piloting sustainable management and marketing of … · villagers agreed to set up three bamboo...
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PILOTINGSUSTAINABLEMANAGEMENTANDMARKETINGOFNTFPSINTHEHINNAMNOREGION
SummaryReport
Vientiane,September2013
Authors:
KansamLattanhot,SomkhithPanyngasiri,KhamdyKeovilai,SouvanphengPhommasane(AFC)
Paul-DavidLutzandJoostFoppes(IP-Consult)
ExecutiveSummary
The“IntegratedNatureConservationandSustainableResourceManagement”ProjectintheHinNamNoRegion is supported by the German Ministry of Economic Cooperation and Development and ismanaged on its behalf by GIZ and IP-Consult. The project facilitates the involvement of 22 localcommunities in the co-management of the Hin NamNo National Protected Area (HNN NPA) inKhammouane Province, Lao PDR. It is implemented by the Province and District Offices for NaturalResourcesandEnvironment(PONRE/DONRE).
As a key incentive to involve the local population in conservation efforts the project is seeking tosupport enhanced income generation and food security through the sustainable management andmarketing of selected non-timber forest products (NTFPs). In May 2013, the local Agro-ForestryConsulting (AFC) Companywas engaged by the project to train local government staff from DONRE,PONRE, District Agriculture and Forestry Office (DAFO) District LaoWomen’s Union (LWU) and localvillagers to pilot the sustainable management and marketing of NTFPs in two project targetcommunities(BanNyavethandBanNongPing).Thekeystepsincluded:
Througha shortRRA, villagers shortlisted fourNTFPs as having goodpotential for incomegenerationthroughsustainablemanagementandmarketing: (1)“Normai”bambooshoots, (2)bamboopoles forhandicrafts,(3)“Khaem”Broomgrassand(4)“maktao”SugarPalmfruits.
MarketresearchconductedthroughoutKhammouaneandSavannakhetProvincessuggestedthatthereare good marketing opportunities for bamboo handicrafts and broom grass. There is also a strongdemandforGanodermamushrooms(“hedlinchu”)whicharefoundinbambooforests.Tradersformaktaofruitsarecurrentlynotcomingtothedistrict,thusthedevelopmentofmarketingopportunitiesforthisproductwouldrequireattractingtraderswhichwouldneedtobedoneinalaterstage.Infeedbacksessions with the villagers, broom grass was rejected due to low availability of broom grass, whilebamboo shootswere rejecteddue to a perceived lackofmarket potential. Bamboohandicraftswereprioritizedasthemostpromisingoption.
Villagersagreedtosetupthreebambooweavingproducergroupswith40members(15women)inthetwotargetvillages.Themainobjectivesofgroupformationintwovillagesareasfollows:
1. To facilitatemanagement, training, technical supportand supervisionby relevantgovernmentauthoritiesandprojectstaff
2. Toincreaseleverageofproducerswithtradersbyproducinginbulk3. Toutilizeeconomiesofscaletoensuremoreefficientuseofmaterialinputs
Selectedmembers of these groups participated in a study tour visiting successful bamboo handicraftproducer groups, cooperatives, traders and retailers throughout Vientiane Capital and VientianeProvince.Themainbenefitofthisstudytourwasconvincingproducergroupmembersoftheeconomic
Step Activity Timing1 AnalyzePotentialandShortlistNTFPsformarketing May20132 MarketSurvey/ValueChainAnalysis May20133 PilotProductSelectionandParticipatoryGroupFormation June20134 StudyTour June20135 NTFPResourceInventories June-July20136 BusinessPlanDevelopmentandTrainingNeedsAssessment August20137 BambooHandicraftTechnicalTrainings September2013
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feasibilityofproducingbamboohandicraftsforsale,bydemonstratingmarketpotentialandcreatingabetterunderstandingof thebasic techniques forhandicraftproduction.For thedistrict staff themainlearning point was to understand the importance of their own role in supporting local handicraftproducergroups.
Inorder to ascertain importantbaselinedata for the sustainablemanagementof bamboo, a detailedbambooresource inventorywasconducted inthevillageproductionforestsofbothcommunities.Theinventoryrevealedadensityof4,117bamboopolesperhaforthespecies“maiphang”(Dendrocalamuslonoifimgriatus) in Ban Nong Ping and 9,402 bamboo poles per ha for the species “maihia”(Cephalostachyumvirgatum)inBanNyaveth.
Thisresourceinventoryalsocoveredmaktaotrees(Arengawesterhoutii)inonecommunity,asthehighdemand from urban centers in Laos and neighboring Thailand may create opportunities for incomegeneration through the sustainable management and marketing of mak tao in the future.1 Thepopulation of trees contained sufficient younger plants to succeed older plants which will die afterfruiting.Howeverduetothesmallsizeofthepalmstand,theproductionpotentialwasestimatedasnotexceeding3,600kgperyear,whichistoosmallforsustainablecommercialexploitation.AkeyfindingfromtheinventoryworkwasthatmostofthevaluableNTFPsseemtobecollectedoutsidetheboundariesoftheHNNNPA.ResourcemanagementandlivelihoodimprovementworkoutsidetheNPAboundarieswillbesupportedbytheupcomingKfW-financedproject.InsidetheHNNNPA,villagersseemtocollectonlyedible“boun/san”shoots,wildlifeandorchids.While theprojectaims to restrictthedestructiveharvestingoforchidsandwildlife,“boun/san”shootsareimportantforfoodsecurityandcould be managed sustainably. In general, sustainable resource management and livelihoodimprovement outside theHNNNPAmay reduce pressure on theHNNNPA,while forest access rulesdeveloped and piloted outside the HNN NPA could become a model for developing sustainablemanagementsystemsfortheenvisionedcontrolledusezoneswithintheNPA.
Following the resource inventories,preliminarybusinessplansweredrafted inaparticipatorymannerforallthreeproducergroups.Theseplanssuggestthateachhandicraftproducergroupmembercouldsustainablygeneratebetween2,4and6,2millionkipperyearinprofitsfromthemarketingofbamboohandicrafts.Inconjunctionwiththeresourceinventory,thesebusinessplanswillhelpformthebasisforsustainableresourcemanagementandmarketingstrategies.As a next step, a technical training will be provided to enable handicraft producers to engage inproduction according to the business plans. A stakeholder workshop to secure market linkages isplanned for November 2013. AFC has proposed further steps formonitoring and up-scaling the pilotactivitieswhileengaging insimilar initiatives forotherNTFPs inotherproject targetcommunities.Forexample,AFCrecommendsthatNTFPbaselinesurveysshouldbeconductedinthedryseasonof2013-2014inallremainingtargetvillages,usingasimilarvaluechain-basedapproach.Itisestimatedthatsuchworkwouldtakebetween5-10dayspervillagedependingontheNTFPsandlocalconditions.Relevantstaff fromPONRE,DONRE,DAFOand the LWUwhohave alreadybeen involved in thepilot activitiesoutlinedinthisreportshouldbeinvolvedinconductingthesebaselinesurveys.
In addition, more effort could be put into assessing the relative importance of NTFP collection andfishingwithintheboundariesoftheHNNNPAwithregardstofoodsecurity.Developingsustainableuse
1MaktaoshootsareacommoningredientinLaoandThaifoods(e.g.soupsanddesserts),whiletheleafofmaktaoareusedforroofingoftraditionalhouses.
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systemsfortheseproductscouldbecomepartoftheconservationagreementsinprojectvillagesontheco-managementofthebiodiversityresourcesintheNPA.
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TableofContents
1 Contents2 Acknowledgements..............................................................................................................................6
1 Introduction.........................................................................................................................................8
2 Implementation....................................................................................................................................9
2.1 IntroductorySessions,shortRRAandinitialproductselection...................................................9
2.2 MarketResearch........................................................................................................................12
2.3 ValueChainAnalysis...................................................................................................................14
2.4 GroupFormation........................................................................................................................17
2.5 StudyTour..................................................................................................................................19
2.6 ResourceInventory....................................................................................................................23
2.7 DraftBusinessPlanandTechnicalTrainingNeedsAssessment.................................................26
3 Conclusion..........................................................................................................................................32
3.1 LessonsLearnedinTermsofCapacityBuilding..........................................................................32
3.2 LessonslearnedontheincomeraisingpotentialfromNTFPs...................................................34
3.3 LessonslearnedonthepotentialofNTFPsasavehicleforco-management............................34
3.4 NextSteps..................................................................................................................................35
4 Appendices.........................................................................................................................................37
4.1 ListofBanNyavethProducerGroupMembers..........................................................................37
4.2 ListofBanNongPingProducerGroup1members....................................................................37
4.3 List0fBanNongPingProducerGroup2members....................................................................38
4.4 ListofStudyTourParticipants....................................................................................................38
4.5 MarketSurveyQuestionnaire....................................................................................................39
4.6 FormusedforParticipatoryDraftingofBusinessPlans.............................................................46
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2 AcknowledgementsAFCwouldliketothankMr.SisomphoneSouthichak(KhammouanePONRENPAManagementUnitHeadand Hin Nam No National Project Director), Mr. Joost Foppes (Hin Nam No Project Chief TechnicalAdvisor)Mr.SounthoneKetphanh(NationalAgricultureandForestryResearchInstitute)Mr.Paul-DavidLutz(HinNamNoProjectLivelihoodsandExtensionAdvisor)fortheirkindfacilitationandsupport.
The team wishes to thank the technical staff of PONRE, DONRE and the LWU for their excellentcoordination and cooperation in implementing the pilot activities. A special thanks also goes to thevillage authorities and villagers in Ban Nyaveth and Ban Nong Ping for their proactive and fruitfulcooperation.
Furthermore, the team would like to acknowledge the valuable inputs and active participation oftechnicalstafffromDoICandDAFOfortheirassistanceinthedevelopmentofvillageselectioncriteriaandfortheiractiveroleduringtheNTFPresource inventory.Theoverall facilitationby IP-HinNamNoAdministrationOfficerMs.ThanongsackSomvimaneisalsomuchappreciated.
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Abbreviations
AFC Agro-ForestryDevelopmentConsulting
DAFO DistrictAgricultureandForestryOffice
DONRE DistrictOfficeofNaturalResourcesandEnvironment
FRC ForestResearchCenter
HNNNPA HinNamNoNationalProtectedArea
KfW KreditfuerWiederaufbau(GermanDevelopmentBank)
LWU LaoWomens’Union
MONRE MinistryofNaturalResourceandEnvironment
NAFRI NationalAgricultureandForestryResearchInstitute
NTFP Non-TimberForestProducts
ODOP OneDistrictOneProduct
PONRE ProvincialOfficeofNaturalResourcesandEnvironment
PRA ParticipatoryRuralAppraisal
RRA RapidRuralAppraisal
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1 Introduction
The technical cooperation module “Integrated Nature Conservation and Sustainable ResourceManagement in the Hin Nam No Region” is a 3 year project running from 11/10 – 10/13 andimplemented by the Lao PDRs’Ministry of Natural Resources and Environment (MONRE) through itsprovincial (PONRE)anddistrict (DONRE) leveloffices.Financialandtechnicalsupportfortheproject isprovidedbytheGermanMinistry forEconomicCooperationandDevelopmentand is implementedbytheimplementingagenciesGIZandIP-Consult.
