palafrugell, 7th mayof2006 valuing nwfp’s in mediterranean...

ValuingValuing NWFP’s NWFP’s ininmediterraneanmediterranean forestsforests

Américo Mendes & Diana FelicianoAmérico Mendes & Diana FelicianoPortuguesePortuguese CatholicCatholic UniversityUniversity –– PortoPorto

FacultyFaculty ofof EconomicsEconomics andand ManagementManagement

WWF WWF CorkCork OakOak LandscapesLandscapes ProgrammeProgrammePalafrugellPalafrugell, 7th , 7th MayMay ofof 20062006

0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 22

ValuingValuing MediterraneanMediterranean ForestsForests ––TowardsTowards Total Total EconomicEconomic ValueValue

-- TheThe exampleexample come come fromfrom thethe articlearticle::Carvalho Mendes, A.M.S., 2005. Carvalho Mendes, A.M.S., 2005. PortugalPortugal. . InInValuingValuing MediterraneanMediterranean ForestsForests: : TowardsTowards Total Total EconomicEconomic ValueValue, , MaurizioMaurizio MerloMerlo & & LeliaLelia CroituruCroituru((edseds.). .). WallingfordWallingford, , OxonOxon (UK): CAB (UK): CAB InternationalInternational. . pppp. 331. 331--352.352.

-- Data Data waswas gatheredgathered byby Prof. Carvalho Mendes Prof. Carvalho Mendes throughthrough severalseveral sourcessources..


EconomicEconomic valuevalue ofof forestforest productsproducts inin Continental Continental Portugal Portugal inin 2001 (Mendes, 2005)2001 (Mendes, 2005)

Outputs Value of

production (000 €)

Direct use values Wood forest products 543,594 Non-wood forest goods 584,771 Recreational services 37,883 Total direct use values 1,166,248

Indirect use values Carbon storage 29,000 Protection of agricultural soil 49,209 Protection of water resources 28,934 Forest landscape and biodiversity conservation 56,695 Total indirect use values 163,863

Negative externalities Costs of fire prevention 17,350 Social costs of fire fighting 35,853 Losses of forest products burnt 38,320 Reforestation costs 45,327 Total negative externalities 136,850 TOTAL ECONOMIC VALUE 1,193,236


ImportanceImportance ofof NWFPsNWFPs inin 2001 2001 (Mendes, 2005)(Mendes, 2005)

TakenTaken as as anan aggregateaggregate, , thethe NWFPsNWFPs turnturn outout to to bebe thethe mainmain item item inin thethe Total Total EconomicEconomic ValueValue ofofforestforest productionproduction inin Continental Portugal Continental Portugal inin2001(2001(€584,8 €584,8 millionmillion))


ExamplesExamples ofof nonnon--woodwood forestforest goodsgoodsCorkCork

ResinResin

HoneyHoney

FruitsFruits ((PinePine nutsnuts, , ChestnutsChestnuts, , CarobCarob, , ArbutusArbutus berriesberries, , ElderberriesElderberries))

EdibleEdible mushroomsmushrooms pickedpicked for for salesale

PlantsPlants pickedpicked for for salesale

ForestForest goodsgoods for for intermediateintermediate consumptionconsumption inin animal animal productionproduction ((AcornsAcorns, , grazinggrazing resourcesresources underunder forestforestcovercover, , grazinggrazing resourcesresources inin scrubscrub landland))


ExamplesExamples ofof nonnon--woodwood forestforestgoodsgoods producedproduced inin corkcork oakoak standsstands

CorkCork

ForestForest goodsgoods for for intermediateintermediate consumptionconsumption ininanimal animal productionproduction ((AcornsAcorns, , grazinggrazing resourcesresourcesunderunder forestforest covercover))

HoneyHoney

FruitsFruits ((ArbutusArbutus berriesberries, , ElderberriesElderberries))

EdibleEdible mushroomsmushrooms pickedpicked for for salesale

PlantsPlants pickedpicked for for salesale


MainMain contributerscontributers to to thethe weightweight ofofNWFPsNWFPs onon TEV TEV ofof PortugusePortuguse

ForestsForestsCorkCork stands stands outout as as thethe mainmain contributorcontributor to to thetheTEV (€390,7 TEV (€390,7 millionmillion))

