Is our focus too narrow when it comes to forests? Forests produce more than just timber, with products that are worth billions of dollars going unnoticed in official trade statistics. This oversight means we are overlooking valuable economic opportunities that could be used to combat poverty, according to an economist.There is a concern that efforts to fight poverty are not being fully utilized, as stated by an economist from the University of Copenhagen.
During the time of the Roman Empire, taxes on spices, particularly black pepper, made up a significant portion of the empire’s annual income. Additionally, in the late Middle Ages, European attempts to control the spice trade by eliminating intermediaries and establishing monopolies led to the colonization of Asia. Historically, non-timber forest products have played a significant role in the global economy.
However, today the value of non-timber forest products is often overlooked in official trade statistics for forests, both in the EU and beyond.Globally, non-wood products such as medicinal plants, edible insects, nuts, berries, herbs, bamboo, and latex play a significant role in many countries’ economies. The UN Food and Agriculture Organization (FAO) estimates that the annual producer income from these products is around US$ 88 billion. When considering the added value of processing and other value chain links, the total value of these products skyrockets into trillions of dollars. According to Professor Carsten Smith-Hall, an economist at the University of Copenhagen’s Department of Food and Resource Economics.
There is a strong argument for including non-timber forest products like ginseng, shea nuts, acai berries, baobab and acacia gum in global trade.
According to Smith-Hall, there are approximately 30,000 different non-timber forest products being traded globally, but only around fifty of them have a commodity code. This means that there are valuable products worth significant amounts of money that are not being accounted for in official statistics, making them essentially invisible. As a result, the countries and communities that produce these goods are not receiving proper compensation for them, largely due to the lack of investment in local processing companies.
The leading bioeconomy researcher emphasizes the importance of these goods in combating poverty, contributing to food security, health, and employment in low- and middle-income countries. Carsten Smith-Hall and James Chamberlain from the U.S. Department of Agriculture have written a commentary in the journal Forest Policy and Economics, advocating for the untapped potential. They stress the need to recognize the value of these goods.There are numerous unrecorded products that are traded in informal markets, including the caterpillar fungus (Ophiocordyceps sinensis). This fungus infects and erupts from the heads of mummified moth larvae. In the Tibetan plateau and the Himalayas, people collect this medicinal mushroom, known as yartsa gunbu or the Viagra of the Himalayas, whenever they can.
The caterpillar fungus is exported to China, where it is sold as both an aphrodisiac and traditional medicine. Rural gatherers can sell it for approximately €11,500 per kilo. This helps fight poverty and contributes to the transformation of local communities.Carsten Smith-Hall stated that the unrecorded trade in products such as cocoa and timber is causing local communities to miss out on potential benefits. These unrecorded trades are not reflected in official trade accounts, which means they are often overlooked when funds are allocated for industry development and new technology. As a result, many countries are not maximizing the financial opportunities that come from processing raw materials within their own borders.
Harvesting is a crucial part of the process. Processing adds value to the product.”
Additionally, non-timber products are often overlooked in natural resource management policies. Smith-Hall notes that these products may also contribute to biodiversity:
“Many of these products are at risk of overexploitation and are listed on red lists. In such cases, investment in cultivation technology may be necessary to prevent wild harvesting. However, without awareness of the importance of these products, funding may be allocated elsewhere.”
Focus and organize
Researchers believe that the main obstacle to including non-timber products in trade accounts is the large number of products. They have advice for overcoming this concern.
“Many researchers and public agencies believe that there are too many products to manage. However, if you focus on the economically important products in a country that are traded in large quantities, you can shorten the list from 2,000 items to perhaps only fifteen. This will help people understand which products are most important for trade.”The researchers suggest that it is important to identify which species are valuable and deserve more attention for research and technological investments. For instance, Carsten Smith-Hall mentions the significance of developing cultivation techniques. The researchers also emphasize the need for systematic data collection at local, national, and global levels to track trade volumes and prices. They believe that existing tools for this purpose should be more accessible. They stress the untapped potential to address extreme poverty and preserve nature and biodiversity, but it will require expanding our perspective.”The focus should shift to non-timber products and not just the traditional emphasis on timber as the sole important forest resource,” Carsten Smith-Hall concludes.
THE IMPORTANCE OF NON-TIMBER PRODUCTS
- Official trade statistics only include a limited number of non-timber product types, such as coffee, cocoa, rubber, vanilla, avocado, and bananas, all of which are considered agricultural crops. The researchers estimate that there are tens of thousands of different non-timber products traded worldwide that are not accounted for in the statistics. However, the number of economically significant products is much smaller.
- One stAccording to a study, between 3.5 to 5.8 billion people currently use non-timber products, with approximately half of these users residing in rural areas in the Global South and the other half in urban areas and the Global North. In the subtropical and tropical regions, it is estimated that about 28% of rural household income is derived from non-timber products.
One such non-timber product is shea nut oil, which is commonly used in body care products and also found in chocolate and other goods. Shea nuts are a prime example of a non-timber forestry product that plays a significant role in the livelihoods of rural West African communities.
“Shea nuts are essential for preventing further impoverishment in countries like Ghana and Burkina Faso. As the global demand for these nuts increases, local incomes are positively impacted and provide a safety net for people during unexpected financial hardships, such as cattle theft or sudden family deaths. During these difficult times, many individuals turn to harvesting shea nuts to bridge the income gap,” explains Carsten Smith-Hall.
HOW INVISIBLE TRADE WORKS
“Many non-timber products are gathered by small-scale farmers in rural areas during specific times of the year, such as when they are not occupied with fieldwork. During these times, they gather the nuts to fulfill global demand.”The harvesting of non-timber forest products is often done in remote areas, making the production process hidden from sight. Small-scale producers usually sell their goods to a local trader in the village, who then transports them to wholesalers. These wholesalers often export the products to other countries without any processing. Carsten Smith-Hall points out that these long supply chains are not easily visible.
Journal Reference:
- James Chamberlain, Carsten Smith-Hall. Harnessing the full potential of a global forest-based bioeconomy through non-timber products: Beyond logs, biotechnology, a rnrnAccording to a 2024 study in Forest Policy and Economics, there is a significant difference in forest management practices between low- and high-income countries. The study can be accessed at http://dx.doi.org/10.1016/j.forpol.2023.103105.
- James Chamberlain, Carsten Smith-Hall. Harnessing the full potential of a global forest-based bioeconomy through non-timber products: Beyond logs, biotechnology, a rnrnAccording to a 2024 study in Forest Policy and Economics, there is a significant difference in forest management practices between low- and high-income countries. The study can be accessed at http://dx.doi.org/10.1016/j.forpol.2023.103105.