Aspartoftheoverallobjectiveofengaginglocalcommunitiesintheco-managementoftheHinNamNoNationalProtectedArea(HNNNPA),theprojectissupportingthesustainableuseandmarketingofnon-timber forest products (NTFPs) in and around the HNN NPA. The idea is to engage localcommunities inthemanagementofnaturalresources intheHNNNPAbyproviding incentivessuchasincreased income generation through sustainable management and enhanced marketing of selectednatural resources. The approach is being piloted in two project target villages (BanNyaveth and BanNongPing)withthesupportofthelocalAgro-ForestryConsultingCompanyAFC.
ThefollowingreportoutlinesthestepsimplementedbyPONRE,DONRE,AFC,DAFOandtheLWUinsupport of sustainable NTFPmanagement andmarketing in the two pilot villages betweenMay andSeptemberof2013(seesection2).Italsosummarizesconclusions,bestpracticesandlessonslearnedaswellasprovidinganoutlineof thenextstepstobetaken insupportof thepilotcommunitiesandforfurther up scaling and replication of the activities (see section 3). Forms and documents used areattachedtothisreport(seesection4).
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2 Implementation
2.1 IntroductorySessions,shortRRAandinitialproductselectionIn order to introduce and discuss strategies for income generation through sustainablemanagementandmarketingofNTFPs,a joint introductoryandplanningworkshopwasheld inBualaphaDistricton14/05/13.Thefollowingstakeholdersparticipatedintheworkshop:
Table1:Listofparticipant’sinitialNTFPtrainingworkshop14May2013
No Office/Organization No.ofPersons Comment
1 Provincial Office of Natural Resources andEnvironment(PONRE) 4 Including NPA Management Unit
Head
2 District Office of Natural Resources andEnvironment(DONRE) 5 IncludingDONREhead
3 DistrictAgricultureandForestryOffice(DAFO) 2 IncludingDAFOHead4 DistrictCommerceOffice 2 5 LaoWomensUnion 1 Onewoman6 Agro-ForestryConsult(AFC) 2 7 HNNProject(IP-Consult) 3
8 VillageRepresentatives 4 3 Village Chiefs and 1 VillageClusterHead
Total: 23 Total:2women
Duringtheworkshop,DONREandprojectstaffgaveageneraloverviewofthesituationinandaroundtheHNNNPAandofproject activities conducted so far.AFC staff providedanoverviewon theNTFPmanagement systems development approach. Participants were trained in the application of rapidappraisal tools. They worked in small groups to review various NTFPs as to their suitability forsustainable management and marketing. The participants agreed to pilot implementation of NTFPmanagementandmarketinginthetargetcommunitiesofBanNongPingandBanNyaveth.Thestepsoftheconsultant’smissionwerediscussedandaplanforimplementationwasjointlydrafted.Table2:AgreedscheduleforimplementingNTFPwork
Step PlannedActivities Timing
1 AnalyzePotentialandShortlistNTFPsformarketing May20132 MarketSurvey/ValueChainAnalysis May20133 PilotProductSelectionandParticipatoryGroupFormation June20134 StudyTour June20135 SelectedResourceInventories June-July20136 BusinessPlanDevelopmentandTrainingNeedsAssessment August20137 TechnicalTrainings September2013
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FollowingtheparticipatoryworkshopinBualapha,ateamof6districtstaff(DONRE,DAFOandLWU),1PONRE staff and the advisors/consultants traveled to the pilot target communities of BanNong Ping(15/05/13) and Ban Nyaveth(16/05/13) to hold village meetings to discuss villagers’ interest andshortlistNTFPswithgoodpotentialforpilotingsustainablemanagementandmarketing.Interestinbothvillageswashigh,withover50persons(roughly30women)attending inBanNongPingandabout20attendinginBanNyaveth(roughly10women).
TheAFCconsultantsintroducedtheNTFPimplementationplanandshowedavideoaboutahandicraftproducergroupinVientianeProvince.Villagersthensplitintomenandwomen’s’workinggroups.Eachgroupreviewedthetop10productstheyhadrankedasmostimportantduringearlierPRAstudies(seereports by J. Foppes 11/2011 and P-D. Lutz 02/2012). They ranked these products in terms of theirviabilityforraisingincome,usingcriteriasuchasmarketdemand,socialimportance(howmanypeopleareinvolved),technicalfeasibilityandenvironmentalfeasibility.
The outcome of this exercise in each village is represented in the tables below. Villagers selectedbambooshootsandbamboo-weavinghandicraftsasproductswithgoodmarketingpotential.Theyalsogave high ranks to orchids, but promoting their sale is not compatible with the project objective ofconservingbiodiversity.Therecouldbesomemerit inexploringaprojectaimedatcultivatingorchids,but thiswould be a long termexercise. For now, other productswere shortlisted, including “khaem”broomgrass,cardamom(maknaeng),maktaofruits(ArengawesterhoutiiGriff)andrattancanes.
Table3:PrioritizingNTFPsformanagement,BanNongPingvillageProduct Women’sscore Men’sscore Totalscore Women’srank Men’srank Overallrank
Bambooshoots* 42 34 76 1. 1. 1.Bamboopoles* 24 34 58 2. 1. 2.DokPheung(Orchids) 18 30 48 3. 2. 3.Khaem(broomgrass)* 18 8 26 3. 3. 4.Rattancanes* 5 8 13 5. 3. 5.maktaopalmfruits* 2 6 8 7. 4. 6.Rattanshoots 7 0 7 4. 6. 7.Boun/sanshoots 3 2 5 6. 5. 8.Cardamom 2 2 4 7. 5. 9.Kheuahaem 0 2 2 8. 5. 10.Total 121 126** 247 *)Productsshortlistedformarketdevelopment**)Originalscorestotaled68,valuesweredoubledtobemorecomparabletowomen’s.Table4:PrioritizingNTFPsformanagementinBanNyavethvillage.
Product Women’sscore Men’sscore Totalscore Women’srank Men’srank Overallrank
Bamboopoles* 40 18 58 1 2 1
Khaembroomgrass* 15 14 29 2 4 2
Maktaopalmfruits* 10 16 26 3 3 3
Bambooshoots* 15 10 25 2 4
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Cardamom* 22 22 1 5
Boun/sanshoots 5 6 11 4 5 6
Kisiresin 5 6 11 4 5 7
Total 90** 92** 182
*)Productsshortlistedformarketdevelopment**)Original scores totaled 18 for thewomen’s group and 43 for themen’s group. Tomake them comparable,women’sscoresweremultipliedby5andmen’sscoresby2.
Following thevillage-levelmeetings the teamreviewed its findingsduringa shortwrap-upmeeting inBualaphadistrict.Comparingtheresultsfromthetwovillages,fourNTFPswereshortlisted:
Table5:FinalshortlistingofNTFPsformanagement
Product NongPing Nyaveth NongPing Nyaveth Total Final Rank Rank Score Score Score Rank
Bambooshootsforeating 2 1 9 10 19 1
BambooPolesforHandicrafts 1 4 10 7 17 2
Broomgrass 3 2 8 9 17 2
MaktaoPalmFruits 5 3 6 8 14 3
Vai(rattancanes) 4 7 7 4
Cardamom 5 6 6 5
It was agreed that pilot activities in support of NTFPmanagement andmarketing could focus on (1)bamboo shoots (2) bamboo poles (3) broom grass and (4) mak tao fruits. In addition, the followinggeneralobservationsweremade:
• It was noted that villagers seem to collect most of their NTFPs in areas relatively close to thevillages,outsideof theboundaryof theHNNNPA.This isan importantobservation.ThedifficultterrainseemstobedeterringvillagersfromenteringtheHNNNPAaslongasitiseasiertocollectNTFPs outside. Therefore there is justification for supporting sustainable NTFP managementsystemsevenifthesearecollectedoutsideoftheboundariesoftheHNNNPA.Suchsystemswouldnot only improve livelihoods andmotivate villagers to take an interest inmanaging biodiversityresources.TheymayalsoreducepotentialpressureontheHNNNPA.Forestaccessrulesdevelopedand piloted outside the HNN NPA may also become a model for developing sustainablemanagementsystemsfortheenvisionedcontrolledusezoneswithintheNPA.
• There seems tobeadifference in thewealth levelsbetween the twopilot villages. InBanNongPing there are structural rice shortages, a greater level of poverty and less experience in“entrepreneurship”. Nyaveth village is relatively more prosperous with less rice shortages andsomepeoplealreadyengagedinbasictradingactivity.Fromthis,itwouldseemthattheconditionsforNTFPmanagementandmarketingareperhapsbetter inNyaveth.Theteamagreedtofurthermonitorandtakeintoconsiderationthesedifferencesduringimplementation.
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F
Fig1:Left:IntroductoryWorkshopParticipantsinBualapha;Right:LadiesinBanNongPingprioritizingNTFPS
2.2 MarketResearchFollowingtheworkshopandvillagemeetings,theAFCconsultantteamjoinedwithPONRE,DONREandLWU staff to conduct a market survey and value chain analysis in various locations throughoutKhammouane Province and the neighboring province of Savannakhet. The aim was to gatherinformationfromtradersandretailersconcerningthemarketpotentialforthefourNTFPsprioritizedbythevillagers,inordertonarrowdownoptionsandselect1-2productsformanagementandmarketing.
On23/05/13a trainingworkshopwasheld tobuildgovernmentstaffcapacitywith regards tomarketsurveyskills,aswellastopreparequestionnairesanditinerariesforthemarketsurvey.Intotal,6districtlevelstaff(2LWU,4DONRE)and2PONREstaffjoined.
On 24/05/13 the teamwent to Thakhekmarket (Khammouane provincialmarket) to interviewNTFPtraders. This was intended both to gain information and for government staff to practice using thequestionnairesundersupervisionofAFCstaff.ItwasobservedthattwooutoffourshortlistedNTFPsaretraded in the market; brooms and bamboo handicrafts. The traders said that there are middlemensellingNTFPproductstothem.ThesepeoplearefrommanyplacesaroundKhammuaneaswellasotherprovinces such asBolikhamsay and Savannakhet. Someof thebamboohandicrafts are fromas far asPhonhongdistrict,VientianeProvince.
After the joint survey in Thakhek, two teamswere formed; one teamheading out to interviewNTFPtradersandretailersinKhammouaneProvinceandasecondteamcoveringSavannakhetProvince.
On25/05/13theKhammouaneteamwenttoNongbokDistrict.Theyobservedand interviewedbroomproducersinBanDongkasinhwheremanyhouseholdsproducebroomsforVietnameseandThaitraderswhoexportthebroomstotheircountries.Thesurveyteamfoundthatthetradersprovidebroomgrassand some materials for production to the producers. When the traders collect the products, theycalculatethetotalpriceanddeducttheinputsgiventotheproducers.Thepriceofeachbroomis5,000Kip,ofwhichtheproducersget2,000to3,000Kip.
