Green Economy and Furniture Value Chains

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This presentation by Herry Purnomo during the Forests Asia Summit in the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" shows why value chains are important, what the state of the global furniture trade is and the focuses on the local Jepara furniture is like.

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Green Economy and Furniture Value Chains

  1. 1. Green Economy and Furniture Value Chains Forest Asia Summit Jakarta, 5-6 May 2014 Herry Purnomo
  2. 2. Green Economy • Advocated after Rio+20 summit in June 2012. • ‘The Future We Want’ (UN 2012): • Poverty eradication • Sustainable consumption and production • Protecting and managing natural resource development UNEP 2011
  3. 3. SBY Speech for Rio+21 Summit We know the problems We know the solutions We must act now! SBY@cifor How can research support this? • Research for Development (ACIAR) • Research for Impact (CGIAR-CRP 6) • Action Research (FORDA and CIFOR)
  4. 4. Why VALUE CHAINS? • Globalized trade make fragmenting of production – In different location worldwide • Linking to global value chains can provide better market access • SMEs are becoming global players Kaplinsky and Readman (2000)
  5. 5. Global furniture trade  The global furniture exports were US$ 74 billion  Indonesia’s share was about 2%, Malaysia 3% and Vietnam 5%
  6. 6. Jepara Furniture • 10% of Indonesia’s export - $110 million annually • 11,981 businesses • 0.9 million m3 wood • $0.8 billion economy • Women are paid less than men  Hit by global financial crisis in 2008  Reduced market, incomes and Incentive to grow trees
  7. 7. METHODS • Participatory Action Research (PAR) • On the Reflection phase we implemented Value Chain Analysis (VCA), surveys and studies including gender. Reflec -tion Plan- ning Action Moni- toring
  8. 8. Scenarios based collective action 1. Moving Up – Small-scale producers move up to the higher stages in the value chain 2. Green Product – Voluntary and mandatory certification
  9. 9. 1. Small-Scale Association (collective action) 2. Collaborating Down 3. Furniture Roadmap: District regulation development
  10. 10. MAIN IMPACTS  Improved incomes (statistically significant)  They produced certified furniture  Better furniture governance: the association involved in decision making process and its implementation
  11. 11. Lessons to be learnt • Baseline study is a key to assess impacts • Engage policy makers since the beginning • Value chain analysis comprehends the distribution of income and power • Action research can make difference on the ground • Work at policy level to sustain the impact
  12. 12. Preliminary study Planted forest Industries Landscape Trade and market Furniture Pulp and paper Construction AgricultureNatural forest Retailers Wholesalers End consumers Wood panels Log flows Product flows Money flows Money flows Vertical inequality Horizontal inequality Non- vegetated land • Researching landscape • Investing landscape • Multi- stakeholder approach
  13. 13. Thank You

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