Community Forest Concessions in the Petén

1. Community Forest Concessions in the Petén Productive management of forest resources with environmental benefits in Guatemala

2. Location

3. Mesoamerican Biological Corridor CA represents ½% of earth’s surface but 7% of world’s biological diversity

4. Location – Mayan Biosphere Reserve Community concessions

5. Concessions: How do they work? • Concession granted by Guatemalan government • 25 year lease for nat. resource extraction • Must maintain FSC certification • Communities form association – not necessarily all community members

6. The communities

7. Timber management

8. Harvesting timber

9. Landing

10. Reforestation

11. Status of the Concessions • Concessions 5-10 years old • An accounting, cost control system initiated • Marketing system beginning • Process for capturing value-added benefits in initial stages • Income from both wood and non-wood products

12. Status (continued) • Consolidation of forest management • Directional felling • Management plans • Low impact logging • Organization/Administration • Relatively new organizations many in recently formed communities • Institutional statutes in need of review

13. Results • The concessions are profitable • Cost control and planning activities have a good start and are needed • Administration needs strengthening • Working capital • Cost management • Decision making • Investments in equipment and value-added • Certification has demonstrated only a limited benefit to the communities

14. Results (cont.) • Communities are interested in improving • Equipment purchased is often in poor condition • There is a need to guarantee follow-up to the financial/economic control activities • Both income and employment are being generated by both wood and non-wood products • There are opportunities to: • Lower costs (analysis of costs) • Increase income (marketing, investment analysis)

15. Income and employment generated by forest operations Note: Annual income ~ Approx. $1,800

16. Employment generated

17. Impacts

18. Lessons learned • Neglect of the social dimensions • Paternalism • Creating enterprises without developing managers • Neglect of non-timber forest products • Unsolicited training • Papers, workshops and other frills • Corridors for wildlife or for “depredores” • The urge to control

19. Risks • Internal organization of the communities and the EFCs (Empresa Forestal Comunal) • Business management of the concessions • Species and product diversification • Processing

20. Issues • Financial viability • Profitability (Mahogany) • Appropriate assistance • Equitable distribution of benefits • Concession size and forest composition • Value added processing • Development assistance

21. Issues (cont.) • Cost control • Management by crisis • No working capital • “Economia de bolsillo • Complete distribution of profits • High salaries (Mech. to distribute profits)

22. Benefits • At the individual family level • At the community level • At the national level • Global benefits

23. Sustainability? • Social equity • Economic viability • Environmental

25. Financial/Economic Analysis • Analysis based on the financial planning carried out this year • Assumptions • Prices increase at the same rate as inflation • “Real” discount rate used (inflation free) • Analysis was carried out over the life of the concession – 25 years