Community Forestry Market Access

Increases returns to primary timber producers by buying standing trees from smallholder plantations, manage harvesting, primary processing and marketing, manage social, environmental & financial impacts.

By

eNBe Lestari (Nb Community Forestry)

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Social causes

Beneficiaries

SDGs covered

Endorsed by

RECOFTC

Market of Implementation

  • Indonesia

Problem

  • Smallholder timber plantations send timber to market irregularly, they have little knowledge of options opportunity or market requirements. Many value adding opportunities are missed. Lack of market knowledge and access needs to be addressed. The project accepts some of the commercial risk by buying the standing trees, (this is unlike many other forest support projects).
  • One log may be cut in A B C & D grade lumber, each goes to a different market but if you only sell logs once every 10 years you have no knowledge. You sell to the local mill, it sells to the domestic market – no value added.
  • There is no extension or outreach on replanting, the best environmental management or social dimension. Each plantation owner works in isolation.
  • The local mills are rudimentary and inefficient with high levels of waste, there is no concept of “quality quantity or timely delivery” so premium markets don’t buy.
  • It is hard for small producers to demonstrate legality.

Solution

  • Work at a scale that encourages investment, uses appropriate technology, attracts premium markets & creates collective action.
  • By knowing the market it is possible to place all goods for maximum returns, by accessing volume you attract buyers.
  • FSC Group Certification provides market recognition and independent monitoring of social, environmental and financial impact.
  • Use of appropriate technology such as better mills, finger joint lamination, rotary veneer can all add value and reduce waste.
  • Build reputation for timely delivery, assist in logistics, communicate between primary producer and end user.
  • Facilitate market access to ethnic minorities and marginalised groups.
  • Set up robust system for legal verification.
  • Provide extension advice, high quality inputs of seedling to improve 2nd rotation crop productivity.
  • Provide collective framework for PES (Payment for Environmental Services) like carbon.
  • Use the SDGs as a guide for areas of intervention with high social, environmental and climate impact.

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