Overview of enabling policies for FFPO businesses Martin Greijmans, RECOFTC - The Center for People and Forests Regional conference on Forest and Farm Producer Organizations (FFPOs) “From users to producers” Nay Pyi Taw, Myanmar, 20-22 November, 2017

Role of FFPOs in value chain and associated policies Cultivation, felling, skidding/ transport to road site Transport to sawmill, sawing of logs, transport of squared logs Processing into furniture / other products Local marketing, export Communities Traders Smallholders Cooperatives Sawmill Larger traders, factories Wholesalers Retailers Consumers Land and forest tenure/management Commercial management and harvesting Commercial transport Selling Added value, investment

Overview of some key national policies benefiting FFPO businesses Policy chain What does it do for FFPO-businesses? Land and forest tenure/ management Commercial management and harvesting a) Viet Nam, 50 years land-use title (Red Book Certificate) b) Indonesia, One map policy further clarifying tenure, reducing conflict a) Viet Nam 4.15 million ha plantations / agroforestry managed by smallholders & emerging partnerships between state controlled enterprises and smallholders b) Indonesia Production FMUs with management and business plans based on key forest product commodities and services in partnership with communities and private sector

Overview of some key national policies benefiting FFPO businesses Policy chain What does it do for FFPO-businesses? Commercial transport Added value, investment Selling Organisation Viet Nam simplified transportation and procedures for communities, and large companies :) Low interest credit (Kyrgyzstan); Viet Nam cheap credit, technical assistance, subsidised fertiliser for cooperatives (see global) Democratic space and self-organisation (Philippines, Nepal); Organization/operational cooperatives (Viet Nam) (RECOFTC 2015, and ongoing work under RAFT) Covered through other sectors supporting SME development - beyond forestry

Overview of some other policies potentially benefiting FFPO businesses Policy level Policy What does it do for FFPO-businesses? Regional ASEAN Co-operation in Food, Agriculture and Forestry (2016-2025) in line with ASEAN Policy Blueprint on SME Development Assist to improve productivity, technology and product quality, to meet global market standards and increase competitiveness Global Certification Trees outside the forest (PEFC) Small or Low Intensity Managed Forests (SLIMF, FSC) Group Certification (PEFC,FSC) 2. FLEGT VPA 3. Corporate Social Responsibility (Private sector) Certifying trees/timber from other land than forest; Small producers qualify for simplified auditing procedures and lower costs Agreements encourages clarification of tenure favouring smallholders Avoid conflict, financial and reputational risks Blueprint = ASEAN STRATEGIC ACTION PLAN FOR SME DEVELOPMENT 2016-2025 Programme for the Endorsement of Forest Certification The Forest Stewardship Council

MA&D as a policy? framework towards sustainable enterprise development Economy, finance Technology / product research and development Social / cultural Institutional and legal / policies Natural resource management / environment For a FPPO to become/remain a sustainable entity the 5 areas of enterprise development need to be sustainable as well Gender and disadvantaged groups as part of social/cultural aspect Capacity development as part of technology bit FAO (2011) Community-based tree and forest products enterprises: Market analysis and development (MA&D) Manual and field facilitator guidelines

Take away messages: ensure incentives Look beyond forest policies when entering value chains Reduce barriers (complex procedures, time consuming, ease of doing business) Secure rights to unleash business incentives Reduce costs to do business Investment in infrastructure Access to affordable credit/finance Adaptive learning (information is out there) Added value, technology Incubators: shakers, leaders, movers, risk takers ASEAN Strategic Action Plan for SME Development 2016-2025 envisions to overcome many of the above (beyond forest related policies)

THANK YOU Local people hold the key to healthy forests www.recoftc.org