Understanding the forestry value chain and livelihoods: a case of timber farming in KwaNgwanase.

Abstract

The forestry value chain plays a significant role in impacting livelihoods in rural communities. This can either be through creation of job opportunities or through development of small forestry businesses. However, small-scale timber growers and contractors frequently find themselves excluded in the forestry industry value chain. Their voices are not represented, and they often have no bargaining power when selling their timber products. In this study, an assessment of the small-scale commercial timber farming value chain was undertaken in two villages in KwaNgwanase with an aim of evaluating its impact on livelihoods. The research was conducted through evaluating coordination of the value chain stakeholders, determining the challenges facing value chain actors, identifying the economic benefits and contribution of value chain activities to value chain actors, and assessing the impact of value chain activities on actors’ livelihoods. The value chain participants were confined to four (4) harvesting contractors, one (1) seedling nursery operator and seventeen (17) timber growers. The case study approach, in conjunction with quantitative survey were used to execute the study. The methodological choice for the research was a mixed method approach that combined quantitative and qualitative data collection for quantifiable as well as descriptive data analysis. A non-probability sampling approach was used firstly in the form of a purposive sampling technique in order to select the harvesting contractors and seedling producer included in the study and the snowball sampling technique was used to determine the final sample size of timber growers included. Structured interviews including dominated by closed-ended questions and some open-ended questions were used as a data collection technique. The study findings revealed that the forestry value chain activities do contribute to sustainable livelihoods in KwaNgwanase. However, these contributions were minimal owing to disjointed organisation of value chain stakeholders and various challenges facing participants. Value chain integration, both horizontal and vertical, was found to be weak. Despite the positive financial benefits obtained by value chain actors, the value chain activities in KwaNgwanase have little impact to deal with vulnerabilities. Despite having access to all livelihood assets, the use of all resources is unsustainable and thus does not entirely translate to overall positive sustainable livelihood outcomes. Unless all stakeholders, including government, organise themselves more effectively, small-scale timber farming will not be a long-term sustainable livelihood contributor in KwaNgwanase.