The Savannakhet team visited the ODOP (One District One Product) handicraft shop in SavannakhetDistrict.ThisshopisfrequentedbyThaitourgroups,whichaccountforthebulkofthesalesvolume.Alarge variety of bamboo weaving products is on sale, most of them produced in Vientiane andsurroundings. Significantly, traditional Lao household items such as sticky rice baskets are in highdemand from Thai tourists (esp. ethnic Lao from Isaarn) and sell for comparatively high prices (20-80,000 kip). The basic skills needed to make these products are widespread in rural Laos; providingsticky ricebaskets toODOPmaybeanopportunity forproducers in the twopilot villages. TheODOP
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shop proprietor was certainly interested in exploring options to diversify her supply of bamboohandicrafts.Shedidstress,however,thatquality,standardizationandreliabilityofsupplyareofutmostimportance
On26/05/13 theKhammouane teamwent toMahaxayDistrict. The team found that all retailersbuybroomsandbambooproductsfromThakhek.Thereisonlyoneladywhoproducebamboofurniture.ShetoldtheteamthatshewasamongseveralpersonswhoreceivedtrainingfromabambooproducerfromSanthong district, Vientiane Capital 2 years ago. The other trainees had since given up furnitureproductionso thatatpresentonlyher familyproducesbamboo furniture inMahaxay.Thedemand ishigh,butherfamilyhaslimitedcapacitytoproduceinalargequantity.
TheSavannakhetteamvisitedVilabouliDistrict.Accordingtopreviousresearch(seeLutz11/2011)someof theNTFPs traded out of Bualapha and the project target area are traded out to Vietnam throughVietnamesetraders locatedinVilabouli.Theteamfollowedupontheseleads,andtalkedwithseveralVietnamese traders. Initially, they were somewhat reluctant to engage the team, but eventually theteamwasabletoobtainsomeinformation,especiallyonhetlinjue(Ganoderma)mushrooms,whichareinhighdemandandaresoldatveryhighprices inVietnamandChina.There is somesupplyof thesemushroomsinthepilotvillagearea,perhapsprovidinganopportunityforincomegeneration.
On 27/05/13 the Khammouane teamwent to Nyommalad District. They found one family producingbrooms.However,theyproduceonlyoccasionallyanddependheavilyonthehighlyseasonalavailabilityofbroomgrass.TheSavannakhetteaminterviewedbambooretailersandtradersinSeponDistrict.
On 28/05/13broomgrass traders in Bualapha were interviewed. It was found that the broom grasstraders in Bualapha haveminimal trading since 2012. This is due to outside traders fixing prices andpurchasing inbulkdirectly fromcollectorswiththeacquiescenceof localauthorities.Bualaphadistricthasonlyonebroomproducer,Ms.Onsee,HeadofBualaphaLWU(andpartof thesurveyteam).Withregardstomaktaoandcardamom,atthetimeofthesurveynoneofthetradersinterviewedsaidtheyweretrading in these items.Mostnotedthatdwindlingsupply in recentyearshadmadetheseNTFPsunviable.
Fig 2: Left: LWU and DONRE staff surveying a handicraft shop in Savannakhet. Right: LWU and DONRE staffinterviewingatraderinMahaxay.
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2.3 ValueChainAnalysisFollowingthefieldsurveytrips,theteamsreassembledinThakhekon29/05/13todiscussthefindingsandtheirimplicationsforthegeneralimplementationprocess.AbriefgeneralSWOTAnalysisrevealedthefollowing:
Table6:SWOTAnalysisofNTFPvaluechainsfromBualaphadistrict
Strengths Weaknesses Opportunities Threats
- Plenty of resources(e.g. bamboo)availablelocally
- Villagers have a lot ofavailabletime
- Some villagers alreadyhave basic bambooweavingskills
- Strong cross-borderdemand for sticky ricebaskets from ThailandinSavannakhet
- Villagers lackexperience withcommercialhandicraftproduction
- Subsistencementality hindersentrepreneurship
- Lack ofinfrastructure formarketing
- TourismDevelopment in theareamay provide agood market forsouvenirs
- Financial andtechnical supportfromtheproject
- Local demandidentified inBualapha
- Reluctanceoftraderstoentertheareainrainyseason
- Competition from large scaleproducers in Khammouaneand from neighboringprovinces
- Traders need good reliabilityand standardization ofproduce
- Unsustainable harvestingleading to declining supplyandlessinterestfromtraders
Furthermore, the team identified basic conditions that would need to be met in order for the pilotcommunitiestogeneratesustainableincomefromNTFPs.Theseincluded:
• Produce have marketing potential, i.e. enough demand and/or market shares able to beacquired
• Resourcesmustbeavailableandmanagedsustainably• Reliableaccessfortradersmustbepossible(attheveryleastthroughoutthedryseason)• Ideally,produceshouldbeabletobemarketedyear-round,allowingvillagersto(atleastinthe
initialphases)combineincomegenerationandmarketingwithvitalsubsistenceactivities• Mechanisms to ensure thatmarketingof resourcesdoesnot endanger thebiodiversity in the
HNNNPAmustbedevelopedandputintoplace
Fig3:DONREandLWUstaffmakeValueChainMapsduringthemarketresearchsummaryworkshop
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Basedontheresultsofthemarketsurvey,valuechainsweredrawnupforthemostpromisingproducts,includingbroomgrassandbamboohandicrafts,especiallystickyricebaskets(seebelow).
Figure4:ValuechainforStickyRiceBaskets
Figure5:ValueChainforBroomGrass
Theparticipatinggovernmentstaffidentifiedanddiscussedthecapacitiestheyfelttheyhaddevelopedaspartoftheactivity.Inparticular,theyidentifiedthefollowingaskeylessonslearned:
• LearningaboutNTFPtradenetworkingandmarketingmechanism.• Learningaboutdesigning,implementingandevaluatingmarketsurveys• Learningaboutinterviewingtechniquesanddatacollection• Gainingnewexperiences,seeingnewplaces
• Learningaboutmarketvaluechainanalysisandunderstandingthe“journey”ofaproductfrom
theoriginalcollector/grower/producertothefinalconsumer• Havingtheopportunitytopracticallyapplyingknowledgeandskills• Identifyingandusingmarket-basedselectioncriteriaforshort-listingproducts• Learning thatwhen conducting field studies, spontaneity and creativity is important and that
simplyfollowingforms(e.g.questionnaires)isnotalwayssuitable• Experiencingteamworkmanagement,conflictmanagementandsolvingissuesinateam
Overall,thefollowingconclusionswerereachedbytheteam:
• Markets for both broom grass and bamboo arewell-developed in Khammouane,with strongmarket/trade networks both to and from the south (Pakse and Savannkhet) and the north(Vientiane capital, Vientiane Province and Bolikhamsay). Furthermore, within Khammouaneprovince,theharvesting,processingandtradingofbroomgrass,brooms,andbambooproductsare practiced widely. Souksomboun Market is a major center for the trade in brooms and
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broomgrass.Atthesametime,tradersreportthattheydonothaveenoughsuppliesforservingthelocal,provincialandexportmarkets(ThailandandVietnam).
• Forbroomgrassorbrooms,VietnamandThailandhavehighdemandbutwithdifferentproductspecifications. InVietnammarketdemandismainlyfortraditionalbroomswithnaturalbroomgrassmaterialsandwithoutadditionalprocessing (conservativemarket)while inThailand, themarket demand is higher for more “modern” form of brooms with plastic handle and/orbamboohandle.Thecostandpriceofthebothstylesarenotmuchdifferentbuttheamountofbroomgrasstomakemodern(Thai)stylebroomsislessthantraditional(Vietnam)style.
• In Mahaxay district, the CIDSE organization has a program to support villagers to producebamboofurniture.However,itseemstheprojecthasnotbeensuccessful,mainlybecausetheydid not carry out market research in the initial stages of implementation. The informantreportedthattheprogramdidnothavemarketinformationforthem.Theyjusttrainedvillagersand asked them to sell in themarket. The informant is a government staffworkingwith theproject.Herfamilyproducesbambootablesetsandshelvesfordistrictmarketandafewannualevents.
• Generally,tradersandretailersinBualaphahavelimitedmarketinformation.Also,itisreportedthatthebroomgrasstradersfromotherdistricts(competitors)cometocollectbroomgrassinBualaphadistrict.Theybuydirectly fromvillagerswithoutpayingany formof taxesandotherduties. This has discouragedbroomgrass traders inBualaphadistrict. All of them report thattheymighthavetoquitthetradebecauseitisnotworthinvestinginthetrade.
• Linking NTFP marketing with tourism development may be a wise option for this program.ThoughdevelopingsuchlinkagestaketimeanddependontheoveralldevelopmentoftourisminBualapha,theprojectshouldconsiderthemakingofsouvenirsandsmallarticlessuchaskeychains, photo frames, and so on. Villagers could gain income from making massage sticks,bookmarksandotherproductsmadefrombroomgrassand/orbamboo.Thusvillagersmaybeable to penetrate the tourism market with niche and high-value handmade products andsouvenirs.
• ThedemandfromVietnamesetradersinVilabouliforGanodermamushrooms(hetlinjue)ishighandpricesaregood(upto400,000kipperkg).ThesemushroomsareusedintraditionalChinesemedicineandcansell forseveralhundreddollarsperkg inChina.Theyareavailable in limitedquantitiesinthevicinityofthepilotvillageofBanNongPing,andaresoldbyvillagerstheretoitinerant traders for around 50,000 kip per kg. Perhaps there is an opportunity for enhancedincomegenerationhere.
• Demand for traditional Lao handicrafts such as sticky rice baskets and rice steaming baskets(“huadkhao”)isveryhighandstableatthelargeODOPhandicraftshopinSavannakhet,mainlyduetothehighnumberofIsaarn-Thai(ethnicLao)visitorstothatshop.Atthemomentalltheproduce sold at ODOP is sourced from Vientiane and surroundings. However, the shopsproprietorhasexpressedinterestindiversifyinghersupplyofbamboohandicrafts.Shestressedthe need to ensure reliable supply of high-quality and standardized produce,whichwould inturnrequireintensivetechnicaltraininginthepilotcommunities.
• MaktaoandChineseCardamom(MakNaeng)have limited informationsincethetradeisverylimited and most traders seem to have stopped collecting these products in recent years.However, it isnecessarytostudymaktaobecauseit ishighlyusedintraditionalfoodinmanyrestaurantsincitiessuchasVientianeCapital,LuangPrabang,SavannakhetandPakseandabove
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all in Thailand. A further study on maktao value chains may shed light on the potential forincomegenerationforHNNprojecttargetvillages.
2.4 GroupFormationAs a result of themarket research survey, broom grass and bamboo handicrafts (sticky rice baskets,‘huat’etc.)weresingledoutashavingthegreatestpotentialformarketing.Toenablemarket-orientedproduction,“producergroups”wereformedinthetwopilotcommunitiesofBanNyavethandBanNongPing.Tothisend,afurtherconsultantteamfromAFCconsistingof4persons(2women)wasengagedtoworkwithdistrictlevelstaffandthetwocommunitiesfrom02/06/13–07/06/13.
On03/06/13adistrictleveltrainingworkshopwasheldforselectedstafffromDONRE(4persons)andLWU(2persons).2Topicscoveredincluded:
• The importance and advantages of producer group formation (economies of scale, greaterleveragewithtradersetc.)
