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Forest Bulletin
Issue 3, Feb. 1997

Ecological Forestry - Economically and Socially Profitable?


Lutz Fahser

Forestry is a major activity within primary economic production which causes considerable impacts on the ecology of the exploited site and the welfare of related people in the concerned communities.

The forestry of this century resulted in innumerable endangered or even destroyed forest ecosystems and living conditions of people.

The 1992 UNCED Eco-Summit in Rio tried to draw attention to these suicidal effects and formulated rescue programmes like the Agenda 21, the Convention on Climate and on Biological Diversity and the Declaration on Forests.

The Declaration on Forests is based on the idea of a sustainable development in a comprehensive sense including economical, ecological, social and cultural aspects as well as the basic and specific needs of local people.

The requirements for a sustainable development (by sustainable management) are basically the same in all different forest regions in the world like Tropical Rainforests, Temperate Forests and Boreal Forests.

Boreal Forests cover 1.4 billion hectares of our globe, that ist one third of all forests. 600 million hectares of managed boreal forests provide 40 percent of the entire timber supply of the world. The timber harvesting technique is manily clearcut. Clearcuts usually leave behind damaged ecosystems and reduced living conditions for local communities. But they are apparently highly profitable for the concessionaires and the related industry - in a short term view.

Sustainable development as one important pre-condition for the survival of well balanced forests and the welfare of people means in terms of forestry an Ecological Forest Use. But can such an Ecological Forestry also be profitable?

1. Forestry

Forestry means to manage the limited resources of a forest in order to meet needs (or demands) of people.

The limited resources are nature (forests), labour and finances or in an other aspect material, energy and information.

The needs/demands of people can be of economical, ecological, social, cultural, ethical or other categories.

2. Ecologically Responsible Forestry

Forests are supercomplex ecosystems the full comprehension of which is a beyond human understanding. Therefore the complicated processes can never be fully predicted. As a consequence management activities are to be kept at a minimum (low input system) in relation to obtain the management targets (demands). Ecological forestry is forestry by adaptation to nature. Actual industrialized forest management however is mostly an intervention forestry. It functions as high input system aiming at a maximum of output in terms of timber and money. This means inevitably violations of ecological and social laws. intervention forestry relies on relativly simple forest models (age classes, standard forest, yield tables, etc) and tries to mimic and deform natural processes by physical and chemical intervention (clearcut and controlled burning for mimicking wild fires, pesticides, fertilizer, genetechnology etc). The awareness of the failure of this intervention forestry and the pressure on goverments. After the 1992 Rio-Summit have led to sereral initiatives worldwide to define and establish alternative forest management systems in the sense of ecological forestry.

A highly remarkable contribution came from the Scientific Panel for Sustainable Forest Practices in Clayoquot Sound (1995) which elobarated a global context for its vision of forestry as sustainable ecosystem management in British Columbia, Canada. Forest clearcut industry in Canada and Scandinavia became aware of severe problems with the public (their customers) caused by ecological, social and ethical preocupations. The prompt reaction were scientific investigations, model forest programs and numerous press campaignes, showing "Forestry's Green Revolution" (DOMAN SKOG, 1993) with (slight) alterations to former practices such as partial cut (instead of clear cut) and shelters of remaining trees (instead of completely bare cut areas).

The latest and very promising concept in Central Europe was published in August 1996 as a common position for "Ecological Forest Use", by the environmental organisations GREENPEACE, Friends of the Earth (BUND), Worldwide Fund for Nature (WWF) and Robin Wood, with the intention to certify ecologically managed forest enterprises through the "Naturland"-Association according to the principles of the international Forest Stewardship Council (FSC). Examples of such a forestry are the practical and sucessful managements in Vemon/Canada (HAMMOND 1992, 1994) and in Luebeck/Germany (FAEHSER, 1995).

