[MPWG] On the Contribution of Non-Timber Forest Products to Our Economy

Patricia_DeAngelis at fws.gov Patricia_DeAngelis at fws.gov
Mon Jul 6 22:46:39 CDT 2009


In 2007, the Medicinal Plant Working Group-Non-Timber Forest Products Task 
Force1 compiled an "issues paper" on the harvest and management of 
non-timber forest products (NTFP) in the United States.  The Task Force 
reiterated that data must often be gleaned from broader categories or from 
sources that underestimate the activities, and that these data 
deficiencies prevent accurate monitoring and evaluation this sector across 
the United States,2 in the following areas:

Employment data: Census data only counts people employed during the 
payroll period that includes March 12th.  Since the late winter and early 
spring are the down season for many harvesters, the Census greatly 
underestimates the number of employees in this field.  In addition, the 
Census' ability to gather reliable data on self-employed persons and 
micro-enterprises is limited, particularly if those firms operate partly 
in the informal sector as many NTFP enterprises do.  Thus the number of 
people and businesses who make a living from NTFPs is likely several of 
orders of magnitude higher than that currently measured by the Census.3
Production data:  Many medicinal plants are wild-harvested and not all 
species can be cultivated.  However, for those under cultivation, there is 
no good measure for amounts produced. 
Harvest data:  Reliable harvest and trade data are vital to understanding 
the long-term conservation status of medicinal plants and other NTFPs.  No 
national mechanisms exist to monitor harvest data - even on public land. 
Trade data: Domestic and international trade data can often be incomplete 
or contain insufficient detail to evaluate the role or effect of trade on 
NTFPs. 

A 2008 Food and Agriculture Organization (FAO) publication was made 
available online a few months ago, which assesses the contribution of 
forestry sector to national economies and focuses specifically on three 
economic indicators: Employment in the sector; value added (i.e. the 
forestry sector?s contribution to GDP); and the value of forest products 
exports and imports (i.e. the sector?s contribution to trade balances) (p. 
ix).4  The report covers the forestry sector (including forestry, wood 
industry, and pulp/paper industry) and the furniture industry (p. ix). The 
forestry sub-sector includes roundwood and non-wood forest products (p. 
46); the wood industry includes charcoal, sawnwood, wood based panels, 
wood chips and residues, and further processed wood products (p. 46); and 
the pulp/paper industry includes pulp, paper, recovered paper and further 
processed paper products excluding printed articles (p. 48).  The document 
is quite large, so only the Executive Summary is attached to this e-mail.5 
 

Chief among their findings (to me) was the conclusion that statistics on 
informal forestry sector contributions (including collection of non-timber 
forest products) on a global scale continue to be poorly recorded and 
unreliable.  As a result, the study excluded informal forestry sector 
activities, which "in many developing countries, [can be] significant." 
Therefore, the study provided "an underestimate of the total contribution 
of the [forestry] sector to national economies"  (p. ix). 

Other findings include:
Employment:  "The contribution of the formal forestry sector to total 
employment is generally higher in the developed regions and Eastern Europe 
than in developing regions. This is largely due to the significant numbers 
of people employed in the processing sector." (pp. x-xi)
Based on 1997 data, the International Labour Organization6 estimated that 
globally, the total number of people employed in forest industries was 47 
million, comprising more than 17 million in the formal sector employment 
is more than 17 million and a "tentatively estimated" 30 million in the 
informal and subsistence sectors - although the figure "could well be 
double that of the formal sector" (p. 40).  Thus, for every one job in the 
formal forestry sector in the late 1990s, there averaged another one or 
two jobs in the informal forestry sector (related primarily to the 
production of woodfuel, non-wood forest products, and small-scale wood 
industries) (p. 25). 
Value-added:  "At the regional level, the majority of global value-added 
in the forestry sector" is occuring in three developed regions, Northern 
America,7 Western Europe and the Developed Asia-Pacific region. "This is 
largely due to the high levels of value-added achieved in the forest 
processing sectors in these regions (i.e. these three regions accounted 
for about 70 percent of the global value-added in the wood industry and 
the pulp and paper industry in 2006). "
If national accounts statistics included activities in the informal or 
non-monetary sector, it is likely that the forestry sector?s share of GDP 
would probably be at least twice what is reported in official statistics. 
(p. 40)
Trade: "At the regional level, exports of forest products are dominated by 
the three developed regions. For example, in 2007, Western Europe and 
Northern America together accounted for about 65 percent of global forest 
products exports, followed by the Developing Asia-Pacific region (with a 
15 percent share) and Eastern Europe (with 10 percent share). Furthermore, 
most international trade in forest products is either trade between these 
three [developed] regions or between countries within each of these 
regions." (p. xi:)
>From 1990 to 2006, the forestry sub-sector accounted for 0.6 percent of 
total forest products exports, less than 0.2 percent of total merchandise 
exports on a global scale (p. 46).  By comparison, wood industry products 
"account for nearly 35 percent of total forest products exports," 
contributing 0.8 percent of global merchandise exports (p. 46), and the 
pulp/paper industry comprised 1.4 percent of global merchandise exports 
(p. 48).
Overall: The three developed regions (Northern America, Western Europe and 
the Developed Asia-Pacific region) account for about 25 percent of global 
employment and the majority (about 65 percent) of global value-added and 
forest products exports (p. xii).
However, the economic importance of the forestry sector is generally lower 
in four regions ? Northern America, Western Europe, Developed Asia-Pacific 
region and North Africa, Western and Central Asia - than in other parts of 
the World.  (p. 42)
Value-added in the forestry sector has not increased rapidly, except in a 
few countries where development of the sector has been of specific 
national development priority. Very few countries have focused on the 
development of the forestry sector, such that the forestry sector has been 
left behind, particularly in rapidly growing economies, suggesting that 
the forestry sector is not a major driving force for economic growth and 
development except in specific circumstances (p. 56).
"Further work on the contribution of informal forestry sector activities 
would give a much better and more balanced picture of the importance of 
the sector at the global, regional and country level" (p. 57).