AcornsAcorns andand grazinggrazing formform thethe secondsecond major major elementelement (€112,4 (€112,4 millionmillion))


LocationLocation andand characteristicscharacteristics ofofcorkcork oakoak forestsforests

±

Source: IFN, 1995 (DGRF)

- Cork oak forests are present inmediterranean climates with atlanticinfluence;

- Cork oak forests have good developmentin deep, permeate and sandy soils;

- According to the NFI, in 1995 the areaof cork oak was about 713 000 ha;

- In 1995, cork oak was the 2nd forest specie, occupying an area of about22% of the total forest;


CorkCorkTheThe developmentdevelopment ofof thethe winewine sector sector andand thetheconsequentconsequent increaseincrease ofof thethe demanddemand for for corkcork to to produceproduce stoppersstoppers contributedcontributed to to thethe increaseincrease ofofthethe marketing marketing interestinterest for for corkcork whichwhich constitutesconstitutestodaytoday thethe mainmain economiceconomic valuevalue ofof thethe corkcork oakoakstands. stands.

Photo: D. Feliciano, May2006


EvolutionEvolution ofof thethe corkcork oakoakforestsforests inin Portugal Portugal (Mendes, 2004)(Mendes, 2004)

712813

192000

0100000200000300000400000500000600000700000800000

1867 1902 1910 1920 1929 1939 1950-56

1963-66

1968-78

1980-85

1995-98

Years

Are

a (h

a)

Area (ha)

Source: Mendes (2004) Portuguese Forests


CorkCork oakoak removalsremovals (Mendes, 2002)(Mendes, 2002)

Cork removals and exports

0

50000

100000

150000

200000

250000

300000

1865

1869

1873

1877

1881

1885

1889

1893

1897

1901

1905

1909

1913

1917

1921

1925

1929

1933

1937

1941

1945

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

Years

tons

Removals Unprocessed and semiprocessed exports Total exports Processed exports


EconomicEconomic valuevalue ofof corkcork inin 20012001(Mendes, 2005)(Mendes, 2005)

390,726390,726TotalTotal

14,79014,790493/t493/tRoadsiteRoadsitemarketmarket priceprice30,000 t30,000 tVirginVirgin corkcork

375,936375,9362,9372,937/t/tRoadsiteRoadsitemarketmarket priceprice128,000t128,000tReproductionReproduction

corkcork

ValueValue ofofproductionproduction

(000 (000 €)€)

UnitUnit valuevalue(euros (euros perper

physicalphysical unitunit))

ValuationValuationmethodmethod

(SICOP’s (SICOP’s leafletleaflet, 2003), 2003)

PhysicalPhysicalproductionproduction

((officialofficialagriculturalagriculturalstatisticsstatistics))

CorkCork


ForestForest productsproducts for for intermediateintermediateconsumptionconsumption inin animal animal productionproduction

Photo: D. Feliciano, May 2006

-Acorns grazed by pigs in extensive rearing;-Grazing resources under forest cover;


EconomicEconomic valuevalue ofof forestforest goodsgoods for for intermediateintermediateconsumptionconsumption inin animal animal productionproduction producedproduced inin

corkcork oakoak stands stands inin 2001 (Mendes, 2005)2001 (Mendes, 2005)

87,80987,809130.3/1000 130.3/1000 FUFU

SurrogateSurrogatemarketmarket priceprice

673,900,000 673,900,000 FUFU

GrazingGrazingresourcesresources

underunderforestforestcovercover

6,7046,704130.3/1000 130.3/1000 FUFU

SurrogateSurrogatemarketmarket priceprice

51,450,000 51,450,000 FUFUAccornsAccorns

ValueValue ofofproductionproduction

(000 (000 €)€)

UnitUnit valuevalue(euros (euros perper

physicalphysical unitunit))

ValuationValuationmethodmethod

PhysicalPhysicalproductionproduction

((intermediateintermediateoror final)final)

ForestForestgoodsgoods


Acorns grazed by pigs in extensive rearing(1)

FirstFirst stepstep:: estimationestimation ofof thethe acornsacorns consumedconsumed (Moreira (Moreira etet alal., ., 1995)1995)