3. Ecological Forest Use in Luebeck/Germany

The Hanseatic city of Luebeck is situated in North-Germany in a temporate climate. The representatives of the 220.000 inhabitants had decided in 1986 that in the future its 4.500 hectare forest should be managed in accordance with the principles of a sustainable, ecologically oriented forestry. From 1994 on this concept became a model for the national and international forest campaignes of GREENPEACE, Friends of the Earth (BUND), WWF, Robin Wood and others who finally introduced these ideas for forestry goals into the process of political discussion in August 1996 in Hamburg/Germany.

3.1. Principles and Guidelines of the Luebeck Model

The Luebeck Concept Principles:

  • tend to keep forests as close as possible to natural structures, processes and functions (STURM, 1993)

  • are based on the principle of minimum interference (entropy) and on the precautionary principle

  • realize the economic principle by minimizing the input (cost) to obtain the goals

  • cooperate with interested and affected people and communities

  • define forests as an essential pre-condition for survival and welfare of plants, animals and people (society).

    The management is based on a thorough inventory of biotops, habitats and forest stands in a 10-year period. Planning figures indicate annual allowable cut, allowed volume per cut, frequency of cuts, development targets, natural forest association type etc. The most important guidelines are

    At least 10 percent of the forests are set a side as "reference areas" without any intervention. They should be representative of the main forest types and are to visualize natural processes in order to respect and incorporate them into the management of the ordinary forest.

    At least 10 percent of the superficial tree-biomass remain as unused trees, like old, rare, beautiful or nesttrees or snags and fallen trees.

    Forest reproduction results mainly from natural regeneration. Extensive artificial sowing and planting is restricted to afforestation of large areas without mothertrees in the vicinity and thus aggravative natural regeneration. Exotic or introduced tree species shall never be planted.

    Thinning is performed extensively in order to only minimally disturb the natural processes like competition and selection. Thinning is done selectively with single trees. The criteria for cutting are firstly exotic or introduced species and secondly bad timber quality.

    Selective final harvest is restricted to trees exceding pre-defined target-diameters. Harvest shall never open the canopy for an area larger than 0,25 hectares, shall never extract more than 30 percent of the stand's tree volume and shall ocour not more than twice in 10 years.

    Strictly forbidden are the following:

  • clearcut (&rt;0,25 ha)

  • planting of monocultures

  • introduction of tree species not natural or exotic

  • application of pesticides and fertilizers

  • ploughing, digging, hoeing or compacting of the soil besides skidding trails and roads

  • clearing of areas and burning of residual bio-mass

  • drainage of (moist) areas

  • forest activities during ecologically sensitive periods of the year

  • feeding of wild animals.

    3. 2 Economic and social aspects of the Luebeck Model

    The Luebeck Model meets all ecological expectations of the UNCED Rio-Summit and of local inhabitants and environmental groups. But the representatives of industrialized forestry have their doubts about statisfactory economical and social results from ecological forestry.

    Experiences from Luebeck indicate that - in comparison with the common "intervention" forestry in Germany - the economic situation is characterized by:

  • less input: labour intensity, material and machine costs are reduced by at least 30 percent.

  • less output untouched reference areas, unharvested and dead trees, extensive thinning and increase of standing timber volume mean to renounce 25 - 30 percent of the annual timber selling Most of these trees remain in the forest as economical, ecological and esthetical enrichment. In terms of reduced annual timber revenues it could be only about 20 - 25 percent, since the harvested trees are of bigger sizes and better quality and more profitable with the eco-label.

  • higher diversity of products: natural diverse forests with the indigenous spectrum of plants, animals and other organisms offer a well assorted store with a variety of timber and non-timber products and services. Revenues rise by 10 percent.

  • fewer risks: natural forests are adapted to their site conditions to an optimal extent They are less susceptible to wind breaks, fire, fungi, bark beatles etc. This leads to fewer losses, less management cost and better anticyclic timber prices, altogether an amount of 15 percent.

    The above mentioned and some further aspects indicate that ecological forestry is more profitable from the economical point of view and bears fewer risks. The US-economist PICHT (1994) who studied the Luebeck forestry came to the conclusion: "...Luebeck ecoforestry is a profitable alternative to traditional forestry".

