Increasing conservation through business: Can a commercial approach of agroforestry lead to sustainable alternatives for current agricultural practices in Andasibe-Mantadia national park in Madagascar?

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Source: https://www.earth.com/news/exploitation-deforestation-madagascar/

Increasing conservation through business:

Can a commercial approach of agroforestry lead to sustainable

alternatives for current agricultural practices in Andasibe-Mantadia

national park in Madagascar?

An integrated approach

Mathijs Stokvisch, 11194634 Jurre van Boxmeer, 11345780

Daan Alers, 11248890 Liz Engelberts, 11228768

23-12-2018

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Abstract

In order to answer the research question ‘How can a commercial approach of

agroforestry lead to sustainable alternatives for current agricultural practices in

Andasibe-Mantadia national park?’ a qualitative research, combined with literature

study, is necessary. Combining the geographical, economic, natural and social

dimensions, an integrated answer on the research question is formed. From the

theoretical framework, it is illustrated that agroforestry can provide a solution to the

poverty and degradation issues if socio-economic complications, for example with

land rights, can be tackled. The theoretical framework is supported by an interview

conducted from an expert, who works in the field and comprehends the

complications local farmers face and the incentives they have. This research will

pose an interdisciplinary approach to solving the problems from both Malagasy

farmers and the Malagasy government. Several concepts, such as the four returns of

Commonland, will be applied and visually represented in the research report in

order to increase value of agricultural and forest products by means of sustainable

agricultural techniques and at the same time preserve the local environment.

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I

ntroduction

Madagascar is the world’s fourth biggest island and is widely known for its

extremely diverse and unique flora and fauna. However, the country’s beauty is

overshadowed by her great financial problems. Having experienced grave

stagnation in economic development in the past few decades along with a rise in

absolute poverty, Madagascar has to find opportunities to improve its agricultural

sector to raise its natives’ standard of living. This is especially relevant, considering

the country’s political instability, which has undermined economic growth,

institutions and efforts for national development (World Food Programme, 2018).

According to the World Food Programme (2018) over 78% of the Malagasy live in

poverty, with many Malagasy working in small scale farming in order to provide

personal nutrition for themselves and their families. Along with these farmers’

socio-economic problems, there is also the problem of unsustainable agricultural

practices (Styger, Rakotondramasy, Pfeffer, Fernandes, & Bates., 2007). As most

Malagasy farmers make use of slash and burn techniques, this affects the island’s

rich biodiversity through high deforestation rates and land erosion, which will be

explained in the Theoretical Framework (Styger, et al., 2007).

In the Andasibe Mantadia National Park, deforestation problems are

particularly severe, as unsustainable agricultural practices are reaching further into

the park’s forests. The Andasibe Mantadia National Park is a 155 square kilometre

protected area that consists mainly of primary growth forest in the North East of

Madagascar. The Andasibe rainforest is located in a humid climate, which contains

extensive species biodiversity, including endangered and very rare species

(Madagascar Biodiversity Partnership, 2018). The park is an interesting area to

analyze, as it suffers from the effects of excessive implementation of slash and burn

techniques. The biggest threat to this forest is the disappearance of adjoining

habitat outside the park, which is a consequence of conventional agricultural

practises (Green & Sussman, 1990). An example of impact of deforestation is the

endangered lemur species, as is pointed out through the active campaigns of the

Lemur Conservation Network (2018). The causes of habitat loss are logging and

deforestation, such as the replacement of rainforest with commercial Chinese pine

and Australian eucalyptus forests. Another cause is rice agriculture using

slash-and-burn cultivation, which is provoked by the high population growth and

poverty in rural Madagascar (McConnell, 2002).

This research therefore attempts to explore ideas for the agricultural sector in

order to provide alternatives for small scale farmers in and around the Andasibe

Mantadia national park. Main problems within the agricultural sector are currently

land ownership rights, the current unsustainable agricultural techniques and farmers

being unable to lend money (Gezon & Freed, 1999). Our main aim is to explore how

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Malagasy farmers can make a living from agriculture while using agroforestry, a

sustainable agricultural technique which could form a good business model in order

to realize an increase in local agriculture. A good example of the potential of

agroforestry is the study by Dumanski and colleagues, who successfully combined

corn crops with a selection of tree species (Dumanski, Peiretti, Benites, McGarry &

Pieri, 2006

)

. This research considers lessons from recent studies in Costa Rica and

South Africa, where agroforestry and its agricultural commodities were implemented

in a business model that is already repaying and benefiting the local society

(Gromko & Calo, 2017).

