Clayoquot Green Economic Opportunities Project

Previous studies (1996) have identified specific species that are available and of market interest in the region. An updated review of market conditions, access, availability, ecology and seasonality is required followed by a survey of interest in harvesting additional products that are assessed as viable. Provided there is sufficient interest, training will have to be offered. Funding is available through agencies such as the First Nations Forestry Program for First Nations to develop NTFP strategies and programs.

Overview: Current status and trends in the industry

"In the Pacific Northwest, non-traditional forest products are considered to be the most viable option for strengthening those rural communities suffering from the decline in timber harvests from government lands[1]"

Non-Timber Forest Products (NTFPs) are botanical products of the forest other than timber, pulpwood, firewood or similar wood products. Including wild mushrooms, floral greens, Christmas greenery, wild foods, medicinal and craft species, they are also referred to as special forest products. NTFPs are estimated to contribute over $250 million per year to the BC economy. When cultural tourism activities related to NTFPs are taken into account, the economic impact of these resources on the provincial economy is even greater. NTFPs are increasingly being considered as an opportunity for diversification in communities impacted by downturns in other resource sectors.

Along with tourism, NTFPs and agroforestry are a common thread in sustainable rural development projects in the world's biosphere reserve network. Rural development efforts in Sinharaja, Sri Lanka include planting of both primary forest timber and "locally esteemed" non-timber species. Significant emphasis has been placed on NTFPs in the Pacific Northwest as an alternative to timber harvesting and processing. Due to resulting sustainability concerns the US Man and the Biosphere program sponsored a study of chanterelle mushroom production and harvesting in and around the Olympic National Park and Biosphere Reserve. In Guatemala, home of the Maya Biosphere Reserve, dried berries from allspice trees produces approximately $600,000 US per year in revenue, palm leaves for the European and US floral market $4-7 million and chicle gum $2 million. Chewed first by the Maya, chicle, a tree sap, is collected from a tree species native to specific forests of lowland tropical Central America. It is an all natural alternative to the petroleum based gum products in all other chewing gums.

As is the case throughout Canada, no systematic information has been gathered on the volumes and values of NTFPs in British Columbia. There is no question, however, that the NTFP industry in BC is experiencing significant growth. Growth pressures include increasing demand for alternative and natural medicines, healthy, organic and environmentally sustainable products and rustic/natural design preferences[2].
Recent estimates provide an indication of the sector's economic importance. The two largest segments in BC are:

• wild mushrooms - up to $57 million annually;
• salal and other decorative greenery - $55-60 million

Salal sales make up 95% of the decorative greenery segment (plants sold to the floral industry). There are estimated 13,000 salal pickers in BC, many on Vancouver Island[3]. Recent research suggests that commercial salal on cedar-hemlock sites can be worth up to ~$2,500 ha. Research also suggests that experienced salal harvesters make on average $10-15 per hour[4]. Costs associated with transport from remote areas and product quality (e.g. spotting in wet seasons) must be taken into account along with harvester interest when evaluating the potential for expanded salal harvesting in the region. One salal buyer is reported to be in operation in Port Alberni.

Microclimate, seasonal variation and forest successional stage all impact fungi presence. The most valuable mushrooms in BC are pine mushrooms ($25-45 million per year). Pine mushrooms, however, are not abundant on Vancouver Island. NTFP inventories on northern Vancouver Island demonstrate high occurrences of chanterelle mushrooms ($6-12 million per year in BC), limited pine mushrooms and 29 other commercially valuable species[5]. While pine mushrooms are destined for the Japanese market, chanterelles are sold primarily to Europe but also to US and other parts of Canada. Pickers earn on average $2-4/lb according to one source, $1.50 to $ 5 according to another (depending on intended market, time of season, and international competition), wholesalers/buyers $5-7 and exporters $10-15. The chanterelle season lasts from July/August until November. Harvesting supplements annual income, but tends not to be a lucrative business. A US study from 1998 estimates average daily gross earnings from commercial picking of $8 to 85 US (2-10 hours per day picking)[6]. Low prices for chanterelles limit the range that harvesters are willing to drive to their hunting grounds and influences where buying stations are located.

