Investment in Small-Scale Forestry Enterprises: A Strategic Perspective for India

Small and medium enterprises are a key driver of current double-digit industrial growth of India; however, the shrinking domestic log supply has created a unique market opportunity for global forest-based industries. This paper examines the major obstacles to investment in forests at the national and individual firm level and also the policy steps needed to overcome these obstacles. Forest-based small-scale enterprises cite finance as their principal constraint in maintaining their competitive position and developing their activities, with shortages of raw material often taking second place. India has extensive tracts of land suitable and available for forestry; afforestation, although economically viable, requires massive initial investment by both the government and private sectors. India is promoting public–private partnerships in order to increase forest cover to ensure entitlement for the investor over forest produce, along with necessary safeguards for protection of and compensation for the rights of village dwellers and communities, besides providing them additional benefits and livelihood. Governments need to tackle corruption and other forms of rent-seeking, in order to build credibility with firms, foster public trust and legitimacy and ensure their policy interventions are crafted to fit local conditions. Competition requires the Indian forest products industry to accomplish a strong improvement in its economic and technological capabilities. The challenge for forest policy-makers in India is to find the right mix of policies and incentives to attract private investment.

Urban Consumers’ Attitudes Towards Non-wood Forest Products and Services in Switzerland and an Assessment of Their Market Potential

To obtain empirical data on future market potential, a consumer survey about supply, demand and consumption of non-wood forest products and services (NWFP&S) was conducted in six cities in different cantons of Switzerland. A total of 897 persons–about 150 per city–were interviewed through arbitrary selection in which women and youths were overrepresented in comparision to the Swiss population. A high consumer acceptance of forest products and particularly forest services among the Swiss urban population was observed. Preferences in purchasing honey, berries, mushrooms and roots among other NWFP were reported. The quality of the products and their environmental friendliness ranked highest in the attitudes of potential consumers who prefer to buy NWFP at market stands, in retail traders’ shops and in drugstores. The most popular forest activities among the respondents are recreation and various kinds of sports activities followed by the gathering of NWFP. As far as the consumers’ wishes and aspirations are concerned, sports, camping and adventure rank high apart from the desire to acquire environmental knowledge about the forest flora and fauna. NWFP&S are highly estimated in Switzerland and have a considerable market potential and, if well marketed, could add substantially to the income of forest enterprises.

Sustainability Attributes of a Small-Scale Betel Leaf Agroforestry System: A Case Study in North-eastern Hill Forests of Bangladesh

The Khasia ethnic community of Bangladesh has been a population of forest villagers in the north-eastern hill forests of Bangladesh since the early 1950s, practicing a betel leaf-based agroforestry system on land granted by the Forest Department. Taking a sample forest village of the Sylhet forest division as a case study, this article examines the sustainability attributes of betel leaf production in the agroforestry system. The presence of several positive attributes of sustainability including the composition of agroforestry, disease control, soil fertility management, profitability, socio-cultural acceptability and institutional support indicate that betel leaf production within the agroforestry system is stable under the prevailing traditional management system. Income from the sale of betel leaf is the principal livelihood means and villager’s reciprocal contributions help to conserve forest resources. However, problems with land ownership and regular agreement renewal need to be resolved for the sake of their livelihoods and forest conservation.

Adaptation to Change and Re-designing of Governance Systems: Cases from Small-Scale Rural Forestry

Changes in small-scale forest governance as a reaction to global changes are viewed from the system dynamics perspective, focused on two levels of dynamic systems: the policy system with sets of interactions at the national level and the management system at the local level. These interactions are considered through permanent adaptation and re-shaping of stakeholders’ networks and positions provoking further changes in the systems. Empirical evidence has been obtained from two case studies related to small-scale rural forestry in distinct contexts—France (the Territorial Forestry Charters) and Kyrgyzstan (collaborative forest management and leasing of forest plots)—and viewed through a theoretical framework of social-political systems dynamics. The changes caused by the systems’ capacity for adaptability and resilience are expressed through a double spiral of decision-making, characterising the interactions between national policies and local management practices. The analysis leads to a conclusion that changes are basically determined by the formal and informal stakeholders’ strategies developed in a specific context and their mutual adaptation aimed at system resilience.

