more For the sustainable development of forestry time to adapt to the local climate and conditions extension activities involving medicinal plants, the before being expanded on a large scale. this research team has following suggestions: species grows best under the natural forest • Encourage local households to participate in and does not seem suited to conditions in the forestry extension activities, especially those who plantation forest (too much shade under the do not have strong labour forces or production closed canopy of the acacia plantation and or experience; too much light under the open canopy of the rubber plantation). proper shading techniques • Experienced and wealthy households should are required for this species if it is planted in support households in difficulty, and encourage rubber plantations. them to participate in production activities that bring about high efficiency; • The perennial species should be planted under the natural forest to ensure its light and nutritional • Community nursery groups should sow indigenous demands are met, which leads to better quality species, especially medicinal plants, in order to medicinal properties in the final product. expand sources of cultivation material; • Due to their great demand for light, annual • Field trips should be organised in order to species such as sa, san day, gung and nghe introduce other communities to planting and should be planted in plantation forests for the using medicinal plants; first two years for acacia plantations, and for • External support should be encouraged by the first four-to-five years for rubber plantations. creating favourable conditions for visitors to visit proper tending techniques and proper seasonal study areas, prepare ideas for research or explore timing to avoid storms will result in better yields. opportunities for new projects; and SPECIFIC RECOMMENDATIONS • Cooperation should be encouraged with other • Continue the research and identify the organisations in the area such as Bach Ma scientific names, as well as the uses, of other National Park, Hue University of Agriculture medicinal plants in the study area to strengthen and Forestry etc. to improve research and conservation, development and utilisation in the communication in order to conserve and protect future. forest resources and increase local livelihoods. 108 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

GENERAL RECOMMENDATIONS Lï Thanh Chiïën, 2005. Cêy thuöëc trong chiïën lûúåc phaát

Medicinal plants triïín lêm saãn ngoaâi göî. Baãn tin Dûå aán tröìng múái 5 triïåu • Develop national plans for improving awareness ha rûâng söë 3-2005. (Viet Namese only) of NTFPs development in general and medicinal plants in specific towards the sustainable Phan Cöng Chung (chuã biïn), 2005. Hoãi àaáp vïì tröìng management and utilisation of forest resources. troåt vaâ trang traåi. Thanh Hoa Publishing House, Ha Noi. (Viet Namese only) • Compile guidelines, cost norms and technical guides for propagating selected valuable Cuåc Khuyïën nöng vaâ Khuyïën lêm, 2002. Kyä thuêåt tröìng and rare medicinal plant species for different möåt söë cêy ùn quaã vaâ cêy àùåc saãn úã vuâng nuái thêëp. environments such as home gardens, hilly Agriculture Publishing House, Ha Noi. (Viet Namese gardens, plantation forests and natural forests. only)

• Develop a reasonable forest development and Cuåc Khuyïën nöng vaâ Khuyïën lêm, 2003. Nhûäng investment plan concerning the protection and àiïìu nöng dên miïìn nuái cêìn biïët (Têåp 1). Agriculture development of NTFPs in general and medicinal Publishing House, Ha Noi. (Viet Namese only) plants in particular. Voä Àaåi Haãi, Nguyïîn Xuên Quaát, Hoaâng Chûúng, 2003. • Develop policies on NTFPs development and Kyä thuêåt nuöi tröìng möåt söë cêy con dûúái taán rûâng. marketing in order to protect, preserve, harvest Agriculture Publishing House, Ha Noi. (Viet Namese and utilize this resource sustainably. only)

• Compile specific sections for harvesting and Phaåm Xuên Hoaân, Triïåu Vùn Huâng, Phaåm Vùn Àiïín, conserving medicinal plants when compiling Nguyïîn Trung Thaânh, Voä Àaåi Haãi, 2004. Möåt söë vêën àïì regulations on exploiting timber and NTFPs. trong lêm hoåc nhiïåt àúái. Agriculture Publishing House, Ha Noii. (Viet Namese only) References Giaáp Kiïìu Hûng (chuã biïn), 2004. Tröìng vaâ sú chïë cêy Batugal, Pons A, Jayashree Kanniah, Lee Sok Young laâm thuöëc. Nhaâ xuêët baãn Thanh Hoáa. and Jeffrey T Oliver (eds), 2004. Medicinal Plants Research in Asia, Volume 1: The Framework and Àöî Têët Lúåi, 2001. Nhûäng cêy thuöëc vaâ võ thuöëc Viïåt Project Workplans. Nam. Medical Publishing House. Ha Noi. (Viet Namese only) International Plant Genetic Resources Institute – Regional Office for Asia, the Pacific and Oceania Md Mamtazul Haque, 2004. Inventory and (IPGRI-APO), Serdang, Selangor DE, Malaysia documentation of medicinal plants in Bangladesh. From "Medicinal Plants Research in Asia, Volume 1: Nguyïîn Ngoåc Bònh, Phaåm Àûác Tuêën, 2002. Tröìng The Framework and Project Workplans". International cêy nöng nghiïåp, dûúåc liïåu vaâ àùåc saãn dûúái taán rûâng. Plant Genetic Resources Institute – Regional Office for Agriculture Publishing House, Ha Noi. (Viet Namese Asia, the Pacific and Oceania (IPGRI-APO), Serdang, only) Selangor DE, Malaysia. Nguyïîn Ngoåc Bònh, Phaåm Àûác Tuêën, 2005. Kyä thuêåt Mendelsohn (1992): Non-Timber Forest Products. canh taác nöng lêm kïët húåp úã Viïåt Nam. Agriculture Tropical Forest Handbook, Volume 2, 1992. Publishing House, Ha Noi. (Viet Namese only) Nguyïîn Hoaâng Nghôa, 1997. Baão töìn nguöìn gen cêy Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 109