As a result of the findings reported above, the main research question is:

‘

How can a commercial approach of agroforestry lead to sustainable alternatives for

current agricultural practices in Andasibe-Mantadia national park?’

A qualitative, multidisciplinary research on the increasing value of using

agroforestry techniques will broaden the academic knowledge on agriculture in

Madagascar. This study builds on, and extends, earlier studies, mentioned in the

section References, which investigated agroforestry techniques, Malagasy culture,

agricultural practices and biodiversity. Although it is important to look at the

existing literature, the articles which focus at agroforestry in the Andasibe National

Park is nihil, therefore this paper aims to contribute to this gap in knowledge, which

is shown in the Theoretical Framework. We will explain in detail the most important

theories and concepts in the theoretical framework. Followed by setting out our

selected methods and data, a visualization will be shown, which clarifies the the aim

of this research by showing the relationships between the most important concepts.

Furthermore, the results section will provide an interdisciplinary answer to the

research question.

Because the situation in the Andasibe Mantadia National Park has many

facets, this question will be analysed through a combination of three different

disciplines. Methods from earth sciences are used in order to analyze the effects of

slash and burn techniques on farmland in the North East of Madagascar, along with

exploring the potential of agroforestry to replace unsustainable agricultural

measures. A human geography perspective is used to set out important local issues

such as land rights and cultural ties with the current agricultural system.

Furthermore, concepts and processes from business administration are used to

analyze existing agroforestry business cases in the Theoretical Framework.

Moreover, the business perspective is used to evaluate the barriers which hold back

agricultural development and to consider the opportunities which support a

sustainable agroforestry business model in the area of the Andasibe Mantadia

National Park.

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In general, this research investigates how to create agricultural value in rural

North East Madagascar. The social relevance of this paper is the search towards

mitigating the current problems faced by the Malagasy society, which are

embedded in the unsustainable slash-and-burn techniques and the exploitation of

the soils. We take an interdisciplinary approach as we aim to develop a business

model which implements this combination of disciplines in order to search for ways

how Malagasy farmers can earn a sustainable living through agroforestry. This is why

this research focuses on the four returns of Commonland, which will be elaborated

on later. The business model will be produced focussing on both small-scale local

farming and on large-scale organizational farming. Likewise, this final research paper

poses a holistic view which investigates how small-scale and large-scale agricultural

practices can be combined in the northeast of Madagascar, following the model of

four returns.

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Theoretical Framework

One of the core problems local agriculture currently faces in Madagascar are the

deteriorating effects of slash and burn practises. This phenomenon is defined by

Brady (1996) as the clearing of forest through by burning trees for crop production

in order to take advantage of the nutrients in the resulting ashes. After a period of

2-3 years, the plot becomes depleted of nutrients and is consequently left fallow for

a period of 10-20 years. Worldwide, many studies have been conducted to research

the effects of the usage of slash and burn, which are also known as tavy techniques,

on both biodiversity and soil quality. Styger and his colleagues (2007) argue that

tavy agriculture has a major impact on deforestation and land degradation.

Klanderud and his colleagues complement to these findings by coupling recent tavy

practises to increasing food demand caused by population growth in the tropics

(Klanderud,

Mbolatiana,

Vololomboahangy,

Radimbison,

Roger,

Totland &

Rajeriarison, 2010). Leaving local farmers with two options, namely to either shorten

the fallow periods, affecting soil recovery, or extending their area of cultivation into

untouched forests. The latter ultimately leads to a loss of forested area,

subsequently decreasing carbon sequestration, affecting anthropogenic carbon

dioxide emissions and severely affecting local and regional ecosystems (Klanderud

et al., 2010; Styger et al., 2007). However, local farmers will keep up with these

practises due to a lack of alternatives in their direct environment. This results from

the strong connection of the local Malagasy

community with their farming

traditions, as was concluded by Styger and colleagues (2007) in their study of slash

and burn practises in Madagascar’s eastern rainforest. Furthermore, it seems that

slash-and-burn techniques are the last option to the poverty-struck people of

Madagascar and therefore difficult to abandon. Research conducted by Jose (2009)

emphasizes the potential of agroforestry techniques, providing an interesting

alternative to current Malagasy farming practises.

According to Gezon & Freed (1999), agroforestry encompasses ‘a multiple

land use system in which small-scale farmers raise tree crops with agricultural and

animal crops’. As explained by Buck (1998), agroforestry strategies are focussed on

supporting nutrient-enhancing species that improve soil quality while providing tree

products.

