This presentation by Ramon Razal and Maria Cristina Guerrero given during the Forests Asia Summit in the Discussion Forum "Equitable development: Social forestry and sustainable value chains towards a Green Economy in ASEAN" focuses on trends and related statistics on NTFPs, introduces its new study and scope, methodology and limitations of the study, the findings of the study, recommendations for ASEAN and gives a review of AEC impact study on social forestry.

1. Harnessing NTFPs for the Green
Economy in the ASEAN Region
RAMON A. RAZAL1 AND MARIA CRISTINA S. GUERRERO2
1PROFESSOR, UPLB AND 2EXECUTIVE DIRECTOR, NTFP-EP

2. 1) Trends and related statistics on NTFPs
2) Scope, methodology, limitations of study
3) Findings of the study
4) Recommendations for ASEAN
5) Preview of AEC impact study on Social Forestry
Outline of presentation

3. NTFPs in the countries visited
Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines
• Bamboo poles
& shoots
•Corypha
lecomtei leaves
• Honey
• Medicinal
plants
• Rattan
• Resins
•Wild grapes for
wine
• forest foods
• Bamboo
• Biofuels
• Dyes
• Essential oils
• Forest Fruits
• Gaharu
(Aquilaria
wood)
•Honey
• Medicinal
plants (Jamu)
• Rattan
• Resins
• Animal
products
• Bamboo
• Charcoal and
fuelwood
• Fibers
• Forest foods
• Ornamentals
• Rattan
• Resins
• Bamboo
• Forest
foods/fruits
• Gums, resin &
oleoresin
(eaglewood,
jelutong latex)
• Honey
• Medicinal
plants
• Rattan
• Bamboo
• Dyeing
materials
• Fibers (Bast)
• Gum, resin &
oleoresin
• Medicinal
plants
• Rattan
• Roofing
materials
• Scented wood
and bark
• Spices
• Bamboo
• Biofuels
• Exudates
(almaciga and
pili resins)
• Forest foods
• Honey
• Palms (buri
midribs,
anahaw leaves,
nipa shingles)
•Rattan
•Vines
•Corypha
lecomtei leaves
• Honey
• Resins
• Bamboo
• Gaharu
(Aquilaria
wood)
• Honey
• Bamboo
• Rattan
• Rattan • Rattan
• Scented wood
and bark
• Medicinal
plants
• Medicinal
plants
• Exudates
(almaciga and
pili resins)
• Gums, resin
& oleoresin
(eaglewood,
jelutong
latex)• Forest foods
• Bamboo
• Bamboo

4. Trends and related statistics
• wide range of NTFPs across ASEAN countries: e.g., bamboo, rattans and other
palms, resin and gums, wild foods and medicinal plants

5. Trends and related statistics
• wide range of NTFPs across ASEAN countries: e.g., bamboo, rattans and other
palms, resin and gums, wild foods and medicinal plants
• for similar NTFPs, the levels of processing and utilization, and hence benefits
derived by forest-based communities differ across countries. In many areas, NTFPs
remain unprocessed at the community level; having a visionary in the community
is important to pursue value addition/enterprise activities
• gatherers and producers of the NTFPs initiate the value chains, but the
performance of this vital function is largely underrated in the distribution of
margins and benefits

6. • An estimated 300 million people in the ASEAN region live and depend on
the forest for sustenance in forest areas that are managed by the local
people, where indigenous peoples significantly make up such
communities (FAO, 2010)
• NTFPs account for as much as 25% of the income of close to one billion
people (Molnar et al. 2004).
Trends and related statistics

7. • largely undocumented or poorly recorded volumes of NTFP production and harvest
• existence of local markets, and possibly significant, cross-border (but mainly illegal)
markets
• fluctuating volumes of globally-traded, commercial NTFPs from ASEAN
• intra-regional NTFP trade (among ASEAN member states) small compared to trade
between ASEAN and the rest of the world
Trends and related statistics (continued)

8. Scope, methodology, limitations of study
• processed products from, and technologies using NTFPs to determine what can be
shared across countries, consistent with the emergence of a global green economy
• By technology, we mean an activity or intervention that adds value to the resource, so
that the primary producers and their community can receive a higher, more equitable
share of the benefit that accrue from its commercial sale

