Download PDF: NTFP-EP_Cambodia_Resin_Report.pdf

Stakeholder Forum on Sustainable and
Pro-Poor Oleoresin Industry Development
in Cambodia
23 September 2011
Himawari Hotel
Phnom Penh, Cambodia
I. Overview of the Forum
Dipterocarp oleoresins or balsams are important products in the rural economy and a source
of income for a great number of (mostly indigenous) collectors in Southeast Asia including
Cambodia. In NTFP-EP’s resin trade chain study in 2009, it was found that over 17,000
households (or about 100,000 individuals) depend on resin tapping as their primary source
of cash income (averaging US$350 per household per annum). The resins are locally
employed for waterproofing boats and baskets, while lower grades are used as fuel for
torches. There is also a thriving resin trade intra-region. About 3,500 tonnes of the total
annual harvest is used domestically where it provides key inputs to the vital and crisisresistant
fishing industry, 1 while an estimated average of 11,000 tonnes per annum is
exported, mostly to Vietnam, with no value addition premium (NTFP-EP, 2009). Based on
the same research, Preah Vihear and Mondulkiri provinces rank as the top 2 contributors of
Cambodia’s total resin production; up to 10,000 tonnes in Preah Vihear and up to 3,000
tonnes from Mondulkiri. 2 The current annual value of unprocessed resin exports from
Cambodia to Vietnam is between US$4.7 to US$7.6 million. A much smaller volume finds its
way to Thailand and (for re-export) Laos. Meanwhile, a growing, though currently still
modest volume of resin originating in Southeast Asia enters the manufacture of high end
natural varnishes and paints, produced in Germany and elsewhere in the European Union. As
well, there is an increasing global call for “greener, fairer and sustainable” economies to
which natural and fairly traded products, in general, are provided with market entry points.
For example, with the growing overall interest worldwide in truly ecological products, there
appears to be considerable, albeit so far untapped, potential to develop the household and
industrial applications, as well as other possible niche markets of dipterocarp resins such as
natural paints, varnish and glue, and essential oil and balsams for both domestic and
international markets.
The Cambodia NTFP Working Group (CNWG) in cooperation with the Non-Timber Forest
Products Exchange Programme of South and Southeast Asia (NTFP-EP) have been, since
2007, building a knowledge and partnership base for the development of sustainable
management and marketing of dipterocarp resins in Cambodia. With support from the UN-
MDGF Creative Industries Support Programme, local NGO members of the Cambodia NTFP
Working Group have undertaken sustainable and community based resin enterprise
development project initiatives in 7 villages in two provinces, Mondulkiri and Preah Vihear.
This entailed community organizing and business support to community resin
groups/associations. Additionally, under the same CISP support, NTFP-EP took the
facilitation role in the commercialization and value chain development of resins from the
project target areas within a 10-month period. This role involved:
• Developing through a participatory process sustainable/quality resin tapping
protocols and standards
1 An estimated 350,000 wooden fishing boats ply the inland waters of Cambodia. All these boats need regular caulking. In
addition, fishing crews increasingly use resin torches for lighting at night, as a substitute for either kerosene lamps or battery
fueled torches. The lower resin grades used for the latter purpose would otherwise be considered waste material. Luu, T.H. et
al. (draft July 2009). Resin Studies in Vietnam (Hochiminh City: CBD and NTFP-EP), found that tree resins are also widely
used for caulking the boats in Vietnam’s fishing fleet.
2 Prom Tola (2009). Beyond Subsistence: Trade Chain Analysis of Resin Products in Cambodia. (Phnom Penh: NTFP
Exchange Programme).
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