In addition to the "big two" (mushrooms and salal) there are existing and emerging markets for many other species. In a 1999 report, Wills and Lipsey discuss more than 200 species commercially harvested in the province, including wild berries, boughs, mosses and native plants for restoration and landscaping. Crafts items such as wreaths, garlands, baskets, cedar bark roses, and jewellery, wild foods, herbal salves and medicines are also marketable.

American exports of commercial moss and lichen amounted to $14 million in 1995, $8 million to the Netherlands for natural packing of floral products - many of which are in turn exported to North America. Concern exists about the lack of knowledge about impacts of moss harvesting. Cedar boughs are harvested extensively both for use in the Christmas season in wreaths and garlands but also for processing into cedar oil.

On northern Vancouver Island bracken fern fiddleheads are being harvested and dried for the Korean market. The dried ferns are sold for $12 per pound. The market size is substantial. The harvesting season starts in May and last two months. Another NTFP product being harvested on the North Island is live sword and deer fern root for replanting and use in the landscaping and restoration business. In recent years live plant harvest from the wild has been discouraged in large part due to concerns about ecological sustainability. However, in this case, plants that would otherwise be destroyed were salvaged from roadbeds. Harvests have also taken place in forested areas prior to timber harvest. A monitoring program has been established to determine impacts on fern regeneration post-harvest.

Photo: North Island NTFP Demonstration Project

Market research on the North Island demonstrates that while the current industry preference is for propagated stock due both to their uniform appearance and questions of wild harvest sustainability, the investment and time required to cultivate ferns led to sufficient interest. Market size is predicted at 50,000 to 100,000 salvaged bare roots per annum. Price and current restoration and landscape activities are important factors. Prices for product range from 1.00 per bare root for small quantities down to 50 cents for bulk deliveries. Harvesters earned on average $40 per hour during the pilot. For an eight-hour day, removing time for travel to harvest sites and carryout,

a person salvaging ferns from proposed logging roads could gross $200 to $300. This wage does not reflect the market development time prior to harvest, nor the prediction and reconnaissance necessary to find viable fern habitat on proposed logging roads[7].
Another opportunity identified is the harvesting of wild blueberries for market to Japan. A significant demand for wild berry products exists in health-conscious Japan, particularly after recent research suggested that blueberries contain antioxidants that help fight eyestrain, cancer, ageing and heart disease. BC is also the world's second largest producer of cultivated blueberries. Production peaks in August.

Natural medicinal and herbal products involve the use of leaves, stems, roots, bark, seeds, fruit, flowers and buds to make teas, tonics, powder, snuff, poultices, salves, tinctures, lotions, and smoke inhalers. Over 40% of prescription drugs, or over $15 billion in sales in 1997, contain at least one natural element. A growing body of information is available on NTFP harvesting, processing, marketing etc. for the many species referred to above. See below for recommended resources.

The demand for natural health supplements is growing rapidly around the world. However, industry, government, and individuals now recognise that the growing consumer interest jeopardises these products' sustainability in the wild, encouraging cultivation. Further, significant concerns exist about traditional knowledge use and protection of culturally significant plants for First Nations use.

Under the Forest Stewardship Council certification program, there is increasing recognition of the inherent importance of NTFPs to the overall health and integrity of the forest ecosystem. Yet lack of knowledge and lack of management are barriers to determining sustainability of the NTFP sector and, therefore, to incorporating NTFPs in certification processes.

Barriers and issues identified in the Kalum LRMP[8], one of several around the province that recognizes the botanical industry as a legitimate user of the forest resource, include:

• Lack of resource inventory and utilization data
• Socio-economic problems associated with an unregulated, cash-based economic activity
• Resource-use conflicts over harvesting practices (e.g. raking for mushrooms)
• Sustainability of harvesting sites
• Whether or not to license mushroom buyers, and
• Lack of designated responsibility for the industry among government agencies.

Ecologically sound management of forest resources depends on accurate inventory information and clearly defined objectives. Forest management is lacking on both accounts. Only now are NTFP inventories beginning to take place and forest management plans that incorporate a wider range of forest uses being considered. The lack of information about utilization of non-timber forest resources is tied to the fact that it is a cash-based, often "under the table" industry. Further, many harvesters are transient, moving from one area to another to harvest. This is particularly true in the pine mushroom industry. Harvesting is also conducted for recreational and subsistence purposes. Research into NTFPs has increased substantially over the past two decades, as has the interest in NTFPs for their commercial potential. However, our knowledge is still in its infancy in terms of depth and breadth of understanding about ecosystem functions, as well as social and economic relationships associated with NTFPs.