Despite the lack of focus on the informal sector, the study provides some 
interesting overall information while perpetuating long-standing 
stereotypes.  The latter of which inspired me to stay up late to write 
this e-mail. 

In the international arena, it is generally accepted that the "informal" 
sector contributes significantly to the local economies of developing 
countries (similarly, the contribution of NTFPs to healthcare is generally 
considered to be more significant in developing countries).  Conversely, 
it is often stated, implied or presumed that NTFPs are not significant 
contributors to the economy (or healthcare system) in the United States. 

Yet, despite the imperfect system that currently exists to monitor the 
contribution of NTFP-sector employment, production, harvest, and trade, 
the estimated value of the North American market for medicinal herbs in 
1998 ranged from $1.6 billion to $2 billion.8   If NTFP-sector data were 
cohesively monitored, we might find that the contribution of NTFPs to the 
economy is indeed "significant" in the United States, especially to 
certain local economies - such as certain states in Appalachia and in the 
Pacific Northwest.  What about the cumulative contribution of the value of 
NTFPs extracted for personal use from public lands, not to mention the 
contribution of sustainable NTFP production to the preservation of 
forested land? 

The presumption of insignificance is based largely on the absence of data. 
 The absence of NTFP-sector data leads to an undervaluation of our 
forested lands.  Undervalued resources, without a driving force 
designating sustainable NTFP development as a priority, translate into 
missed economic opportunities on public and private lands.  Thus, this 
vicious cycle relegates the NTFP sector to the margins of our economy.

----------------------------------

1The Non-Timber Forest Products Task Force, an ad hoc committee of the 
Medicinal Plant Working Group, was comprised of the following members: Jim 
Chamberlain, USDA-Forest Service; Patricia De Angelis, US Fish and 
Wildlife Service; Colin Donohue, National Network of Forest Practitioners; 
Trish Flaster, Botanical Liaisons, LLC; Elise George, Rural Action; Megan 
Haidet, Plant Conservation Alliance; Eric Jones, Institute for Culture and 
Ecology; and Rebecca McClain, Institute for Culture and Ecology.

2See also: McLain, Rebecca J.; Jones, Eric T. 2005. Nontimber forest 
products management on national forests in the United States. Gen. Tech. 
Rep. PNW-GTR-655. Portland, OR: U.S. Department of Agriculture, Forest 
Service, Pacific Northwest Research Station. Available at: <
www.fs.fed.us/pnw/pubs/pnw_gtr655.pdf>

3Alexander, S.J., J. Weigand, and K. Blatner.  2002.  Nontimber forest 
product commerce.  In: Jones, E.T., R.J. McLain, and J. Weigand, eds. 
2002.  Nontimber forest products in the United States.  University of 
Kansas Press: Lawrence, Kansas.

4Lebedys, A.  2008.  Contribution of the forestry sector to national 
economies, 1990-2006.  FAO Series title: Forest Finance Working Paper 
 - FSFM/ACC/08.  Available online at: 
<www.fao.org/docrep/011/k4588e/k4588e00.htm>.

5Executive summary: 


6The ILO document is cited in the 2008 FAO paper. For more information, 
see:
International Labour Organization.  2001.  Globalization and 
sustainability: The forestry sector and wood industries on the move. 
Report for discussion at the Tripartite Meeting on the Social and Labour 
Dimensions of the Forestry and Wood Industries on the Move. Geneva, 
Switzerland.  Available at: 
<www.ilo.org/public/english/dialogue/sector/techmeet/tmfwi01/tmfwir.pdf>.

7In the FAO study, "Northern America" includes Bermuda, Canada, Greenland, 
Saint Pierre and Miquelon and United States of America (p.8).

8Chamberlain, J., R. Bush, and A.L. Hammett. 1998. Non-Timber Forest 
Products: The Other Forest Products. Forest Products Journal 48(10): 2-12.

----------------------------------

Patricia S. De Angelis, Ph.D.
Botanist - Division of Scientific Authority
Chair - Plant Conservation Alliance - Medicinal Plant Working Group
US Fish & Wildlife Service
4401 N. Fairfax Dr., Suite 110
Arlington, VA  22203
703-358-1708 x1753
FAX: 703-358-2276

Promoting sustainable use and conservation of our native medicinal plants.
<www.nps.gov/plants/medicinal>
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