Considering the acidic environment in humid rainforests, the presence of

trees is essential since the soil properties of acidic soils generally impede nutrient

bondage to the soil (Mendelsohn, 2018). However, conventional agricultural

systems disturb these processes by systematically depleting the soils of their

nutrients, resulting in completely drained soils.

There is a broad variety of studies

providing evidence that agroforestry could be used as an extensive and diverse

strategy for restoring degraded areas, conserving existing resources from the forest

and increasing people’s access to valued products from the forest and agricultural

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fields. For example, the study by Padoch and colleagues mentions a sustainable

market-oriented approach towards Amazonian agroforestry that produced charcoal

and perennial crops for the regional market (Padoch, Inuma, De Jong & Unruh.,

1985). According to Stephie Mendelsohn, the interviewee for this research, crops

that are ‘high value, low volume’ work best for the easily-leached, nutrient-poor,

and sandy soils in Zambia from an economic and biological perspective. Zambia’s

climate is comparable with Madagascar, so these ‘high value, low volume’ crops

could provide value for the Malagasy farmers as well. Crops that are highly valuable,

but come in low volume, are spices, herbs and oils (S. Mendelsohn, personal

communication, November, 2018).

Investigating business models of agroforestry, it is said that, despite the

economic and environmental benefits, such systems are not widely implemented at

a commercial scale (Gromko & Calo, 2017). One cause is explained by the

long-term payback period of agroforestry projects, which does not align well with

traditional investment mechanisms available. For example in Costa Rica, banks find

the investment very risky and are unfamiliar with agroforestry; only 14% of

agricultural producers have access to credit (Gromko & Calo, 2017). This low

percentage is normal in Latin-American countries, as the percentages to access for

farmers to get credit from banks in Chile, Mexico, Brazil and Colombia are not much

higher. As a result, the agricultural producers implementing agroforestry systems

are small scale, making it more difficult for them to attract investment.

However, as monoculture has only one cash flow, agroforestry has at least

two ways to generate revenues, which could be helpful when financing this system.

Examples on Agroforestry business models in Costa Rica show that forestry is often

difficult to finance as the payment period is after at least seven years, whereas

agroforestry and its agricultural commodities can already repay a part of the

investment (Gromko & Calo, 2017). But still, the payback period in Costa Rica was,

and in different nations probably will be, around the five years, as is shown in Figure

1.1.

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Figure 1. Cash flow profile of a typical timber and coffee agroforestry system. Source: Gromko & Calo, 2017.

The potential for an agroforestry investment relies on a couple of factors,

such as borrower legal status, as most investors will only invest in privately

registered companies. Furthermore, land title, track record, revenue, profitability,

collateral, leverage, payback period, project size, access to markets and production

risks are important elements for an investor or bank to consider (Gromko & Calo,

2017). For example, the small nature of the majority of agricultural producers in

Costa Rica will make it hard for them to directly invest in agricultural production at

scale in order to attract international (impact) investors, private or public investors.

Besides Costa Rica, looking at putting agroforestry into practice in South

Africa can also be useful. There are four steps necessary to implement agroforestry,

which the Malagasy farmers can learn from, as the climate and African cultures in

both countries are more comparable than in the Costa Rican case (Agroforestry

strategy framework for South Africa, 2017). These steps address some issues which

are also apparent in the area of the Andasibe-Mantadia National Park, namely the

lack of awareness and continuity of slash-and-burn techniques. These steps include:

1. sharing knowledge and information by generating awareness and linking

researchers and farmers, 2. developing skills by implementing training curricula in

schools and for farmers, 3. enabling adoption of agroforestry by organising and

mobilising farmers, making seed and planting material available and developing

new

markets

for

agroforestry

products

and

4. supporting

agroforestry

implementation by integrating it into existing programmes and distributors.

Shifting from a micro and small-scale agricultural perspective to a macro

perspective, community based organisations and international projects could be of

great importance for implementing agroforestry (Mendelsohn, 2018). Community

based organisations (CMO's) aim to improve the livelihoods of local inhabitants.

According to case studies performed in the countries of Kenya, Cameroon and

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Ethiopia, CMO's are essential in achieving the percieved results on the long term

(Kindt et al., 2005; Noordin et al., 2010; Degrande et al., 2012).

At the time the National Park was created (1989), land tenure in the rest of

the Park’s region remained largely under the control of traditional community

institutions (McConnell, 2002). After four years the National Park was fused with a

neighbouring 810 ha Special Reserve, as the Andasibe– Mantadia Protected Area

Complex (APAM), to be managed under a new Integrated Conservation and

Development Project (ICDP) (McConnell, 2002). The ICDP concept has been

designed with a heavily restricted core, encircled by buffer and transition zones

where non-extractive activities, such as tourism and research, are allowed.

