Box 61 Outgrower schemes

Well-documented examples of outgrower schemes are the pulp companies Mondi and Sappi in South Africa. Here, around 10,000 smallholders grow Eucalyptus spp. on areas between 1.5 and 2.7ha in rotations of seven years. The companies provide seedlings, credit, fertilizer and technical assistance, and ultimately acquire the harvest for pulp production. The outgrowers receive payments before planting and after successfully completing each operation specified in the production programme, such as marking, ploughing, pitting, planting, fertilizing, weeding and fire protection. The money paid to the outgrower after completing each operation is essentially a loan advanced against the value of the final product (Mayers and Vermeulen, 2002). In the year 2002, outgrowers produced about 10 per cent of the two companies' mill consumption (Hall, 2003).

well as agroforestry projects with a social emphasis.

Reforestation programmes focus on environmental goals, such as the rehabilitation of degraded land to ensure water quality and prevent erosion. Yet production also plays a role. Such programmes are established mainly by governments and/or environmental NGO initiatives, or are legally enforced (Thacher et al, 1996; Sayer et al, 2004; MINAG and INRENA, 2006; Ministerio del Ambiente, 2006; Nawir et al, 2007). In the attempt to generate relevant outcomes, reforestation programmes tend to cover huge areas. Administration units are established temporarily to coordinate finances and logistics. Smallholders may become involved in the planting operations, and often in activities for fire control and other protection issues. To attract the interest of landowners, the incentives for participation are limited, often to the provision of plants and technical assistance free of change. Depending on the former land use and land rights, local people may receive monetary compensation (Almeida et al, 2006).

Agroforestry projects aim to produce both forest products and agricultural crops while maintaining soil fertility (Dubois, 1996; Pattanayak and Mercer, 2002; Puri and Nair, 2004). International donors, particularly in collaboration with NGOs, promote agroforestry projects as an opportunity to improve local livelihoods while providing environmental benefits (UNDCP, 1997; Vivan et al, 2002; Browder et al, 2005). Agroforestry systems can include a wide variety of tree species, including trees for the production of forage, fruits, rubber, timber or firewood as well as trees for the provision of shade or to support other plants, or those planted mainly for environmental purposes. Normally trees are planted at wide spacings to allow the cultivation of agricultural crops below. Trees may also be planted in lines on the edges of agricultural fields, as for example teak trees in Indonesia (Maturana, 2006). Some agroforestry techniques have a long tradition in the tropics (Wiersum, 1982; Nair, 1987). Although agroforestry systems are explicitly designed for smallholders, most of them are technically sophisticated (Box 6.2) and demand drastic changes in

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