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Cooperatives or associations? Options for wood value chain upgrading in Hawassa, Ethiopia

XV World Forestry Congress, 2-6 May 2022










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    Article
    Diagnosing the business models of forestry cooperatives: Reflections from the tropics
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Smallholder tree growers are the backbone in securing the increasing demand of wood products in tropical countries, particularly Ethiopia and Vietnam. Cooperatives, as a form of enterprise-oriented social organization, are gaining attention in the forestry field. Forestry cooperatives act as an instrument in managing forest resources and developing rural livelihoods. However, understanding the business models of forestry cooperatives involving rural smallholders still begs for further investigation. We employed comparative analysis of two existing case studies of forestry cooperatives from northern Ethiopia and central Vietnam to diagnose their business models. The cases were purposively selected representing the well-experienced cooperatives of small-scale timber producers in both study areas. Grounded on the business model canvas framework, we systematically described the main components, such as main customers, key resources and cost-benefit structure. Data were obtained empirically through key informant interviews and complemented by institutional records. Findings portrayed the selected Ethiopian cooperative (Case 1) generally as a timber wholesaler who collected Eucalyptus poles from member farmers and sold to other traders and/or local end-users. In contrast, the Vietnamese cooperative (Case 2) served as an institutional actor and a service provider in Acacia timber value chains (VCs). Despite their different position in the respective VCs, they both played crucial roles, particularly in facilitating linkages between their members to timber markets and forest-related knowledge extension. Regardless the business environment and characteristics, their performance implied various limitations, such as shortage in innovation capability and effective cost-benefit management. We derived lessons learned from each case study and outlined recommendations for enhancing business performance of forestry cooperatives. Keywords: smallholders, rural entrepreneurship, Acacia, Eucalyptus, value chain, Ethiopia, Vietnam ID: 3485352
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    Book (series)
    Present and future markets for fish and fish products from small-scale fisheries - Case studies from Asia, Africa and Latin America. (Available online only) 2008
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    At the twenty-sixth session of the FAO Committee on Fisheries, FAO was requested to identify how trade in fish and fish products could further benefit small-scale fisheries and generate additional income and employment within the sector. Following this request, case studies were carried out in selected Latin American, African and Asian countries to study the importance of small-scale fisheries trade and identify opportunities for better integration into regional and international fish trade. The findings and recommendations of the case studies were presented and discussed at the tenth session of the FAO Sub-Committee on Fish Trade, held in Santiago de Compostela, Spain, from 30 May to 2 June 2006. In the countries studied, the contribution of the small-scale fisheries sector to the total marine catch was significant and ranged from 70 to 95 percent. The studies show that products from small-scale fisheries are largely focused on the domestic market. In Africa regional trade in small-scale fisheries products was found to be very important for meeting the protein requirements of poor people. Women are actively involved in fish processing and marketing and also participate in capture fisheries in coastal areas and estuaries as well as in other forms of harvesting of aquatic organisms. Their involvement results in increased well-being of their households since womens income is largely spent on food and childrens education. Study findings suggest that women can gain from increasing trade opportunities through their involvement in value adding activities and enterprises. The studies identified several avenues for better integration of small-scale fisheries into regional and international fish trade. Among them are product diversification, value addition, improvement of product quality and the access to new markets. However, a number of constraints need to be overcome before this can be achieved. Post-harvest losses due to poor infrastructure and lack of sto rage and transportation facilities need to be reduced and knowledge of proper fish handling methods needs to be improved. While products for export are meeting high quality standards, products for domestic and regional markets are often processed using substandard hygienic methods. Small-scale fisheries are also excluded from international markets because of the costs and difficulties encountered when trying to comply with international standards and those imposed by supermarket chains and other customers. The studies suggest that efforts should be aimed at improving facilities for preserving fish onboard, at the establishment of hygienic fish landing sites, increasing storage facilities and the supply of ice as well as improving roads, which connect fishing communities to markets. Equally important are the improvement of technical support and extension services to enable fishing communities to access appropriate technologies and information and training on quality improvement, p roper fish handling procedures and storage, product diversification, value addition as well as on packaging. Fishing communities should also be assisted in assessing their fisheries and aquatic resources and identifying those that have potential for trade in the domestic, regional and international markets. Small-scale fishers and processors can get better prices for their products by shortening the fish supply chain and increasing their bargaining and lobbying power. In this regard, the fo rmation of marketing cooperatives should be encouraged and existing associations of small-scale fishers and processors should be strengthened by providing support for institution building. There is also a need to raise awareness among microfinance institutions regarding the needs of the small-scale fisheries sector for credit and savings services.
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    Document
    A social and gender analysis of FLEGT: Analyzing opportunities and risks for wood processing and furniture small and medium enterprises (SMEs) in Lao PDR
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Illegal logging and deforestation has become a pervasive issue globally contributing to environmental degradation and climate change in recent decades. Various policy measures have been enacted to mitigate unethical and extractive practices that have jeopardized forest ecosystems and the communities dependent on them, such as the Forest Law Enforcement, Governance and Trade (FLEGT) program. Increasingly, there has been a growing body of research on the implications of FLEGT-related policies on the timber supply chain in VPA negotiating countries. While FLEGT is touted to improve forest governance and provide economic benefits, the commercialization and market formalization of FLEGT processes render dangerous possibilities for small and medium enterprises (SMEs). While recent efforts have assessed how FLEGT can ameliorate timber product output and reduce illegal forest activity, most of this analysis is disaggregated by the size and scale of timber producing operations, and has not considered the social and gendered implications of these policies on various actors along the timber production supply chain. Through a case study of Xayaboury, Lao PDR, our research examined how the VPA process will impact SMEs, and consequently the diverse demographic populations within them. Through focus group discussions and semi-structured interviews with government officials, private sector, civil societies, and SME labourers and owners from the local to the national level, we examined how FLEGT policies has social and gender ramifications in Lao wood processing and furniture SMEs. This research found that small-scale sawmills, women labourers, and local-level women's groups and civil societies are particulalry met with vulnerability due to FLEGT, with few to none safeguarding policies protecting their rights. We argue that policy revisions within the FLEGT and Forestry policies should be amended to protect marginalized communities' rights amidst timber legality and policy changes. Keywords: Gender, Deforestation and forest degradation, Social protection, Sustainable forest management, Illegal trade ID: 3623113

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