9. Scope, methodology, limitations of study
• processed products from, and technologies using NTFPs to determine what can be
shared across countries, consistent with the emergence of a global green economy
• By technology, we mean an activity or intervention that adds value to the resource, so
that the primary producers and their community can receive a higher, more equitable
share of the benefit that accrue from its commercial sale
• Six ASEAN countries – were visited for interviews (mostly government and NGOs, very
few private, actual NTFP processing operations)
Malaysia
Indonesia
Myanmar
Philippines
Laos
Cambodia

10. Findings of the study: Selected NTFPs and associated technologies
•Technologies on bamboo dominate R&D activities, encompassing propagation and plantation
development studies, product development, pole preservation, and analysis of bamboo
supply/value chains
• Rattan forests have been certified as sustainably managed (in Laos), and rattan poles are
delivered to a FSC chain-of-custody (COC) certified manufacturer who makes products
following sustainable designs with minimal use of materials, less wastes and avoid nails and
screws for fastening. Efforts have to be sustained as well as replicated, however
•Cebu (Philippines) rattan furniture companies produce innovative high-end furniture
designs, use mixed materials, and continuously train the workforce to become more
skilled in furniture making and design

11. •FRIM (Malaysia) formulates and develops an array of plant-based health
products, such as nutraceuticals, cosmeceuticals, essential oils and plant
extracts, and disinfectants, with an herbal-based industry roadmap that seeks
community participation in sharing traditional knowledge, provisioning of
sustainable supply of raw materials, to post-harvest facilities and product
manufacture
• In Indonesia, an inoculation method was developed to “infect” the Aquilaria
tree to accumulate the resin; this involves the use of liquid preparation of tree-
compatible inoculant strains, which are injected at the right time into several
small holes on the stem for resin induction
• enterprise undertakes drying of Corypha leaves in Cambodia, with mechanical
bundling equipment prior to shipment
Selected NTFPs and associated technologies (continued)

12. • Indonesia Forest Honey Network (JMHI) leads network-based cooperation among
honey collectors and supporting NGOs, with improved organizational management
and business planning, better protection of forest areas, improved quality control, and
skills on marketing and promotion of honey
•The composition of Dipterocarp oleoresin from Preah Vihear province (Cambodia) was
determined, expanding end-uses and enabling better tapping and handling practices
that increased take home benefits for resin gatherers
• Also in Cambodia, the sources of, and collection methods for wild food, recipes used,
and the loss in natural flavoring due to use of synthetic condiments were
documented; and agrosystem models for better management and conservation of
forests for food
Selected NTFPs and associated technologies (continued)

13. • The Philippine Textile Research Institute (PTRI) developed environmentally-
friendly extraction processes from different plant sources that yield a variety of
colors when applied to different types of fibers, yarns, and fabrics; Crude extracts
can be converted into dye powder, rendering longer shelf-life, convenience in
transport, and a broad range of applications
Selected NTFPs and associated technologies (continued)

14. Issues in the Development of Technologies for NTFPs
• Paucity of research on NTFPs. Only about 10% of the total research activities in
forestry research institutes are on NTFPs and correspondingly, little research
funds have been allocated for such purposes.
• Mismatch between NTFP research priorities and actual gaps. Research on NTFPs
follow tried-and-tested models or frameworks for timber; Research organizations
must interface with NGOs and communities to make their research more relevant
to the needs of NTFP-using clients.
• Sustainability of NTFPs. Inventory data on NTFP resources are lacking, and there
are methodological challenges to determine if the resource is adequate to
support the emergence of NTFP-based industries. Alternative harvest techniques,
and regimes that allow time for regeneration, and wild resource management
techniques may improve sustainability and reliability of wild plant resources.