• Importantthingstoconsiderwhenforminggroups(inter-groupdynamics,genderetc.)• Discussionandrefinementofadraftsetofproducergrouprulesandregulations
Followingthetrainingworkshop,AFCconsultantsanddistrictstaffsplitup intotwoteamstoworkonproducer group formation in the two target communities of Ban Nong Ping and Ban Nyaveth. From04/06/13to06/06/13,theteamswereworkingatvillagelevel.Workconductedincluded:
• A short report by district staff on the results of themarket research survey, highlighting themarketpotentialofbamboohandicraftsandbroomgrass
• Groupformation;18villagers (5women) inBanNyaveth formed1bambooweavingproducergroup;320villagers(10women)inBanNongPingformed2bambooweavinggroupsinBanNongPing (10personspergroup). Inbothvillages, therewas little tono interest in formingbroomgrass/broom-makingproducergroups.
• Selection of producer group committees for all three groups; several groupmembers in bothvillagesvolunteeredtostandforelectionforthe3-personcommitteeoftheirrespectivegroups.Villagersvotedinasecretballotforthe3committeemembers(1groupleaderand2deputies,minimum 1woman per committee). The following persons were selected to their respectivecommittees:
o BanNyavethbambooweaversgroup1:Mr.Bingkeo(groupleader),2.Mrs.Saysamone
(Deputy1),Mr.Lang(Deputy2)o BanNongPingbambooweaversgroup1:Mr.God(group leader),Mrs.Da(Deputy1),
Mr.Dtuan(Deputy2)o BanNongPingbambooweaversgroup2:Mrs.Bunsuan (group leader),Mrs.Nuandee
(Deputy1),Mr.Tong(Deputy2)
2Forcertainactivities,selectedtechnicalstafffromtheBualaphaDAFOforestryunitwereinvolved(e.g.fortheresourceinventory,seebelow).However,overallownershipandmanagementofthepilotactivitiesistheresponsibilityofDONREandtheLWU.3Later,twofurtherpersons(bothmale)joinedtheBanNyavethgroup,bringingtotalmembershipto20.
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• These persons will be responsible for facilitating and managing their groups (e.g. budget,productionquotas,chairinggroupmeetingsetc.).Thecommitteemembersarethekeycontactpersonsandfirstport-of-callforgroupmembers,tradersandrelevantgovernmentauthorities.
• Participatorydraftingofrulesandregulationsfortheproducergroups;usingadraftsetofrulesprovidedbyAFCbasedontheirexperience inVientianeprovinceasguide,theteamsengagedvillagers in discussions on a set of rules and regulations for their respective producer groups.Rules and regulations for all three groupswere agreed upon and submitted to the Bualaphadistrictadministrationforofficialapproval.A total of 3 producer groupswith 40members (15women)were formed in the two project
targetcommunitiesofBanNongPingandBanNyaveth(foradetailedlistofmembers,seeAppendix).Allgroupsaremixed,bothintermsofgenderandlevelofexperience,withcompletebeginnersjoiningalongsideexperiencedbambooweavers.Inaddition,thefollowingobservationsweremade:
• Many villagers were rather skeptical with regards to the potential for income generationthrough bamboo handicraft sales. Reports from the market research as well as audio-visualpresentations of previous AFC work in set up sustainable village-level producer groups andmarket linkages went a long way towards addressing these concerns. However, many groupmembersstill lackedconfidenceinthemarketabilityoftheirproduce,particularlywithregardstoquality,marketaccessandmarketdemand.
• Group members reaffirmed that bamboo supply is abundant in their respective villageproductionforestsoutsideoftheHNNNPA,andthattheywouldprefertogatherbamboofromthere,both for reasonsofconvenienceofaccessandbecauseof fears thatcollectingbambooinsidetheHNNNPAmayleadtoproblemswith localauthorities(aszoningandcontrolled-useregulationsarenotyetclear).
• Villagers justified their lackofenthusiasm forpursuingbroomgrass/broomproductionby therelativelylimitedamountofbroomgrassavailableintheirarea,andbythefactthattheproductishighlyseasonal,withprocessingandmarketingusuallytakingplaceinthemonthsofJanuary-Marchonly.Inbothvillages,bamboohandicraftproductionwasseenashavinggreaterpotentialfor sustainable, year-round marketing. According to previous research (see Lutz 2012) thepotential for broomgrass may be higher in other project target areas (such as the Nongmacluster).
• District levelstafffromtwodepartments(DONREandLWU)hadtheopportunitytobuildtheircapacity and gain hands-on experience in setting up and organizing village-level producergroups.Theskillsandknowledgeacquiredcanbeappliedinanumberofdifferentsettings,andmaythushelpstrengthentheoverallmanagementoftheHinNamNoNPA.
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Fig6:Left:Groupmembersstanding forelectionto thecommittee inBanNyaveth introducethemselves.Right:BualaphaLWUstaffMrs.KunmaexplainsthevotingproceduretoaladyinBanNongPing
2.5 StudyTour Tobuildtheconfidenceandcapacityofproducergroupmembersinthetwopilotcommunities,astudytour to visit successful handicraft producer groups in Vientiane Capital and Vientiane Province wasconductedbetween17/06/13and22/06/13.Twomembersofeachproducergroupcommittee(1male,1female)joinedthestudytour,alongwithselectedstafffromDONRE,PONREandtheLWU.Indetail,thescheduleofthestudytourwasasfollows:
18/06/13
Participants traveled toVientiane,wherean introductorymeetingwasheldatAFCOffices.AFC studytourcoordinatorMrs.KhamdyKeovilaijoinedthegroupbeforetravellingonSangthongDistrict.
19/06/13
ParticipantswerejoinedbyMrs.SompongSonebaykhamfromtheSangthongDistrictLWUandtraveledto the Ban Kokha border-crossing point to observe the vibrant small-scale cross border trade inhandicraftsandfoodstuffsbetweenSanghtongDistrictandAmpereSangkhomacrosstheMekongriverinThailand.AttheboatlandinginBanKokhethegroupwasmetbyMr.KhammueangKeokongMeang,deputy head of the bamboo traders association (BTA).Mr. Khammeang explained the organizationalstructure, history and functioning of the Sangthong handicraft cooperative in detail. The cooperativebrings together several hundred handicraft producers from 15 villages throughout the district. Themajorityofmembersarewomen.Villagerswereparticularly interestedtohearaboutmarketdemandandtailoringproduction towardsmarketneeds,aswellasabout thecompatibilityofmarket-orientedproduction with subsistence activities. They were surprised to learn that in recent years somecooperative members have chosen to focus on handicraft production and marketing as their mainoccupation, renting out their rice fields to others for planting. At the same time, Mr. Khammeangstressedthatthementalityshiftfromsubsistenceagriculturetocommercialproductionwasalongandsometimes difficult process formany cooperativemembers, and that villagers should be patient andwillingtoacceptsetbacksintheinitialstages.
Following the visit to the Ban Kokhae border crossing, participants traveled on to the village of BanHuayhanginSangthongdistricttomeetwithMr.KammanVilavong,theheadoftheHuayhangbamboo
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furniture producer group. Formed in 2008, the group consists of 13 persons (12 women) producingbamboo handicrafts and furniture for sale both domestically and across the border to Thailand.Mr.Kammanexplainedthatonaverage,thegroupmembersareearningmorethan10millionkipperyearfromhandicraftproduction,withsomegroupmembersworkingfull-timeandmakingover17millionkipannually.4 He outlined in detail the production process for several furniture items (chairs, tables),including the initial costs for tools, quality requirements, selection and preparation of bamboo andassembly.VillagerswereveryinterestedinthesedetailsandlivelydiscussionsensuedduringabrieftourofMr.Kammans’workshopandbambooprocessing facilities. Importantly,Mr.Kammanalso stressedtheimportanceofmanagingbambooresources,stressingthatgreatemphasisisplacedonallmembersrespectingagreedharvestingquotastoensuresustainablesupply.
ParticipantsthentravelledontothevillageofBanNabpo,wheretheyweremetbyMr.Khamla,headofthe village furniture producer group and Mr. Khong, furniture producer and technical trainer. Sixhouseholds in Ban Nabpo aremembers of the group; their average income from sales of chairs andtablesisaround15millionkip.AsinBanHuayhang,participantsshowedgreatinterestinthetechnicaldetailsinvolvedintheproductionofthevariousitems.
Intheafternoon,participantsvisitedthenearbyvillageofBanNamieng,wheretwofurtherfamiliesareactive producing furniture for the Sangthong cooperative. Here participants learned thatwhen groupformationwas initiated inBanNamieng in2007many familieswere interested in formingaproducergrouptojointhecooperative,butintheendonlytwohadthediligenceandpersistencetostickwithit.ThefamiliesinBanNamiengstressedtheimportanceofagoodworkethicandbeingareliableproducerforthemarket.
FromBanNamieng,theparticipantstraveledontoPhonhongDistrictinVientianeProvinceandstayedovernightthere.
20/06/13
In themorning, local bamboo trader and AFC consultantMrs. Thongduean organized a get-togethersession for participants and 19 members of the Ban Phonxong bamboo weaving group. The BanPhonxonggroupprovidesagoodexampleofacommunitythathascometogethertomakeefficientuseofeconomiesof scaleby specializing inmassproductionofa limited rangeofproducts (mainly stickyricebasketsinvariousforms)forwholesale.Onaverage,producersmake2basketsaday,totalingabout200perweekforthegroup.
Theinformalsettingoftheget-togetheratMrs.ThongdueangKeomanys’homecreatedacomfortableatmosphereinwhichparticipantscouldengageincasualdiscussionswithindividualproducers.Thiswashighly beneficial in letting those participants that had thus far been reluctant to speak out in moreformal meetings ask specific questions on issues of importance to them. Again, villagers were mostinterestedinhearingaboutandobservingnewweavingtechniques.
4AFCiscurrentlyintheprocessofanalyzingtheproductioncostsforhandicraftproducersinSangthongdistrict.Results,whichwillshedlightonprofitmargins,areexpectedtobeavailablein2014.
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Fig7 (from left to right):Participantsobserveabamboodryingoven inBanHuayhang;participantsdiscusswithbamboofurnitureproducersinBanNamieng
Afterlunch,theparticipantscontinuedontoBanNalongkouninThalathdistrictofVientianeProvince.Afurtherget-togetherwith localbambooweaverswasheldatthe localtemple inthesub-villageofBanNanyang. Village Chief Mr. Kankam explained the organization and history of the producer group.Significantly,Mr.Kankammentionedthatoneofthemajorchallengesfacedbythegroupisfluctuatingmarketdemand.Duringgroupformation,villagersinBanNyavethandBanNongPinghadviewedlackofa stablemarket inBualaphadistrict as oneof theirmain constraints; participantswere thus eager tohearhowthegroupcopeswithfluctuatingdemand.DeputyproducergroupleaderMrs.Bouathongledademonstrationofweaving techniquesand invitedparticipants tominglewith the5groupmemberspresent. This again gave ample opportunity for questions to be asked in one-on-one or small groupdiscussions.Someparticipantsevenreceivedahands-ontraininginnewweavingtechniques.
