Human Development Report-Chapter 4

Chapter 4

Upgrading value chains for
non-timber forest products

73 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 74

4. Upgrading value chains for non-timber forest products Bamboo: Potential in domestic and international markets

Beyond timber and woodfuel, Cambodia’s forests diversification are clear. But much depends on Collection and transport: Bamboo is available in size. Bamboo poles are mostly sold in depots and
provide a wealth of other resources including plants the sustainable management of local resources in at least 12 provinces and mainly collected for construction shops. Some basket producers with
and wildlife.86 Properly managed and regulated and the ability of local communities to draw household use, and for fisheries and construction. access to markets sell their products directly to
harvesting and marketing of these non-timber on them.89 So far, these ends have largely not It is rarely traded due to low market demand; users. Low-value baskets are exported to Thailand
products can deliver significant contributions been achieved, even as the forest resource base collection for trade only takes place when there but export is highly vulnerable to economic shifts
both to forests and people in rural communities. is steadily eroding. Rural communities are are sure buyers. Demand for poles and culms Key findings from the value chain analysis
losing potential benefits while their traditional has declined over the years, and collection is The bamboo sector is characterized by labour-
Around 3 million households Around 3 million households in Cambodia safety net is being undermined. Market links physically demanding, relying on handsaws. intensive production, and rudimentary and
in Cambodia depend on depend on non-timber forest products for their for some products are underdeveloped, and Those with alternative livelihoods tend to avoid low-cost product alternatives. Bamboo culm
livelihoods.87 Many are rural and poor. They current regulations are not fully aligned behind bamboo collection. Transport is generally by raft, collection and processing contributes a household
non-timber forest products turn to forests to build homes and boats, and sustainable harvesting and local livelihoods.90 ox carts or tractors. daily net income ranging from less than $2 to
for their livelihoods to make baskets and other household items. $34, depending on the proximity of resources
Honey, vegetables, fruits and fish are among Better support could come through upgrading Processing: The main bamboo products include and markets, available physical capital (i.e., tools,
many sources of food, and a range of plants the value chains of non-timber forest products. baskets, incense sticks and food sticks. These transport), market demand and productivity level.
supply medicines. Some products, such as resin, This depends on developing products and products are generally basic, labour intensive and
provide important cash incomes, especially in markets that open new commercial and livelihood low in value. Greater benefits for local bamboo producers
indigenous communities.88 opportunities, under a framework of enhancing • Baskets: The production of seasonal, of incense and food sticks and woven bamboo
human development and the sustainable products can be achieved through enhanced
Long-term benefits for human health and management of forests and ecosystems. functional, low-value baskets is mainly by production efficiency, increased volume, Greater benefits for local
nutrition, household income and livelihood women at the household level, using simple improved quality and designs, and expanded bamboo producers can be
tools. Production has declined due to low market reach. These advances depend on achieved through enhanced
Tracing value chains for five products interest and scant benefits. ready access to bamboo resources, tools and production efficiency,
• Incense sticks: Production capacity for equipment, and transportation, which can increased volume, improved
To start defining what this support might look commodity is harvested, processed and sold. It incense sticks is low at 7 to 10 kilogrammes increase value and income. Other factors are quality and designs, and
like, this report applied value chain analysis focuses on who is involved, and how each actor of sticks per day, compared with India, where appropriate technology and guarantees of sales expanded market reach
to five non-timber forest products, bamboo, benefits or profits.91 The results can help identify hand-operated machines allow a production volume through market access support, such as
Our value chain analysis rattan, resin, forest honey and medicinal opportunities and challenges for upgrading value capacity of 20 to 30 kilogrammes a day. through links with traders or buyers.
focuses on five non-timber plants. All of these are commonly harvested chains, given factors such as resource access, • Food sticks: Domestic production only Market shares could also be expanded for woven
for household use, and for trade and income. regulatory frameworks, power relations and meets about 10 to 15 percent of local bamboo handicrafts if more export is enabled—for
forest products, bamboo, Value chain analysis examines how a product or environmental change.92 demand. Locally made sticks are of low example, to Thailand—as these products create the
rattan, resin, forest honey quality compared to imports from China. highest number of jobs and level of value addition
among the bamboo processing industries.
and medicinal plants Wholesale/export/retail: A limited number of
bamboo retailers and wholesalers are mainly small

Figure 4.1.

