Valuation of non-timber forest products value chains

By their very definition, non-timber forest products (NTFPs) originate in hinterlands and link to final consumers through value chains. This paper quantifies four value chains of the highly valuable agarwood sourced in Lao People's Democratic Republic, by looking at the actors involved and the different stages from harvesting to retail, and incorporates both legal and illegal activities. Data were collected in a national harvest and trade study, an international market survey of Arab markets, and by interviews with key informants. The results show a huge global retail value estimated between USD 666 and 2300 million, of which Lao agarwood accounts for about 2%, i.e., USD 33 million. The export value to Laos is estimated at approx. USD 14 million, with a quantity of wood and wood-equivalents of 931 t. Patterns and domains of value-addition and -appropriation are discussed along with responses in the value chain to over-harvesting and signs of resource scarcity.