    The social effects of the Luebeck Forestry are

  • participation of local and affected people in the main decision-making processes (inventory, planning, realization of forest activities etc) as a possibility to selfdetermination in relation to their forests

  • diversification of products and jobs from the forest and additionally ecologically labelled timber products for special customers

  • well paid, meaningful, permanent and safe jobs which cannot easily be replaced by capital equipment and which last continously since the forests are maintained and remain harvestable in a sustainable way

  • economic and social well-being of local people deriving from long-term ecological sustainability of the forests and all its positiv effects (pure water, pleasant scenery, local jobs etc)

  • positive contributation to the attractivity and image of the community.

    Luebeck City makes various profits not only from its reputation as a UNESCO World Heritage for Culture but as well as an acknowlidged Heritage for (Forest-) Nature.

    Summing up the ecological, economic and social effects of the Luebeck Ecological Forestry there is at least compared with conventional forestry, no disadvantage for the forest ecosystem, for the business within the community and for the society in Luebeck City.

    4. Economic and Social Viability of Ecological Forestry in Boreal Forests

    General principles for sustainable forestry which build on natures' laws should be valid in any forested ecosystem growing in the tropics, in the temperate climate, or in the boreal zone.

    Such principles are:

  • man never knows enough about what is necessary to understand or even mimic the ecosystem

  • sustainable forestry can only be a minimum impact forestry with minimum disturbance of natural processes

  • planning must focus on those ecosystem elements and processes to be retained rather than on resources to be extracted (SCIENTIFIC PANEL, 1995)

  • good ecology is good economics (HAMMOND 1994) participation of local and affected people is indispensable.

    But naturally there are characteristics in the boreal forests which must be considered in order to achieve an adapted individual and responsible approach. One characteristic is the fact that "the boreal forest is an extremely sensitive system that can be easily damaged" (HAMMOND 1994).

    Boreal forest management is dominated so far by industrial forestry characterized by intensive and destructive impacts, ecological and social degradation and scarce participation of effected people. Forestry and industry pretend to have enough knowledge to understand and mimic the natural processes in forests e. g by clear-cut, partial cutting or prescribed burning.

    Honest Ecological Forestry, the only tool for sustainable development, is hardly given a chance in the timber companies and state forest administrations - maybe not yet only They distrust ecological forestry for not being economically profitable and socially accepted by foresters and forest workers.

    4.1. Economic Viability of Ecological Forestry in the Boreal

    With the transition to ecological forestry some typical economic effects are to be expected.

    There would be an increase in

  • cutting cycle

  • dimension of trees

  • standing timber volume

  • variety and value of timber and non-timber products

  • direct selling

  • number, variety and safety of forest-related Jobs

  • value-added manufacturing

  • decentralized, local and regional business

  • flexibility of organization and management (fewer time constraints)

  • participation of local people, but as well:

  • costs of timber harvesting (selective, single tree cutting)

  • expenses for infrastructure (permanent road system).

    On the other hand one can expect a decrease of

  • production risks (wind break, diseases, etc)

  • expenses for machinery, energy, material

  • time constraints, formerly caused by coordination of large harvest activities, land clearing, replanting etc.

  • influence of far distanced companies and urban people, and finally:

  • total volume of harvested timber.

    Quantitative figures cannot be given generally, but some examples and quantities can be quoted or estimated:

  • production time of the single tree may increase by at least 30 percent

  • direct timber selling e. g. through bids may raise the price for the forest owner by 50 to 100 percent

  • safe and continous demand for forest products from ecologically and socially sensitive customers and markets

  • local forest business and value-added manufacturing may increase the number of permanent jobs six times

  • the reduction of timber volume harvested can range from 20 to 50 percent.

