The presentation of Duncan Macqueen, principal researcher in IIED’s Natural Resources Group, to the Chatham House event ‘Small scale and community forest producers: the challenges and opportunities of legality verification’ held at the British Academy, London, 19-20 May 2014. The presentation focuses on alternative business models that enable local forest farm producers to demonstrate legality and access the market. More information on Duncan Macqueen’s work: http://tinyurl.com/DuncanMacqueen. Further details of the workshop: http://tinyurl.com/mkmol9c.

1. 1
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Author name
Date
Duncan
Macqueen
Duncan Macqueen
Alternative
business models
● Are there innovative business models enabling
local forest farm producers to demonstrate
legality and access the market?
● Are there organisational approaches through
which these models might be scaled up?
● What are the risks for producers?

2. 2
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Macro-level observations
• Forest cover change
• Areas gaining forest: China,
Norway, Sweden, US have
shared enabling conditions
• Tenure reform in favour of
local control
• Local organisation for
business (various models)
• Technical extension and
business support for market
access
• Sweden since 1906
• China since 1980s – 2002
• Much messy middle!

3. 3
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Prioritising
support for
locally
controlled
forest
enterprises
Launched

4. 4
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Aggregation
quantity, quality, time
Marketing
advertising / retailing
The Market
Secure
legal rights
Market
access &
business
capacity
Technical
extension
Groups to
defend
interests
1. Rights-based advocacy
3. Technical extension
2.Enterprisesupport
4.Organisationbuilding
Right-holders
manage
Natural resources and need Capital
Alternative business models
Capital seeks Natural resources and needs Labour

5. 5
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Right-holder viewpointSource – Peter deMarsh IFFA
1. When the crop is ready to harvest, will I own it?
(The tenure question)
2. Will I be able to sell it on reasonable terms?
(The business support / market access question)
3. Will I have access to the information to properly
plant it, keep it free from disease, and process /
package it to buyer specification?
(The technical extension / investment question)
4. Do I have a business association to represent me
to ensure that the first three are strengthened?
(The organisation question)
5. Will FLEGT help with the above?
(THE question)

6. 6
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
Organisation
The critical enabling condition to pursue all others
National / regional federation (lobbying)
Regional (marketing,
services, value addition)
Local (production)

7. 7
Duncan
Macqueen
Challenges of legality verification for locally controlled forestry
This session…
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Nketiah
Honduran
timber value
chain alliances -
Edgar Maravi
Honduran
business
intermediaries -
Yadira Cruz