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On the Cusp of Start‐up and Build‐up:
Enterprise Development Assistance to Emerging Community‐based NTFP Enterprises (Forest Honey and Indigenous Crafts) in Northeast Cambodia ‐ Memorandum of Understanding [PP‐A/43‐232]
CASE STUDY PROJECT REPORT
January to October 2009
Submitted by: Non‐Timber Forest Products Exchange Programme (NTFP‐EP) for South and Southeast Asia (NTFP‐EP)
in cooperation with:
Cambodian NTFP Development Organization (CaNDO)
Worldwide Fund for Nature (WWF)
Sahakreas CEDAC, Ltd
Mondulkiri Wild Honey Network
CaNDO Craft Center (CCC)
ver. 11.01.09
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Table of Contents
List of Acronyms and Abbreviations............................................................................................... 3
I. Executive Summary ..................................................................................................................... 4
II. Background of the Case Study ................................................................................................... 5
III. Case Study Project Objectives................................................................................................... 9
IV. Scope and Activities of Enterprise Development Assistance.................................................... 9
1. Mondulkiri Wild Honey enterprise development assistance.........................................10
2. CaNDO Craft enterprise development assistance..........................................................15
3. Staff and and Partner capacity building in Community based NTFP Enterprise Development ......................................................................................................................19
V. Key Results and Findings.......................................................................................................... 21
VI. Lessons Learned ...................................................................................................................... 29
VII. Conclusion.............................................................................................................................. 30
VIII. Attachments.......................................................................................................................... 31
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List of Acronyms and Abbreviations
CaNDO Cambodian NTFP Development Organization CBCE Community based Crafts Enterprises CBNE Community based NTFP Enterprises CCC CaNDO Crafts Center CEDAC Centre d’ Etude pour le Développment Agricole Cambodgien CNWG Cambodia NTFP Working Group EGP Ecosystems Grants Programme FAO Food and Agriculture Organization GI Geographical Indication ITTO International Timber Trade Organization IUCN‐NL Netherlands Committee of IUCN (International Union for the Conservation of Nature) JMC Joint Management Committee MWHN Mondulkiri Wild Honey Network MPF Mondulkiri Protected Forest NTFP Non‐timber forest products NTFP‐EP Non‐timber Forest Products Exchange Programme for South and Southeast Asia PGI Protected Geographical Indication WWF Worldwide Fund for Nature
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I. Executive Summary
To date, the contribution of non‐timber forest products (NTFPs) to poverty reduction, economic development and biodiversity conservation has not gained traction in Cambodia. This case study project aimed to substantiate that NTFP value chain development can also serve national interests through demonstrated models of sustainable and community based NTFP enterprise development. For a ten (10) month period, the project holder, NTFP Exchange Programme (NTFP‐EP) for South and Southeast Asia delivered direct enterprise development assistance to its community based NTFP enterprise (CBNE) and NGO partners in Northeast Cambodia. The Mondulkiri Wild Honey Network (MWHN) and CaNDO Craft Center (CCC) were supported in business planning, marketing and promotions, product development and value‐addition, production improvements through tools and materials assistance, enterprise systems installation (especially quality control, costing, pricing and financial systems) and improvements. Within the case study period, the two CBNEs were enabled with better enterprise skills, capacity and systems. The project also seeks to identify what parameters and lessons to learn from practice that contributes to the growth of CBNEs, particularly from start‐up to build up stage of enterprise development. The funds from this project added momentum to the entry of the CBNEs into the Cambodian market. Our hope is that this momentum is sustained until their market niches are fully attained. Presently, the enterprises are still on the cusp between start‐up and build‐up stages. However, demonstrated progress has been made within the case study period, along the parameters of enterprise development particularly in markets, product quality, product system and technology, staff skills, and in enterprise systems. The following specific results were achieved: a) the development and operationalization of the Mondulkiri Wild business plan; b) the drafting of the CCC business plan for 2010‐2012; c) the market testing of CaNDO Craft product line; d) the initiation of the domestic market positioning of Mondulkiri Wild as a community branded, pure, sustainably harvested, quality wild honey; e) the installation of production and enterprise systems for CCC, and improvements in MWHN; f) the establishment of market linkages and technical partnerships particularly with Sahakreas CEDAC around quality standards, and the preparation for installation and management of a simple processing and packaging facility in Phnom Penh. In addition, NTFP‐EP local staff and partners are oriented in CBNE development and are beginning to build their capacity through coaching, training, and actual practice as service providers and community based enterprise facilitators. Finally, NTFP EP’s intermediary role in the provision of enterprise development and marketing support to MWHN and CCC has been critical in this period. It was found that this role needs to be sufficiently resourced and well‐linked to be effective and beneficial to the CBNEs. The role of NTFP‐EP as enterprise facilitator and market intermediary remains relevant even beyond this period and will likewise be critical to other CBNEs and other partner‐members of the Cambodia NTFP Working Group (CNWG), in which NTFP‐EP currently serves as over‐all facilitator. This role is vital to the CBNEs as they continue to develop into fully functioning, efficient, profitable and sustainable enterprises.
