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Tag Archive for: supply chain

MSMEs important partner to improve forest governance and reducing deforestation and forest degradation

23 July 2021

Micro, small and medium-sized timber producers and processors play a critical role in meeting the growing demand for forest products worldwide, as well as making vital contributions to livelihoods and national economies. It is estimated that micro, small and medium enterprises (MSMEs) provide over 50 percent of total forest-related employment, with the figure in some countries as high as 80 to 90 percent of employment. Additionally, MSMEs are the main suppliers to domestic and regional markets in tropical timber-producing regions. The demand for forest products is growing significantly, placing more pressure on national forest resources.  Forest sector MSMEs are central to ensuring that forest resource use is legal and sustainable into the future.

To better understand strategies to support MSMEs towards these goals, the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme and the European Forest Institute (EFI) hosted a webinar entitled ‘How has supporting MSMEs to operate legally and sustainably improved forest governance and livelihoods?’. The webinar explored how changes in forest-management and timber processing practices generated through the support of the Programme and EFI have increased market access and enhanced the competitiveness of MSMEs while reducing their vulnerability to shifts in international and domestic markets. 

The event centred around three key themes:

  • Building the capacity of MSMEs to operate legally and sustainably
  • Integrating MSMEs into legal supply chains
  • Helping MSMEs overcome barriers to formalization

Participants heard from two project beneficiaries (Mr Wichat Prathanrat, Deputy Permanent Secretary of Banthi Subdistrict Municipality, Thailand, and Mr Le Phi Chien, Director of Bach Viet and Moc Dan Dan Phuong JSC, Viet Nam) followed by a panel discussion moderated by Ms Sheam Satkuru from the International Tropical Timber Organization.

Supporting forest-sector MSMEs to be legal and sustainable

Panellists highlighted the need for assistance to MSMEs to be tailored towards their unique needs and available resources. Mr Laurent Ayemou, an independent expert on MSMEs and former project manager for the Association des Voluntaries pour le Service International (AVSI) in Côte d’Ivoire, outlined that tailored capacity building not only strengthened technical capacity but also encouraged formalization, increased competitiveness, and subsequently increased income, generating livelihoods.

Both Mr Peter Zormelo, the Head of Trade and Industry Development (TIDD) at the Ghana Forestry Commission and Mr Ngo Sy Hoai, Vice President & Secretary-General of the Vietnam Timber and Forest Product Association (VIFORES), highlighted practical impacts that capacity building had. Through Programme and EFI support, VIFORES and TIDD have supported MSMEs to re-organize their production spaces and offered them training to reduce wastage and increase efficiency when processing timber.

Further emphasizing the need for formalization in the forest sector, panellists discussed how integration into legal supply chains incentivizes legality. Mr Zormelo explained how ensuring that MSMEs had adequate access to legal raw materials acts as a bedrock for operators to pursue legality and formalization. To this end, TIDD has established the Domestic Timber Trade Network, which creates business-to-business links between MSMEs and others in the timber sector, boosting the supply of legal timber on the domestic market.

Mr Zormelo’s experience echoed the experiences described by Mr Prathanrat during his testimony. In Thailand, legal revisions allowed the use of reclaimed timber as a legal source of raw material for MSMEs, boosting the domestic supply of resources. This has allowed a number of processors in Mr Prathanrat’s subdistrict to operate legally  and, subsequently, form an association of operators that use reclaimed timber.

Ultimately, a range of barriers that inhibit the ability of MSMEs to formalize remain. Ms Alejandra Ospitia, the Chief Executive Officer of the Federation of Forest Entrepreneurs in Colombia (FEDEMADERAS), spoke of the legal uncertainty and constant changes in regulation experienced by Colombian MSMEs. The panel identified a number of strategies to overcome these barriers, including legal clarification, training, public-private collaboration, and revising tax and fiscal policies to promote  competitiveness.

