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BOX 1: FRAMEWORK FOR ASSESSING FORESTRY OUT-GROWER
SCHEMES
Principles
- Mutual acceptance of each partner’s aims under the arrangement;
- Fair negotiation process where all partners can make informed and
free decisions, including allowance for a third party to negotiate on
their behalf;
- Realistic prospect of all partners being able to derive benefits
proportional to their contributions and risks; and
- Long-term viability and commitment of partners to optimise the returns
from the arrangement in terms of commercial, socio-cultural and environmental
attributes.
Criteria
- Positive local socio-cultural, policy, economic and environmental
context for all the principles to be met;
- Partners have a willingness and capacity to contribute to arrangements
within the socio-economic and environmental parameters of their household
or business over the contractual period;
- Arrangements have legal contracts with clear details of when and
how multiple benefits can be arranged (such as grazing, inter-cropping),
contracts can be nullified, and compensation would be forthcoming. It
would also appear useful for a credible and independent third party
to be nominated to arbitrate if disagreement arises;
- Partners have access to accurate, in-depth and independent information
on the:
1. likely short- and long-term prospects with contingency
scenarios explored if arrangements are nullified;
2. current and likely long-term viability of prospective partners;
and
3. likely long-term context for local forestry development (eg. market
trends in terms of product volumes and competitiveness, necessary
infrastructure, government policy, code of practice, local sustainable
management practices, landholder or grower participation, wider community
support).
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