Valuing the benefits to the local community of supplying recreational facilities in community owned forests: an application of the contingent behaviour method

This research utilises a contingent behaviour valuation technique to value a number of improvements to recreational facilities in small-scale forests in Ireland. Willingness-to-pay estimates have previously been made for Coillte (Ireland’s state-owned forestry company) trails and forests. The total non-market value of Irish forests has also been examined. This paper adds to the literature by being the first to estimate the consumer surplus associated with recreational enhancements to Irish small-scale forest resources. The results presented indicate that community owned small-scale forestry can contribute enormously to the wellbeing of nearby urban residents, through the provision of outdoor recreational services.

A Critical Comparison of Typologies of Small-Scale Forestry in Baden-Württemberg Derived Using Single and Multiple Criteria

The paper presents a typology of small-scale forest owners in Baden-Württemberg based on multiple criteria and derived using multivariate cluster analysis of long-term accountancy network data. Four distinct types of landholders are identified based on a combination of structural, financial and biophysical data. These groups fit well with the present knowledge on small-scale forest owners in Baden-Württemberg. In addition, the members of each group display clear differences in attitudes towards forestry, giving further support for the validity of the grouping. A comparison is made of this typology and typologies derived using the single criteria of forestry region, forest size class, cutting volume, proportion of coniferous trees, forest income and main source of income. This comparison demonstrates the advantages of using cluster analysis to identify types of small-scale forest owners in south-west Germany. No matter whether structural, natural or financial data are assessed, the multiple criteria typology produced by cluster analysis provides the highest percentage of statistically significant distinctions between the medians of the groups identified. A typology based on the single criterion of ‘regions’ provides the second best fit and has the advantage of being simple to develop. A more detailed comparison between these two typologies, whereby the differences between groups were analysed based on the links between individual groups in respect to individual variables, also indicated that the multiple criteria typology was superior.

Carbon inventory methods and carbon mitigation potentials of forests in Europe: a short review of recent progress

The role of European forests and forest management in the carbon balance has received much attention in research recently. This was particularly motivated by the recognition of forest management as one possible measure countries may adopt in the framework of the Kyoto Protocol to reduce the concentration of greenhouse gases in the earth’s atmosphere. The main method to assess carbon budget in forests is based on traditional forest inventories. This method requires the conversion of measured stem volume to carbon pools. This conversion has been identified as a large source of uncertainty in past assessments. Over the last 5 years, intensive research efforts have resulted in significant advances in the reliability of forest inventory based carbon budgets. In parallel, the impact of forest management on the carbon balance of forest ecosystems has been investigated and the carbon mitigation potential of these activities has been analysed. This paper reviews the progress that was made in these two fields of research with a particular focus on European forests.

Governance Concepts and their Application in Forest Policy Initiatives from Global to Local Levels

In recent decades the concept of ‘governance’ as interdependent coordination of actors as well as the normative concept of ‘good governance’ have increasingly influenced international forest policy, to varying degrees. Using the three dimensions of multi-actor, multi-sector and multi-level governance to analyse key aspects of governance in the follow-up of global policy after the UNCED conference in 1992, this paper shows that ‘multi-actor governance’ has received considerable attention in international forest policy, mainly through promoting national forest programs. Global forest policy initiatives were less able to develop concepts to address and improve ‘multi-sector governance’ and ‘multi-level governance’, although these two dimensions of governance are particularly relevant for local levels. A number of major international forest policy initiatives, both public and private, have also focused on improving various dimensions of ‘good governance’. A review of the degree to which these international governmental initiatives have been transposed and applied at the local or regional level reveals a major gap between concepts and forest policy initiatives developed and promoted at international and national levels and their application at the regional and local levels. This calls for better concepts addressing in particular the ‘multi-level’ dimension of governance in order to improve connectivity between these levels. A range of governance change approaches can be applied, including adjusting modes of interaction, instruments and institutions.