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II. Background of the Case Study Secondary to agriculture, harvesting and collection of non‐timber forest products
(NTFPs) for food and household income, help to sustain over 2,000 rural villages and over a million people in Cambodia, especially those living in or around forest areas1. Research has shown that NTFPs contribute anywhere between 10% to 50% livelihood value to forest‐based communities.2 This is estimated to be anywhere between US$30 to US$400 annually per household. NTFPs not only serve as a safety net in times of food shortage, but also as a valuable source of household materials and cash. NTFPs include a wide array of forest products, such as honey, resins, mushrooms, bamboo, rattan, medicinal plants, wild fruits and vegetables, as well as firewood and wildlife. Of these, resins, forest honey and honey products like beeswax provide higher cash values to poor income forest‐based communities of at least a $100 annually.3 NTFPs are also an intrinsic part of the culture and traditions of forest‐based and indigenous communities of Cambodia just as they are in other regions of the world. Given their vital links to the basic survival and culture of many rural communities, the sustainable management of NTFPs are widely considered to also be a good twinning strategy to biodiversity conservation. However in Cambodia, it is yet to gain traction in light of the disproportionate attention given to the expansion of agriculture plantation investments, tourism and urban sector development, natural resource extraction‐based industries such as hydropower and mining in order to meet poverty reduction and economic growth goals. In comparison, there are still limited investments in small holder agriculture and the development of small to medium forest‐based enterprises.
This case study proposed that the sustainable management and value chain development of NTFPs can provide holistic contributions to national interests, particularly better income for rural (especially forest resource‐dependent) communities, biodiversity conservation and capturing market niches for Cambodia‐made products. However, in order to substantiate this, working models, such as community‐based NTFP enterprises (CBNEs), must be supported adequately to its take‐off stage (see Figure 1). The aim of the case study project was to assist two (2) CBNEs in its start‐up stages of enterprise development and intervene across the critical parameters of development, particularly in terms of defining and tapping the market, installation and strengthening of quality control, production and financial system of the enterprises. Through targeted enterprise development assistance within the case study period, the CBNEs were expected to reach the build‐up stage.
Fund support from FAO/ITTO was used to meet specific and currently unbudgeted demands of the emerging CBNEs in Northeast Cambodia, namely CaNDO Craft Center (CCC) in Ratanakiri province and the Mondulkiri Wild Honey Network (MWHN). These CBNEs have been working in partnership with local, regional and international NGOs, namely Cambodian NTFP Development Organization (CaNDO), Non‐timber Forest Products Exchange Programme (NTFP‐EP) and Worldwide Fund For Nature (WWF) since 2007. In this case
1 An estimate of over a million hectares are considered high-value forests in Cambodia (ie. evergreen or semi-evergreen forests) and are located within a 5 km radius of villages/settlements. Cambodia’s estimated forest cover is around 58% . 2 Community Forestry International, ed. Proceedings of the Non-Timber Forest Products (NTFP) Workshop and Seminar. 7-8 December 2006. Phnom Penh, Cambodia. 3 Ibid.
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study project, NTFP‐EP directly serviced the CBNE partners in business planning, systems assessment and installation, business performance monitoring, production enhancement and product development. Finally, NTFP‐EP also provided enterprise capacity building and marketing support, including servicing specific buyers and market intermediary of Mondulkiri Wild such as Sahakreas CEDAC, Ltd., which is an emerging social enterprise4 in Cambodia.
NTFP‐EP is a network of NGOs and community based organizations in India, Philippines, Indonesia, Malaysia, Vietnam and Cambodia. NTFP‐EP works with forest‐based communities to strengthen their capacity in sustainable management of natural resources and other related fields such as forest management, sustainable harvesting of NTFPs, indigenous tenure and customary use rights, NTFP community enterprise development, and NTFP policy development.