BeforetravelingontoVientianeCapital,participantsbrieflystoppedbythewholesalehandicraftshopofMr.ChanexayNolasintogathersomeinformationaboutmarketingandtransport.InVientiane,severalretailhandicraftshopsalongKouviengRoadwerevisited.Here,someparticipantsexpressedsurpriseatthe discrepancy between the producer, wholesale and retail prices of the bamboo products. Valuechainsandtheimportanceoffactoringintransportcostswereexplainedandclarified.
21/06/13
Duringawrap-upmeetingheldatAFCOfficesinVientiane,participantswereencouragedtoreflectontheir experiences during the course of the study tour. All were very happy to have participated andviewedthetourasavaluablelearningexperience;theparticipatingvillagersinparticularnotedthatthetriphadgreatlybroadenedtheirhorizonandunderstandingofproductionandmarketingofhandicrafts.
Somegovernmentstaffmembersnotedthelimitedcapacityandfundingofrelevantdistrictofficessuchas theLWUasakey factor inhibiting thedevelopmentofmarket-orientedproduction inHNNprojecttarget villages and Bualapha district in general. They requested the continued support of the HNNprojecttoensurethatadequateassistancecanbeprovidedtohelptheburgeoninghandicraftproducergroups inBanNongPingandBanNyavethbecomesuccessfulandsustainable.5Followingthewrap-upmeetingandajointlunchwithAFCstaff,participantsreturnedtoThakhek.
5Bualaphadistricthasbeenidentifiedasoneofthe47poorestdistrictsinthecountrybythegovernmentoftheLaoPDR.ItthushasprioritystatusunderthecurrentNationalSocio-EconomicDevelopmentPlanfortheallocation
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Fig8(fromlefttoright):Scenefromtheget-togetherwithbambooweaversinBanPhonsong;Mrs.Nuandeegetsapracticallessoninbambooweavingfromaproducergroupmember
Conclusionsonlessonslearnedfromthestudytour
Overall the study tour may be considered very successful. Observing and discussing with handicraftproducersandtradersfromvillagesnotunliketheirowngreatlyincreasedtheconfidenceofvillagersintheirabilitytoproduceandmarketbamboo-basedhandicraftsandfurniture(“iftheycandoit,socanwe!”). This is especially important considering that during the group formation stage skepticismregardingthefeasibilityofmarket-orientedproductionwaswidespreadamongvillagers.Inparticular:
• participants were able to observe and practice bambooweaving techniques and hadample opportunities to ask questions and learn directly from experienced and skilledproducers
• participants have now observed and understood the entire bamboo handicraft valuechain, from harvesting and preparing the bamboo, to producing and finishing-off thegoods,towholesale(andexport)allthewayuptothefinalretailer
• participantshave learnedthattheshift fromsubsistence/household-useproductiontomarketing is not easy and requires patience and dedication, yet they were a lot lessintimidatedbytheprocessthanatthebeginningofthetrip
• participantslearnedabouttheimportanceofmanagingresourcessustainablytoensuresustainableproductionandmarketing
• participating government staff were able to learn more about the crucial role thatgovernmentagencies(especiallytheLWU)canplayinprovidingsupporttovillage-levelproducergroups
of government finances and resources to support livelihood improvement. Perhaps such resources could betappedintotohelplocalauthoritiesensuresustainabilityafterprojectsupportends.
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2.6 ResourceInventoryAs a next step in the piloting of sustainable NTFP management and marketing, a detailed resourceinventory of available bamboo was conducted in the two pilot communities. In addition, data wascollectedonmak tao fruits.Mak taowas shortlistedby thevillagers inBanNyavethduring the initialdatacollectionandthehighdemandforthesefruitsinurbancentersinLaosandespeciallyinThailandmayprovideopportunitiesforenhancedincomegenerationinthefuture.Themainaimoftheinventorywas to gather baseline data on location, availability and characteristics of the two NTFPs. Thisinformationwillbeneededtosetupsustainablemanagementandmarketingplans.
Mr. Sounthone Ketpanh from the Forestry Research Centre (FRC) at the National Agriculture andForestryResearchInstitute(NAFRI)inVientianewasengagedbyAFCtoprovidecapacitybuildingtotherelevantdistrictandprovincialleveltechnicalstaffaswellastoprovidein-fieldguidanceandmonitoringduringtheactualsurvey.
AdetailedtechnicaltrainingoninventorymethodswasheldinBualaphaDistrict.Itwasimplementedbyateamconsistingof3AFCfieldstaff,theIP-Consultadvisor,3DONREstaff,2DAFOForestryUnitstaffand2PONREstaff.Duetothedifficultroadconditionsintherainyseason,villagersfromthetwopilotcommunitieswereunfortunatelyunabletoattendthetraining.
The contents of the trainingwere twofold. Firstly,Mr. Sounthone provided a general introduction toNTFPs, focusing on target NTFPs such as bamboo and mak tao. The participants learned about thehabitat and key characteristics of various types of bamboo and mak tao. Secondly, technicalmethodologies for conducting resource inventories were introduced and discussed, e.g. how todetermine and set up a transect line, or how to extrapolate representative averages from transect-baseddata.
Following the training, the team worked with villagers in both pilot communities to collect basicinformationoncurrentsupplyanduseofthetwoNTFPs,aswellastoconductapreliminarymappingofbambooandmaktaocollectionareasinproductionforestsnearthevillages.
Fig9(fromlefttoright):Scenefromthetechnicaltraining;participatorymappingofNTFPcollectionareasinBanNongPingThedatacollectedsuggestedthatinBanNongPing,thereisalotofbamboooftheMaiPhangtypeintheproductionforestinthevicinityoftheHNNNPAboundary.InBanNyaveth,areasrichinbambooofthe “MaiHia” typewere identified, alongwith amak tao forest. As expected, cardamomandbroom
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grasswerenot reported inany significantamounts ineithervillage.Villagers told the inventory teamthatthesetwoNTFPscannotbeusedsustainablyforcommercialpurposesduetothelowvolume.
Theoutcomesofboththetechnicaltrainingandparticipatoryanalysisatvillagelevelweresatisfactory.Technical staff members learned how to design an inventory survey, identify survey objectives, useinventorytables,readaerialphotographicmapsandcorrectlyidentifyforesttypes,whichisveryusefulforinventoryplanning.TheywerealsorefreshedontheuseofcompassandGPSsystems.
Atvillage level, the inventory teamclearlyexplained theobjectivesof the inventory.Thevillagersnotonlysharedtheirlocalknowledge,butalsoparticipatedactivelyintheinventoryfieldwork.Therewere10villagers involve in the inventory; they thus receivedvaluable“on the job” trainingworkingon thetransectlinesandboundaryidentificationtechniques.Theoutcomesoftheinventoryinthetwotargetvillagesareoutlinedbelow:
• InBanNongPing,theteamsurveyed100haof“MaiPhang”bamboo.Theinventorytook3%ofthetotalvillageproductionforestarea,or3haandwiththeareaof40mx750m.Intotal,theteamspentabout3dayssurveyingintheproductionforest,oftenmaneuveringthroughdifficultterrainunderrainyconditions.Thegathereddatawasanalyzedandallowedtheteamtodrawthefollowingconclusions:
• In the BanNong Ping production forest area the average number of bamboos is 125clumps of bamboo per ha, with an average of about 33 bamboo poles per clump,equatingtoroughly4,117polesperha.
• Theaveragelengthofthepolesis15m(ofwhich10mcanbeused).Averageinter-nodelengthis90cm.Averagecircumferenceis21cmandthethicknessis2.3mm.
• InBanNyaveth,theteamsurveyed100haof“MaiHia”bambooforestalongatransectlineof40mx750m.Theinventorytook3%ofthetotalvillageproductionforestareaandtookabout2½days.
• In1ha,theaveragenumberofbamboois181clumpsperhaand9,402polesperha.
• Theaveragelengthofthepolesis8.7m(5mcanbeused).Averageinter-nodelengthis47cm.Averagecircumferenceis11cmwith1mminthickness.
Somenotesonthesustainabilityofbambooharvesting:
• For shoot harvesting: for bamboo in general, 1/3 of the total shoots production could beharvested for commercial production. However, a detailed set of rules outlining harvestingseasonsandcriteriawouldhavetobesetup.SuchworkcouldbesupportedbytechnicalexpertsfromNAFRI,PAFOandPONRE(ref:IUCN/DoF/NAFRI,2000,bitterbambooshootharvesting,BanNampheng,NamoDistrict,OudomxayProvince).
• Forcaneharvesting:60%ofcanesolderthan3years;30%ofcanesof2yearsoldand10%of1yearoldcouldbeharvestedsustainably.
• Cuttingmethod:thecaneof3ormoreyearsagecouldbecutatgroundlevelwithoutdisturbingthenewshootsinthenextseason.1-2yearoldcanesshouldbecutatthelevelofthe3rdinter-nodeinordertoallowtheremainingtrunkstogivenewshootsinthenextseason.
• InBanNyaveth,theteamspent1daysurveyingthemaktaoforest.Theycovered4800m2(3%ofthetotal3.6haarea).Asmaktaotreesareusuallyfoundonsteepinclinesalongstreams,the
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terraincoveredwasextremelydifficult(seebelow,Fig11).Itwasfoundthatper1ha,thereareroughly300trees.However,onlyabout60trees/hacanproducefruits.At thetimeofsurvey,about12 trees/hacanproduce fruits.Of these,one treecontainsanaverageof2bunchesofmak tao fruits. On average, one bunch can produce 50 kg of seeds. Therefore, it can beestimatedthatinthearea,thereare12treeswith24bunches,whichcanproduce1,200kg.Inthetotalareaof3.6ha,theyieldofmaktaowouldnotexceed3,600kg/year.
Somenotesonthesustainabilityofmaktaoharvesting:
• According to research themak tao tree generally flowers and fruits fromage 13 to 15 years,afterwhich itusuallydies. Ingeneral, the lifecycleofamaktaotreemaybedivided intothefollowingclasses:
Class1:alsoknownas“matureI”–maktaotreesbearingbunchesoffruitfromthemiddleofthetrunkuptothetopClass2:knownas“matureII”–maktaotreesbearingbunchesmainlybelowfromthemiddleofthe trunk (theremay be a few isolated bunches above themiddle of the trunk). This class isolderthantheclassIClass 3: known as “premature” –mak tao treeswith the same height as class I & II, but notbearing bunches, these trees have a trunk height of about 5 m measuring from the underremainingfirstleafpetioletothegroundlevelClass4:knownas“juvenile”–maktaotreeswithatrunkheightrangingfrom5mto1mClass5:knownas“wildling”–youngmaktaotreesthathaveatrunkheightoflessthan1m
• Fruits collection: all bunches of mature fruits would be harvested for economic reason. Notallowtocutdownthemaktaoplants.Quotacouldbegrantedasproductioncapacity.