Conflicts between timber and non-timber industries are often profiled (e.g. loss of valuable pine mushroom patches to logging). Research in B.C., Washington and Oregon has shown, however, that when forest management objectives have included consideration for NTFPs selection of silviculture systems can enhance or maintain NTFP values. Examples of timber/non-timber co-management include pruning or thinning in young stands whose boughs have commercial value (such as western red cedar). This enhances timber values by creating less knotty wood and encouraging tree growth. Increasing light to the understory improves forage for wildlife, species that may also be valuable as NTFPs (such as huckleberry). Research on salal and pine mushrooms suggests that productivity of these species may also benefit from some opening of the forest canopy through selective logging or thinning. Further, salal can benefit from forest fertilization. Finally, salvage opportunities exist from cooperation between the two sectors. NTFP harvesters with access to logging plans may be given opportunity to access an area prior to road construction or logging activities[9].

Without regulation there are fears that the industry will fall into the all-too familiar boom-and-bust pattern of the fishing and forestry sectors in BC. At the same time those in the industry worry that government regulation will not solve the industry's problems, but perhaps only make it worse. Despite seeing a need, the provincial government is not particularly interested in managing the sector due to financial constraints. Options are currently being investigated for management regimes for NTFPs. Possible measures include buyer licensing and various tenure and co-management options.

In addition to the complex management, policy and technical research issues facing the NTFP sector business considerations include distance/transport costs, harvester interest and training requirements, variability due to weather and seasonality. The industry is made up primarily of individual pickers and small business buyers. Synergy Management Group estimates that the average buying enterprise employs from one to 11 people and buys from up to 90. These buyers then often sell to either processors who handle, clean, pack and ship the product or to export/broker firms. Many NTFP businesses require very little capital investment.

Harvesters make considerably more money after they become experienced. Therefore a period of training is required for new entrants before incomes become acceptable, ideally with a mentor to avoid discouragement and ensure quality. A strategy where harvesters pick more than one product, increasing their harvesting season, is possible and should be encouraged if the sector is to become a livelihood (vs. supplementary income). For example,

• culinary herbs, fiddlehead ferns, morel mushrooms in spring
• berries in summer
• mushrooms in fall
• ferns and salal fall through spring

• lack of local capacity (including small business skills) to create businesses in the sector;
• lack of awareness of markets
• a shortage of local capacity to develop and implement management plans for NTFPs on traditional territories.

NTFPs are one other resource requiring attention among a long list of First Nations priorities. Nevertheless it is a resource of increasing economic importance and one of the only resource sectors for which management and licensing/tenure arrangements have not already been established.

Sustainable development of NTFPs offers a wide variety of benefits to First Nations, including:

• valuing and protecting traditional, subsistence, spiritual and cultural plant uses,
• business and employment opportunities in a wide range of occupations, many linked with traditional First Nations interests, knowledge and occupations.
• opportunities to assume leadership in the development of a "new" industry,
• the ability to make informed decisions about the utilization of NTFPs in their territories, emphasizing and protecting intellectual and territorial rights.

Today First Nations are gaining increasing management control and business presence in the sector. Under treaty the Nisga'a Government has the exclusive authority to determine, collect, and administer any fees, rents, royalties, or other charges in respect of non-timber forest resources on Nisga'a Lands. There are 3-4 Nisga'a mushroom buying businesses. The Gitxsan formed Wilp Sa Maa'y Harvesting Cooperative with other local residents to manufacture huckleberry jam and other products. The Ktunaxa Nation initiated an ethnobotany project in 1996, held a conference in 1999 to address concerns about huckleberry harvesting and have since opened their own native plant nursery[10]. Siska Traditional Products is producing jellies, natural soaps, teas, herbal oils and this year are looking at adding a range of medicinal products. Siska's mission is to become the largest First Nations producer of traditional and natural products in Canada.