rûâng. Agriculture Publishing House, Ha Noi. (Viet Satyabrata Maiti, 2004. Inventory and documentation Namese only) of medicinal plants in India. From "Medicinal Plants Research in Asia, Volume 1: The Framework and Nguyïîn Xuên Quaát, Phaåm Ngoåc Thûúâng, Àùång Vùn Project Workplans". International Plant Genetic Thuyïët, 2004. Mö hònh Lêm nghiïåp xaä höåi úã Viïåt Nam. Resources Institute – Regional Office for Asia, the Agriculture Publishing House, Ha Noi. (Viet Namese Pacific and Oceania (IPGRI-APO), Serdang, Selangor only) DE, Malaysia. Ramanatha and Arora, 2004. Rationale for conservation Viïån Dûúåc liïåu, 1990. Cêy thuöëc Viïåt Nam. Science of medicinal plants. From "Medicinal Plants Research in and Technology Publishing House, Ha Noi. Asia, Volume 1: The Framework and Project Workplans". International Plant Genetic Resources Institute – Regional Office for Asia, the Pacific and Oceania (IPGRI-APO), Serdang, Selangor DE, Malaysia. 110 THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation

Conservation and Development of Two Medicinal plants Valuable and Rare Medical Plants - Holarrhena antidysenterica and Clerodendron infortunatum in Youth Settling Village, Phuc Trach Commune, Huong Khe District, Ha Tinh Province

Le Cong Luong1

BACKGROUND • Carry out the plantation of holarrhena antidysenterica and clerodendron infortunatum The implementation period for the project was in three hectares of forest land, hill land and over 24 months from June 2004 to June 2006. home gardens of 15 households in the village. The total budget comprised VND187,312,000. • Create long-term and sustainable medical OBJECTIVES OF THE PROJECT sources for the production of two medicines derived from holarrhena antidysenterica and General objectives clerodendron infortunatum by ha tinh health The project's objectives were biodiversity equipment and medical joint stock company. conservation in general and, in particular, the • Enhance the capacity of the alliance of conservation and development of two valuable associations for science and Technology in Ha medical plants - Holarrhena antidysenterica (Möåc Tinh to conduct research on NTFPs. hoa trùæng) and Clerodendron Infortunatum (Xích đöng nam). It was hoped that through the project, JUSTIFICATION FOR THE PROJECT local people’s income would be increased, thereby contributing to poverty reduction and protecting The Youth Settling village was found in 2000 and forests and human health. has now 150 youth households. Most of the area in the village is hill and forest land, with little area for Concrete objectives agriculture. As the households have only recently • Enhance awareness among local people of settled in the area, income from fruit trees does non-timber forest product (NTFPs) conservation not exist, creating serious fi nancial problems for and development in general, and holarrhena residents. The villagers are therefore forced to antidysenterica and clerodendron infortunatum go to the forest to harvest forest products, which in particular. increases pressure on the forest resources and creates threats to the ecological balance of the • Establish a nursery garden for these two medical area. The project aimed to support households plants with the total area of 600m2, which is in the village to develop more income sources capable of producing 20,000 breeding plants in from medical tree planting, increase their living the youth village centre, phuc trach commune, standards and limit logging in the forest to huong khe district, ha tinh province. contribute to biodiversity conservation.

1 Alliance of Associations for Science and Technology of Ha Tinh Medicinal plants THE ROLE OF NTFPS in Poverty Alleviation and Biodiversity Conservation 111

Indeed, there is great demand for Holarrhena Disadvantages antidysenterica and Clerodendron Infortunatum. • Holarrhena antidysenterica takes fi ve-to-six According to a report by the Ha Tinh Joint Stock years before it can be harvested, while the Company for Health Equipment and Medicines, project lasted only two years. therefore, it is the company has to buy 10 tonnes of raw material necessary to implement support mechanisms annually from other provinces such as Hali Duong, for local people to help in the care and protection Ha Tay and Nghe An to satisfy demand for the of the medical plants until harvesting time. products. Hence, the development of a sustainable conservation model for these two medical plants • Local authorities do not have any policy regarding will also contribute to the establishment of a source NTFPs planning in general or holarrhena of medical materials in Ha Tinh province. antidysenterica and clerodendron infortunatum in particular. local people therefore have not PROJECT RESULTS received any additional support in the processing • A nursery garden was developed for holarrhena and planting of these medical plants. antidysenterica and clerodendron infortunatum RECOMMENDATIONS with a total area of 600m2, providing 10,000 young plants of each species for households Holarrhena antidysenterica and Clerodendron participating in the project. Infortunatum are normally two wild plants, which were domesticated for trial planting in this project. • Technical guidelines for nursery development Thus, some additional studies should be carried were published and distributed to local people, out to assess growth rates and the chemistry which covered detailed informaiton on planting reserves of the plants compared with their wild and taking care of the two medical plants. counterparts. • Holarrhena antidysenterica and clerodendron Holarrhena antidysenterica is a long-term infortunatum were planted in the gardens of 15 investment for project participants and requires a households in the village, with a total area of great deal of time before any fi nancial benefi ts can three hectares. ninety per cent of the seedlings be seen. Therefore, additional support is needed planted in the gardens survived. and other alternative models should be integrated ADVANTAGES AND into the project to ensure sustainability and help DISADVANTAGES provide local people with an income while they wait for this plant to be harvested. Advantages • Contracts for purchasing the plant products were signed between 15 project households and the ha tinh jsc for medicines and health equipment company, ensuring that local people continued to plant and take care of the medical plants. • Awareness among local people regarding biodiversity and environment conservation, and the development of NTFPs in general and of holarrhena antidysenterica and Clerodendron Infortunatum in particular, was enhanced.