4 Oikocredit, an international development financing organization defines social enterprises as “businesses with primary social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximize profits for shareholders and owners”. Social enterprise objectives are principally to “distribute, rather than, to accumulate wealth” (Pinto, F., et al. 2009. Market Study for Oikocredit Lending Operations to Social Enterprises in Cambodia. Oikocredit, EDCS U.A, Cambodia Office)
TAKE-OFF BUILD-UP START-UP
MARKET
PRODUCT
PRODUCTION SYSTEM
STAFFING & SKILLS/ ROLES
Undefined
k
Unpredictable volume
Poor quality; not able to meet production
targets
Inadequate, Undefined
Defined / Targeted
Stable volume
Quality improved; optimal capacity
not met
Adequate, Defined
Segmented/ Able to produce for different markets
Stable volume with other
reliable sources
Good, consistent Quality, optimal
capacity
Full complement
COSTING Partial / Arbitrary Full / Standardized
Full / Industry Standard
BUSINESS & FINANCIAL
SYSTEM
Irregular, incorrect
More regular, accurate
Prepare financial statements & simple analysis
SKILLS EFFICIENCY PROFITABILITY
TECHNOLOGY
NTFP-EP Adapted from UMFI Enterprise Devt Framework
InefficientLess inefficient
Efficient
Figure 1:
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In Cambodia, it is a registered international NGO. NTFP‐EP operates with a lean staff5 and coordinates a network of organizational partners and emerging NTFP enterprises and individual contacts in Phnom Penh in seven (7) provinces – Mondulkiri, Ratanakiri, Kratie, Stung Treng, Preah Vihear, Koh Kong and Kg. Thom under a loose network umbrella of the Cambodia NTFP Working Group (CNWG). CNWG was formed in December 2006. As the CNWG’s over‐all facilitator, NTFP‐EP provides project advisory and technical support in NTFP livelihood development, NTFP value chains, and enterprise development, including making market linkages for CNWG partner‐members. It has also catalyzed research and project initiatives in wild honey, liquid resins and indigenous crafts, and partner support in rattan enterprise development through one‐to‐one partnerships with CaNDO WWF and other local and international NGOs, who, in turn provide field technical support in conservation, natural resource management and enterprise development to local communities and community based organizations. The CNWG is expanding its field‐based NTFP development work organically as seen in the increasing demand of partner‐members for NTFP‐EP’s advisory and technical services (as the CNWG facilitator), if not, a request to NTFP‐EP to share its experience, field tools, other relevant information and contacts. However, CNWG is still currently operating without core funds. Thus, the response to partner‐members remains adhoc and limited. The case study project was implemented within a limited timeframe, however, the funds still enabled NTFP‐EP to implement targeted direct support services to two CBNEs in Mondulkiri and Ratanakiri, in cooperation with CaNDO, WWF and Sahakreas CEDAC. CaNDO is a founding partner‐member of the CNWG. CaNDO is a local NGO established in Ratanakiri province in 2006 with a mandate on forest based livelihood development especially targeting up to 90 Kreung and Tampuon indigenous men and women and up to 120 families in Ratanakiri province, Cambodia. CANDO is currently undertaking a 3‐year Crafts Enterprise Development Program from July 2008‐2011 targeting 6 villages, 3 communes and 3 districts in Ratanakiri Province with an estimate of up to 120 producers as direct beneficiaries and approximately up to 500 household beneficiaries in the target areas. The 3‐year program aims to establish up to 11 village craft enterprises and to provide direct services via the Cando Crafts Center (CCC) including enterprise trainings and mentoring support in business
5 This case study project was directly supported by the NTFP-EP Cambodia Facilitator, Marketing Officer, and an Administrative Assistant / Bookkeeper, and the Enterprise Development Coordinator (based in Manila), who provided advice on the enterprise systems assessment, and conducted the staff and partner enterprise development capacity assessment.
