1. Non-wood forest products, examples from Hungary Attila Hegedűs M. Sc. Forestry University of West Hungary Institute of Forest Assets Management, Sopron INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

2. Overview of presentation Definitions Raising the problem - Why NWFP are important? History and developments of NWFP Forest mushroom sector analysis in Hungary (case study) Lessons learned

3. Definitions Non-wood forest products (NWFP) Wood products Forest products INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Non-wood forest products are goods of biological origin, other than wood, derived from forests, other wooded land and tree outside forests (FAO, 1995). NWFPs include wide range of products such as foods, medicinal plants, spices, resins, gums, mushrooms. Suggestion for CHANGING the DEFINITION!

4. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Definitions Forest based Goods and Services (FOGS) – U. Mantau, 2004 Forest based Wood Products (FOW) Energy wood, Industrial wood etc. Forest based Plant Products (FOP) Plants, Plants products Forest based Animal Products (FOA) Animal, Animal products Forest based Recreational Services (FORS) Parks, events, Sport activities etc. Forest based Environmental Services (FOES) Nature education etc.

5. Classification of non-wood forest products Linked with parts of tree : Charcoal, X-mas tree, foliage, Cone, Honey Not linked with parts of tree : Plant Animal Mineral Mushroom Med. plant Antlers Game Stones from forest INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

8. Contribute positively and significantly to improving rural households (additional income for rural people), Contribute positively to economic growth, both at the local, regional and national levels, Contribute to improve natural resource management (alternative income for traditional forestry), There is increasing demand for natural products, bioproducts. Good balance between conservation of natural resources and improvement of rural economy! Why NWFP are important?

9. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 1980’s – research and development interests on NWFP in developing countries Information is available on NWFP on the FAO website www.fao.org/forestry mid of 90’s – more interests on NWFP in Europe: development projects for example in Nordic countries at present, the systems directly relevant to NWFP certification include: Forest Stewardship Council (FSC), International Federation of Organic Agriculture Movements (IFOAM), Fair-trade Labelling Organizations International (FLO), FSC has certified corks in Denmark, wild deer in Scotland and there are several on-going or planned projects in the Mediterranean region in cooperation with WWF. NWFP field tests were undertaken by the WWF in Greece (for chestnut production ) and Spain ( cork ). Main steps in history of NWFP

10. Labelling of forest mushrooms in Italy – innovation example Since 1996 the trade name “Fungo di Borgotaro” has been appearing on mushroom products as IGP trademark (Indication of Protected Geographic Area) according to EC Regulation no. 1107/96. “Fungo di Borgotaro”

11. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Development of NWFP in Central-Eastern Europe Between II. World War and 1989 the management (harvesting, processing, sales) of NWFP was carried out by specialised state-owned companies. After 1989, in the process of transition to market economy state companies were taken out of this economic area and their responsibilities were taken over by small dynamic private companies. Behind of these companies partly there are investors from Western Europe.

12. Forest mushroom sector analysis in Hungary

13. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 General facts about mushrooms Products identification, harvesting level Marketing channels, export-import activity Policy framework: property rights regulations, incentives, taxation, information Strenghts – weaknesses Innovation areas Contents

14. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 About 6000 fungal species (macromycetes) have been described in Europe, ca. 500 of the species in Europe are edible, In the Northern hemisphere trade in edible forest fungi is in excess of 20 billion Euros, using only a small number of species, and represents only a fragment of the potential economic value and uses, There are large markets for forest mushrooms in the EU, particularly in Italy and France, which act as distribution centers for the rest of Europe. General facts about mushrooms

15. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Products identification, harvesting level In Hungary, the most important forest mushroom species are cep ( Boletus edulis ) and chanterelle ( Chantharellus cibarius ). These species cover 90% of the total mushrooms gathered in revenue value. Russula sp. and Cratarellus cornucopiodes have medium importance, while Morchella sp. and other Boletales sp. are indicated as insignificant forest mushrooms. Boletus export reached 378 tons and there was an app. 22 tons Chantarellus on the export market in 2001. The total value of forest mushroom production was 1,6 million US$ in 2001. Product types: Fresh (frozen) 80% Dried 18% Canned 2%

16. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Marketing channels, export-import activity

17. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Marketing channels, export-import activity

18. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Policy framework At present the forestry act declares that the mushroom picking is a free in all state-owned forests for personal need, but not for commercial purposes. For commercial need permission from the local forest manager is required. All in all, the mushroom pickers enter to forests without any permits and pick the mushroom without any payment for the owners. Approximately 13-17 small-medium enterprises are involved in forest mushroom business. They are suitable to summit project proposal for investments. During the accession period it was accessible the Sapard program. One of the Sapard measures was indicated as improvement of processing and marketing of agricultural and fishery products, including forest mushrooms. At present, there are open tenders for these companies supported by National Development Plan, National Rural Development Plan. Concerning the taxation issues, these companies are under SME’s rules

22. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Weaknesses – Lack of capital – No real packaging, processing background – No real product innovation – Weak enterprise management – Weak marketing knowledgeStrengths – Flexibility – Reliability – Expert’s knowledge – Stable picking- network – Versatility Strenghts - Weaknesses

23. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Innovation areas 1. Labelling/certification issues (marked as Hungaricum) 2. Development of e-business 3. Value-added processing on local level 4. Improvement of home market 5.Taking full advantages of resources: local mushroom processing can be added the ecotourism services.

24. Thank you for your attention! hegedus@emk.nyme.hu INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005