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Using Market Forces to Improve Rural Livelihoods <br />and Conserve Smallholder Forests;<br />Lessons in Certification of ...
Linking Business with Responsible Forest Management<br />The Forest Trust (TFT)<br />A Non-profit company registered in UK...
TFT Buying Members<br />(Retailer)<br />External Funding Partners<br />TFT Supplying Members<br />(Wood factory)<br />TFT ...
Community Forest Program<br />Goal:  To facilitate communities and smallholders managing forests for timber to:<br />Imple...
Progress to date<br />Existing Community Forest Projects; 6 Worldwide<br />3 in Indonesia<br />1 in Laos<br />1 in Vietnam...
Indonesia & Laos<br />Independent smallholders planting high value wood (teak and mahogany) on private plots<br />Agrarian...
Vietnam<br />Acacia plots planted on private smallholder land<br />Part of government ‘greening’ initiative<br />Governmen...
Brazil<br />Settlers (colonos) receiving 100 ha natural forest from government<br />80 ha to be managed as forest<br />20 ...
How it got started; KHJL Case Study<br />2003: High demand for certified teak among garden furniture factories in Indonesi...
SE Sulawesi; Konawe Selatan District<br />Pre-existing program aimed at community management of state teak plantation<br /...
Approach<br />Facilitate farmers to agree on group guidelines and rules for management<br />Empowerment through action-ori...
Initial Challenges<br />Legality & Land Tenure<br />Solutions<br />Lack of land certificates<br />Harvesting License Expen...
Large Wood trader owning multiple sawmills & log yards<br />Medium Wood traders 135 total; 50 permanent & 85 non-permanent...
Trends: Defining a Group Structure<br />Cooperative’s All- Member Meeting<br />2 of 6 (KHJL & KOSTAJASA in Indonesia) are ...
Market Linkage<br />Selling as a group to overcome middlemen<br />Calculating expenses per cubic meter<br />Contracting fo...
KHJL<br />12 villages Assessed February 2005<br />FSC Certified!– 20 May 2005<br />2010 28 villages,; 750+ members; FSC ce...
Benefits of Certification<br />Price Premium<br />Link with appropriate market;(small volumes ok; commitment to FSC & CSR ...
Replication of the ApproachJava Mahogany Program<br />2006 began program to certify mahogany smallholders in Kebumen, Cent...
2009 Achieved FSC Certification; 10 villages, 500+ members</li></li></ul><li>LuangPrabang Teak Program; Laos<br />2007 Sco...
Lao Cai District, Vietnam<br />Scoping in late 2007<br />Signed MOU to work with the District Forest Department on group c...
Central Java Teak; Dipantara<br />NGO focused on empowerment of smallholder forestry<br />Now developed business largely o...
Moving Forward<br />Developing a Smallholder Certification Handbook with trainings for how other NGOs can facilitate simil...
TFT Community Forest ProgramSustainable Forests, Improved Livelihoods, Good Governance<br />
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Using market forces to improve rural livelihoods and conserve smallholder forests lessons in certification of smallholder community forests

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Cecile Lachaux

Presentation for the conference on
Taking stock of smallholders and community forestry
Montpellier France
March 24-26, 2010

Published in: Education
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Using market forces to improve rural livelihoods and conserve smallholder forests lessons in certification of smallholder community forests