Chanterelle Mushrooms Photo: My Spice

"Over the next 2-5 years, it is expected that the 'Namgis and other First Nations in the region will be actively managing NTFPs within their traditional territories under one or more of a variety of possible mechanisms, including interim measures agreements, treaties, or arrangements with government agencies and/or other forestry interests".

Finally, several First Nations on northern Vancouver Island have been active in NTFP development, including research on markets, inventory and sustainable harvesting methods. They have sponsored training programs for their members and are examining options for gaining management control.

NTFPs in Clayoquot Sound: As in other areas First Nations in Clayoquot Sound are taking a lead in the NTFP sector. The 1995 Scientific Panel report states that the Nuu-chah-nulth intend to participate in the use of special forest products in addition to participating more fully in mainstream economic activities such as forestry and fishing. In 1996 a Secondary Forest Products in Clayoquot Sound Symposium was held in Ahousaht. Mater Engineering provided an overview of more than 18 opportunities for the region based on interviews with approximately 60 buyers[11]. A review of the symposium by BarrenLands Management suggests inventory, harvester training and a planned approach to development in the sector.

In 1996 two graduate students, Juliet Craig and Robin Smith, under the supervision of Dr. Richard Atleo and Dr. Nancy Turner, examined the availability and abundance of culturally significant plants in the Atleo River Watershed within the territory of the Ahousaht Nation. Their research confirmed the presence of the following plants valued, not coincidentally, for both cultural and commercial purposes. Some were found to be abundant, others found only in limited habitat conditions. Due to cultural sensitivity and concern by the elders their work excluded plants used for medicinal purposes:

• Thimbleberry and salmonberry shoots
• Silverweed and clover (root vegetables)
• Salal, salmonberry, huckleberry and crabapple
• Bunchberry, stink current, blackberry and elderberry
• Basket sedge, cedar bark (suitable trees difficult to find)
• Sword fern and deer fern
• And more ...

In some cases, they suggest, logging has reduced gathering potential. Craig and Smith recommend training and monitoring of harvesters if commercialization is pursued. They also suggest that Ahousaht village become a centre for restoration activities, including native seed collection and a nursery for culturally important plants.

In 1999, after extensive research, the Ma-mook Development Corporation launched Clayoquot Wildfoods, the most significant NTFP venture in Clayoquot Sound. Clayoquot Wildfoods began its' operations on a pilot basis and operated this way for two years. The company concluded its' first full year of operations in 2002.

During the pilot phase two wild fruit preserves (Wild Salal Berry Fruit Spread and Wild Blackberry Fruit Spread) were developed and test marketed in the local region. Based on the results of this test marketing the Company changed its' product mix in 2001, adding wild salal berry vinaigrette, dried chanterelle mushrooms and wild blackberry syrup and discontinuing Salal Berry Fruit. Markets include tourists, local clientele and sales through environmental organizations. While challenges such as marketing and human resources have been encountered in the company's early years, response to the products has been positive. Plans for an expanded product line as well as increased marketing and production of the existing products are in the works.

Options for an expanded product line include value-added seafood products, products utilising cranberries, fruit leathers, drinks or herbal teas[12]. The coffee and tea industry leads the gourmet/specialty foods market with sales of almost $4.3 billion in 2000. "Salalsa" (salsa with salal berries) has also been suggested.

From June to Sept/Oct 2002 the company purchased 1,000 pounds of berries out of Ahousaht alone. Ahousaht youth picked berries to raise money to attend the fall fair in Port Alberni! Berries and chanterelle mushrooms are purchased from Nuu-chah-nulth people at buying stations set up in Tofino, Long Beach, Tla-o-qui-aht and Ahousaht. The Company uses the commercial kitchen at Tin Wis for cooking and labels and boxes the product at the Ma-Mook's office in Ucluelet. The initiative has been well received within the Nuu-chah-nulth communities of the region.

"Native American Herbal Tea (r) Inc. is a 100% American Indian owned and operated company which incorporated in May of 1987. Our basic concern is to increase the employment of Indian people. Because of the popularity of our tea, our company is enjoying rapid growth throughout the United States and other various parts of the world... Although many of the plants and herbs used are what we call "everybody's plant" meaning common knowledge, we do not sell what is known as the "sacred plants," used in healing ceremonies. It is our belief that certain medicines cannot be sold and therefore we do not incorporate them into our blends". - Company Website

There are a number of individuals from Ucluelet, Tla-o-qui-aht and Ahousaht picking wild mushrooms (primarily chantrelles) for sale to wholesale buyers. The total number of mushroom pickers in the region is unknown.

