Economic Issues

The economic value of non-timber forest products to communities, regions and the nation is not well defined or understood. For the most part, the NTFP economy remains an enigma. The volumes and/or values of NTFPs do not get documented until they reach regional or national markets. Although the overall value of some segments has been documented, very little is known of the value of specific products. Much more is known about the value of the herbal medicinal market and ginseng than about any other market segment or product. Often, the values that are quoted for specific products do not separate the values of forest-harvested and cultivated products. This lack of information makes understanding the overall market dynamics extremely problematic.

Economic and market data are essential for determining fair market value, as well as for setting fair and equitable rates for collection permits. In general very little is known about the demand for NTFPs. Similarly, knowledge of the value of NTFPs to rural communities and households is lacking even though this information is needed to influence policies for sustainable forest management. Policy- and decision- makers need to understand the economic importance of NTFPs to communities, regions, and the nation. Further, accurate and reliable supply and demand data for NTFPs are essential to determine sustainable economic harvest levels.