Originally, the proposed zones were strictly accessible by Park Service Staff,

approved scientists and paying tourists, but the strict character soon became

slightly lax, allowing the continued resource-based livelihood activities both by

residents and others (Sodikoff, 1996, as cited in McConnell, 2002). Interestingly, in

the four years in between the establishment of the Park and the ICDP, farmers had

been practicing shifting cultivation, or slash-and-burn techniques as mentioned

before (tavy), along the edges of the forest, extending their agricultural land and

infiltrating the protected area (McConnell, 2002). This eventually resulted in the

creation of a fourth zone, a special buffer for ‘controlled occupancy and use’, which

the Project regarded as the promotion of intensive, sustainable agriculture as a

means of stabilizing the edge of the forest (McConnell, 2002). The Fourth Buffer

Zone is thus the result of farmers encroaching on the edges of the forest of the park

and afterwards included to the park as a way of maintaining a livelihood for farmers

and simultaneously securing the edge of the forest (McConnell, 2002). The ICDP

approach is intended to reduce pressure of humans on the protected area, with

slowing rates of deforestation as the key indicator of project success, so biodiversity

can grow. The ICDP idea is aimed at protecting intact portions of rainforest while

generating tourist revenue. The revenues made can be used to manage the

Andasibe Park and to fund development activities that provide incentives for

communities to collaborate in the conservation of forest resources. According to

McConnell (2002), the ICDP design to promote sustainable and intensive

agricultural land use in the designated buffer zone is a very acceptable compromise

between the goals of the National Park to protect biodiversity, and those of the

community to ensure enough agricultural production. By carrying out a project such

as the ICDP, Madagascar shows it acknowledges the potential of large-scale

projects. As the ICDP already started in 1998, recent studies showed that the zoning

served its purpose and that Malagasy farmers are able to harvest natural resources

in certain zones while obeying rules regarding endangered species (Sodikoff, 2012).

At one point, the ICDP even introduced poverty alleviation measures, which meant

establishing tree nurseries, building dams for irrigation and training villagers in

beekeeping, child nutrition and sustainable fishing.

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Elaborating on the ICDP, agricultural practices should ideally focus on the

four returns of Commonland, as these encompass every aspect of importance for a

successful sustainable business model. Commonland is a business which creates an

investable large-scale landscape restoration industry aligned with international

policies and guidelines. Their approach suits this research very well, as it is based on

a sustainable business model and delivers the returns of inspiration, social capital,

natural capital and financial capital. Poverty alleviation measures mentioned by

McConnell (2002) support these four returns. Commonland is a company which

focuses on landscape restoration via a business approach. Firstly, there is a return of

inspiration, which focuses on giving back a man’s inner purpose and hopes

(Ferwerda, 2015). For instance, having a viable means of making ends meet puts

one’s mind at ease and can be set as an example for others. Secondly, the financial

returns are extremely important. By providing a wage in return for farmers’ efforts

and crops, the number of farmers willing to participate is expected to be

significantly higher than to just buy their crops. The natural return focuses on the

restoration and preservation of biodiversity. Lastly, the social return of the program

describes the introduction of jobs, education and security to the area. By educating

farmers and providing sustainable agriculture techniques, farmers obtain a future

perspective, which positively impacts their lives (Ferwerda, 2015).

Besides CMO's in Cameroon, Kenya and Ethiopia, Ajayi and Place (2012)

provide an overview of different large-scale agroforestry practices in different

countries of Africa and Asia. According to this research the spread of agroforestry

was triggered when existing or new policies created market opportunities. As

large-scale operations are focussed on making a profit more than the self sustaining

purposes of small scale agroforestry, the market has to be analysed. For large-scale

agroforestry to be initiated, organisations must foresee potential economic benefits

(Gromko & Calo, 2017). Bults, an expert on sustainable agricultural development in

Madagascar, (personal communication, November 2018) adds to this that it is highly

important that there is a demand for a certain product since operations are focussed

on selling products and earning money. Mendelsohn further elaborated on the

importance of demand by mentioning high value and low volume crops. According

to Mendelsohn, a sound and sustainable business model can be created around

products such as tea, oils and herbs. Grounded, the company Mendelsohn works

for, also strives to achieve the four returns, and consequently does not focus on

farmers food security. If a company's objective is to provide farmers with food

security, high value and low volume crops might not work out. Therefore the

objective of the organisation involved in the process is of high importance as well.

