. Commercialization of non-timber forest products. Factors influencing success. Lessons learned from Mexico and Bolivia and policy implications for decision- makers. UNEP-WCMC Biodiversity Series 10. Overcoming barriers Strategies and capabilities for successful NTFP commercialization Kathrin Schreckenberg, Jonathan Rushton, Dirk Wlllenn te Velde an(j Alan Bojanic How do poor producers, processors and traders gam access to NTFP value chains? This chapter deals with hypothesis 6 and examines the constraints, or barriers to entry, for new entrants to a value chain, and the characteristics i
. Commercialization of non-timber forest products. Factors influencing success. Lessons learned from Mexico and Bolivia and policy implications for decision- makers. UNEP-WCMC Biodiversity Series 10. Overcoming barriers Strategies and capabilities for successful NTFP commercialization Kathrin Schreckenberg, Jonathan Rushton, Dirk Wlllenn te Velde an(j Alan Bojanic How do poor producers, processors and traders gam access to NTFP value chains? This chapter deals with hypothesis 6 and examines the constraints, or barriers to entry, for new entrants to a value chain, and the characteristics individuals and/or communities need to commercialize NTFPs successfully. BARRIERS TO ENTRY Barriers can block the entry of new actors to a particular activity in the value chain. The presence of one or more actors making super-normal - above average - profits is clear evidence of the existence of barriers to entry inhibiting greater participation, and therefore competition, in a particular activity. Barriers to entry vary along the value chain. At producer level, they may relate to obtaining access to the resource and the necessary skill for harvesting and processing the product for sale. As activities become more specialized further along the value chain, there are greater opportunities for single traders or small groups of traders to exert their market power and establish mechanisms to prevent others entering the business. These are often related to market power in the form of relative access to financial capital, access to strategic information, single- buyer arrangements, family ties or access to market contacts. The costs of overcoming these barriers and other transaction costs Isee Box are lower for those within the group than for outsiders. In some cases the costs may be too high for outsiders to enter the business. Frequently such costs represent a series of social arrangements within the power group. A key challenge facing any development inter- vention in NTFP co
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