Indigenous Crafts Enterprise Case Study Area
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Community-based Forest Honey Enterprise Case Study Area
Map courtesy of W
WF G
reater Mekong C
ambodia C
ountry Programm
e
and organizational development, product development and marketing. The CCC serves as a marketing channel for the village enterprises in Ratanakiri, Phnom Penh, Siem Reap, initially, and potentially international buyers. The CCC houses an indigenous crafts gallery/showroom, shop and in the future, facilities for training and mentoring in indigenous crafts development. WWF, also a founding partner‐member of the CNWG, implements a conservation program in Cambodia’s Eastern Plains Dry Forest Landscape, covering mainly Mondulkiri Province but also parts of Ratanakiri and Kratie provinces. WWF’s current program interventions include protected areas management, species conservation, sustainable financing through ecotourism, environmental education, and livelihood projects within two (2) protected areas in the Eastern Plains, namely the Phnom Prich Wildlife Sanctuary and the Mondulkiri Protected Forest (MPF). Since 2007, WWF, in cooperation with NTFP‐EP, has been implementing a community‐based honey enterprise project in two (2) communes, Krangties and Pu Chrey. The project aims to improve the livelihood of indigenous Bunong forest‐dependent communities through assistance in community organizing, improvement of techniques in sustainable honey harvesting and processing, forest protection and monitoring, and honey enterprise development. At the time the case study project began, Prey Kruong Ratuon honey group in Krangties commune and Prey Rodang honey group in Pu Chrey commune have agreed to establish a Joint Management Committee (JMC) under the banner of MWHN as part of their collective marketing strategy. Currently MWHN covers 8 villages in the 2 communes in Pichrada district, with over eighty (80) Bunong honey hunter members. MWHN’s production capacity is up to 6000 liters of honey harvested from the wild during the months from March‐May each year. The primary collection areas are within the conservation and sustainable use zones of the MPF. Sahakreas6 CEDAC, Ltd. is a recently established spin‐off social business entity of CEDAC, a long‐standing sustainable agriculture NGO that has been promoting and assisting the organizing of farmers and local agriculture producers across Cambodia. It has pioneered
in Cambodia agriculture innovations in systems rice intensification and a self‐help savings mobilization model locally adapted from the Grameen Bank. In the last couple of years, CEDAC has started to venture in social marketing of organic
6 In Khmer language means, “enterprise”.
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rice, chicken, vegetables and palm sugar. In 2008, CEDAC, through linkaged initiated by NTFP‐EP, supported the test marketing of Mondulkiri Wild Honey by purchasing a limited volume to sell at the CEDAC shops and local distribution outlets in Phnom Penh. In this case study project, NTFP‐EP facilitated a new purchasing agreement between CEDAC and MWHN to coincide with the 2009 honey season. At the same time, NTFP‐EP and CEDAC forged a technical partnership for honey processing and packaging, and marketing and distribution of Mondulkiri Wild honey. Sahakreas CEDAC joined CNWG this year.
III. Case Study Project Objectives Over‐all:
To establish functional community‐based (village and provincial‐based) NTFP enterprises (CBNEs) in Northeast Cambodia by providing them with adequate enterprise development support services and linkages. These CBNEs will move from start‐up to at least build‐up stage in enterprise development.
Specific Objectives:
1. Facilitate the completion of enterprise development plans for forest honey and crafts enterprises in Mondulkiri and Ratanakiri provinces.
2. Assist the forest honey and crafts enterprises in the 2 provinces in implementation of their marketing strategies.
3. Assist the enterprises in production improvements through tools and material support, identifying and linking to resource people or service providers
4. Link the Cando Crafts Center (CCC) to a resource person or service provider for resource assessment services.
5. Respond to ongoing demand for other advisory and capacity building support in enterprise development for emerging community based NTFP enterprises.
6. Document process and lessons learned from start‐up to build‐up of community‐based enterprises.
IV. Scope and Activities of Enterprise Development Assistance The following section describes the main activities implemented from January to October 2009 and their specific outputs under three (3) main areas: 1) Mondulkiri Wild Honey enterprise development assistance, namely in a) Business plan development, b) Marketing and Promotions, and c) Product development, Production and Enterprise systems improvement; 2) CaNDO Craft enterprise development assistance, namely in a) Business Plan Development, b) Marketing and Promotions, and c) Product development, Production and Enterprise systems assessment and installation; and 3) Staff and Partner Capacity building in Community based NTFP Enterprise Development.
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1. Mondulkiri Wild Honey enterprise development assistance a. Business Plan Development: NTFP‐EP, in cooperation with WWF, facilitated a participatory business planning of the MWHN, which resulted in key decisions and plans for production, marketing, finance and organizational management of MWHN for 2009‐2011. The business plan sets a projection in 2009 of 1,800 liters of production and sales of Mondulkiri Wild Honey, which is valued up to $17,400. This plan is more than triple the 400 liter‐test marketing volume of Mondulkiri Wild in 2008. The plan emphasizes, sustainable harvesting and environment friendly techniques, quality standards for honey processing and packaging and the marketing and branding of Mondulkiri Wild honey as a community‐owned, sustainably harvested, fairly procured and marketed product.
What makes the Mondulkiri Wild Honey harvesting technique sustainable and environmentally‐friendly?