The value chain for bamboo

Photo credit: NTFP-EP Sources: Khou 2015; National Institute of Statistics 2013; NTFP-EP 2015; NTFP 2016; Oxfam 2006; PMIC 2011.

75 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 76

Rattan: Improved competitiveness aimed at exports Resin: Investments beyond the raw value chain

Collection/aggregation: An estimated of low-value products per year since 2009.96 Some Collection/aggregation: Resin has traditionally Key findings from the value chain analysis
290,000 households94 collect rattan, mainly collectors with motorbikes transport supplies been harvested for income in at least 10 provinces. Collecting resin can provide a household with
from wild growth outside community-managed directly across borders for informal trade. Major activities in the north and north-east take income of $340 to over $1,700 per year, depending
forests. There are no rattan plantations except place especially in the Prey Lang Landscape and on the number and age of traditionally owned
for enrichment plantings supported by non- Key findings from the value chain analysis the Eastern Plains Landscape, where an estimated trees and market demand.101 The estimated value
governmental organizations (NGOs). By one 28 to 43 percent of households engaged in resin of the sector is at $4.7 million to $15 million.
estimate 1,500 tons of rattan can be sourced The net household income from rattan collection tapping in 2014.98 Changes in land use and illegal The resin value chain has only marginal value
across the country from 8,000 hectares that are per season can range from a low of $60 to a high logging threaten the volume and stability of resin addition and is highly vulnerable to limited
under sustainable resource management.95 of $575. The processing of rattan contributes supplies, however. markets. Currently, there is little room to
from $315 to $1,575 per year to a household.97 Semi-processing/wholesale/export/processing: increase benefits in the raw value chain except
Permits and royalty payments are required through semi-processing, increased volumes and
Increased benefits would come Semi-processing/production: Post-harvest For collectors, value is derived through volume. for semi-processing of resin,99 which includes streamlining the value chain .
through resource management treatment and processing of rattan requires boilers Yet unsustainable harvesting and management storage and additional activities considered Protecting resin trees from illegal logging and
and space to dry. Machines used for splitting and will diminish income in the long term and beyond customary rights. Processing capacity enhancing production through plantings are
oriented around sustainable sizing are mostly obsolete, producing copious weaken the rattan value chain. Increased is very weak and limited to low-value products important measures to secure and increase
harvesting, enrichment planting waste and low-quality products. benefits would come through resource for local markets. Finished products include supplies. Limited domestic and export markets
management oriented around sustainable traditional torches made by resin collectors or call for investments in new and high-value
or cultivation in Wholesale/export/retail: Quotas, transport harvesting, enrichment planting or cultivation local households for lighting, fire starters and products, and the development of new value
community-managed forests, and export permits, and royalty payments are in community-managed forests, and selective wood finishes. chains. Diversifying to products such as varnish
and selective collection mainly required for semi-finished and finished products collection mainly of higher value rattan. Retail: A few long-established enterprises in and paint can offer benefits when market prices
at commercial scale. Most harvested rattan is Phnom Penh and provincial capital markets for raw resin are low. Investment in research and
of higher value rattan sold unprocessed to intermediaries/traders partly In rattan processing, more could be done sell raw and filtered resin. Boat and house development, entrepreneurship promotion and
due to regulatory requirements and partly due to to improve product design and increase owners purchase raw resin as a cheap varnish. strengthened support services could develop the
convenience. There are 65 rattan furniture retailers productivity. An export strategy is key to Wholesalers are usually the main retailers value chain, and foster new products and markets. Protecting resin trees from
who source directly from manufacturers. Exports develop the processed rattan industry once but there are also microretailers. About 20 illegal logging and enhancing
are weak, mainly focused on less than 1,000 tons competitiveness and capacity are strengthened. wholesalers and exporters source from 17,800 production through plantings
resin tappers around the country.100 are important measures to
secure and increase supplies

Figure 4.2.

The value chain for rattan Figure 4.3.

The value chain for resin

Sources: National Institute of Statistics 2014; Chey et al. 2015; International Trade Centre 2016; Khou and Vuthy 2006; Rattan Sources: NTFP-EP 2011; Prom 2011, 2017; SFB 2015; Winrock 2015.
Association of Cambodia 2017; Val 2009; WWF 2010, 2011, 2013.