    In comparison with clearcut forestry the volume of timber harvest per area will decrease. But this decrease only marks the natural level of sustainable productivity in an intact forest-ecosystem. The present big volume of timber harvest per area, which is produced under clearcut conditions in first and second growth forests does not indicate the natural level of sustainable productivity. To continue this high output strategy would mean tremendous inputs of plant breeding, gene technology, pesticides, fertilizers, drainage, soil preparation etc - and would result nevertheless in the long run in an impoverished, low productive forest ecosystem.

    Ecological forestry results in less volume harvested with higher harvesting costs per m3, but also in increased prices per m3, fewer productions risks, considerable contributions to the local employment creation and economic development.

    4. 2. Social Viability of Ecological Forestry in the Boreal

    Ecological forestry is even more attractive as to its social aspects. These are

  • participation of local and affected people

  • more meaningful, permanent and safe jobs

  • increased welfare for local communities

  • sustainable ecosystems and landscapes (homes).

    The regular participation of local and indigenous people can be institutionalized with Community Forest Boards (CFBs) as recommended by HAMMOND (1992).

    Employment and welfare in local communities will easily improve if only parts of the incentives and subsidies which are actually given generously to the big companies would be distributed to regions with responsible ecological forestry. This would be a highly efficient political and economical tool, because small business is a major source for job creation. SANDERSON (1991) found out that in 1987 small business accounted for 72 percent of job creation in British Columbia/Canada, while large business (with more than 100 employees) accounted for only 9 percent.

    Sustainability of local ecosystems and landscapes is a pre-condition for the physical and psychological health of individuals and communities. The absence of a functioning nature and an esthetic environment is nowadays a very common burden for people left behind after ordinary forest exploitation They are the victims of social costs and opportunity costs never paid by industrial forestry.

    5. Perspectives for a Responsible Boreal Forestry

    A responsible boreal forestry is an ecological forestry. Such a forestry would enhanse the living conditions for the forest ecosystem and the local people sustainably. But it would at the same time reduce the volume of timber available from the area.

    The change of forestry policies in the Boreal must be accompanied by changes of attitudes and awareness with industry, governments and customers worldwide. The demand of wood can easily be reduced to nearly one half in the industridized countries if waste and inefficient use of wood products, paper and paperboard can be stopped. Ecological forestry is an important and necessary contribution to a sustainable development of the world's most valiable and highly endangered ecosystem. The concept, the experience and the techniques are there. It is time to start now!

    References:

  • BUND, Greenpeace, Naturland, Robin Wood, WWF (1996)

  • DOMANSKOG (1993) FAEHSER, L (1995)

  • HAMMOND, H. (1992) HAMMOND, H. (1994)

  • PICHT, H. (1994)

  • SANDERSON, K. (1991)

  • SCIENTIFIC PANEL for Sustainable Forest Practices in Clayoquot Sound (1995)

  • STURM, K. (1993)

  • Ecological Forest Use. German Environmental Organisations' Position on Ecological Forest Use and Basis for the Certification of Forest Enterprises. Mimeo. Hamburg, 4 p.

  • Forestry's Green Revolution. Falun, 16 p.

  • Nature-oriented Forestry in Luebeck. International Journal of Ecoforestry, Victoria B. C., 11: 7-8

  • Seeing the Forests among the Trees. Vancouver, 309 p.

  • The Boreal Forests: Options for ecological ly responsible Human Use.

  • Unpublished script prepared for the Yokon Conservation Society, 34 p.

  • Greenpeace-Luebeck Ecoforestry and the Market. Unpublished. Indiana University, Bloomington/USA, 11 p.

  • Community forests and small business - an unbeatable combination.

  • Address to Transitions to Tomorrow Conference, University of Victoria, Victoria, B. C. - quoted from HAMMOND, H. (1992).

  • A Vision and its Context: Global Context for Forest Practices in Clayoquot Sound. Victoria, B. C., 40 p.

  • Prozebschutz - ein Konzept fur naturschutz-gerechte Waldwirtschaft. Zeitschrift f. Okologie u. Naturschutz, 2: 181-192.


    What is the Forest Bulletin?

    Editorial: Vladimir Zakharov, Olga Zakharova
    Internet-version: Forest.RU


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