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Commodity associations: a tool for supply chain development?








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    Document
    Cooperatives or associations? Options for wood value chain upgrading in Hawassa, Ethiopia
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Smallholder tree growers in rural areas are the backbone of Ethiopia’s supply of wood products. Equally, the small-scale wood processing sector contributes in adding value to locally sourced wood products. However, those up- and midstream value chain actors are faced with various challenges, notably information asymmetry, and limited access to technical and financial support. Collective action offers the potential to counter such challenges. However, the mechanism in which small-scale wood producers and processers could cooperate horizontally still begs for further scrutiny. This research explores organizational arrangements that facilitate upgrading of wood value chains through horizontal collective action approaches. The research employs the embedded multiple case study approach, consisting of two cases at the level of smallholder tree farmers (producers), and of small-scale furniture enterprises (processors) in Hawassa Town District, southern Ethiopia. We conducted focus group discussions and interviews with 185 rural smallholders as well as 54 urban small-scale furniture enterprises, and 12 key informants. For the case of rural smallholders, a forestry cooperative as a collective form of organization is proposed. Among the sample, 73% expressed their willingness to participate in a cooperative that would arrange harvesting and transporting of wood products from their woodlots to a marketplace in Hawassa. For the case of urban small-scale furniture processors, the business association model is proposed, where 95% expressed willingness to participate. The association would ease access to trainings, represent members’ interest in policy environment, and facilitate networking. These findings stress the importance to have organizational arrangements tailored to the aspirations of each actor groups along the value chain. The proposed organizational arrangements further imply the need for empirical research to test the conceptual models. Keywords: Decent employment, Value chain, Social protection, Decent employment, Economic Development ID: 3486535
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    Article
    A species-specific approach for tracing Brazilian timber origins and associated illegality risks across the supply-chain
    XV World Forestry Congress, 2-6 May 2022
    2022
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    The rise in global demand for agricultural and forest commodities have created unparalleled pressure on forests, leading to loss of carbon, biodiversity, ecosystems services, and livelihoods. While we know more about how commodity production and trade is linked to deforestation, such connection still largely unexplored for forest degradation despite the threat rivaling or exceeding that of deforestation. Timber extraction is the largest direct anthropic driver of forest degradation and its illegal share a pervasive source across domestic and international markets. Here we seek to lay the foundations for connecting localities of production to consumption, presenting a species- specific approach to quantifying sources of illegality risk across the supply chain. By adapting material flow analyses and environmentally extended input-output models to timber originating from Brazilian native forests, we demonstrate how distinct risks can be mapped and quantified. We focus on the Amazon state of Pará; a leading producer of timber, of high-value ipê, and contested forest frontier. Data on logging permits and state-level Document of Forest Origin are used to estimate sources of illegality risk associated with overstated ipê yields, unclear forest of origin and discrepancies resulting from missing physical flows. We find that less than one fourth of all ipê volume entering supply-chains in 2017-2019 is risk-free. The area explored under logging permits and volumes entering the supply chain suggest an average yield of 1.6 m3ha-1, which exceeds the 90% percentile of reported ipê tree densities for region. Nearly a third of supply-chain flows cannot be accounted for by Pará’s state-level system. Despite important limitations to this study, it puts forward an approach that can be refined and leveraged to monitor illegally logged timber entry- points and can contribute to increased transparency in Brazilian timber supply chains. Keywords: timber illegality, forest-risk commodity, environmentally-extended input-output models, Handroanthus spp., Brazilian Amazon
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    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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