4. Conclusions

Box 1 is an analytical framework that summarises the characteristics having a major influence on the extent to which out-grower arrangements are fair and beneficial for each partner.

Many governments have demonstrated a capacity to create the necessary conditions for beneficial forestry out-grower schemes to emerge. However, it is likely that on-going support will be required to ensure the expected benefits are delivered over the long-term to all parties involved, directly or indirectly, with out-grower schemes. There appears a role here for governments, non-government organisations, civil society groups and market intermediaries.

How the principles and criteria in Box 1 translate to any given local context will vary depending on the extent:

• entering into out-grower arrangements out-weighs the opportunity costs for both partners;
• partners are informed of the commercial prospects and wider implications;
• regional markets provide positive commercial returns for both partners;
• partners remain motivated to contribute to arrangements (reflecting the importance of schemes to the viability of the household or business);
• government has a willingness and capacity to develop encouraging policies and supporting mechanisms;
• community perceptions of out-grower schemes and potential partners are favourable; and
• institutional support is available for establishing a fair negotiating context.