15. • Availability and access to information. People who depend on NTFPs are often
isolated from the knowledge centers responsible for data collection, related
technologies and novel breakthroughs. Information, technologies and techniques
often fail to reach farmer-gatherers, households, and rural-based entrepreneurs.
• Access to financing for the acquisition of new technologies/processing equipment.
There are no provisions for funding to acquire equipment, and communities are not
aware that they must set aside income to repay loans to finance such acquisitions.
• Scaling up and transforming NTFPs to meet industry needs. Substantial costs are
incurred in pursuing long-term studies on NTFPs, but funders of research such as
the government are generally impatient providers of financial grants for research.
Issues in the Development of Technologies for NTFPs (continued)

16. The role of policy
• Few national forest policy issuances specifically mention NTFPs; still often defined
as minor products with no specific agenda to promote development, management,
or sustainable utilization except to spell out rules on extraction, export, and fees.
The absence of specific policies makes it difficult for households, communities and
the private sector to set out long-term plans for plantation and business enterprise
development involving NTFPs.
• In contrast, Indonesia has recently completed a set of NTFP-specific policies
(sentra) designed to stimulate development and production of 30 priority NTFPs
through the establishment of centers of excellence across the country. Likewise,
Cambodia has provided 3-year tax breaks for community-based honey enterprises.
• Overall, contradicting policies remain that continue to hinder NTFP sector
development across the region.

17. Recommendations: Strategies and Mechanisms for NTFP Technology
Development and Information Sharing across ASEAN
• Creating a network of institutions in the different ASEAN countries, established on the
basis of capacity that exists in each country, to facilitate cooperation on NTFPs across
the region.
• Creation of an ASEAN expert working group on NTFPs that will provide regional
coordination among the proposed country-based centers; this working group can
conduct and support ASEAN-wide NTFP value chain analyses and implementation of
interventions to complement national activities, and facilitate the process of
responding to expressed NTFP capacity-building needs in a member country.

18. •Propagation and production of NTFP resources should be expanded, through
inclusion in reforestation programs such as the National Greening Program in
the Philippines and the One Billion Trees Program in Indonesia.
• National Policies should also be more aggressive in promoting NTFPs, and
formulated in a manner that carefully considers all possible impacts to avoid
being counterproductive.
Recommendations: Strategies and Mechanisms for NTFP Technology
Development and Information Sharing across ASEAN

19. ASEAN ECONOMIC COMMUNITY (AEC)
•ASEAN Economic Community (AEC) by 2015 - blueprint agreed upon during the ASEAN
Summit in Singapore on November 20, 2007.
•Designed to liberalize trade in the ASEAN thru elimination of intra-regional tariffs and
non-tariff barriers. It intends to make the manufacturing sectors more efficient and
competitive in the global market. At the same time, consumers will source goods from
the more efficient producers in ASEAN thus expanding intra-ASEAN trade.
•The key characteristics are: (a) a single market and production base, (b) a highly
competitive economic region, (c) a region of equitable economic development, and
(d) a region fully integrated into the global economy.
••• by a single market and production base means a region marked by the free flow of
(i) goods; (ii) services; (iii) investment; (iv) capital; and (v) skilled labor.

20. Preview of AEC Impact Study on Social Forestry
Main objectives:
1. situate the different ASEAN Member States (AMS) in terms of how their forestry
sectors will be affected by economic integration and trade liberalization as embodied
in the AEC Blueprint;
2. review national level policy directives, initiatives, and efforts related to the forestry
sector, specifically their bearing on Social Forestry in the advent of the AEC;
3. evaluate the impacts of AEC integration on the production, consumption, and trade of
timber and NTFPs and socio-economic concerns particularly on smallholders in the
forestry sector;
4. recommend specific development and policy interventions to minimize potential
negative impacts or to capitalize on possible benefits or opportunities of the AEC in
the forestry sector; and
5. disseminate the results through seminars and publications.

21. Some research questions:
•What are the national level policy directives, initiatives, and efforts related to the
forestry sector, particularly in relation to social forestry, which may have bearing or may
be affected by the advent of the AEC?
•How will the production, consumption, and trade of timber and NTFPs in the ASEAN
member states be affected by AEC? What other socio-economic impacts may the AEC
have particularly on the forestry sector? How will the impacts vary among the different
AMS?
• How will smallholders in the social forestry sector be affected, considering that social
forestry products are offered in niche markets and are not mainstream commodities?
•What can social forestry adherents do at the local, national and international levels to
minimize negative impacts and to capitalize on possible benefits or opportunities of
AEC?

22. Thank
you!