77 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 78

Forest honey: Strong prospects for growth and value Medicinal plants

Collection/aggregation: Forest honey used to and high-end tourist boutiques. Efforts have Collection: Medicinal plants are mainly sourced Key findings from the value chain analysis
be collected only for household consumption been made to penetrate the export market, but from eight provinces. In 2012, at least 40 to 50 A collector of medicinal plants can earn $3 a
but is now an important source of supplementary export is still negligible. percent of Cambodians still turned to traditional day, while a wholesaler can earn double that
income in 10 provinces. In villages near forested Key findings from the value chain analysis medicine, according to the Ministry of Health. amount. A processor can earn up to $26 a day,
areas, between 15 and 30 percent of households While a small sector, forest honey has high potential An estimated 200,000 households collected herbs but this requires a high level of capitalization. For
depend on honey.102 In 2014, 31,000 households for growth and high-value benefits for rural people. in 2014, including for medicinal purposes. 105 ordinary medicinal plants, margins are small for
were involved in forest honey collection.103 Seasonal, limited supplies and strong demand make Medicinal plants are collected from wild and all actors, and income and profits are generated
the value chain highly competitive. Forest honey cultivated sources. About 70 percent come through volume.
Forest honey from native species, mainly Apis can contribute $280 per household each year, 104 up from primary dense forests and 19 percent are
Enhanced production, inputs for dorsata and Apis cerana, is collected primarily to 40 percent of household income. from secondary degraded forests. Opportunistic High dependence on traditional medicines,
improved quality and perceived from wild sources by households with traditional Enhanced production, inputs for improved collection sometimes occurs in response to high Government support and new generations of
honey-hunting skills. Production was small at an quality and perceived value, specialty honey demand and prices. traditional healers underpin a stable domestic
value, specialty honey estimated 40 to 50 tons in 2009. Forest honey positioning and market access can increase Semi-processing/aggregation/wholesale/ market, although there are opportunities for
positioning and market access is harvested based on customary rights in state benefits. Microfinance, transportation and processing: Aggregators at the village and innovation and upgrades. A well-organized and
forests for only about three to four months a year. telecommunication are some support services district levels consolidate collected supplies, sort active network of traders and retailers operates in
can increase benefits Roving and village traders collect and transport that would facilitate the engagement of small- them for quality, and dry and repack them for key collection areas.
honey that has been harvested. scale producers in the value chain. While social transport. Semi-processing is simple and crude,
enterprises currently try to provide a long-term and often consists of collectors cutting plants
Processing: For local markets, honey processing and stable engagement, this is difficult because of into small pieces and drying them in the forest. Engaging collectors in sustainably managing Besides sustainable
is rudimentary, composed of comb squeezing, high competition, and limited entrepreneurial, Retail/export: Phnom Penh is the main hub for resource areas where medicinal plants grow harvesting protocols,
filtering and bottling. Some honey collectors and organizational and financial capacities. the national market, although records on traded is necessary to sustain supplies over the long production enhancement,
traders use makeshift tools and recycled bottles medicinal plants are scarce. Export markets term. Besides sustainable harvesting protocols, standards development and an
for processing, usually not meeting standards of Domestic, regional and tourism markets offer are mainly Thailand and Viet Nam, with some production enhancement, standards development international trade strategy
quality and hygiene. Competition for the limited opportunities for increased profits. Unchecked re-exports to China by wholesalers or agents and an international trade strategy should be should be formulated, aimed at
wild honey supply is very high. price increases, and uncertain quality and through arrangements with consolidators. Some formulated, aimed at growing domestic and growing domestic and
authenticity impact competitiveness in domestic supplies are transported directly to borders international markets for natural medicine and international markets
Wholesale/retail: A mix of enterprises and and international markets, however. This calls without passing through the capital. biotrade. The tourist market offers opportunities
NGO-initiated social enterprises package and for measures guaranteeing quality through the for direct sales by collectors and wholesalers.
sell forest honey, including Café Mondulkiri, implementation of national honey standards and Improved processing and packaging should help
CEDAC, Nature Wild and Bee Unlimited. certification. meet standards for safe consumption.
The retail sale of honey includes direct sale to
Figure 4.4. consumers, small market kiosks, organic shops Figure 4.5.

