NTFP value chains and incentives for sustainable harvesting. Dr Jenny Wong
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1 NTFP value chains and incentives for sustainable harvesting Dr Jenny Wong
2 Value chain analysis Part of new institutional analysis a branch of economics that argues that markets cannot be understood simply in terms of prices = the full range of activities required to bring a product from the producer to the consumer, emphasising the value that is realized and how it is communicated CEPFOR project - Marshall, Rushton, Schreckenberg et al. 2006
3 The objectives of value chain analysis are to: Identify the main actors or organizations in the commercialization chain from the input provider to the collector right through to the final consumer. Identify their specific activities. Identify the different routes to commercialize the NTFP, which could be what currently exists and what potentially is available or could be developed. Assess how well the marketing chain is working.
4 Developing a value chain analysis Description Identify important routes and actors Assess profitability, power and institutional environment of key actors
5 Analysis of value chain Equity Governance Sustainability (supply logistics)
6 Data requirements Entrepreneur-level research (livelihood assets) Enterprise budget Market analyses
7 FRP R8305 Developing biometric sampling systems and optimal harvesting methods for medicinal tree bark in southern Africa Market networks for medicinal bark in southern Africa
8 Engagement with actors in medicinal plant supply chain Harvesters Export / importers Traders / Wholesalers Herbalists Patients
9 Methodology min questionnaire of market traders Min 30 from each site n = 210 Malawi Southern Region Zambia Copperbelt Province RSA Johannesburg market RSA Durban herb market Mozambique Maputo market
10 RSA urban herb markets Johannesburg 30% of traders indicated that some of the bark was harvested outside South Africa primarily Mozambique Durban 67% of traders indicated some of the bark was harvested outside SA primarily Mozambique, Swaziland and Malawi 53% reported sales to foreign customers mainly patients and herbalists from Swaziland 43% sold to foreign customers mainly from Mozambique
11 Durban herb market
12 Mozambique Xipamanine 19% traders sourced from South Africa 15% sold to South Africans Average distance to harvest sites ~ 197 km
13 Trader at Malawi/Zimbabwe border
14 Malawi Southern Region 80% traders harvest what they sell 68% return to home district to collect Average distance to harvest site ~8 hrs drive 40% sourcing from Mozambique 56% selling to South Africans
15 Wholesaler in Malawi
16 Zambia Copperbelt 95% traders are migrants Most material collected locally (< 4 hrs drive) 30% reported sourcing from DRC 41% sold to DRC Links to Senegal & Uganda
17 Retail (TMP) Zambia
18 Herb trade in Southern Africa Trade patterns derived from a market survey in Durban, Johannesburg, Maputo, southern Malawi and Copperbelt Province of Zambia (2005). Purple internal trade, red cross-border trade Johannesburg Maputo Malawi Zimbabwe Mozambique KwaZulu-Natal Swaziland Eastern Cape Unidentified
19 Trade-resource relationships in southern Africa Subsistence use plants collected and used within walking distance from the forest as and when needed. Common in rural communities, close to forests but also in urban areas where nearby forests are heavily exploited.
20 Herbalists collecting for their own practice and perhaps sharing or informally trading among their peers.
21 Itinerant wholesalers traders that place orders for large quantities of herbs with collectors close to forests which are then sold on. Quantities involved are large (pickup loads) and larger traders in Malawi tend to have harvesting licenses and phytosanitary certificates. Much destined for export from the continent.
22 Wholesale markets traders based in large, urban wholesale markets who source their wares in a variety of ways: themselves or to order, from specialists collectors, from other traders etc.. In Durban market the average trader sells kg-size bags per month of bark.
23 Typology of international trade Herbalists carrying for patient use To supply expatriates Reputation of specific sources Resource depletion closer to market Established ex-africa trade Opportunistic ex-africa export Speculative ex-africa export
24 Points of intervention Zambia THPAZ Malawi Forestry and customs officials South Africa Traders Mozambique?
25 Thank you!
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