A new study reports that community forest enterprises are being side-lined in the international forestry arena, putting forests at risk the world over.

The report entitled 'Community-based Forest Enterprises in Tropical Forest Countries: Status and Potential' concludes that the potential for growth of the CFE sector is "huge," but will require government action to provide clear rights to forest resources for community enterprises, fewer burdensome taxes, greater flexibility in the way rules are applied, rapid approval of applications submitted to relevant agencies, and an end to indirect subsidies to large-scale producers.

The report was released by the International Tropical Timber Organization (ITTO) last week at a conference 'Community forest management and enterprises: global issues and opportunities' in Acre, Brazil. The report bases its conclusions on a review of current research and on 20 case-studies of successful enterprises in Africa, Latin America, Asia and the Pacific Islands.

Scidev.Net quoted Dinesh Paudel, who presented case study of community enterprise in Nepal that produces juice from the Bel fruit, as saying "Our enterprise is a shareholder enterprise, so the community benefits directly. We are also now using a resource that before was being wasted." He added that he would like to see their forest recognised as collateral to improve their financial situation, and says they would benefit from an international agreement making it easier for community enterprises to compete with larger companies.

Community-based forest enterprises in tropical forest countries: Status and potential. ITTO, RRI and Forest Trends. July 2007.