The value chain for honey The value chain for medicinal plants

Sources: Andaya 2013; National Institute of Statistics 2014; McNaughton and Meang 2009; MSME 2010; SFB 2015. Sources: UNDP Cambodia 2017b; Walston 2008; Khou et al. 2009; Ministry of Health 2012; WWF 2009.

79 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 80

Challenges to productivity and sustainability Recommendations

Value chain analysis reveals several challenges policies is constrained by insufficient human Cambodia’s underdeveloped value chains for global markets. It should focus on higher-value Drawing greater benefits will
faced by rural people striving to benefit from resources and budgets. Regulation focuses mainly non-timber forest products undercut livelihood activities geared towards greater economic require regulatory interventions;
non-timber forest products. These challenges on customary access and subsistence, with limited and income opportunities for rural people, benefits for local producers as well as improved value chain improvements that
occur across all stages of the value chain, from attention to commercialization. Initiatives to and unsustainable production of non-timber natural resource management and human bolster community
sourcing to production to marketing, resulting in improve the business environment in Cambodia forest products can degrade the forest resource development in rural communities. empowerment, resilience and
many lost opportunities. have not yet addressed the specifics of forest- base. Products are not contributing to human income; and sustainable
Benefits are typically constrained by limited product-based enterprises. development and ecosystem sustainability in the At the harvesting and processing stages, management of forest
production capacity and inadequate use of In general, there is still insufficient support ways that they could. Drawing greater benefits improvements in productivity and quality resources.
appropriate tools. Costs can be high and quality for enterprise development, skills training, will require regulatory interventions; value could come from facilitating access to simple and
low, resulting in uncompetitive products. Poor product development and trade, limiting chain improvements that bolster community appropriate equipment. New products could be
capacity for investment, innovation and design potential for growth, innovation and market empowerment, resilience and income; and developed from available materials, such as bamboo
curtails opportunities for market expansion. expansion. Capacity-building and business sustainable management of forest resources. pellets used for energy and soil enrichment. Resin
Without technical advice and access to capital, it development support have mainly been provided with anti-fungal and anti-termite properties
will be hard to improve production, especially at by NGOs in discrete projects. These typically Address regulatory barriers has potential in the production of paint and
the community level. focus on small groups or just some actors in cosmetics. Improving local knowledge of quality
Harvesting is often unsustainable, depleting the value chain, without the long-term support Regulatory and governance issues are key barriers requirements can guide harvesting methods and
the resource base and eroding potential necessary to develop and grow the sector as a to greater sustainability and profitability for sorting, leading to greater competitiveness in
income. In many cases, external factors such whole. Post-project uptake has been slow as it is local producers. Policy reform could streamline domestic and international markets.
as needs for large-scale commercial agriculture not clear who should do this. regulations and legal requirements to ensure that
threaten resources. Other issues arise among Other issues stem from unclear and complex commercial harvesting fully benefits community Upgrading market access and marketing depends
collectors. With insecure access to resources, procedures for permits and royalties in relation producers, especially in conservation areas. This on providing enterprise support programmes
they have little incentive to pursue product to commercial trade and processing. These could include more transparent and accessible and low-cost finance. Support strategies could
enhancement, investment or sustainability. erect a compliance barrier for small enterprises, ways to secure permits and licenses. target small and/or local enterprises to facilitate
Dependence on wild supplies further limits preventing them from expanding their market expansion into formal export markets, provide
volume and predictability. reach or moving beyond informal activities. Sustainable production should be encouraged assistance with product upgrades that add value,
through more secure property rights for local and/or aid sustainability measures to ensure
Policy support for value addition and Value chains in general are underdeveloped people, such as through community forestry or long-term viability. These strategies could bolster
commercialization of non-timber forest and depend on single and traditional markets. community protected areas. This can make local the entire non-timber forest product sector, with
products has been limited. The National Information on the demands of domestic and custodianship of resources more likely. Secure some specific market opportunities summarized
Biodiversity Strategy and Action Plan 2016, the international markets is not readily available to property rights will also enable local communities in Box 4.1.
National Forestry Program, the Draft National suppliers. The low level of support for enterprise, to invest in long-term, higher-value production of
Strategy for Production Forestry, the National product and market development leaves value non-timber forest products, in a sustainable fashion. Strengthening collaboration among value chain
Protected Area Strategic Management Plan and the chain actors to operate independently, often actors would make local producers more likely
sub-decree on community forestry have identified missing vital opportunities for value addition Measures are also needed to ensure that to access the resources that they need, and
non-timber forest products as key to improving (see Box 4.1). Financing is also a challenge. commercial production does not undermine the meet legal requirements and quality standards.
rural livelihoods. Yet the implementation of these forest safety net in communities that depend Collaboration could be cultivated through new
Box 4.1. on forest resources for food, fuel and fodder. social enterprises or cooperatives, or through
Sustainable resource management is the only way existing institutions like community forestry.
Potential new markets for non-timber forest products to guarantee resource availability for commercial
and customary uses in the long term.
Bamboo: India imports 2,500 tons a day.106 Estimated annual at $748 million in 2010.109 Top exporters in Asia are India, Developing collective processing centres for local
domestic demand in Cambodia for food sticks is at least 950 Indonesia, Lao People’s Democratic Republic, Singapore, Improve value chains producers could facilitate the collective purchase
to 1,000 tons, of which the current domestic production share Thailand and Viet Nam. of capital-intensive equipment, and negotiation
is only 10 to 15 percent.107 This calls for new interventions in market access, of market access and better prices, ensuring that
Forest honey: The total national market estimate is 500 tonnes, financing for local producers and technology value is captured at the local level.
Rattan: Viet Nam’s rattan sector was valued at $225 million with the high-value segment and tourist markets estimated at development . An overarching national strategy
in 2014.108 Japan is a market with continued interest in natural 55 to 75 tonnes per year, equivalent to $3.2 million per year.110 should be designed to boost the competitiveness
colour rattan. of non-timber forest products in regional and
Medicinal plants: China is currently the world’s largest producer,
Resin: The global market for all types of resin was valued user and exporter of medicinal and aromatic plant ingredients.111

