Bingo!!!! You found the right acronym deconstruction.
The recipe comes from that great resort in British Columbia called Camp Malibu, located at the mouth of the Princess Louisa Inlet. Camp Malibu is a Young Life camp. I believe this is where the BIF bar was first concocted, though I could be mistaken. In high school I went on a hiking trip on a nearby mountain there named Perk's peak. We went from sea level to about 7,000 feet, crossed a glacier, and back down. We spent two weeks living off our backs in an exercise called "Hiking Beyond Malibu". It was my first real taste at authentic backpack camping, and also where I was introduced to the BIF bar. BIFs were usually nothing more than a hastily dug hole in the ground somewhere off the beaten path, if there was one. The toughest ones were above the snow zone, where pre-occupations tended to interfere with regular movements.
Much later, while preparing for a spelunking expedition near the Mount Adams wilderness (did I mention I am 6' 6" and weigh 250+ lbs?), I concocted my version of the BIF bar, which I think is infinitely better. Of course, both appear to be consumed via inhalation, so maybe I'm just partial to my own creation.
So there you have it, BIF stands for "Bathroom in Forest".
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The ultimate result of shielding men from the effects of folly is to fill the world with fools.
-- Herbert Spencer, English Philosopher (1820-1903)