Nonwood forest products examples from Hungary Attila Hegeds

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

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 INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

Definitions Forest products Non-wood forest products Wood products (NWFP) Non-wood forest products are goods of biological origin, other than wood, derived from forests, other wooded land 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! INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

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

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

Why NWFP are important? • 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 INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 resources

Main steps in history of NWFP • 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 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). INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

Labelling of forest mushrooms in Italy – innovation example “Fungo di Borgotaro” 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.

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. INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

Forest mushroom sector analysis in Hungary

Contents • 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 INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

General facts about mushrooms • 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 forest mushrooms in the EU, particularly in Italy and France, which act as distribution centers for the rest of Europe. 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% INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005 Canned 2%

Marketing channels, export-import act INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

Marketing channels, export-import act 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 INNO-FOREST IP, Iisalmi, Finland - 19 May, 2005

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

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