InIn 1989 1989 therethere werewere 6000 6000 sowssows;;

EachEach ofof thesethese animalsanimals givinggiving birthbirth to 10 to 10 sucklingsuckling pigspigs perperyearyear;;

8 8 outout ofof thesethese sucklingsuckling pigspigs gogo onon fatteningfattening upup to to thetheage age ofof 2 2 yearsyears;;

8 x 6000= 48,000 8 x 6000= 48,000 fatteningfattening pigspigs perper yearyear;;

1 1 pigpig needsneeds 1400 kg 1400 kg ofof acornsacorns;;

1400 kg x 48 000 1400 kg x 48 000 ≈ 70,000 t ≈ 70,000 t acornsacorns//yearyear grazedgrazed byby pigspigsinin extensiveextensive regime.regime.


Acorns grazed by pigs in extensiverearing (2)

SecondSecond stepstep:: To To convertconvert thethe quantityquantity ofof acornsacornsgrazedgrazed byby pigspigs inin extensiveextensive regime regime intointo forageforageunitsunits (FU). (FU).

TheThe coefficientscoefficients proposedproposed byby Vieira da Vieira da Natividade (1950, p.317) are Natividade (1950, p.317) are takentaken as a as a basisbasis: : 730 FU/t for 730 FU/t for acornsacorns fromfrom corkcork oakoak andand 743 FU/t 743 FU/t for for acornsacorns fromfrom holmholm oakoak = = intermediateintermediate valuevalue735 FU/t;735 FU/t;

735FU/t x 70,000t/735FU/t x 70,000t/yearyear = 51,5 = 51,5 millionmillion FU/FU/yearyear


Acorns grazed by pigs in extensiverearing (3)

ThirdThird stepstep: : To value this forest good, the priceof barley for animal consumption in 2001 (Instituto Nacional de Estatística, 2002) is usedas surrogate market price, assuming theequivalence 1 kg of barley = 1 FU.

Value of production (000 €) = 6,704


Data Data collectioncollection: : DifficultiesDifficulties onon thethevaluationvaluation ofof nonnon--woodwood forestforest productsproducts

Data Data onon quantitiesquantities ofof NWFPsNWFPs are are usuallyusually lesslessreadilyreadily availableavailable thanthan for for WFPsWFPs;;

Some Some quantitiesquantities consumedconsumed for for subsistencesubsistence orortradedtraded onon informal informal marketsmarkets are are takentaken fromfromexpertexpert opinionopinion;;

Local Local marketsmarkets for for NWFPsNWFPs are are soso thinthin thatthat bothboththethe quantitiesquantities tradedtraded andand thethe associatedassociated pricespricesescape escape statisticsstatistics..


Some Some remarksremarks

CorkCork isis thethe mainmain productproduct fromfrom “montado” “montado” withwith highhighimportanceimportance for for thethe TEV TEV ofof PortuguesePortuguese ForestsForests;;

TheThe valuevalue ofof acornsacorns andand grazinggrazing isis notnot includedincluded to to forestryforestry inin nationalnational accountsaccounts as as forestforest final final productionproduction, , sincesince theythey provideprovide intermediateintermediate consumptionconsumption for for livestocklivestock productionproduction;;

AlternativeAlternative productsproducts ((mushroomsmushrooms, , plantsplants) are ) are tradedtraded ininlocal local marketsmarkets andand thinthin marketsmarkets..


PortuguesePortuguese “montado” “montado”

Some Some photosphotos


NWFPsNWFPs -- HoneyHoney



NWFPsNWFPs -- PlantsPlants pickedpicked for for salesale



RecreationalRecreational servicesservices -- HuntingHunting



RecreationalRecreational servicesservices --Informal Informal forestforest recreationrecreation



IndirectIndirect use use valuesvalues-- BiodiversityBiodiversity



IndirectIndirect use use valuesvalues -- ForestForestlandscapelandscape



MUCHAS GRACIASMUCHAS GRACIAS

MERCI BEAUCOUPMERCI BEAUCOUP

THANK YOUTHANK [email protected]@porto.ucp.pt

[email protected]@porto.ucp.pt

palafrugell, 7th mayof2006 valuing nwfp’s in mediterranean...

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