Training programs have been offered in First Nations communities in NTFP harvesting and business opportunities (e.g. salal picking) but according to one Nuu-chah-nulth resource manager, with the exception of berry and mushroom picking for Clayoquot Wildfoods, "it hasn't taken off".

Clayoquot Wildfoods is a launching point for further development in this sector. Ma-mook may wish to consider a separate operation acting as a buyer for a range of products, not necessarily only those destined for local processing. This would allow pickers to diversify the products harvested and provide Ma-mook with experience in and access to the broader NTFP marketplace. Alternately this could be a business opportunity for a local individual. In either case success is dependent on sufficient level of harvester interest.

Sustainability Criteria:

Environmental criteria: "The overall market for medicinal herbs in the United States more than doubled in value from 1996 ($1.6B) to 1998 ($3.97B)... While little data are available on population dynamics of certain NTFP species, anecdotal evidence suggests a reduced availability of these prized forest products. Over-harvesting of species has become a concern...[13]".

NTFPs offer opportunities to maintain forest biodiversity by recognising the value of the many products represented by the NTFP sector, not just economic values but also ecological, cultural and social. Yet concerns exist about pursuing development in the absence of information about species abundance, role in the ecosystem, responsible harvesting rates etc. Any development should be pursued in a careful and responsible manner, building in a monitoring and research component.

Understanding the ecology of the NTFP products is critical to their long term sustainability. If forest products are to become part of the commodity market, the NTFP industry must make a commitment to management and impact monitoring.

"Many organisations have demonstrated that if the medicinal plants, fruits, nuts, oils and other resources like rubber, chocolate and chicle, were harvested sustainably - rainforest land has much more economic value than if timber were harvested or if it were burned down for cattle or farming operations. Sustainable harvesting of these types of resources provides this value today as well more long term income and profits year after year for generations to come".

Economic criteria: Job potential is high and investment requirement generally low. Jobs, however, tend to be low wage (e.g. $10-15 per hour) and seasonal. Seasonality can be addressed to some extent by developing multiple product lines. Managerial employment (marketing, operating buying station) is also possible. Harvesters are self-employed and decide on the volume they will harvest. However, buyers require reliable supply as a business. Market knowledge is required to monitor fluctuations and changes. Markets are, however, virtually endless. Distance/transport costs and time considerations must be assessed for individual species and market opportunities from specific locations.

Social criteria: Concern may exist that the work is low wage and hard working conditions (outside, in the bush). The advantage, however, is its flexibility. NTFP harvesting is particularly well suited to those who prefer self-direction and working outdoors.

Opportunity for First Nations: Many First Nations in BC have begun to explore NTFPs as a source of economic diversification for their communities, as well as a route for reconnection with traditional knowledge and activities. Clayoquot Wildfoods is an excellent example. However, most First Nations have not benefited significantly from the recent expansion in this industry. Concerns exist about any NTFP development relating to medicinal uses and about ecological sustainability in general. Distance to market of remote locations such as a Ahousaht are also a concern and must be factored into analysis of opportunities. Nevertheless there is a desire to pursue opportunities in areas such as foods and possibly floral greens. The sector also represents opportunity to assert rights and title.

____________________________

[1] Hammett, T., 1999
[2] Synergy Management Group, 2002
[3] Wills, R.M. and Lipsey, R.G. 1999
[4] MCA, 2003[5] Berch and Cocksedge, 2003
[6] Love et al, 1998
[7] Mitchell Consulting Associates, 2003
[8] Kalum LRMP
[9] Mitchell Consulting Associates, 2001
[10] Mitchell, D. Mitchell Consulting Associates (MCA). 1999
[11] Mater Engineering Ltd.,1996
[12] Taiga Institute, 1999
[13] Parsons, B et al., 2002

