Feasibility Study for Alternative Livelihood of Forest-Depending Rural Population in Georgia – Challenges and Prospects May 2016 This publication has been produced with the assistance of the European Union. The content, findings, interpretations, and conclusions of this publication are the sole responsibility of the FLEG II (ENPI East) Programme Team (www.enpi-fleg.org) and can in no way be taken to reflect the views of the European Union. The views expressed do not necessarily reflect those of the Implementing Organizations. TABLE OF CONTENTS 1. Executive Summary ............................................................................................................... 1 1.1. Conclusions ............................................................................................................. 1 1.2. Recommendations ................................................................................................... 2 1.3. Report Organization ................................................................................................ 4 2. Background ............................................................................................................................ 5 2.1. Project Background ................................................................................................ 5 2.2. Project Objectives ................................................................................................... 5 2.3. General Methodology ............................................................................................. 6 3. Analysis And Conclusions ...................................................................................................... 7 3.1. Analytical Context – The NTFP Value Chain ......................................................... 7 3.2. HHs And NTFPs ................................................................................................... 13 3.3. Grazing Conclusion .............................................................................................. 20 4. Recommendations ................................................................................................................ 22 4.1. HH-Level Recommendations ............................................................................... 22 4.2. National-Level NTFP Recommendations ............................................................. 24 4.3. Forest-Level Interventions .................................................................................... 28 5. Detailed Methodology .......................................................................................................... 30 5.1. Project Objectives ................................................................................................. 30 5.2. Key Research Questions ....................................................................................... 30 5.3. Target Location Selection ..................................................................................... 32 5.4. Focus Group Discussions ..................................................................................... 37 5.5. Analytical Process ................................................................................................. 38 Annex I – Focus Group Discussions And Individual Interviews ............................................. 40 Annex II – Prevalence Of NTFPs ............................................................................................. 75 Annex III - Sustainability Of Non-Timber Forest Resources .................................................. 82 Annex IV – List Of Participants ............................................................................................... 96 Annex V – Focus Group Discussion Guide ........................................................................... 100 Annex VI – Individual Interview Guide ................................................................................. 113 Annex VII – FairWild Standard –Principles And Criteria ..................................................... 118 i DETAILED TABLE OF CONTENT 1. Executive Summary ............................................................................................................... 1 1.1. Conclusions ............................................................................................................. 1 1.1.1. Analytical Context – The NTFP Value Chain ........................................ 1 1.1.2. HHs And NTFPs .................................................................................... 1 1.1.3. Forest Grazing ........................................................................................ 2 1.2. Recommendations ................................................................................................... 2 1.2.1. HH-Level Recommendations ................................................................. 2 1.2.2. National-Level Recommendations ......................................................... 3 1.2.3. Forest-Level Recommendations ............................................................ 3 1.3. Report Organization ................................................................................................ 4 2. Background ............................................................................................................................ 5 2.1. Project Background ................................................................................................ 5 2.2. Project Objectives ................................................................................................... 5 2.3. General Methodology ............................................................................................. 6 3. Analysis And Conclusions ...................................................................................................... 7 3.1. Analytical Context – The NTFP Value Chain ......................................................... 7 3.1.1. Actors And Steps .................................................................................... 8 3.1.2. Flow Of Money .................................................................................... 10 3.1.3. Value-Added ......................................................................................... 10 3.1.4. Flow Of Information And Allocation Of Supply And Market Risk ..... 10 3.2. HHs And NTFPs ................................................................................................... 13 3.2.1. NTFPs Are A Small But Important Part Of HH Livelihoods In Forest- Edge Communities .................................................................................. 13 3.2.2. The Economic Decisions Made By HHs vis-à-vis NTFPs Are Rational13 3.2.3. Individual HHs Face Barriers To Increased Collection Of NTFPs ...... 14 3.2.4. Knowledge Of NTFPs Among The General Public Is Poor ................ 16 3.2.5. Some NTFPs Are Successfully Sold In Certain, Not Easily Reproduced, Situations ............................................................................ 17 3.2.6. Enhanced Opportunities In NTFPs Should Not Be Expected To Reverse Outward Migration And Depopulation ...................................... 18 3.2.7. Although A Number Of Environmentally Damaging Collection Methods Are Used, The Generally Low Level Of Collection Means That Overall Damage Is Usually Small ........................................................... 18 3.2.8. Actors In The NTFP Value Chain, Other Than HHs, Face A Number Of Barriers To Increased NTFP Activity ...................................................... 19 3.3. Grazing Conclusion .............................................................................................. 20 3.3.1. Damage From Forest Grazing Is A Highly Localized Problem, Mostly Related To The Number Of Cows In A Particular Place Rather Than Methods Used .......................................................................................... 20 4. Recommendations ................................................................................................................ 22 4.1. HH-Level Recommendations ............................................................................... 22 4.1.1. A Wide Range Of Medias Should Be Used To Improve Knowledge Of NTFPs Both In Villages And Among The General Public ...................... 22 4.1.2. Individual HHs Should Be Given Small Grants For Equipment To Preserve NTFPs And To Collect Them Safely ........................................ 23 4.1.3. Transport Cost Equalization Should Be Considered When Setting Social Security Payments ........................................................................ 24 ii 4.2. National-Level NTFP Recommendations ............................................................. 24 4.2.1. One Or More National-Level Intermediaries (NLIs) Should Be Created For Selected NTFPs ................................................................................. 24 4.2.2. Public-Private Partnerships (PPPs) Should Be Used To Create National-Level Intermediaries (NLIs) ..................................................... 25 4.2.3. Project One: A Short-List Of Candidate NTFPs Suitable For Georgian National-Level Intermediaries (NLIs) Should Be Created ...................... 25 4.2.4. Project Two: Commercial Feasibility Studies For National-Level Intermediaries (NLIs) Should Be Done For Each NTFP On The Short- List ........................................................................................................... 26 4.2.5. Project