3. Overview of the trade in NWFP and the contribution to livelihoods in the country

In this section a general overview is provided of the Bolivian natural resources and the contribution of non wood forest products (NWFP) to local forest dependent communities and the national economy.

3.1 Bolivian forests

Bolivia has a surface of 57.315.600 ha of natural forest (the area of plantations is negligible), which is 48% of the national territory. The Bolivian forest consists of 10% of the total humid and sub-humid tropical forests in South America. The forest types vary from dry leaf-shedding forests of the Chaco region to the evergreen tropical lowland forests of the Amazon and flooded plains of Beni.

Two periods mark the history of the Bolivian culture for extraction of wood and NWFP. The first period concerns the forest regime based on the law of 1974. Under this regime permission was granted to 180 companies to commercially exploit a forested area of 22.000.000 ha (20% of the national territory) .Under the new forest regime (law of 1996) this surface has decreased to 5.477.728 ha (5% of the national territory) which is being exploited under the concession scheme by approximately 80 companies. Of the granted surface, 50,8% is located in the Department of Santa Cruz and 28% in Pando. This new regime is based on a SFM model. This model is based on three key elements: i) the economic benefits coming from forest resources, ii) these benefits are equally distributed amongst the different stakeholders involved: companies, intermediaries and social groups of indigenous communities and local farmers and iii) the natural resources are exploited according to sustainable levels, maintaining the resources for future generations.

It is calculated that the tropical forests of Bolivia contains around 1.412 millions m³ of wood. The potential exploitable volume differs per forest type varying from 3 to 30 m³/ha, but the actual extraction is not higher than 12m³ since the profits for low price wood species do not weigh up against the high transportation costs. So far logging has been mainly concentrated in five costly species: Mara (Swietenia macrophilla), Cedar (Cedrela spp.), Ochoo (Ura crepitans), Palo María (Calophyllum sp.) and Roble (Amburana cearensis) that together represent about 60% of the total timber harvest.

Besides the timber production, Bolivian forests offer a range of NWFPs and environmental services, of which many are not quantified. For many communities, the forest is indispensable for living, offering them food, fruits, meat, material for construction and even sacred places (Bojanic, 2002).

3.2 Bolivian Forest Economy

The contribution of the forest sector to the Bolivian economy consists of an approximate mean annual value of US$ 220 mln over the last 10 years, comprising about 1% of the Bolivian GDP (HIB Latinoamerica 2003). Wood products exports in the last 5 years have been worth about US$ 120 millions annually, being 11% of the total exports from the country, with a gradual trend switching from raw material to processed products.

Wood and non wood forest products together employ over 50.000 people, representing approximately 4% of the economically active population. Out of these, 40.000 are employed in the wood sector and 10.000 are employed in the NWFP sector (BOJANIC, 2002).

3.3 Non Wood Forest Products in Bolivia

Bolivian forests are abundant in non wood forest products (NWFP). NWFPs have been used by native communities since ancient times, making a major contribution to their livelihoods.

The two commercially most important NWFPs for Bolivia are Brazil nuts (Bertholletia excelsa) and Palm heart (Euterpe precatoria). Brazil nuts comprise 91% of the value of NWFP exports. The most important markets for this product are in the UK, the US, and Holland, where over the last 5 years the average annual quantity of 20,000 tons was exported with the mean value of US$ 30 million. Palm heart exports have decreased from US$ 12 million (8.000 tons) in 1996 to less than US$ 4 million (2.500 tons) in the 2001 (UDAPE, 2002). The figures of palm heart reveal a strong market uncertainty. This can be explained by declines in international prices together with restrictions imposed by international (mainly European) importers on exporting countries. The economy of Brazil nuts has observed low prices in last two years because of over-supply. Additionally the European Union has imposed measures based on aflatoxins¹², requiring improvements in the harvesting and production processes to reduce the incidence of the disease.

Table 1. Export of Brazil nut and Palm heart from Bolivia

¹² Aflatoxins are toxic components produced by two Aspergillus fungus, further details can be found on 4.1.3 Note on Aflatoxins and non tariff Barriers for Brazil nuts