Mapping the Future Market Potential of Timber from Small-Scale Tree Farmers: Perspectives from the Southern Highlands in Tanzania

Abstract

In the rapidly growing Tanzanian economy, increasing demand for timber and limited wood supply from industrial plantations and natural forests have opened a new livelihood opportunity for smallholder farmers in the Southern Highlands of Tanzania, which is undergoing a tree-growing boom. In the absence of support services, research and statistics, the magnitude of the phenomena has remained unclear, along with the farmers' capability to meet market demands, access the markets, and negotiate prices. Primary qualitative data were collected to clarify the role of smallholder tree growers in the forest transition process and wood value chain using 60 semi-structured tree farmer interviews in four villages, and through interviews of timber buyers and processors. The findings indicate that the strong market demand has created dual markets, where higher quality industrial plantations mainly supply larger industries, whereas micro and small enterprises source wood from lower quality smallholder plantations. While the markets' quality criteria are expected to tighten, capacity building is needed to improve smallholder wood quality to ensure the long-run tree-growing livelihood and competitiveness of small-scale producers in the markets.

What drives smallholder tree growing? Enabling conditions in a changing policy environment

“…In Vietnam, the role of strong promotional policies and land allocation created a 'push effect' and induced tree growing before the demand and markets were developed (Meyfroidt and Lambin, 2008b;Sikor, 2006Sikor, , 2001, but policy measures targeted for industry development were apparently timed accordingly (Smith et al, 2017) and industrial demand was quickly established. In Tanzania, regulation increasing timber prices for government plantation wood (2007) seems to have added weight to the expansion of smallholder tree growing (Arvola et al, 2019).…”

“…In Tanzania and Uganda, demand originates from industries serving primarily domestic markets (Arvola et al, 2019;EU-FLEGT Facility, 2014). In light of the massive wood exports from Laos to Vietnam throughout the last decades (Saunders, 2014;Smirnov, 2015) and increasing wood exports to China, it is surprising how little this is reflected in smallholders' tree growing interests.…”

“…The authors conducted field research in two of the case study countries, Tanzania and Lao PDR in May, October and November 2015 (Arvola et al, 2018(Arvola et al, , 2019. In both countries, interviews were carried out in four villages and completed with key informant interviews.…”

Forest-based bioeconomy in sub-Saharan Africa: Looking at benefits and burdens from a social sustainability standpoint

“…The plantation and cultivation of wild forest plants are suggested as a way to relieve pressure on natural forests (Jamnadass et al 2009;Malkamäki et al 2018;Arvola et al 2019). Large-scale commercial plantations and smallholder plantations are considered in publications, and studies show both negative and positive implications for socioeconomic sustainability.…”

“…Plantations of species such as pine and eucalyptus, which should have improved livelihoods, have done more harm than good due to forest conversion and the detrimental consequences for soil resources | 35 (Mwanukuzi 2009). The increasing need for timber may, on the other hand, open new opportunities for small-scale tree farmers, as Arvola et al (2019) showed in Tanzania, even though the farmers' capacity to market their wood and negotiate prices was unclear. While unhealthy competition can occur in informal markets, formalization risks less powerful actors being excluded for performing an activity that has become illegal or for being financially unable to legalize their activity (e.g.…”