77 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Forest honey: Strong prospects for growth and value

Collection/aggregation: Forest honey used to and high-end tourist boutiques. Efforts have
be collected only for household consumption been made to penetrate the export market, but
but is now an important source of supplementary export is still negligible.
income in 10 provinces. In villages near forested Key findings from the value chain analysis
areas, between 15 and 30 percent of households While a small sector, forest honey has high potential
depend on honey.102 In 2014, 31,000 households for growth and high-value benefits for rural people.
were involved in forest honey collection.103 Seasonal, limited supplies and strong demand make
the value chain highly competitive. Forest honey
Enhanced production, inputs for Forest honey from native species, mainly Apis can contribute $280 per household each year, 104 up
improved quality and perceived dorsata and Apis cerana, is collected primarily to 40 percent of household income.
from wild sources by households with traditional Enhanced production, inputs for improved
value, specialty honey honey-hunting skills. Production was small at an quality and perceived value, specialty honey
positioning and market access estimated 40 to 50 tons in 2009. Forest honey positioning and market access can increase
is harvested based on customary rights in state benefits. Microfinance, transportation and
can increase benefits forests for only about three to four months a year. telecommunication are some support services
Roving and village traders collect and transport that would facilitate the engagement of small-
honey that has been harvested. scale producers in the value chain. While social
enterprises currently try to provide a long-term
Processing: For local markets, honey processing and stable engagement, this is difficult because of
is rudimentary, composed of comb squeezing, high competition, and limited entrepreneurial,
filtering and bottling. Some honey collectors and organizational and financial capacities.
traders use makeshift tools and recycled bottles
for processing, usually not meeting standards of Domestic, regional and tourism markets offer
quality and hygiene. Competition for the limited opportunities for increased profits. Unchecked
wild honey supply is very high. price increases, and uncertain quality and
authenticity impact competitiveness in domestic
Wholesale/retail: A mix of enterprises and and international markets, however. This calls
NGO-initiated social enterprises package and for measures guaranteeing quality through the
sell forest honey, including Café Mondulkiri, implementation of national honey standards and
CEDAC, Nature Wild and Bee Unlimited. certification.
The retail sale of honey includes direct sale to
Figure 4.4. consumers, small market kiosks, organic shops

