The Economic Value of Non-Timber Forest Products—A Case Study from Malaysia

Abstract

Knowledge of the value of non-timber forest products (NTFPs) and their use patterns may provide input to the management of tropical forests to the benefit of local people. This study presents findings on the value of NTFP extraction by indigenous people, the Jah Hut, in Krau Wildlife Reserve, Peninsular Malaysia, including an analysis of factors influencing extraction levels. Data was collected in four villages using rapid rural appraisal and structured interviews of 127 households. The average value of extracted NTFPs was estimated using the indirect opportunity cost method. The average value of extraction is estimated at PPP US$ 2,455 hh_1 yr_1 and PPP US$ 40.7 ha-1 yr_1. There is evidence that poorer villages and households depend most on NTFP extraction. However, traditional Jah Hut activities, including NTFP extraction, are replaced by wage labour when available. It is argued that NTFP dependence is presently high, and thus NTFPs may contribute to improve rural livelihoods, but likely to be reduced as the Jah Hut are increasingly integrated into the Malaysian society. The advantages and disadvantages of using the indirect opportunity cost method to estimate the value of NTFPs are discussed.