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Guajilote Cooperativo Forestal

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The Guajilote Cooperativo Forestal is a unique business venture based on the harvesting of naturally fallen (not chopped down) mahogany trees in Honduras. The concept of allowing natives to harvest fallen trees as a business is rather impressive in terms of its resourcefulness, and in a country where poverty is high, any means of providing jobs is welcome. Since harvesting already-fallen trees neither damages the environment nor depletes natural resources, parlaying it into a small industry is not only clever but environmentally soundùa sharp contrast to virtually all other tree-harvesting operations worldwide. Mahogany wood is already quite limited due to natural disasters such as forest fires and destructive practices such as illegal logging and slash-and-burn agriculture, and its restricted availability makes it a valuable commodity (Nebbe & Hunger, 1999, p. 26-1). Furthermore, since mahogany is a relatively upscale wood, obtaining it free and then selling it is potentially highly lucrative.

If fallen mahogany trees in Honduras were abundant and easy to move, the cooperative would likely be earning huge profits on its efforts. This is not the case, however, since mahogany is fairly rare to begin with and naturally fallen mahogany trees are scarce; even more daunting, the effort to move them is substantial. The areaÆs steep and rocky terrain poses a serious impediment to logging activities, and the best time for logging is when the wea

. . .
eframe that QVC demands, but it would become more profitable as a result. The biggest threat it faces is deforestation as a result of uncontrolled forest fires. These fires not only destroy trees of all ages, but also their seeds, so one devastating fire is all it would take to eliminate all mahogany from a particular forest site (Nebbe & Hunger, 1999, p. 26-1). In a global economy, any other business from huge conglomerate to tiny cooperative is a potential threat as well. Honduras is not the only site where mahogany trees grow, and loggers in other countries may be allowed to harvest live trees as well as fallen ones. Finally, the cooperativeÆs management could be a liability. Santos Munguia, the accepted leader of the group, negotiated higher prices for their wood but made unilateral decisions for the cooperative (Nebbe & Hunger, 1999, p. 26-1). Although this arrangement seems to have worked out for them, MunguiaÆs usurping of authority could work against them if he no longer had their best interests at heart. If the cooperative has a principal competitive advantage, it is the ôtake all you can eatö invitation that makes buffets such a good deal. In essence, every fallen mahogany tree in Honduras belongs to the coopera
. . .

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Approximate Word count = 1839
Approximate Pages = 7 (250 words per page)

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Guajilote Cooperativo Forestal of Honduras 1839 words
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