After having provided an overview of the Park and the goals of the business

model, it is relevant to research whether having to deal with titled or untitled land is

risky, which involves certainty about land tenure and the definition of land rights. In

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Madagascar, land rights were defined by the French colonists during the colonial

era. After gaining independence in 1960, the state continued to guarantee land

ownership, which is known as the

Torrens model, but the titling procedure was -and

still is- highly complex, costly and time-consuming (Jacoby & Minten, 2007). These

authors claim that a ‘certificate of occupation’, the first of many steps in formal title

application, was available to farmers after paying a ‘maintenance fee’. Some farmers

did pay, resulting in ownership of some sort of formality, but numerous farmers did

not, for a wide range of reasons which are based financial and social issues (Jacoby

& Minten, 2007). Through the small scale farmers’ point of view, the interaction

between the government along with development and conservation groups

ultimately fail to improve the current situation due to a lack of sympathy and

understanding (Styger et al., 2007). One of the most important drivers to aid the

poor is by setting up a land recordation system in order to gain an increased level of

status in the eyes of the state (Zevenbergen and Augustinus, 2011, as cited in

Zevenbergen et al., 2013).

Locally, people respect each others informal claims on land, which are mostly

based on ancestral grounds (Karsenty and Le Roy, 1996, as cited in Bellemare,

2012; McConnell, 2002). According to Bellamere (2013) formal land rights have no

significant impact on land productivity, which is in line with the findings of Atwood

(1990) and Place (2009) for Africa, and Jacoby and Minten (2007) for Madagascar.

The only use of titling land, with respect to the costs, is to increase tenurial security

against land grabs and expropriation, according to Jacoby and Minten (2007).

Although people within rural communities respect each others’ informal land claims,

the tenurial conditions remain unsecure. For instance, the Malagasy government

used to consider all unclaimed (in practice untitled but informally owned) land state

property (Burnod, Gingembre, & Andrianirina Ratsialonana 2013)., leading to

scandals such as the famous, ultimately hindered Daewoo land grab deal

(Rochegude, 2011, as cited in Burnod et al., 2013). In an effort to increase tenurial

security, new laws were implemented in 2005 and 2006 which drastically reduced

land managed by the state, by no longer assuming ‘occupied and untitled land’ to

be state owned, and by increasing land ownership registration (Burnod et al., 2013).

Although this seemed hopeful, institutional failure is responsible for prolonged

certification processes and the low recorded land rates (Bellemare, 2013).

Furthermore, while island-wide tenure systems take up similar forms, they are

differently shaped by the institution which has most authority in that specific place:

local power-structures, state led institutions, or a contesting combination. After

having considered the slightly disadvantageous characteristics which are home to

Madagascar, we therefore propose to introduce businesses in the Fourth Buffer

Zone in the aforementioned Andasibe-Mantadia National Park.

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Methodology

This section will elaborate on the problem definition and the methodologies used in

the research, as we used both primary and secondary data. To collect data about

the overarching concepts regarding sustainable agricultural techniques and

business models which build on these techniques, we have conducted an interview

with an expert in the field who has in-depth knowledge about these techniques or

the current situation in Madagascar. The interview was held with Stephie

Mendelson, a researcher at Grounded. Grounded is a company that seeks to restore

agricultural balance and profitability for local farmers. As Grounded is active in

South-Eastern Africa and in Madagascar, the interview with Mendelson (2018) gave

many new insights in local customs and potential business cases. This interview

forms the primary data for our research.

Furthermore, the focus will mainly lay on secondary data, which consists of

literature search. There are plenty of academic articles about sustainable agricultural

techniques, such as agroforestry. However, articles concerning implementation of

agroforestry techniques in the Andasibe National Park or Madagascar in general are

nihil. Therefore existing articles have been analyzed that examine similar cases in

different countries, such as South Africa, in order to look for resemblances and

potential barriers and gains. If possible, we have tried to focus on the local

characteristics in the Andasibe Mantadia National Park. For instance, we have

studied the soils present in the area of the Andasibe Mantadia National Park in

order to assess which crops and trees may potentially be cultivated. In addition to

the academic literature, the use of gray literature was inevitable, as gray literature

provides useful insights in business cases, projects of large corporations, the local

customs, economy, culture and land rights. For example, the Agroforestry Strategy

Framework of South Africa (2017) and the Givaudan Sustainability Report (2017)

were essential to develop and explore the potential of a sustainable agricultural

approach in combination with existing for-profit companies.