Forest bees as agents of pollination are important species. Forest bees survive if there is adequate food in their habitat. Proper/sustainable harvesting techniques and well‐maintained/protected forest habitat ensures a higher survival rate of forest bees. Sustainable harvesting techniques also increases harvest yield. Low impact honey collection also helps maintain good forest conditions. The key aspects of the MWHN technique (and community policy) that make it sustainable and environmentally friendly are: Fire is not used to drive away the bees. The methods used do not kill bees off. Neither do
the methods pose any forest fire risk. No pesticides, which are harmful to the environment and to human health, are used to
drive away the bees. Only the honey part of a mature honey comb is collected, leaving the brood, not only to
ensure that the collector can collect more than once from the same comb BUT also not to kill off the bee population.
Certain bee trees are left alone (banned from honey collection) to leave some food for the bees.
The plan also sets out the agreed standard for honey collection, handling and processing, which has been produced into a simple flyer (see From Forest to Market flyer on the right). For example, the honey combs are cut using knife made of bamboo or wood and filtered at the collection site. Filtering ensures that impurities and other particles are not mixed with the honey which may cause the honey to ferment and taste sour. After the initial filtering at the collection site, the collector delivers their honey to the commune buying station where the honey group Buyer inspects and grades the honey delivery as requirement for procurement. Procured honey is then refiltered at the buying station using a finer mesh and then packed into food grade containers. Containers are tagged for delivery to the community enterprise packaging center in Sen Monorom.
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A final filtration is done at the packaging center and left overnight to further reduce the honey moisture content and to allow other particles to settle at the bottom of the container. After 24 hours, the honey is then ready to be packaged in bottles or jars, allowing it to drip slowly from the filter cans to avoid bubbles. The jars are then properly sealed and labeled. Mondulkiri Wild Honey is packaged in jerry cans of 20 liters sealed with plastic lids; glass jars of 250grs and 425grs sealed with metal lids, and in plastic bottles of 0.5liters and 1.5 liters sealed with plastic lids. b. Marketing and Promotions: NTFP‐EP assisted MWHN in the implementation of its
marketing strategy and in order to meet its production and sales target for 2009. These are the specific interventions.
Fulfilment of Purchase Agreement: An purchase agreement between the JMC of the Mondulkiri Wild Honey Network and Sahakreas CEDAC, Ltd was agreed, signed and fully delivered for 1600 liters of Mondulkiri Wild honey (88% of their production). The agreement also states that CEDAC shall use the Mondulkiri Wild brand name for its retail sales. MWHN made its first delivery in April, within two months from signing the agreement. The purchase agreement’s gross value is up to $15,000. A full accounting of this is not yet available as of this project’s reporting period. However, within the case study period, CEDAC has distributed Mondulkiri Wild to 14 mini‐marts, supermarkets and other clients in Phnom Penh, Siem Reap and Sihanoukville, outside of its retail sales at 3 of its CEDAC Shop outlets in Phnom Penh. CEDAC reports a monthly distribution and sales of 120‐150 liters of Mondulkiri Wild honey.
Provincial launching of Mondulkiri Wild Honey and the organizing of 2009 April Festival on Forests, People & NTFPs: With the successful test marketing last year of 400 litres of honey the honey group decided to have a formal launching of the “Mondulkiri Wild Honey” this year. Hence a honey festival was organized in tandem with a larger CNWG network event, 2009 April Festival on Forests, People & NTFPS. April Festival was a
month‐long event that included the Mondulkiri Wild Launching and Honey Festival, photo and art exhibition, and film showings in Phnom Penh and a last week‐end of the month bazaar, which was simultaneously held in Phnom Penh and Ratanakiri province. The Mondulkiri Wild Launching and Honey Festival was held for three (3) days . The first
day was focused on the honey launching and promotion in Sen Monorom, the capital town of Mondulkiri province. At least 100 people
▲MWHN with provincial and district authorities of Mondulkiri province during the provincial launching of Mondulkiri Wild honey and the 2009 April Festival on Forests, People & NTFPs .
