Are we missing the forest for the trees? More than timber grows in forests - including products worth many tens of billions of dollars. Because these goods go unrecorded in official trade statistics, their economic value escapes our attention. As a result, clear opportunities to combat poverty are being missed, according to a University of Copenhagen economist.
In the Roman Empire, custom taxes on spices, black pepper in particular, accounted for up to a third of the empire's annual income. And during the late Middle Ages, European efforts to cut out middle men and monopolise the spice trade led to colonization in Asia. Historically, non-timber forest products have frequently played a key role in the global economy.
Today however, non-timber forest products are neglected when the values of forests are recorded in official trade statistics. This applies both in the EU and globally. And it is despite the fact that these products account for a large part of the economies of many countries - from medicinal plants and edible insects to nuts, berries and herbs, to materials like bamboo and latex.
The UN Food and Agriculture Organization (FAO) estimates that annual producer income from non-wood products is US$ 88 billion - and when the added value of processing and other links in the value chain are included, the value of these products rockets up to trillions of dollars.
- Only a very limited number of non-timber product types appear in official trade statistics today. These include coffee, cocoa, rubber, vanilla, avocado and bananas, which are all considered agricultural crops. The researchers estimate that tens of thousands of different non-timber products are traded worldwide which are not included in the statistics. However, the number of economically significant products is much smaller.
- One study estimates that between 3.5 and 5.8 billion people currently use non-timber products. About half of these users live in rural areas in the Global South, while the other half live in urban areas and the Global North.
- In the subtropics and tropics, it is estimated that roughly 28% of rural household income comes from non-timber products.
According to Professor Carsten Smith-Hall, an economist at the University of Copenhagen's Department of Food and Resource Economics, this is a good reason to begin including forest products like ginseng, shea nuts, acai berries, baobab and acacia gum into global trade accounts.
"We estimate that roughly 30,000 different non-timber forest products are traded internationally, but less than fifty of them currently have a commodity code. We're talking about goods worth enormous sums of money that are not being recorded in official statistics - and are therefore invisible. This means that the countries and communities that deliver these goods do not earn enough from them, in part because there is no investment in local processing companies," says Smith-Hall, a world-leading bioeconomy researcher. He adds:
"Because we underestimate the role of these goods, we're wasting clear opportunities to combat poverty. These are goods that contribute significantly to food security, health and employment in large parts of the world, especially in low- and middle-income countries."
