‘Net-System’ Models Versus Traditional Models in NWFP Marketing: The Case of Mushrooms

Abstract

Marketing strategies for successful non-wood forest product (NWFP) commercialization are important especially in those rural economies where NWFPs represent a considerable source of income for small and medium-scale forest-based enterprises. Two different organisational models in mushrooms marketing—a ‘traditional approach’ and a ‘net-system approach’—are compared through a case-study research approach. The first model is usually based on single large-scale enterprises producing large quantities of standardized, mass-market oriented products; its main commercial goal is the improvement of the value-chain from producer to end-users, with no special links or integration between the production area and the producers. The second, quite new approach is based on several integrated small and medium-scale rural-based enterprises supplying relatively limited quantities of high quality products, oriented to niche markets. In this case, product specialty identification, complementary actions, integration, and clustering among small and medium enterprises (SMEs) within the same production area are the most important goals. In the case studies, both organisational models have proved to be feasible and working with respect to the respective goals. Traditional large-scale enterprises, based on vertical integration and a short value chain, can achieve substantial economic performance; however, these are unlikely to have a significant positive impact on the socio-economic local context and are threatened by high business risk (mainly due to its strong specialization on a ‘climate-dependent’ NWFP). The analysed forest-based business model founded on networking, which involves not only forest-based SMEs but also other institutional, economic, and social actors, has proved to be not only economically viable and less risky with respect to the traditional model, but also more equitable in distribution of benefits, and effective in stimulating the local economy as a whole, integrated system based on NWFPs and related environmental services.