The value chain for honey

Sources: Andaya 2013; National Institute of Statistics 2014; McNaughton and Meang 2009; MSME 2010; SFB 2015.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 78

Medicinal plants

Collection: Medicinal plants are mainly sourced Key findings from the value chain analysis
from eight provinces. In 2012, at least 40 to 50 A collector of medicinal plants can earn $3 a
percent of Cambodians still turned to traditional day, while a wholesaler can earn double that
medicine, according to the Ministry of Health. amount. A processor can earn up to $26 a day,
An estimated 200,000 households collected herbs but this requires a high level of capitalization. For
in 2014, including for medicinal purposes. 105 ordinary medicinal plants, margins are small for
Medicinal plants are collected from wild and all actors, and income and profits are generated
cultivated sources. About 70 percent come through volume.
from primary dense forests and 19 percent are
from secondary degraded forests. Opportunistic High dependence on traditional medicines,
collection sometimes occurs in response to high Government support and new generations of
demand and prices. traditional healers underpin a stable domestic
Semi-processing/aggregation/wholesale/ market, although there are opportunities for
processing: Aggregators at the village and innovation and upgrades. A well-organized and
district levels consolidate collected supplies, sort active network of traders and retailers operates in
them for quality, and dry and repack them for key collection areas.
transport. Semi-processing is simple and crude,
and often consists of collectors cutting plants Engaging collectors in sustainably managing Besides sustainable
into small pieces and drying them in the forest. resource areas where medicinal plants grow harvesting protocols,
Retail/export: Phnom Penh is the main hub for is necessary to sustain supplies over the long production enhancement,
the national market, although records on traded term. Besides sustainable harvesting protocols, standards development and an
medicinal plants are scarce. Export markets production enhancement, standards development international trade strategy
are mainly Thailand and Viet Nam, with some and an international trade strategy should be should be formulated, aimed at
re-exports to China by wholesalers or agents formulated, aimed at growing domestic and growing domestic and
through arrangements with consolidators. Some international markets for natural medicine and international markets
supplies are transported directly to borders biotrade. The tourist market offers opportunities
without passing through the capital. for direct sales by collectors and wholesalers.
Improved processing and packaging should help
meet standards for safe consumption.

Figure 4.5.

The value chain for medicinal plants

Sources: UNDP Cambodia 2017b; Walston 2008; Khou et al. 2009; Ministry of Health 2012; WWF 2009.

79 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Challenges to productivity and sustainability

Value chain analysis reveals several challenges policies is constrained by insufficient human
faced by rural people striving to benefit from resources and budgets. Regulation focuses mainly
non-timber forest products. These challenges on customary access and subsistence, with limited
occur across all stages of the value chain, from attention to commercialization. Initiatives to
sourcing to production to marketing, resulting in improve the business environment in Cambodia
many lost opportunities. have not yet addressed the specifics of forest-
Benefits are typically constrained by limited product-based enterprises.
production capacity and inadequate use of In general, there is still insufficient support
appropriate tools. Costs can be high and quality for enterprise development, skills training,
low, resulting in uncompetitive products. Poor product development and trade, limiting
capacity for investment, innovation and design potential for growth, innovation and market
curtails opportunities for market expansion. expansion. Capacity-building and business
Without technical advice and access to capital, it development support have mainly been provided
will be hard to improve production, especially at by NGOs in discrete projects. These typically
the community level. focus on small groups or just some actors in
Harvesting is often unsustainable, depleting the value chain, without the long-term support
the resource base and eroding potential necessary to develop and grow the sector as a
income. In many cases, external factors such whole. Post-project uptake has been slow as it is
as needs for large-scale commercial agriculture not clear who should do this.
threaten resources. Other issues arise among Other issues stem from unclear and complex
collectors. With insecure access to resources, procedures for permits and royalties in relation
they have little incentive to pursue product to commercial trade and processing. These
enhancement, investment or sustainability. erect a compliance barrier for small enterprises,
Dependence on wild supplies further limits preventing them from expanding their market
volume and predictability. reach or moving beyond informal activities.