The future of support to MSMEs

Across Thailand, Viet Nam, Côte d’Ivoire, Ghana, and Colombia, it is clear that work on integrating MSMEs in legal supply chains generated knowledge that allowed MSMEs to improve their own production process, increase competitiveness, and strengthen business to business links. As such, business development remains important in supporting  MSMEs.

In closing the event, Ms Valerie Merckx, Head of FLEGT and REDD Unit at EFI, stated that the event  illustrated how MSMEs can be part of the solution to improve forest governance and meet sustainable development goals. MSMEs should be encouraged to adopt legal and sustainable sourcing and processing practices through specialized trainings, with  legal frameworks adapted to their unique circumstances. By developing an enabling environment, support to MSMEs allows them to thrive, becoming essential for rural economies, jobs and livelihoods, and sustainability.

You can watch the full recording of the webinar below.

The FAO-EU FLEGT Programme and EFI would like to thank our project beneficiaries and panellists Mr Wichat Prathanrat, Mr Le Phi Chien, Mr Peter Zormelo, Mr Ngo Sy Hoai, Ms Alejandra Ospitia, and Mr Laurent Ayemou for their time and contributions to the event, as well as Ms Sheam Satkuru for her expert moderation during the event.

For more information:

  • Event agenda
  • FAO-EU FLEGT Programme
https://forestsmallholders.org/wp-content/uploads/2022/04/Woman-working-Lien-ha-webinar.jpg 628 1200 Forest Smallholders https://forestsmallholders.org/wp-content/uploads/2022/04/ForestSmallholders_WebLogo_Tagline_3lines-12.svg Forest Smallholders2021-07-23 08:10:002022-04-18 09:02:05MSMEs important partner to improve forest governance and reducing deforestation and forest degradation

Webinar to explore how support to MSMEs improves forest governance and livelihoods

13 July 2021

MSMEs play a critical role in meeting the growing demand for timber products worldwide. In many countries, they represent around 85% of all forestry enterprises and can support the fight against illegality by providing a source of legal, traceable timber. In an upcoming webinar, the FAO-EU FLEGT Programme and the European Forest Institute (EFI) will host a discussion on how support to micro, small and medium enterprises (MSMEs) can improve forest governance and livelihoods.

Over the last decade, the FAO-EU FLEGT Programme and EFI have supported MSMEs to operate legally and sustainably. The joint webinar will explore how this support has improved market access and enhanced the competitiveness of MSMEs, while reducing their vulnerability to shifts on the international and domestic market.

Panellists will offer perspectives from Asia, Africa and Latin America on building MSME capacity to operate legally and sustainably, integrating MSMEs into legal supply chains, and helping these enterprises to overcome barriers to formalisation.

The discussion will be moderated by Sheam Satkuru, Director of Operations for the International Tropical Timber Organisation. 

https://forestsmallholders.org/wp-content/uploads/2022/04/EFI-FAO-MSME-webinar.jpg 628 1200 Forest Smallholders https://forestsmallholders.org/wp-content/uploads/2022/04/ForestSmallholders_WebLogo_Tagline_3lines-12.svg Forest Smallholders2021-07-13 08:18:002022-04-15 10:24:35Webinar to explore how support to MSMEs improves forest governance and livelihoods
Agus Djailani, European Forest Institute

Old wood gets a new lease on life in Thailand

19 September 2019

In Lamphun province near Chiang Mai in northern Thailand a 20-year-old wooden house is being demolished. The workers are dismantling the house piece by piece, rescuing all teak wood. Currently there is a booming domestic market for reclaimed timber in Thailand. It is increasingly contributing to the local economy and has become an important source of livelihood for household businesses in the wood sector.

Read more
https://forestsmallholders.org/wp-content/uploads/2022/04/dismantling-old-wooden-house-thailand-flegt.jpg 628 1200 Forest Smallholders https://forestsmallholders.org/wp-content/uploads/2022/04/ForestSmallholders_WebLogo_Tagline_3lines-12.svg Forest Smallholders2019-09-19 13:15:002022-04-15 10:50:54Old wood gets a new lease on life in Thailand
Agus Djailani, European Forest Institute

Old wood becomes a source of legal timber in Thailand

18 September 2019

Reclaimed timber is contributing to Thailand’s local economy and becoming an important livelihoods source. Timber from old houses that have come to the end of their lifecycle are being bought by traders and turned into a thriving business.