Towards a Taxonomy of Forest Goods and Services

In light of the increasing realisation of the importance of all forest resources, the dichotomisation of forest resources into timber and non-timber is proving to be overly simplistic. Furthermore, at present there is no satisfactory operational definition for non-wood forest products and considering the tremendous variety of forest products it may be doubted that such a definition is possible. This paper examines this inadequacy and its consequences for a productive, holistic approach to the analysis of forest resources and their management. In an attempt to address these problems, a system for dealing with forest resources in a more meaningful, holistic manner is proposed. A clear distinction is made between systems of terms for classification, and terms used for comparison, of forest products. Classifying terms distinguish between classes or groups of objects with similar characteristics while comparative terms serve to highlight differences. Definitions are best served by classifying terms and this paper proposes both logical targets for definitions of forest products and a pragmatic typology for such products.

Concept and feasibility study for the integrated evaluation of environmental monitoring data in forests

In the 1970s unexpected forest damages, called “new type of forest damage” or “forest decline”, were observed in Germany and other European countries. The Federal Republic of Germany and the German Federal States implemented a forest monitoring system in the early 1980s, in order to monitor and assess the forest condition. Due to the growing public awareness of possible adverse effects of air pollution on forests, in 1985 the ICP Forests was launched under the convention on long-range transboundary air pollution (CLRTAP) of the United Nations Economic Commission for Europe (UN-ECE). The German experience in forest monitoring was a base for the implementation of the European monitoring system. In 2001 the interdisciplinary case study “concept and feasibility study for the integrated evaluation of environmental monitoring data in forests”, funded by the German Federal Ministry of Education and Research, concentrated on in-depths evaluations of the German data of forest monitoring. The objectives of the study were: (a) a reliable assessment of the vitality and functioning of forest ecosystems, (b) the identification and quantification of factors influencing forest vitality, and (c) the clarification of cause-effect-relationships leading to leaf/needle loss. For these purposes additional data from external sources were acquired: climate and deposition, for selected level I plots tree growth data, as well as data on groundwater quality. The results show that in particular time series analysis (crown condition, tree growth, and tree ring analysis), in combination with climate and deposition are valuable and informative, as well as integrated evaluation of soil, tree nutrition and crown condition data. Methods to combine information from the extensive and the intensive monitoring, and to transfer process information to the large scale should be elaborated in future.

SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria

Forest owner cooperations (FOC) are bundling wood supply from small-scale forests and some also offer additional services, such as wood harvesting or planting. FOCs are growing throughout Europe in terms of the managed timber volume. The increasing timber demand of forest-based industries as well as the new, rapidly growing demand for energy plants could lead to an under-supply in the following years in Europe. Because of high harvesting arrears in small-scale forests, FOCs are seen as an opportunity to overcome this foreseen timber shortage. The paper maps out timber mobilisation strategies using the SWOT (Strengths, Weaknesses, Opportunities and Threats) approach.

Exploring the Socio-Economic Situation of Plantation Villagers: A Case Study in Myanmar Bago Yoma

Since the early 1980s, Myanmar Forest Department has been recruiting shifting cultivators, establishing plantation villages and applying the taungya method in establishing teak plantations. From the beginning, there has been an argument about whether the program is creating ‘forest protective groups’ or ‘forest destructive groups’. A key determinant to that question from the research viewpoint is the socio-economic situation; knowing the present situation of the plantation villagers can help to understand their forest management practices. Interview surveys were carried out in three villages in Bago Yoma, the main region of the special teak plantation program, to examine the current economic benefits to plantation villagers. Questions were designed mainly to explore the incentives for people participation and the socio-economic situations of the plantation villagers. Principal component analysis was used to group landholder types. It was found that local people are willing to participate in the initial establishment of plantations. However, all the incentives relating to plantation projects are temporary, with no long-term consideration for taungya farmers, which jeopardizes the plan to create forest protective groups. It is concluded that the time has come for the Myanmar Forest Department to change its main aim of earning foreign exchange from establishment of teak plantations through the taungya method to redressing deforestation through people participation based on rural socio-economic development.

