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Supporting forest- and timber-based MSMEs in the Mekong region to operate legally and sustainably

MSMEs are a vehicle for development and generate almost half of jobs in the formal forest sector globally. They are key to local economies, generating significant livelihood and employment opportunities. Yet the recent economic crisis triggered by the COVID-19 pandemic has shown the vulnerability of MSMEs to sudden market developments. This brief describes the approach adopted by the European Forest Institute (EFI) over the last five years to support forest- and timber-based MSMEs in the Mekong region to operate legally and sustainably. The publication highlights the challenges and solutions tested, and lessons learnt from EFI’s interventions.

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Homegrown trees provide additional income in Thailand

In the late 1980s, the Government of Thailand imposed a logging ban in all natural forests. Together with the depletion of forest resources, the ban led to a drop in domestic supply. The Government therefore looked for ways to involve the private sector and in particular local communities in generating alternative wood supplies. Changes introduced in 2019 in the law governing forestry may finally promote reforestation efforts.

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Mangkol Wandee measures a treeSomporn Khongthanakrittakorn, European Forest Institute

Trees give small farmers in Thailand access to loans

The EU FLEGT Facility has published a story describing how farmers in Thailand are starting to reap the benefits from international timber trade talks between Thailand and the European Union.

Mongkol Wandee measures a tree. Source: Somporn Khongthanakrittakorn, European Forest Institute

Until recently, forest laws put limitations on farmers around the harvesting and transportation of certain tree species. Organisations such as the Private Forest Plantation Cooperative Limited – a cooperative of tree growing farmers and private land owners – used the trade talks to push for amendments to forest laws to improve the situation for farmers. 

In 2019, the Thai Government changed regulations regarding the use of trees on private land. Farmers can now legally harvest all trees on their land and get additional income from them without burdensome paperwork and/or field inspections.

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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.

Disclaimer

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.