• The “wildlings” (Class 5) are very vulnerable to be cut for shoots consumption or formarketdestinationashappeninmanyareas.Localruleneedstobesetuptopreventthissustainability.(IFYOUCOULDPLEASECLARIFYHEREJOOST)
The data collected during the inventorywere analyzed in detail byMr. Sounthone Ketpanh (see Laolanguage report) and will form the baseline for sustainable harvesting and management plans forbambooandmaktaoinBanNongPingandBanNyaveth.WorkbetweenAFCstaff,technicalstaffandparticipatingvillagerswasharmonious,goal-orientedandmutuallybeneficial.
Afterthetrainingandtheinventory,itcanbeobservedthatthesurveyteammemberscanplan,design,implement and draw basic conclusions from resource inventory. They can summarize the inventorydata,dobasicanalysisbasedonthedatagatheredinthefield.Thevillagersinbothtargetcommunitieshaveacquiredbasicinventoryskillsandareabletocooperatewellwiththeinventorytechnicians.Inthisregard,theymaybecomevaluablemodelsforvillagersinothertargetcommunitiesinthefuture.
Oneother important lesson learnedfromthisexercisewasthatall theNTFPsourceareasforbambooandmaktaowerelocatedoutsidetheactualHNNNPAboundary.Whenasked,villagersconfirmedthattheyrelymostlyontheforestsoutsidetheNPAfortheirNTFPs.Themainreasonisthattheseforestsare richer in NTFPs and easier to access, compared to the HNN NPA. All these NTFP source forestsoutsidetheHNNNPAareeithervillageprotectionforests (“Papongkan”)orvillageproductionforests(“Papalit”) andwill be targetedby theenvisionedKfWproject. It is important topreserveaccess forvillagerstotheseNTFPresources,soastoreducepressureontheHNNNPA.
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The only NTFPs collected from within the NPA seem to be edible “boun/san” shoots, wildlife andorchids.Whiletheprojectaimstorestrictthedestructiveharvestingoforchidsandwildlife,“boun/san”shootsareimportantforfoodsecurityandcouldbemanagedsustainably.Thisrequiresfollow-upwork.
Fig10(fromlefttoright):TheBanNongPingandBanNyavethsurveyteamsbeforeenteringtheforest
Fig11(fromlefttoright):ScenefromthebambooinventoryintheBanNongPingproductionforest;accessingthemaktaoforestwaschallenging
2.7 DraftBusinessPlanandTechnicalTrainingNeedsAssessment
Following the resource inventory, the AFC team joined with PONRE, DONRE and LWU staff to helpmembers of the 3 producer groups in the two pilot villages draft business plans for the envisionedmarketing of bamboo products and to assess training needs of the groupmembers. Specifically, theobjectivesofdraftingabusinessplanandassessingtrainingneedsareasfollows:
1. Toprovideaframeworkforassessingprogressandmonitoringbygovernmentstaff2. Tofurtherincreasetrustandconfidenceofhandicraftproducersintheirability3. ToassessthetechnicalskillsneededforproductionaccordingtothebusinessplanContributions
methodprocessproduce4. Tohaveaframeworktoassessfutureopportunitiesandthreatstothemarketingofhandicrafts
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5. To help increase the confidence of the private sector (traders) in the ability of the producergroupstobereliablesuppliers,thusincreasingpotentialforsustainablemarketlinkages
Priortoimplementingatvillagelevelaone-daytrainingworkshopwasconductedbyAFCinBualaphatoexplaintheobjectivesofthedraftbusinessplanandtotrainDONRE,PONREandLWUstaffintheuseoftheforms.ImplementationatVillageLevelwasconductedasfollows:
28/08/13• TraveltoBanNongPingandBanNyaveth• Villageauthorityopening• Theteamintroduceditselfandtheobjective/importanceofsettingupadraftbusinessplan
inaparticipatorymanner• Jointcalculationofprojectedproductionvolume,costsandbenefittoarriveatapreliminary
cost-benefitanalysis
29/08/13• Summarizeandpresenttheoutcomesofthecostbenefitanalysistoallgroupmembers(see
Appendixfordetailedcostbenefitanalysis)• Technical training needs assessment to assess existing handicraft production skills and
furtherskillsneededtoensureproductionaccordingtothedraftbusinessplanisfeasible• Closingremarksandfurtherdiscussions• TravelbacktoBualaphaDistrict
30/08/13
• Debriefingonactivitiesconductedbythe3workingteamsatvillagelevel• Conclusions on the draft business plan enterprise and training needs assessments for the
threevillageproducergroups• Planningforthetechnicaltraining(tobeheldfrom09/09/13–22/09/13andconductedby
AFCstaffinconjunctionwiththeLWUandselectedtradersfromVientianeProvince)• Overallcomments,suggestionsandfeedbackfromparticipants
The results of the draft business plan and cost benefit analysis are summarized below (for the draftbusinessplanformsseeAppendix5).
ProducerGroupmembersexpressedinterestinproducingthefollowingitems:
BamboohandicraftsproductsselectedbyproducergroupsformarketingBanNongPing,Group1 BanNongPing,Group2 BanNyavethGroup
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• Bigstickyricebasket• Medium sticky rice
basket • Smallstickyricebasket • Rice steaming basket
(huat) • Basket • Bag • Wallhangingmat• Almsbowl
• Small sticky ricebasket
• Medium stickybasket
• Rice steamingbasket(huat)
• Big sticky ricebasket
• Bamboopurse • Almsbowl • Squarebaskets
• Sticky rice baskets(small, medium,large)
• Ricesteambasket • Basket • Rice steaming
basket(huat) • Documentfolder
Eachgroupmadearoughestimateoftheirproductioncapacityasfollows:BanNongPingGroup1
No Production PriceperUnit Projectedoutput/year TotalProjectedRevenue
1 Smallstickyricebasket 10,000 900 9,000,000
2 Ricesteambasket 3,000 900 2,700,000
3 Bigstickyricebasket 16,000 450 7,200,000
4 BambooPurse 5,000 1,800 9,000,000
5 Almsbowl 15,000 450 6,750,000
6 Mediumbasket4square 15,000 900 13,500,000
7 Bigbasket4square 25,000 450 11,250,000
8 Mediumstickyrice 12,000 900 10,800,000
Total 6,750 70,200,000BanNongPingGroup2
NoProduction PriceperUnit Projected
output/year TotalProjectedRevenue
1 Bigstickyricebasket 16,000 360 5,760,000
2 Mediumstickyricebasket 12,000 360 4,320,00
3 Smallstickyricebasket 10,000 360 3,600,000
4 RiceSteamBasket 3,000 360 1,080,000
5 Basket 15,000 360 5,400,000
6 SmallBag 5,000 360 1,800,000
7 BigBag 15,000 360 5,400,000
8 Wallhangingmat/screen 15,000 360 5,400,000
29
9 AlmsBasket 15,000 360 5,400,000
Total 3,240 38,160,000BanNyavethGroupNo production Price/Unit Projected
Output/yearTotalProjectedRevenue
1 Stickyricebasket 15,000kip 360 5,400,0002 Ricesteambasket 5000kip 1800 9,000,0003 Basket 15000kip 360 5,400,0004 Coverricesteambasket 3500kip 7500 26,250,0005 Filefolder 15000kip 360 5,400,000
Total 8,760 51,450,000kipCost-benefitcalculationsweremadebasedonthisdata,leadingtothefollowingestimatesofprojectedannualexpenditureandprofits:
BanNongPingGroup11 MaterialInputs 1,980,000kip Material Inputs + Variable Inputs for 1st year =
InitialInvestment
1,980,000+7,995,000=9,975,000kip2 Running
CostsVariableinputs 7,995,000
kip/year
Depreciation ofMaterials
1,017,500kip/year
3 Revenue 70,200,000kip/year
4 Profit AnnualRevenue–(Runningcosts+Depreciation)=Profit
70,200,000–(7,995,000+1,017,500)=61,187,500kip/year
Accordingtothiscost-benefitanalysistheestimatedannualprofitforeachofthe10groupmembersis6,118,750kip/year
BanNongPingGroup21 MaterialInputs 2,055,000kip Material Inputs + Variable Inputs for 1st year =
InitialInvestment
2,055,000+11,748,000=13,803,000kip2 Running
CostsVariableinputs
1,157,000kip/year
DepreciationofMaterials
1,401,000kip/year
3 Revenue 38,160,000kip/year
4 Profit AnnualRevenue–RunningCosts=Profit
38,160,000–(1,157,000+1,401,000)=35,602,000kip/year
According to this cost-benefit analysis theestimatedaverageannualprofit foreachof the10groupmembersis3,560,200kip/year
30
BanNyavethGroup1 MaterialInputs 3,920,000kip Material Inputs + Variable Inputs for 1st year =
InitialInvestment
3,920,000+7,800,000=11,720,000kip2 Running
CostsVariableinputs
1,410,000kip/year
DepreciationofMaterials
1,890,000kip/year
3 Revenue 51,450,000kip/year
4 Profit AnnualRevenue–(Runningcosts+Depreciation)=Profit
51,450,000–(1,410,000+1,890,000)=48,150,000kip/year
According to this cost-benefit analysis the estimated average annual profit for each of the 20 groupmemberis2,407,500kip/year
GeneralObservations
• Participantsacquiredtheskillstomakeacost-benefitanalysis• Theteamlearnedhowtoconductatrainingneedsassessment• During thework inBanNongPing, anotherunit (ecotourism)of theHinNamNoprojectwas
working at the same time in the village; this created unnecessary confusion and conflictingcommitments for the villagers. In future, the various units of HNN NPAmanagement shouldbettercoordinatetheiractivitiestoavoidoverlapsorworkinginthesametargetcommunityatthesametime
• Teammembers’rolesandresponsibilitieswerewelldistributedandmanaged• VillagesAuthoritiesmanagedtheconflictingworksofthetwoprojectunitswell• Severalvillagersthatarenotyetproducergroupmembersjoinedthemeetingsasobserversand
expressedinterestinalsojoiningthegroups• Somegroupmembersinbothvillagesarrivedlatetothemeetings• Somegroupmembersdidnothavethecouragetoexpressopinionsand/oraskquestions• Therewasatwomonthdelaybetweenthestudytourandthedraftingofthebusinessplanso
manyofthememberswhohadparticipatedinthestudytourdidnotrecalldetailsproperly,sotheycouldnotmakegoodestimatesofoutputs,costsandprices. Infuture, itmayperhapsbemore beneficial to do production output estimates and the resulting cost-benefit analysesshould be done immediately after the technical training, allowing producers to base theirestimatesofoutputmoreonactualexperience.