Indirect methods of large-scale forest biomass estimation

Forest biomass and its change over time have been measured at both local and large scales, an example for the latter being forest greenhouse gas inventories. Currently used methodologies to obtain stock change estimates for large forest areas are mostly based on forest inventory information as well as various factors, referred to as biomass factors, or biomass equations, which transform diameter, height or volume data into biomass estimates. However, while forest inventories usually apply statistically sound sampling and can provide representative estimates for large forest areas, the biomass factors or equations used are, in most cases, not representative, because they are based on local studies. Moreover, their application is controversial due to the inconsistent or inappropriate use of definitions involved. There is no standardized terminology of the various factors, and the use of terms and definitions is often confusing. The present contribution aims at systematically summarizing the main types of biomass factors (BF) and biomass equations (BE) and providing guidance on how to proceed when selecting, developing and applying proper factors or equations to be used in forest biomass estimation. The contribution builds on the guidance given by the IPCC (Good practice guidance for land use, land-use change and forestry, 2003) and suggests that proper application and reporting of biomass factors and equations and transparent and consistent reporting of forest carbon inventories are needed in both scientific literature and the greenhouse gas inventory reports of countries.

Implications of Indian Foresters’ Perspectives of Joint Forest Management

A study was conducted in Kullu district in the province of Himachal Pradesh in Indian Western Himalaya, to investigate the perceptions of Indian foresters about aspects of forest management relevant for effective Joint Forest Management (JFM). A lack of uniform understanding was found amongst forestry staff about almost all the studied issues pertaining to JFM. A need is identified to emphasise social aspects in the training of the foresters (including in-service training), along with the existing silvi-technical aspects. For JFM success, measures need to be devised to reduce the political interference in JFM, reduce hierarchical rigidity, and increase interaction between field staff and the administrative hierarchy. Strategies should be devised to make JFM participants as well as forestry staff equally responsible to honour their commitments with respect to JFM.

Regional employment trends of wood-based industries in Germany’s forest cluster: a comparative shift-share analysis of post-reunification development

After reunification in 1990, Germany’s forest cluster developed anew and employment in the wood-based industries differentiated very quickly. With more than 900,000 employees, it is now considered one of the most important industrial sectors in the country. This paper analysed general trends in the development of employment of wood-based industries in the German forest cluster between 1999 and 2006. Shift-share analysis was considered to be the most appropriate way to determine regional differences in the subsection DD/20 ‘Manufacture of wood and wood products’ of the code “Classification of Economic Activities in the European Community, Revision 1.1” (NACE): the sawmill industry, the wood-based panel industry, the wood construction industry, the wood-based packaging industry, and the miscellaneous wood products industry. This method decomposed the change of employment into three different components that are due to that change: national trends, (industrial) sectoral trends, and regional conditions. Employment in the selected wood-based industries showed a significantly larger decrease than overall trends in both the producing industries and the whole economy of Germany: a continual loss of employees could be observed over the time period, affecting almost all of the selected wood-based industries. However, federal states in western and eastern Germany experienced divergent trends between 1999 and 2006, as different absolute and relative regional share components indicated in the shift-share analysis. This method allows of identifying regional disparities and characterising regions with positive (mainly eastern federal states) and negative (mainly western federal states) rates of employment growth. The research suggests that positive employment trends in eastern Germany’s wood-based industries can mainly be attributed to regional factors such as comparatively higher subsidies for new investments, lower labour costs, lower land values or infrastructural peculiarities.

Future orientation and planning in forestry: a comparison of forest managers’ planning horizons in Germany and the Netherlands

Long range (or strategic) planning is an important tool for forest management to deal with the complex and unpredictable future. However, it is the ability to make meaningful predictions about the rapidly changing future that is questioned. What appears to be particularly neglected is the question of the length of time horizons and the limits (if any) to these horizons, despite being considered one of the most critical factors in strategic planning. As the future creation of values lies within individual responsibility, this research empirically explored the limits (if any) of individual foresters’ time horizons. To draw comparisons between countries with different traditions in forest management planning, data were collected through telephone surveys of forest managers in the state/national forest services of the Netherlands and Germany. In order to minimize other cultural differences, the research in Germany concentrated on the federal state of Nordrhein-Westfalen, which has considerable similarities with the Netherlands, e.g. in topography, forest types and forest functions. The results show that, in practice, 15 years appears to be the most distant horizon that foresters can identify with. This is in sharp contrast to the time horizons spanning decades and even generations that are always said to exist in forestry. The “doctrine of the long run”—the faith in the capacity of foresters to overcome the barriers of the uncertain future and look ahead and plan for long-range goals—which in many countries still underlies traditional forest management, can therefore be rejected.