Workers dismantling a wooden house piece by piece, rescuing all teak wood from the roof support poles to the flooring boards, window frames and doors. Source: Agus Djailani, European Forest Institute

The reclaimed timber supply chain started more than 10 years ago but was overlooked and unrecognized. Since a range of regulatory obstacles were removed, bureaucratic processes are being simplified and will contribute to a decrease in corruption. In turn, the earning potential for the Small and micro Economic Entities (SmEs) in Thailand that trade in this timber will have a significant boost.
 
The recognition of reclaimed timber as legal source of timber is the result of efforts to raise awareness among policy makers engaged in the formal Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (VPA) process between the Government of Thailand and the EU.

Read the multimedia story

  • Old wood gets a new lease on life in Thailand
https://forestsmallholders.org/wp-content/uploads/2022/04/dismantling-old-wooden-house-thailand-flegt.jpg 628 1200 Forest Smallholders https://forestsmallholders.org/wp-content/uploads/2022/04/ForestSmallholders_WebLogo_Tagline_3lines-12.svg Forest Smallholders2019-09-18 15:57:002022-04-15 10:52:17Old wood becomes a source of legal timber in Thailand

News

  • Rujinaree Ar-lai shows her wood lamp product made from wood waste.Konwilai WongyothChampioning gender equality in the small-scale forest sector8 March 2023 - 8:21 am

    On this year’s Women’s Day, the Forest Smallholders Project is highlighting the importance of gender equality in the small-scale forest sector. Gender equality is a crucial factor in creating a sustainable and equal future.

  • Husband and wife displaying their products at a trade fair, Lao PDR.Khamphoui SaythalaPromoting gender equality and women’s economic empowerment in the Mekong region’s small-scale forest sector26 June 2022 - 10:42 am

    We have published a briefing paper to analyse how gender equality in the Mekong small-scale forest sector can be pursued through promoting women’s economic rights and empowerment

  • Illustration showing OHS challenges for MSMEs in the wood industryWilfredo Elis / European Forest InstituteImproving occupational health and safety among micro, small and medium wood processing enterprises26 June 2022 - 10:00 am

    We have published a technical briefing to introduce OHS in the context of the wood-processing industry, describing challenges faced by MSMEs and sharing training recommendations based on our experience in the Mekong region.

  • Legality in the forest sector: New insights into obstacles and incentives for MSME formalisation3 August 2021 - 2:45 pm

    In a new joint report, the FAO-EU FLEGT Programme and the European Forest Institute (EFI) make a case for acknowledging the complex circumstances of forest-sector MSMEs, particularly in countries where requirements for legality compliance and achieving formal status are unclear.

  • MSMEs important partner to improve forest governance and reducing deforestation and forest degradation23 July 2021 - 8:10 am

    To better understand strategies to support MSMEs towards goals, the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme and the European Forest Institute (EFI) hosted a webinar entitled ‘How has supporting MSMEs to operate legally and sustainably improved forest governance and livelihoods?’.

About the Forest Smallholders Project

Since 2016, the European Forest Institute (EFI) has been supporting wood-based micro, small and medium enterprises (MSMEs) in four Mekong countries to operate legally and sustainably. Under its Forest Smallholders Project, EFI has been testing solutions to MSMEs’ key challenges in pilot projects. Lessons learnt from these pilots are documented and disseminated nationally, regionally and internationally. Through its support to MSMEs, the Project promotes gender equality and women’s economic empowerment in the forest sector.

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This website has been produced with support from the Swedish International Development Cooperation Agency. The contents of this website are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of funding organisations.

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Except where otherwise noted, content on this site is licensed under Creative Commons BY-NC-ND 4.0. Credit information: European Forest Institute, www.efi.int
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