31
Fig12(fromlefttoright):AFCheadMr.SouvanhphengPhommasaneexplainsthebusinessplandraftingformstotheteam;producergroupmembersduringthebusinessplandraftingworkshopinBanNyaveth
Fig13:ScenesfromtheparticipatorybusinessplandraftingworkshopinBanNongPing
32
3 Conclusion
3.1 LessonsLearnedinTermsofCapacityBuildingThepilot activities initiated in lateMay 2013have been implemented at a comparatively rapid pace.Usually,AFCconsultantsnote that the stepsconductedbetweenMayandSeptemberandoutlined inthis report are conducted over a period of one year or more. Thus, it is certainly a positive thatimplementation has proceeded so smoothly and looks rather promising overall. The cooperationbetweenAFCconsultants,projectstaffandthevariousgovernmentagenciesinvolved(DONRE,PONRE,LWU,DAFO)wasverygoodthroughout;thetransferofknowledge,skillsandresponsibilitiestotechnicalstaffatdistrictandprovinciallevelwasakeyobjectivefromtheoutset,andmaybesaidtohavebeenconducted successfully. In particular, government staffs have gathered experience and skills in thefollowingareas:
• RapidRuralAppraisal:ImplementationandEvaluation• MarketResearchandValueChainAnalysis:Design,ImplementationandEvaluation• ParticipatoryVillage-LevelProducerGroupFormation• StudyTour:ImplementationandEvaluation• Participatory NTFP Resource Inventory: Design, Preparation, Implementation and Evaluation
(includingdetailedtechnicalknowhowandskillswithregardstotransectdesign,GPSanddataevaluation)
• ParticipatoryBusinessPlanDevelopment
TheAFCteamhasconductedananalysisofkeystrengthsandweakness,aswellaslessonslearnedforallinvolvedstakeholders.
Strengths Weaknesses
- Villagers in the two pilot communities
were engaged and interestedthroughout pilot implementation.Overall, group members are veryappreciativeoftheassistancetheyhavereceivedfromtheproject
- Village authorities have beeninstrumental in facilitatingimplementation and have shown goodleadership
- Coordinationandsupportbyprovincialand district level authorities has beengood
- PONRE, DONRE and the LWU havebenefitted greatly from the capacitybuildingmeasurestakenbyAFCandareincreasingly taking a leading role inplanningandimplementingactivities
- The LWU is stepping up to provide
- The fact that pilot implementation was
conducted in the rainy season caused manydifficulties, particularly regarding access tothe pilot communities and to the villageproduction forests. Rainy season access willalso be a factor potentially inhibitingmarketinginthepilotcommunities
- Lack of electricity at village level alsocomplicatedmatters
- Lack of food security, coupled with a strongsubsistencementalityinthetwocommunitieslead to a lack of villagers’ confidence aboutbeing able to engage in market-orientedproduction.Althoughtheactivitiesconductedthusfar(esp.thestudytour)havedonemuchtoalleviatethesefears,itremainstobeseenhow producers in the two communities willmanage the ‘paradigm shift’ and how theywill reconcile market-oriented production
33
monitoring and support for theproducer groups in the two pilotcommunities, esp. with regard tofinancial management and genderequality
withthebasictaskofensuringfoodsecurity- Overall, there is aneed for the variousunits
of the HNN NPA management to bettercoordinate activities, both to avoid overlapsand to create synergies (e.g. between NTFPmarketing and ecotourism, or betweensustainable management and lawenforcement)
VillagersVillagershavegainedabetterunderstandingandappreciationoftheeconomicvalueandimportanceofsustainably managing natural resources. Producer groupmembers are beginning to understand thatsound resource management coupled with market linkages can contribute towards improving livingstandardsintheirfamilyandcommunity.
Producer groupmembershavebegun to grasp thedynamicsofmarket-orientedproduction.While isremainstobeseenhowmanyofthemwillbecomesuccessfulmarket-orientedhandicraftproducerinthe long term, there isnodoubt thatanappreciationhasdevelopedwith regards towhat it takes toengageandbenefitfromintegratingintothewidermarket
Producer groupmembershave gained and/or furtherdevelopeda set of verypractical skills, such asconsidering basic cost-benefit scenarios, conducting a resource inventory. Also, the experiences thattheygainedduringthestudytourmadeagreat impressiononparticipants,andhavevisibly improvedconfidenceintheirdealingswithoutsidessuchastradersandprojectstaff.
GovernmentStaffFrom theoutset, building the capacity and leadership of local authorities has been a central pillar ofAFCs’engagement inHinNamNo.Governmentstaffswereengagedand increasingly tookthe lead inthedesign,implementationandevaluationofallstepsoutlinedinthisreport.AgenciessuchasDONREandtheLWUhavebeengivenownershipandaredevelopingastrongersenseofdutyandresponsibilitywithregardstothefurthermanagementofthepilotactivities.Theyhaveincreasinglycontributedtheirown ideas and seem generally willing and able to step up to help ensure the sustainability of theinitiatedprocesses.
Government staffs have further developed their understanding with regards to the importance ofparticipatory methods in engaging communities in the sustainable management and marketing ofresources.Thisisaninvaluableassetandattitudethatisabsolutelycrucialforfulfillingtheoveralltaskofinvolvinglocalcommunitiesintheco-managementoftheHNNNPA.
Several important practical skillswere acquired during the course of implementation,whichwere ofdifferentvaluetodifferentagencies involved.TheLWUbenefittedgreatly fromactiveparticipation ingroup formation,study touranddraftingof thebusinessplans. It ishopedthat these lessons learnedwill allow the LWU to further strengthening its ‘traditional’ role in themanagement of village-basedproducer and/or microfinance groups. DAFO benefitted especially from participation in the NTFPresourceinventory.TherewasgreatinterestfromtheheadsofDAFOwithregardstothetechnicalitiesinvolved. In general, the joint implementation involvingPONRE/DONREwithDAFOand the LWUmayprovide a ‘best practice’ reference for cross-sector government agency cooperation with regards toruraldevelopment,environmentalissuesandresourcemanagement.
34
AFC/projectstaff
AFC staffs have gained further experiences inworkingwith government agencies and donor-fundedprojects to achieveparticipatorydevelopment at village-level. In particular linking sustainableresource management and income generation under the overall umbrella of ‘co-management’ hasallowedAFCtofurtherdevelopandfine-tuneitsparticipatoryapproachtoruraldevelopment.Thishasbeenespeciallybeneficial for the junior technical staffworkingwithAFC.At thesametime,AFC feelsthatmoretimeandresourcesareneededtobuildthecapacityoflocalgovernmentagencies,toensuresustainabilityandup-scalingofthe initiatedpilotactivities.Also, theneedtoplacemoreemphasisontakingmarket-drivenapproachfromtheoutsethasagainbeenaffirmed.
3.2 LessonslearnedontheincomeraisingpotentialfromNTFPsTheaverageamountofincomeperhouseholdprojectedinthebusinessplansvariesfrom2.4to6.1millionkip(averageis3.62millionkipperyear),seesummarytablebelow.
Table7:SummaryProjectedIncomeandExpensesofthreeBambooProducerGroupsinNongPingandNyavethvillages
Compared to average annual household cash income, the expected or projected income fromhandicraftsvariesfrom24-82%(source:ProjectDatabase,2011).Itwouldseemthatsomegroupshaveputratherambitiousgoalsforthemselves.Itremainstobeseenhowmuchoftheseprojectedgoalswillbemetbythegroupswhentheystartimplementing.YettheseoptimisticprojectionsseemtoillustrateagoodpotentialforraisinghouseholdincomefromNTFPs.
3.3 Lessons learned on the potential of NTFPs as a vehicle for co-management
There seems to be a good potential for raising income from improved NTFP management andmarketing. However all the NTFPs with a potential for income raising were found to be collected inforestssurroundingtheHinNamNoNPA,notfrominsidetheNPAitself.Thismayhaveimplicationsforthe future support toNTFPactivities for theproject.NTFPmanagementandmarketingmay in futurebecomeakeypriority for financialassistance fromthenewKfW-fundedproject,envisaged to start in2014.Howrolesandresponsibilitiesfortheimplementationofsuchactivitiesaretobedividedbetween
Group NoHHProjectionsPerHH Annual Profitas%Inputs Profit HHIncome ofHHIncome
NongPing1 107,020,000
6,118,750
7,439,403 82%
NongPing2 103,816,000
3,560,200
7,439,403 48%
Nyaveth 202,572,500
2,407,500
10,221,865 24%
Total 403,995,250
3,623,488
9,173,401 39%
35
government agencies (esp. PONRE and PAFO) and between GIZ and KfW remains to be discussed indetail. For the time being the GIZ project should continue to identify the potential for NTFPdevelopment in all of its target villages, so as to develop good models that could be scaled up bygovernmentauthoritieswiththefinancialsupportoftheKfWProject.TheGIZprojectshouldalsolookmoreintotheroleofNTFPsforfoodsecurity.
3.4 NextSteps The AFC team recommends that the HNN project and relevant government authorities(especially DONRE and the LWU) continue to support the pilot activities initiated and work towardsreplicatingtheintegrationofsustainableNTFPmanagementwithenhancedincomegenerationandfoodsecurity in other HNN target communities. In particular, AFC recommends the following activities beimplemented:
1. Adetailedvillage-leveltechnicalskills trainingwillbeheldforall threeproducergroupsfromSeptember9th–22nd2013.Theaimwillbeondevelopinggroupmembers’skillstoproducingtheproducts identified during the business plan drafting, with focus on the demands ofmarket-orientedproduction(e.g.standardization,qualitycontrol).ThistrainingwillbefacilitatedbyAFCand the LWU and will be given by AFC-affiliated bamboo handicraft traders from VientianeProvince.Thetradershaveconfirmedtheirwillingnesstobuyanysuitableproductsmadeduringthetraining, thusprovidingproducergroupmemberswithpotentially their firstdirect incomefromhandicraftproduction.
2. TheannualHandicraftFestivalatLaoITECCinVientianewillbeheldfromthe28thofOctobertothe3rdofNovember.ThiseventwillprovideanopportunityforproducergrouprepresentativestogainfurtherunderstandingoftheLaohandicraftmarketaswellastopromotetheirproductsandtheproject.Connectionstothelargerhandicraftmarketmaybesecuredhereandcouldbebeneficialtoproducersinthefuture.
3. Organize amulti-sector stakeholderworkshop at provincial level (ideally inNovember2013).The aim is to create mutual understanding and consensus between the private sector (e.g.bamboo handicraft traders as identified during the market survey and local retailers inBualapha)andproducersandgovernmentagencies includingtheBualaphabranchofNayobayBank(whichmayprovideaccesstocapital fortheproducergroups). Ideallyfirmmarket linkagesforallthreeproducergroupmembersshouldbeestablishedandconfirmedinanMOUand/orcontractbetweentradersandtheproducergroups.
4. ThereisaneedtofurtherdevelopthecapacityofDONRE,PONREandtheLWUwithregardstoconductingParticipatoryRuralAppraisals (PRAs)andsocio-economicbaselinesurveys.TheseskillswillbeneededinordertoupscalesupportforNTFPresourcemanagementandmarketingfor other target villages and products. Following the envisioned trainings, PRAs and socio-economic baseline surveys should be conducted in selected additional target communitiesaccordingtoPONREandprojectobjectives.
5. BasedontheresultsoftheenvisionedPRAs,additionalNTFPswithpotentialforenhancingfoodsecurity and marketing should be shortlisted for sustainable management in selectedcommunities.Itisimportantthatlocalauthoritiestakealeadingrolehere.
6. Continueandimprovefurthertechnicaltraining,monitoringandproductdevelopmentforthetwopilotcommunitiesofBanNyavethandBanNongPing.Ideally,technicalskillstrainingandproduct development should be conducted4 times per year for the next 2-3 years, with theobjectiveofhavingasetofatleast12innovativebamboohandicraftsreadyformarketing.AFC
36
can facilitate technical staff for these trainingsaswell as forparticipatoryproductdesignanddevelopment.