Factors affecting farm operators’ interest in incorporating riparian buffers and forest farming practices in northeast and southeast Missouri

Interest in the incorporation of riparian buffers and forest farming were modeled following agricultural conservation and agroforestry adoption studies. Attitudes, individual characteristics, economic diversity of landowners’ household portfolio, and physical and ecological conditions were explanatory variables in Logit regression models of interest. Habitus and field, the values and institutions of farm operators, were included in the framework. Knowledge of the practice, perceived problems with the environment and attitude/habitus variables had a positive effect on the probability of being interested in riparian buffers. Knowledge of the practice was the most important factor in explaining interest in the case of forest farming, followed by attitudes about trees and concern for future generations, both habitus variables. Field variables like CRP payments representing familiarity with government programs that support conservation, had no significant effect on interest in riparian buffers. Older farmers were less interested in both practices, consistent with other findings. Existing economic diversification of the household portfolio had no effect on the probability of being interested in either practice.

Forest canopy cover and canopy closure: comparison of assessment techniques

The article, in relation to the importance of canopy cover as stand density and biodiversity indicator, describes the main related field measurement techniques. In particular the authors emphasize the distinction between canopy cover and canopy closure when forest cover is usually measured through the current techniques. After a conceptual clarification the study focuses on the comparison of three ground-based canopy cover estimation techniques and two ground-based canopy closure estimation techniques, analyzing the data collected in a test carried out on Alpine stands. As expected, the results indicate that some techniques [GRS densiometer, visual estimation and hemispherical photographs (HP) assessed with a narrow angle of view] are more suitable to measure canopy cover, while others (spherical densiometer and HP with a wide angle of view) are more adapted to estimate canopy closure. In general, the techniques that use a wide angle of view tend to overestimate the canopy cover.

The Embeddedness of Collective Action in Nepalese Community Forestry

Collective action by local communities has been recognised as crucial for effective management of natural resources, particularly the management of forests in rural settings in developing countries. However, the processes and outcomes of collective action in forest management are often analysed through a narrow rational choice model, ignoring the impacts of wider social, political and economic processes in conditioning peoples’ decisions to act (or not to act) collectively. Optimistic assumptions are made for collective action being instrumental to enhance both social and ecological outcomes, but there is a paucity of empirical evidence on how and why the condition of forests has improved (or deteriorated) under collective action, and what impacts the change in forest condition has on various groups within local communities. This study critically examines the emergence, evolution and outcomes of collective action in a case of community forestry in Nepal. A mix of qualitative and quantitative methods has been used to collect primary data from the forest, households, key informants and focus groups. The emergence and outcomes of collective action is found to be embedded in social, economic and political relationships, where powerful actors control the use of forests in order to ensure conservation, thereby resulting in the underutilisation of forest products. Poor users, who depend heavily on forests, are found to be worse off economically under community forestry, but still engage in collective action for a variety of socio-political reasons. This contradicts the conventional wisdom which assumes that people only cooperate when they benefit from cooperation. It is concluded that a deeper understanding of the embeddedness of community forestry is needed in order to achieve the potential of collective action.

Forest Allocation Policy and Level of Forest Dependency of Economic Household Groups: A Case Study in Northern Central Vietnam

A new forest policy of allocating forestland to individual households for management and development, has been applied in Vietnam since the early 1990s. This study was designed to examine how local forest-related people have used forestland and forest resources under the new policy, and to determine their level of dependency on forests. An upland forest-related community in northern central Vietnam, where the policy was introduced in 2002, was chosen as a case study. It was found that local residents in the community have not complied with the forest allocation policy well, in that they violated the policy to freely lend forestland to and borrow from villagers for cropping purposes, regardless of whether they were rich or poor, had enough land or not, or were legally forest recipients. Regarding forest dependency, all households studied lived on forest resources (forestland and forest products). More than 65% of the total annual income of poorer households was derived from the forest, compared to less than 40% for the richer households. Forest-derived income accounted for more than 75% in their total income in some of the poorest households.