11June 21-22, 2005June 21-22, 2005

Lao PDR Lao PDR Poverty-Environment Nexus Poverty-Environment Nexus Case Study: Non Timber Forest Product Case Study: Non Timber Forest Product

(NTFP(NTFP))By By

Phouthone SophathilathPhouthone Sophathilath

National Agriculture and Forestry Research Institute (NAFRI)National Agriculture and Forestry Research Institute (NAFRI)Ministry of Agriculture and Forestry Ministry of Agriculture and Forestry

Prepared forPrepared for Sub-regional Workshop onSub-regional Workshop on

Poverty and Environmental Nexus Poverty and Environmental Nexus

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Presentation OutlinePresentation Outline

• Study objectives• Study sites • Findings

– Enabling policy, legal, institutional framework– Status and trends of NTFP– Management & Uses– Market – NTFP contribution to poverty eradication

• Recommendations

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Study ObjectivesStudy Objectives

• To examine status & trends of NTFPs in relation to resource availability, marketing, and cultivation at national and local levels

• To study environmental, poverty and policy linkages of NTFP and its potential contribution to poverty eradication

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Study SitesStudy Sites• Study sites:

– Namo (Oudomxay): • Nakham, • Nahom, • Houaypord, • Kewchaep

– Phouvong (Attopeu)• Vomgxay, • Houaykout, • Taoum, • Phouhom

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Policy, legal and institutional Policy, legal and institutional frameworkframework

• NTFPs - an alternative for poverty eradication, shifting cultivation stabilization, and forest conservation;

• GoL promotes sustainable NTFP management and utilization, domestication, processing, marketing, but not been widely extended to real practices: – Lack of specific regulation, procedures, methodologies – Lack of supporting mechanisms for NTFP processing and

marketing – Increasing interests in NTFP development and research and

Information sharing and networking initiated, but still lack of market information, capacity for extension

– Lack of clear roles and responsibilities of stakeholders, especially within Government sectors leading to weak coordination

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Status Status (from national Survey)(from national Survey)

• Species reported = 37

• Commercially importance:– Nationally importance = 13 (2 fallow spc.)

– Regionally importance: 8 in 2 regions and 5 in one region

– Rattan & Cardamom are important in all regions

• Commercial importance very by locations, depending on market availability influenced by road access

Forest species

Fallow species

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TrendsTrends • NTFP resources are declining, esp.

Forest species decline, but fallow species increase, and the same applies for sale quantity

• Price of all most all species increase• Very limited domestication of NTFP Increased

Decreased

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Management and uses Management and uses

• NTFP managed is mainly based on customary rules (openly accessible for HH consumption, but not for sale)

• No NTFP inventory and Management system• Quota allocation is based on a rough quantity estimate • Use of depleted harvesting techniques and methods was

observed • Limited NTFP processing for value addition and

commodity production

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Marketing Marketing

• Market for NTFP is increasing and controls harvest • Market chains are diverse, mainly goes through

middlemen with few direct trading • Uncontrolled NTFP trading cross international borders

was observed • Village NTFP marketing group initiated, but not been well

expanded. • Existing taxation system does not fully support NTFP

trading (too many steps and inconsistent)

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Contribution to PovertyContribution to Poverty

• NTFP contributes a substantial share for a household food consumption and cash income:

– NTFP income ranked 3rd at national level, but 2nd in poor districts

– Average in come from NTFP/HH/Yr• Average: 508, 000 kip

• Namo: 772,000 kip

• Phouvong: 237,000 kip

– Contribution to food consumption is not exactly known, but observed a lot.

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Contribution to Poverty ReductionContribution to Poverty Reduction

• HH with different healthiness involved in benefiting from NTFP differently

• All most all surveyed HH benefited from NTFP (90% in North; 72% in South), but the poor tend to be more dependent

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Who (use) and earn mostWho (use) and earn most

Study factors:• Settlement (highly significant)• Upland rice area (highly significant)• NTFP cultivation (marginally significant) ?• Membership of NTFP Marketing Group (highly significant) • Direct trading (highly significant) Taxation• Wealth (marginally significant)

Households make more income when: – Living in older villages– Having more upland rice area– Member of NTFP Marketing group– Selling NTFP to traders

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Living in older villagesLiving in older villages

– Old villages:– More knowledge of resources– More trust to traders– Better organized

– New villages:– loss access to traditional NTFP– Less familiar with NTFP in new areas– Less known by traders – Spent more time on settling in and

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Having more upland rice areaHaving more upland rice area

– NTFP from fallow land? Only some !

– More familiar, knowledge, spent more time, being closer to NTFP sources

– Less rice -more need on NFTP for rice substitution (between paddy & Upland field)

– Kmou received higher income from NTFP, who are doing shifting cultivation in a larger area

0

200

400

600

800

1000

1200

Kip (0

00) pe

r year

<0.5 0.5-1.0 >=1.0

Namo District

Upland Rice Farming (ha per household)

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Member of NTFP Marketing group Member of NTFP Marketing group (MG)/Selling NTFP to traders(MG)/Selling NTFP to traders

– MG Normally sell products directly to traders– More bargaining power – Know more about market situations

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RecommendationsRecommendations• Enhancing legal framework for sustainable management,

utilization and marketing, by development of practical guidelines, and harmonization of inconsistent regulations;

• Conducting NTFP assessment, developing sound management practices, and control illegal trades and unsustainable practices in a participatory manner;

• Establishing NTFP coordinating body and NTFP marketing and information network;

• Institutionalizing NTFP management, cultivation, processing and marketing into rural development alternatives (village development plan);

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RecommendationsRecommendations

• Promoting NTFP domestication, e.g. integrating NTFP cultivation into (Upland) farming system for shifting cultivators, as well for those in new resettlement;

• Promoting NTFP marketing in conjunction with community organizing (marketing group) and local capacity building;

• Promote NTFP processing for value addition • Enhancing NTFP research and extension

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Thank you !Thank you !