7. Develop a market information and promotion system (e.g. product profiles, case studiescatalogues, create tradernetwork) tobeginbuildingaprofile/’branding’ forproduce fromtheHin Nam No region (emphasizing linkages between the handicrafts and sustainable resourcemanagementmayhelptosecure interestfrominternational fair-tradeentities inthemedium-termfuture)
8. Natural resource governance capacity building for DONRE, PONRE andDAFO staff to ensurethat sustainable management and harvesting of NTFPs is monitored and enforced (e.g. byconductingannualresourceinventoriesandadjustingbusinessplansaccordingly).
9. Project Management Training for DONRE and PONRE to improve overall skills in themanagementandmonitoringofincomegenerationactivities
10. GenderMainstreamingtoolsshouldbedeployedinordertoensuregenderbalanceintermsofbenefit sharing, equity etc. AFC research has shown that economic deprivation is related togender-sensitive issuessuchasdomesticviolence;the impactof incomegenerationongenderrelations for producer groupmembers should be observed, documented and - if necessary –interventionssuchasawarenessraisingshouldbeconducted.
11. Microfinance initiatives in support of the 3 pilot producer groups and (in themedium term)others should be assessed and if feasible integrated into the approach (e.g. through theinvolvementofNayobayBankand/ortheenvisionedKfWfinancialcooperationmodule.AFChasexperience with village-level micro-finance schemes and strongly recommends that suchinitiativesfocusonthefemalemembersofproducergroups.
37
4 Appendices
4.1 ListofBanNyavethProducerGroupMembersNo. Name Education BambooWeaving
ExperienceContact
1 Mr.Bpingeo(GroupLeader)
Secondaryschool Minor 0309147761
2 Mr.Lang(Deputy) Highschool Minor 3 Ms.Saysamone(Deputy) Highschool Yes 4 Mr.Kambeng SecondarySchool Minor 020994022285 Mr.Kam HighSchool No 6 Mr.Viang Highschool Minor 7 Mr.Gadtue Highschool No 8 Mrs.Nyong 0 No 9 Mrs.Lerng 0 Minor 10 Mrs.Maad 0 No 11 Mrs.Sa 0 Minor 12 Mr.Gah 0 Yes 13 Mr.Gada Highschool Yes 14 Mr.Khoun Highschool Minor 15 Mr.Toob 0 Yes 16 Mr.Lee 0 Yes 17 Mr.Mai 0 No 18 Mr.Kiangkam N/A N/A 19 Mr.Champa N/A N/A 20 Mr.Saleumpun N/A N/A
4.2 ListofBanNongPingProducerGroup1members Name Education Bamboo
WeavingExperience
Contact
1 Mr.God(GroupLeader) Year5 Yes 2 Mrs.Dta(Deputy) 0 No 3 Mr.Dtuan(Deputy) Year3 Yes 4 Mr.Buala Year3 Yes 5 Mr.Wan 0 Yes 6 Mr.Sinyon Year5 Yes 7 Mrs.Gong 0 No 8 Mr.Ngii 0 Yes 9 Mrs.Man Year5 Yes 10 Mrs.Geoudon 0 No
38
4.3 List0fBanNongPingProducerGroup2members Name Education Bamboo
WeavingExperience
Contact
1 Mrs.Bunsuan(GroupLeader) Year3 Yes 2 Mrs.Nuandee(Deputy) Year5 No 3 Mr.Gong(Deputy) Year2 No 4 Mr.Hongkham Year5 Yes 020979094685 Mr.Aekam Year5 Yes 6 Mr.Bunsee 0 Yes 7 Mr.Kamfong Year2 Yes 8 Mrs.Nyon Year5 Yes 9 Mrs.Nun 0 No 10 Mrs.Sii 0 Yes
4.4 ListofStudyTourParticipants
1.Mrs.Bunsuan(HeadOfBanNongPingProducerGroup1)2.Mr.God(HeadOfBanNongPingProducerGroup2)3.Mrs.Nuandee(DeputyHeadofBanNongPingProducerGroup2) 4.Mr.Bingkeo(HeadofBanNyavethProducerGroup)5.Ms.Saysamone(DeputyHeadofBanNyavethProducerGroup)6.Mr.Hongkham(BanNongPingVillageChief)7.Mr.Tannusone(BualaphaDONRE)8.Mr.SipanomKeovankham(BualaphaDONRE)9.Mr.Huankham(BualaphaDONRE)10.Mrs.Onsee(BualaphaLWU)11.Mrs.Kunma(BualaphaLWU)12.Mr.MaekThiamanivong(KhammouanePONRE)
39
4.5 MarketSurveyQuestionnaire
Section1:ContactDetails
Name Village
Position District
Company Phone
Youare: Wholesaler: ☐ Retailer: ☐ Both: ☐
Section2:Selling
A. Retail Selling to general customers Product 1 Price: Kip
Product 2 Price: Kip
Product 3 Price: Kip
Product 4 Price: Kip
B.Wholesalers/Middleman
Product1: Product2:
Name Phone Location Name Phone Location
C:Competitors
40
Product1: Product2:
Name Phone Location Name Phone Location
D:Trends
Product1: Product2:
Year Tonssold Price/ton YearTonssold Price(kip/ton)
2013 2013
2012
2012
2011 2011
2010 2010
2009 2009
Howdoyouexplainthetrend?Whyarequantities/pricesgoingupordown?
E:QualityRequirements
Whatarethequalityrequirementsfromyourbuyers?Howdotheyaffectprice?
Product1: Product2:
41
Section3:Buying
A:buyinghistory
Howlonghaveyoubeendoingthisbusiness? years
B:Wheredoyoubuyfrom?
Product1: Product2:
Village/DistrictQuantity(tons) Village/District
Quantity(tons)
Whatistheminimumamountyouneedtoagreetobuyfromavillagelocation?Why?
42
C:Trendsinsupplyanddemand
Howhassupplychangedoverthepast5years?Ifchanged,whatarethereasons?
Comparing to the supply changes above, what are the changes in demand?
Isthereenoughsupply?Howmuchmorecouldyousellifsupplywasunlimited?
D:Processing Howdoyouprocesstheproducts?Whatarethesteps?Whatvaluedoesitadd?
Product1: Product2:
step1
step2
step3
step4
step5
43
Section4:Risks,costsandbenefits
A:Costsoftradingandprocessing
Product1: Product2:
Costtype cost(kip/ton) % Costtype cost(kip/ton) %
Buying Buying
Transport Transport
Processing Processing
Packaging Packaging
Fees/Taxes Fees/Taxes
Others Others
Total Total
B:Risks
Whatarethemainrisksforyouasatrader?
What are the seasons or months that you cannot get supplies?
Product 1 From to Because:
Product 2 From
to
Because: Producte 3 From
to
Because:
44
Section5:FutureOutlook
A:Mainissues
Whatarethemainbottlenecksthatstopusfromdevelopingthetrade?
issue rank why?
B:KnowledgeandTechnologytransfer
Howisinformationshared/exchanged
withproducersandbuyers?
Whodecidesonprices/volumes?
Whoaretheconsumers?
Whatdotheyrequire(preference,form)?
Whatinformationdoyouneed?
Howcoulditbestbeprovided?
Whoshouldprovide?
C:HowcouldvillageproducersimprovetheirincomefromNTFPs?
45
D:Anyotherremarks?
46
4.6 FormusedforParticipatoryDraftingofBusinessPlans
BSP – AFC Business Plan
Facilitator :
Date Prepared:
Enterprise name:
Name of Representative:
Address:
Box 1 Description of the Products
Box 2 Characteristics of the market
Similar products/competition Competitors
selling price Target market Distribution
strategy Required permits
Box 3 Description of the enterprise (goals) and organization structure
47
Box 4 Required infrastructure and human resources
Required personel function time needed experience
needed salary
Head of group All time General Volunteer
Deputy 1 All time Marketing
Deputy 2 All time Production
Box 5 Production system
Total production (kg) Period Collection
period Production risks Risk prevention
Box 6 Sales targets (1
year)
Product Rate/kg Quantity Total
-
-
48
-
-
-
Total:
-
Box 7 Risks and strategies to reduce risks
Risk Risk prevention
Caculation of handicraft shop
No. Description Cost Code*
1
2
3
4
5
6
7
49
8
9
10
11
12
13
14
15
16
17
Total -
Box 8 Fixed assets (1 year)
Item Rate (Unit) Qty (Unit) Total Code*
-
-
-
-
-
-
-
Total -
*1: own contribution of entrepreneurs, 2: grant or loan
Contributions Code*
Contribution of entrepreneurs:
Loan:
Grant
Total: -
50
Box 9 Depreciation see No. 8
No. Item Total item cost Life span (yrs) Depreciation /unit/year
1
2
3
4
5
6
7
Total
Box 10 Variable costs (1 year)
Item Rate Qty Total
Code*
- 2
- 2
- 2
- 2
- 2
- 2
-
Total: -
*1: own contribution of entrepreneurs, 2: grant or loan
51
Contributions Code*
Contribution of entrepreneurs:
Grant or loan: -
Total: -
Box 11 Fixed costs (1 year)
Item Rate Qty Total
Code*
0
0
Total 0
*1: own contribution of entrepreneurs, 2: grant or loan
Contributions Code*
Contribution of entrepreneurs:
Grant or loan:
Total:
Box 12 Total capital needs (1 year)
a) Fixed Assets
> Fixed assets - See No: Box 8
Total 12a
b) Working capital
Time period: 1 year
Variable costs - See No: Box 10
Fixed costs – See No: Box 11
-
Total working capital:
Total 12b -
52
c) Total working capital (12a + 12b): -
(Total of fixed assets (a) and working capital (b) )
Box 13 Sources of capital
> Own investment (own contributions)
see No. 8
see No. 10
see No. 11 0
Total -
> Members investment (see total above and description below)
-
> Loan
-
> Other loan
0
Collection from own household
Total Grant
-
Total (should match No. 12 (c)
-
> Description of members investment
Description Amount Number of members Total
Member fee
Total -
Box 14 Interest
Monthly interest charge (%) :
Annual interest _____________
53
12 months
6%
_________________
12
:
0.0050 %
Interest expense:
Monthly interest charge (%)/100 X Number of
months loan is needed
X Total loan amount : Interest expense
0.0050 12 0 -
Repayment schedule
Description Total in one year First payment Second
payment Last
payment
Payment on principal
Interest
Balance
Box 15 Profit (or loss) 1 year
a) Income:
Total income from sales - See No: 6
b) expenses:
Depreciation - See No: 9
Variable costs - See No: 10
Fixed costs - See No: 11 -
Interest - See No: 14 -
54
Total Expense
-
c) Profit or loss (a - b):
Income (a) less Total expenses (b)
- less -
: -
d) Net Profit:
Profit (See 16 c) Less Taxes or other fees
- Less
: -
Box 16 Return on investment (ROI)
ROI (%): Profit including labour (15c)
__________________ x 100
Total investment (No. 12)
-
ROI (%): __________________ x 100
-