IIED Links:

Related Links:

Theme: Small-scale producers and local economies

Project name: Exploring fair trade timber

Duration: August 2005 to June 2007

Geographic Regions:

International, with main inputs to date from Brazil, Kenya, Mexico and Papua New Guinea.

Introduction:

The forestry sector in developing countries is dominated by small and medium sized forest enterprises (SMFEs). But the diverse range of these enterprises makes it difficult to understand the contribution they make to sustainability and poverty reduction. Definitions of SMFEs and their size differ from place to place. As a result, good information is scarce and often inconsistent between sources. But rough estimates from existing information suggest the following:

• In many countries about 80-90% of forestry enterprises are SMFEs
• In many countries over 50% of all forest sector employment is in SMFEs
• Worldwide over 20 million people are employed by SMFEs
• Worldwide over US$130 billion/year of gross value added is produced by SMFEs

If SMFEs are strengthened and the external policy environment improved, there is a great potential for SMFEs to attract more investment and make a bigger contribution to poverty reduction. IIED's work explores how market mechanisms such as fair trade might make this contribution. This work has been divided into three separate project phases as summarised below.

Objectives of Phase 1 – Fair Trade Timber (supported by DGIS):

Phase 1 sought to better understand what consumer mechanisms and market incentives might help the forestry sector contribute to poverty reduction and improved livelihoods.

Phase 1 key findings and publications:

Exploring fair trade timber - a review of issues in current practice, institutional structures and ways forward

Duncan Macqueen, Annie Dufey and Bindi Patel

This report outlines some of the key opportunities, challenges and options for a fair trade timber scheme and explores how local returns from responsible forestry can be improved.

Objectives of Phase 2 – Small forestry enterprise for local development

(supported by DFID with additional funds from SDC):

On the basis that SMFEs are important, but their impacts are variable and depend on context - Phase 2 seeks to improve international understanding of how SMFEs can deliver fair and sustainable improvements to livelihoods.

Two main outputs have included:

• Increased recognition of the role of SMFEs, and willingness to pursue effective SMFE support programmes, in the plans of: ITTO, IFC, World Bank, FAO, RRI, key UNFF member governments and European forestry/development organisations
• An organised network of partners with an agreed plan of action on SMFEs for fair and sustainable improvements to livelihoods

Phase 2 key findings and publications to date:

Report of a side event for the seventh session of the United Nations Forum on Forests - 'Small forestry enterprises: Drivers of sustainable development?'

On 23 April 2007, a side event at the UN Forum on Forests, convened by IIED and RRI, discussed how SMFEs are the norm in the forest sector and an important provider of employment and other livelihood benefits - but their potential contribution to poverty reduction and ecological integrity is often overlooked.

Report of the international meeting on small enterprise development and forests, Royal Botanical Gardens, Kew, 26 September 2006

On 26 September 2006, IIED convened a meeting of the UK Tropical Forest Forum members on 'Small enterprise development and forests’ at the Royal Botanical Gardens, Kew.

Report of the international meeting on enhancing local returns from trade in forest products, Royal Botanical Gardens, Kew, 27 September 2006

On 27 September 2006, IIED held a second meeting at the Royal Botanical Gardens, Kew on ‘Enhancing local returns from trade in forest products’.

The role of small and medium forest enterprise associasion in reducing poverty

Duncan Macqueen

This paper was first presented by IIED at an international conference on 'Managing forests for poverty reduction: capturing opportunities in forest harvesting and wood processing for the benefit of the poor', Ho Chi Minh City Vietnam, 2-6 October 2006.

Working together: forest based associations and social justice

Duncan Macqueen

This paper was presented by IIED at the UK Development Studies Association (DSA) annual conference on 'The private sector, poverty reduction and international development', Reading, UK, 11 November 2006.

Objectives of Phase 3 – Distinguishing community forest products in the market (supported by the Interchurch Organisation for Development Cooperation - ICCO):

Phase 3 aims to explore ways of distinguishing sustainable and fairly traded community forest products in the market place. Successfully distinguishing products in this way would allow community producers to target niche markets both in their own countries and internationally.

The main outputs of this work will include:

• Assessment of the potential national demand for forest products originating from two communities in developing countries – with a primary focus on timber
• Assessment of the potential international demand for community forest products (whether FSC certified or not) and the major structural issues for community producers in developing countries
• Identification of particular products for which greatest potential exists – and an assessment of their market chains
• Analysis of the strengths, weaknesses, opportunities and constraints of moving towards a new system with/without collaboration between existing certification and fair trade institutions
• Analysis of benefits and risks – economic, social and environmental benefits – if such a pilot initiative should move ahead

Further details can be found in the Terms of Reference

Report of an international workhop on 'Distinguishing community forest products in the market', Edinburgh, October 2007

On 1 October 2007, IIED convened an international workshop funded by ICCO to discuss possible mechanisms to distinguish community forest products in the market. It focused especially on options within Forest Stewardship Council (FSC) and Fairtrade Labelling Organisations (FLO) certification schemes.

Distinguishing community forest products in the market - industrial demand for a mechanism that brings together forest certification and fair trade. Macqueen et al. 2008.

This report summarises international industrial demand for a mechansim to distinguish community forest products in the market, with case studies from Brazil, Guatemala, Mexico and Papua New Guinea. It concludes that there is a historic opportunity to do more for responsible community forest producers.

Links to research partners and project collaborators:

Netherlands

ICCO

Gemma Boetekees Gemma.Boetekees@icco.nl www.icco.nl

Switzerland

WWF International

Aimee Gonzales AGonzales@wwfint.org www.panda.org

Germany

Fairtrade Labelling Organization (FLO)

Andreas Kratz a.kratz@fairtrade.net www.fairtrade.net

Forest Stewardship Council (FSC)

Alan Smith a.smith@fsc.org www.fsc.org

United Kingdom

ISEAL Alliance

Sasha Courville sasha@isealalliance.org www.isealalliance.org

Papua New Guinea

FORCERT

Peter Dam forcert@global.net.pg http://www.forestandtradeasia.org/files/FORCERT%20organisational%20profile.doc

Additional project support from:

The Danish Ministry of Foreign Affairs (DANIDA)

IIED contact:

Duncan Macqueen duncan.macqueen@iied.org

Copyright © 2005 International Institute for Environment and Development.
All rights reserved.
3 Endsleigh Street, London WC1H 0DD, email: info@iied.org.
tel: +44 (0) 20 7388 2117, fax: +44 (0) 20 7388 2826.
UK Registered charity no. 800066.

Contact the Web Developer | Legal Notice