Policy support for value addition and Value chains in general are underdeveloped
commercialization of non-timber forest and depend on single and traditional markets.
products has been limited. The National Information on the demands of domestic and
Biodiversity Strategy and Action Plan 2016, the international markets is not readily available to
National Forestry Program, the Draft National suppliers. The low level of support for enterprise,
Strategy for Production Forestry, the National product and market development leaves value
Protected Area Strategic Management Plan and the chain actors to operate independently, often
sub-decree on community forestry have identified missing vital opportunities for value addition
non-timber forest products as key to improving (see Box 4.1). Financing is also a challenge.
rural livelihoods. Yet the implementation of these
Box 4.1.

Potential new markets for non-timber forest products

Bamboo: India imports 2,500 tons a day.106 Estimated annual at $748 million in 2010.109 Top exporters in Asia are India,
domestic demand in Cambodia for food sticks is at least 950 Indonesia, Lao People’s Democratic Republic, Singapore,
to 1,000 tons, of which the current domestic production share Thailand and Viet Nam.
is only 10 to 15 percent.107
Forest honey: The total national market estimate is 500 tonnes,
Rattan: Viet Nam’s rattan sector was valued at $225 million with the high-value segment and tourist markets estimated at
in 2014.108 Japan is a market with continued interest in natural 55 to 75 tonnes per year, equivalent to $3.2 million per year.110
colour rattan.
Medicinal plants: China is currently the world’s largest producer,
Resin: The global market for all types of resin was valued user and exporter of medicinal and aromatic plant ingredients.111

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 80

Recommendations

Cambodia’s underdeveloped value chains for global markets. It should focus on higher-value Drawing greater benefits will
non-timber forest products undercut livelihood activities geared towards greater economic require regulatory interventions;
and income opportunities for rural people, benefits for local producers as well as improved value chain improvements that
and unsustainable production of non-timber natural resource management and human bolster community
forest products can degrade the forest resource development in rural communities. empowerment, resilience and
base. Products are not contributing to human income; and sustainable
development and ecosystem sustainability in the At the harvesting and processing stages, management of forest
ways that they could. Drawing greater benefits improvements in productivity and quality resources.
will require regulatory interventions; value could come from facilitating access to simple and
chain improvements that bolster community appropriate equipment. New products could be
empowerment, resilience and income; and developed from available materials, such as bamboo
sustainable management of forest resources. pellets used for energy and soil enrichment. Resin
with anti-fungal and anti-termite properties
Address regulatory barriers has potential in the production of paint and
cosmetics. Improving local knowledge of quality
Regulatory and governance issues are key barriers requirements can guide harvesting methods and
to greater sustainability and profitability for sorting, leading to greater competitiveness in
local producers. Policy reform could streamline domestic and international markets.
regulations and legal requirements to ensure that
commercial harvesting fully benefits community Upgrading market access and marketing depends
producers, especially in conservation areas. This on providing enterprise support programmes
could include more transparent and accessible and low-cost finance. Support strategies could
ways to secure permits and licenses. target small and/or local enterprises to facilitate
expansion into formal export markets, provide
Sustainable production should be encouraged assistance with product upgrades that add value,
through more secure property rights for local and/or aid sustainability measures to ensure
people, such as through community forestry or long-term viability. These strategies could bolster
community protected areas. This can make local the entire non-timber forest product sector, with
custodianship of resources more likely. Secure some specific market opportunities summarized
property rights will also enable local communities in Box 4.1.
to invest in long-term, higher-value production of
non-timber forest products, in a sustainable fashion. Strengthening collaboration among value chain
actors would make local producers more likely
Measures are also needed to ensure that to access the resources that they need, and
commercial production does not undermine the meet legal requirements and quality standards.
forest safety net in communities that depend Collaboration could be cultivated through new
on forest resources for food, fuel and fodder. social enterprises or cooperatives, or through
Sustainable resource management is the only way existing institutions like community forestry.
to guarantee resource availability for commercial
and customary uses in the long term. Developing collective processing centres for local
producers could facilitate the collective purchase
Improve value chains of capital-intensive equipment, and negotiation
of market access and better prices, ensuring that
This calls for new interventions in market access, value is captured at the local level.
financing for local producers and technology
development . An overarching national strategy
should be designed to boost the competitiveness
of non-timber forest products in regional and