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Analysis of the non-timber forest products market in the Brazilian Amazon

The non-timber forest products (NTFP) market in the Brazilian Amazon plays a key role in social, economic, and forest sustainability. Are considered as belonging to the NTFP designation all those products extracted from the forest which is not wood, such as leaves, fruits, fibers, seeds, oils, resins, gums and others. This market has been poorly explored in the country. This study discusses the market for NTFP in the Amazon region. This study aims to measure the response of the extractive supply of NTFP to price changes during the period 1973–2011. We used econometric tools for the analysis, where the supply and demand equations were specified and adjusted by the Ordinary Least Squares method. The price response was measured by the estimation of two logarithmic models for each of the products. Simultaneous models of supply and demand for NTFPs were developed and used to explain the behavior of this market. The results showed low price elasticity for the supply, which means that the quantity produced showed a low response to price. Our findings imply that the NTFP market in the Amazon shows economic potential, although it requires investments in regional infrastructure for production, training, and organization of extractive communities, and marketing support. Our results have important implications for policymakers to formulate effective subsidy policies to encourage the commercial production of NTFPs and to strengthen the NTFP market in the region.