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SUPPORTING COMMUNITY NTFP ENTERPRISES IN THE AMAZON
By Daniela Gomes Pinto and Peter H. May
The potential contribution of markets to the poverty alleviation and environmental sustainability aspects of the Millennium Development Goals (MDG) is much debated. In the Brazilian Amazon, this concern is pertinent when small-scale producers engage in commercial forestry production. On one hand, there may be a potential for commercial forestry to support economic development, but on the other the effects of market integration may leave forest people more vulnerable to external conditions than ever before. Engagement in forestry markets may thus pose a risk for local communities, whose business acumen, marketing skills and access to capital are not sufficiently robust to withstand the pressures of a competitive market (Scherr and Kaimowitz, 2003).
In Brazil, access to markets, credits, technology and marketing strategies are rarely available to rural small-scale forestry producers, especially in remote areas of the Amazon. Nonetheless, the growing number and diversity of local productive enterprises seeking to adhere to sustainable business practices has now attracted the attention of domestic and foreign traders. Great uncertainties still prevail about the real contribution of such undertakings towards improving wealth, health, education and environmental sustainability – these are all concerns within the realm of the MDGs.
Since 2002, Friends of the Earth – Brazilian Amazon has supported community forestry activities and small-scale community enterprises, primarily focusing on nontimber forest products (NTFPs), through the Services Help Desk for Sustainable Businesses Program (hereafter referred to as Help Desk). Services provided include legal support, training in finance and business management, and access to incentives and exemptions. Other activities sponsored by the program have included building producer-industry channels and laying the groundwork for product certification. The program also facilitates relevant institutional arrangements with state, federal or private institutions to make services available on a permanent basis. The logic behind the initiative is to help generate income and other long-term social benefits for the local community, whilst mitigating the risks associated with dependence on natural resources.
The Help Desk initially identified around 400 small-scale forest enterprises in the Amazon, of which around 250 were visited. 40 enterprises were subsequently selected to receive program services. Target communities include nearly 5,000 families, comprising smallholders, extractivists and tribal groups dependent on these enterprises.
A preliminary evaluation of four of the community enterprises the Help Desk supports shows impressive results in income generation, natural resource conservation and land tenure security. The four enterprises in question are:
Income generation
In Abonari, until 2001 individuals were responsible for marketing their own products to local markets. During the four month harvest period in 2002, the association made an income of R$1505 (about US$700). During the same four month period in 2003, and following support from the Help Desk, 4735 kg of buriti pulp was sold to a national cosmetics industry, generating an income of R$9470 (US$4400). Per-capita income during this period increased from R$89 (2002) to R$557 (2003) – an increase of nearly 470%. In the Baú indigenous community in 2005, Help Desk support facilitated the sale of 4295 liters of Brazil nut oil to the cosmetics sector, providing a per-capita income of roughly R$710 (US$330). This is a significant achievement in a community that lacks other sustainable sources of cash income. Support has also included a participatory process for new definitions of benefit sharing within the community.
Vulnerability
Improvements in management practices have contributed to a potential increase in income stability through the diversification of production. In the case of Amazonfruit, açaí seeds, previously discarded in the production process, are now being used by the community for the production of handicrafts, which are currently being exported to the USA (generating approximately US$5500 in 2005). Abonari has acquired a mini-processor for the production of buriti oil that will also make the production of pulp and oil from other abundant natural resources (e.g. açaí and cupuaçu ( Theobroma grandiflorum ) possible. For Comaru, closer contact with buyers has stimulated production of additional extractive products, such as breu
branco ( Protium pallidum ) and copaiba ( Copaifera sp ) oil. In Baú, the production of Brazil nut oil generates a 'press cake' as a by-product, which has been used in the confection of cakes, biscuits and other food items, enriching the indigenous diet withits high protein content.
Land security
Among the four enterprises evaluated, two experienced clear improvements in land tenure security, arising from legal recognition of their property rights. In the cases of Abonari and Amazonfruit, certification of their NTFPs has led to
communal formalization of their borders and initiated the process for official land titling. Secure access and land use rights are of primary importance to realize the poverty-alleviating potential of forest resources (Wiersum and Ros-Tonen 2005). Besides reducing tenure insecurity, once land titles are obtained communities may also access public or private financing with greater ease.
Environmental sustainability
At least one enterprise (Abonari) changed its extractive practices during the period of support. Community members have collectively agreed upon clear rules for buriti management thus mitigating the risk of resource exhaustion. In the Baú case, FSC Brazil nut certification has indirectly assured the formal protection of their indigenous forest land, which was constantly threatened by illegal logging, gold mining and fishing. Awareness was significantly raised regarding the risks of illegal practices within a certified area (including loss of FSC certification and the consequent impact on sales, and greater attention to the area from external actors such as governmental bodies, NGOs and certifiers). Additional income is also expected to improve maintenance of boats and vehicles used by the community to protect their land from invasions.
Conclusion
Short-term investments in forest enterprises, especially those focused on improving resource management and capacity building may help break the vicious circle that ties forest communities to poverty. Preliminary results from the evaluation of four enterprises have shown that even in the initial phases of support, improvements were visible. In all cases, the community level contribution to the MDGs was significant, particularly with regards to goals 1 and 7 (poverty reduction and environmental sustainability) through reducing vulnerability, improving land tenure security, and avoiding loss of biodiversity. Impressive results were also achieved in income generation, although little is yet known about revenue distribution among community members, or the long-term stability of such improvements. A complete assessment will be held in 2006 and 2007.
References:
Scherr, S., A. White, and D. Kaimowitz. 2003. A new agenda for forest conservation and poverty reduction: Making markets work for low-income producers. Washington, D.C.: Forest Trends.
Wiersum, K.F. & Ros-Tonen, M. 2005. The Role of Forests in Poverty Alleviation: Dealing with Multiple Millennium Development Goals. North-South Policy Brief 2005-2006. Wageningen, Wageningen UR.
Contact Information:
Daniela Gomes Pinto and Peter H. May
Friends of the Earth – Brazilian Amazon
Amigos da Terra – Amazônia Brasileira
Rua Bento de Andrade, 85 – 04503-010,
São Paulo, Brasil.
Phone: +55 11 3887 9369
Email: daniela@amazonia.org.br