  1. 1. Using Market Forces to Improve Rural Livelihoods <br />and Conserve Smallholder Forests;<br />Lessons in Certification of Smallholder Community Forests<br />Subtitle<br />25th March 2010<br />
  2. 2. Linking Business with Responsible Forest Management<br />The Forest Trust (TFT)<br />A Non-profit company registered in UK<br />Started in 1999<br />A Membership Organization<br />Focus on Forest Industry & Trade<br />Financed by Members & Donors<br />
  3. 3. TFT Buying Members<br />(Retailer)<br />External Funding Partners<br />TFT Supplying Members<br />(Wood factory)<br />TFT Forest Partners<br />(Forest Concessions & Communities)<br />LEGEND<br />Financial Support<br />Advice, guidance, and technical support<br />Products<br />Purchase payment<br />
  4. 4. Community Forest Program<br />Goal: To facilitate communities and smallholders managing forests for timber to:<br />Implement international Best Management Practices for forest management, <br />Achieve FSC Certification, and <br />Link to international markets paying a price premium for certified wood.<br />
  5. 5. Progress to date<br />Existing Community Forest Projects; 6 Worldwide<br />3 in Indonesia<br />1 in Laos<br />1 in Vietnam<br />1 in Brazil<br />In Scoping or Development<br />1 in China<br />1 in Madagascar<br />
  6. 6. Indonesia & Laos<br />Independent smallholders planting high value wood (teak and mahogany) on private plots<br />Agrarian households; agroforestry systems<br />Wood planted on farmers’ own initiative<br />Long history of cultivation of these species by smallholders<br />
  7. 7. Vietnam<br />Acacia plots planted on private smallholder land<br />Part of government ‘greening’ initiative<br />Government forest agency buying wood from smallholders<br />
  8. 8. Brazil<br />Settlers (colonos) receiving 100 ha natural forest from government<br />80 ha to be managed as forest<br />20 ha for agriculture<br />Natural forest managed as a contiguous unit; contracted to logging company MAFLOPS<br />
  9. 9. How it got started; KHJL Case Study<br />2003: High demand for certified teak among garden furniture factories in Indonesia<br />Exploration of teak sources in SE Sulawesi <br />
  10. 10. SE Sulawesi; Konawe Selatan District<br />Pre-existing program aimed at community management of state teak plantation<br />Pre-existing social capital of a 36 villages organized into a cooperative<br />Farmers growing teak on their private land<br />Local partner ‘JAUH’ (JaringanUntukHutan)<br />Build on the existing strengths, or social capital of the location in which you start a project<br />
  11. 11. Approach<br />Facilitate farmers to agree on group guidelines and rules for management<br />Empowerment through action-oriented trainings (such as forest inventories, chain of custody, accounting, contract negotiation)<br />Help with documentation<br />Bringing stakeholders together; farmers, government officials, market actors<br />Pilot first, then scale up<br />
  12. 12. Initial Challenges<br />Legality & Land Tenure<br />Solutions<br />Lack of land certificates<br />Harvesting License Expensive & bureaucratic<br />Unexpected Positive Impact<br />Used receipt for payment of land tax + letter from Head of Village<br />Organized large number of farmers to spread out cost (>500)<br />Dedicated cooperative staff to process license<br />Short-term loan from TFT<br />Better engagement between community members and government<br />Increased understanding of the laws among farmers AND local officials<br />
  13. 13. Large Wood trader owning multiple sawmills & log yards<br />Medium Wood traders 135 total; 50 permanent & 85 non-permanent<br />10-25 small wood traders per medium traders; or approx. 2,300 people<br />tens of thousands; throughout Java<br />Complex Supply Chains<br />
  14. 14. Trends: Defining a Group Structure<br />Cooperative’s All- Member Meeting<br />2 of 6 (KHJL & KOSTAJASA in Indonesia) are cooperatives<br />1 (PT Dipantara in Indonesia) is an NGO-owned business<br />2 (Vietnam & Laos) are co-management structures between local government and local communities<br />1 is a logging company (Brazil) <br />KHJL elected leadership council<br />Village farmer group<br />Hired Staff; such as accountant, secretary & forester<br />Members<br />Members<br />Members<br />
  15. 15. Market Linkage<br />Selling as a group to overcome middlemen<br />Calculating expenses per cubic meter<br />Contracting for transport & sawmill<br />Estimating time required<br />Negotiating a Sales Contract; down payments<br />Ensuring Chain of Custody was applied, and wood was 100% legal<br />Result: Price immediately increased by 50%<br />
  16. 16. KHJL<br />12 villages Assessed February 2005<br />FSC Certified!– 20 May 2005<br />2010 28 villages,; 750+ members; FSC certificate maintained<br />
  17. 17. Benefits of Certification<br />Price Premium<br />Link with appropriate market;(small volumes ok; commitment to FSC & CSR principles )<br />Increased credibility in the eyes of government & market<br />Increased access to information, & inclusion in national policy discussions<br />
  18. 18. Replication of the ApproachJava Mahogany Program<br />2006 began program to certify mahogany smallholders in Kebumen, Central Java, based on demand from TFT member<br /><ul><li>2008 KOSTAJASA mahogany cooperative formed
  19. 19. 2009 Achieved FSC Certification; 10 villages, 500+ members</li></li></ul><li>LuangPrabang Teak Program; Laos<br />2007 Scoping Visit<br />2008 Program Launch with partners SIDA, JICA, WWF & Laos government<br />2009 first wood sales; formation of co-managed group structure (farmers & provincial government)<br />Expected Certification 2010<br />
  20. 20. Lao Cai District, Vietnam<br />Scoping in late 2007<br />Signed MOU to work with the District Forest Department on group certification for surrounding smallholder acacia + government acacia plantations<br />Delayed due to lagging market demand<br />
  21. 21. Central Java Teak; Dipantara<br />NGO focused on empowerment of smallholder forestry<br />Now developed business largely owned by local communities; aimed at group certification and improving local prices<br />Started 2007; expected certification 2010<br />
  22. 22. Moving Forward<br />Developing a Smallholder Certification Handbook with trainings for how other NGOs can facilitate similar projects; partner with TFT for market linkage<br />Exploring possibilities of ‘community wood’ labels or FSC-Fairtrade<br />Options to work with plywood factories<br />
  23. 23. TFT Community Forest ProgramSustainable Forests, Improved Livelihoods, Good Governance<br />

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