Forestry out-grower schemes: A Review from Selected Countries

The trade relationship between suppliers (e.g., growers) and processors often plays an important role in determining the nature and extent of benefits derived from commercial forestry, and the distribution of these benefits. Those interested in forestry development-whether in industrialized or non-industrialized countries-are becoming increasingly aware that positive partnerships between forest companies and growers can provide a means of encouraging forest management which is environmentally sustainable, cost-efficient and equitable. Forestry out-grower schemes describe one type of partnership emerging between growers and processing companies, as the companies with inadequate forest holdings or access to public forests seek to secure additional supplies to meet the increasing global demand for wood products. However, existing out-grower arrangements vary considerably in their ability to be mutually beneficial, achieve sustainable forest management, and meet the social, technical or economic goals of the partners. This paper reports on recent research in which the authors undertook a survey and analysis of 17 forestry out-grower schemes in 11 countries to assess the extent and location of out-grower schemes world-wide and identify key parameters for successful out-growers schemes to provide guidance to forestry developers, decision makers and participants in such schemes.