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The Business of Forest Management

It is important to treat the management of on-reserve forests as a business. Manage the business well, and it can not only survive into the future, but also prosper. However, success is not automatic and requires hard work and careful attention.

Investing in Forest Management

In forest management, as in other businesses, you need to invest resources _ _ time and money _ _ to earn income. Your forest can generate revenues in many ways: the sale of timber and other forest products, trapping and hunting, and recreational uses. If used for forest management, these revenues can help finance future investments in the forest. These investments can provide long-term, sustainable benefits. One way to ensure continued investment in the forest is to adopt a community policy that forest revenues be reinvested in the community forest.

Remember that forest management is a long-term process, requiring sustained effort over a long period of time. In addition, the primary return from forest management investments is typically in the form of jobs for community members in timber harvesting, tourism, trapping and other forest activities.

Each investment should be carefully weighed against the expected return, in whatever form, to ensure that it is the best use of available resources.

Striving to be Efficient

In managing the reserve forest, efficiency is very important. The resources of your forest _ _ whether timber or other forest products, recreation or wildlife _ _ will be competing for markets with similar products from off-reserve forests. Success in open competitive markets requires hard work, care and attention.

Administrative Options

Many First Nation Councils, fully occupied by other demanding projects, have concluded that they cannot give adequate care and attention to forestry development as well. They have, therefore, considered other options for administering their forests. Some entrust forestry projects to First Nation corporations, others to committees of council or interested members and still others to an expert consultant.

Beyond the Reserve Forest

For most First Nations, the reserve forest does not, by itself, provide a sufficient resource base for a viable business. It is too small to offer long-term, full-time jobs for a core of key employees in this case, trained crews, experienced foremen/forewomen, managers and marketers. If there is insufficient work, these people, so important to the success of the business, will move on. Few businesses can survive when key staff are continually leaving.

Consequently, for long-term viability, many First Nations seek business opportunities beyond reserve boundaries. They look at off-reserve opportunities in harvesting, planting, silviculture, clearing for power line rights-of-way, road construction and fire protection or suppression. They may also investigate the feasibility of manufacturing specialty products. In short, as First Nations exploit various opportunities, managing the reserve forest becomes only one element of a forest-based, long-term development strategy that includes several different business initiatives.

Within the First Nation's long-term strategy, the role of reserve forest management varies over time. In the initial years, it provides opportunities for on-the-job training and direct work experience for First Nation members and for establishing credibility in the open market. In later years, it provides a core of guaranteed work which can be supplemented with off-reserve contracts.

The Role of Planning

Businesses which plan perform better than those that do not. Forest management planning will help you determine community objectives for your forest. It will help you make informed decisions regarding your options, and help you decide upon an operational plan which will identify what is to be done, by whom and when. It will include a business plan which estimates the cost of each activity and identifies where the money will come from and when. It can include a training plan, which will help ensure community members have the skills to carry out the work in the community forest. Forest management planning is the starting point for a successful forestry business.

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  Last Updated: 2004-04-23 top of page Important Notices