List of key references and resources

Publications

• BarrenLands Management. 1996. Secondary Forest Products in Clayoquot Sound. 1996. Comments on SFP discussion at Ahousaht symposium, Feb. 1996.
• B.C. Ministry of Forests. 1993. Agroforestry report.
• B.C. Ministry of Forests. 1994. Pine Mushroom Task Force. Workshop Results.
• Berch, S.M. and W. Cocksedge. 2003. Commercially important wild mushrooms and fungi of British Columbia: what the buyers are buying. B.C. Min. For., Res. Br., Victoria, B.C. Tech. Rep. 006.
• Craig, J. and R. Smith. 1997. "A Rich Forest": Traditional Knowledge, Inventory and Restoration of Culturally Important Plants and Habitats in the Atleo River Watershed. Ahousaht Ethnobotany Project. 1996. Final Report to Ahousaht Band Council and Long Beach Model Forest. Available at Raincoast Interpretive Centre.
• deGeus, P.M.J. 1995. Botanical forest products in British Columbia: an overview. Integrated Resources Policy Branch, British Columbia Ministry of Forests
• FSC NTFP Working Group, Workshop on NTFP Guidance to Certifiers. November 2000, Oaxaca, Mexico. Falls Brook Centre. Unpublished.
• Forest Stewardship Council, Canada and the National Aboriginal Forestry Association
• Forest Stewardship Council. 2000. Principle 5.4, FSC Principles and Criteria Document 1.2, Forest Stewardship Council website document, www.fscoax.org/principal.htm
• Hammett, T. 1999. Special Forest Products: Identifying Opportunities for Sustainable Forest-based Development. Virginia Forest Landowner Update. Winter 1999 -- Volume 13, No. 1
• Jones, E., McLain, R., Weigand, J., and R. Fight. National Assessment of Non-Timber Forest Products in the United States: Uses and Issues. In progress.
• Love et al. 1998. Valuing the Temperate Rainforest: Wild Mushrooming on the Olympic Peninsula Biosphere Reserve Ambio, A Journal of the Human Environment Special Report Number 9, September 1998 www.onrc.washington.edu/clearinghouse/metadata/mab/mab_chanterelle_value.htm
• Mater Engineering Ltd. 1996. Clayoquot Sound Symposium Florals/Evergreens.
• Mitchell, D. Mitchell Consulting Associates. 1999. Presentation to Nuu-chah-nulth Value Added Workshop.
• Mitchell, D. 1998. "Non-Timber Forest Products in British Columbia: The Past Meets the Future on the Forest Floor", The Forestry Chronicle 74(3):359-362
• Parsons, B., M. Mortimer, A.L.Pilz, and R. Molina, editors. 1996. Land Access for Growing and Foraging Non-Timber Forest Products. Managing forest ecosystems to conserve fungus diversity and sustain wild mushroom harvests. Gen. Tech. Rep. PNW-GTR-371. Portland, OR. US Department of Agriculture, Forest Service, Pacific Northwest Research Station. Publication Number 420-131, Posted December 2002
• Peterson, M., R.Outerbridge and J. Dennis. 2000. Chanterelle productivity on burned and unburned
• Taiga Institute for Land, Culture and Economy. 1999. Non-timber Forest Product Business Development: Overview of Wild Berry Processing Options. Prepared for Ma-Mook Economic Development Corp.
• Taiga Institute for Land, Culture and Economy. 1999. Non-timber Forest Product Business Development: Overview of Mushroom Business Options. Prepared for Ma-Mook Economic Development Corp.
• Taiga Institute for Land, Culture and Economy. 1999. Non-timber Forest Product Business Development: Overview of Regulations. Prepared for Ma-Mook Economic Development Corp.
• Turner, Nancy and D. Mitchell. 1999. Wild Berry Products Marketing Potential in South-western British Columbia
• Wills, R.M. and R.G. Lipsey. 1999. An Economic Strategy to Develop Non-Timber Forest Products and Services in British Columbia. Forest Renewal BC Project No. PA97538-ORE. Final Report.

Internet:

• North Island NTFP Project, www.island.net/~ntfp
• Product information site, http://www.sfp.forprod.vt.edu
• British Columbia Blueberry Council, www.worldexport.com/bcblue
• Native American Herbal Tea (r) Inc, www.nativeamericantea.com

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