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participated including honey groups from Puchrey and Krangties communes, Bunong indigenous people from other districts in Mondulkiri, government officials and staff of local NGOs and international organizations. Sales of branded Mondulkiri Wild honey began during the launch. The 2nd and 3rd days were focused on a community forest honey tour and tour reflection conducted in Puchrey and Krangties communes, Pichrada district in the honey collection areas. At least 30 people from different districts and other provinces also participated to learn the sustainable harvesting techniques of MWHN and to also share their own experiences to the honey group. In the meantime, Mondulkiri Wild Honey was the flagship product of the 2009 April Festival on Forests, People & NTFPs held mainly in Phnom Penh. With funds leveraged from the Ecosystems Grants Programme (EGP)/Netherlands Committee of IUCN, and funds from this case study project and other donors, the CNWG mounted the month‐long public event mainly as a platform to raise awareness on the importance and benefits of forests and NTFPs to peoples livelihood and contributions to Cambodia’s development. Likewise, it served as platform for marketing and promotions of community forest (NTFPs) products such as Mondulkiri Wild and CaNDO Craft. Simultaneous events and media activities were organized in April particularly the NTFP and natural agri‐products bazaars organized by NTFP‐EP in cooperation with CEDAC during the month in 5 business establishments patronized by expatriates and locals: expatriate‐managed Café Living Room, 2CEDAC shops and CEDAC’s Country Bird restaurant. The bazaars were conducted not only to launching Mondulkiri Wild honey but to also display and sell other NTFPs and natural agricultural products. Mondulkiri Wild honey was also sold by a local Bunong organization at a products booth in Chaktomuk Theatre grounds organized also in April by the International Labor Organization (ILO) and the Artisans Association of Cambodia (AAC). Total Mondulkiri Wild honey sales was up to $1,000 in the 3 days of the Mondulkiri Wild Launch (at the beginning of the month) and the last 3 days of April Festival at the bazaar/s in Phnom Penh. WWF, NTFP‐EP and CEDAC also collaborated and coordinated media activities in the month especially radio, TV and print coverage for Mondulkiri Wild honey, including on national TV channels, CTN and Apsara, and radio programmes of Equal Access and on 103 FM radio station.
Direct marketing and sales in Phnom Penh, and Mondulkiri and Preah Sihanouk (Sihanoukville) provinces: This included servicing the main buyer of Mondulkiri Wild Honey in 2009, Sahakreas CEDAC. In order to expand the market for Mondulkiri Wild honey, NTFP‐EP served as the contact point of MWHN in Phnom Penh. Within the case study period, linkages have been made with 3 buyers and 2 consignees, namely Free the Bears Foundation, Angkor Soap, Don Bosco Hotel School, Sarai Shop and Khmer Craft House. Additionally, beginning in August 2009, NTFP‐EP was able to establish a selling point in Phnom Penh by way of a community products bazaar set‐up every last Sunday of the month at Café Living Room, which is located in a prime area of expatriate residences and international NGO offices. Besides Mondulkiri Wild honey,
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other indigenous crafts (CaNDO Craft see below), and natural products are also sold. Likewise, within this period NTFP‐EP participated in the product fairs around the Environment Week Festival in June, and has also registered to participate in three (3) major bazaars and trade fairs in Phnom Penh in November‐December this year. Over‐all this is expected to result in a monthly sales turnover of up to 250 liters ($2000).
Production of product promotion and extension materials: Several materials have been developed, and some existing materials were improved and then printed for information about as well as promotion of Mondulkiri Wild Honey including a Mondulkiri Wild honey enterprise project brochure, Mondulkiri Wild label in Khmer (as used by CEDAC), Mondulkiri Wild flyers, Mondulkiri Wild banner, signboard and poster/flyer to show production – processing‐marketing flow of Mondulkiri Wild, and a 10 minute film. Most materials are bilingual (English and Khmer). Finally, the conceptualization and initial design of a honey harvesting and processing manual targeted for communities is underway and is expected to be published by early next year.
Mondulkiri Wild honey network relationship‐building: The Mondulkiri honey network hosted visitors from Cambodian government ministries on July 8 and 9, namely from the Cambodian Ministry of Commerce, Ministry of Agriculture, Forestry and Fisheries, and Cambodian NGO, CEDAC and French NGO, GRET. The honey groups made confident presentations of their experience in organizing themselves to set up and improve their system of honey collection to make it more sustainable. They also shared the links and efforts taken to market their honey products in Sen Monorom town all the way to Phnom Penh the capital city. The visit was held under the banner of a project initiative for the Protection of Geographical Indications (PGI) in Cambodia, which is supported by the French development agency, AFD, in partnership with the 2 government ministries and 2 NGOs. The visit, which was facilitated by NTFP‐EP, was an offshoot of the market launching of Mondulkiri Wild honey last April. The project implementers saw the potential fit of Mondulkiri Wild honey as a GI product and were keen to explore possibilities of future collaboration with the MWHN, WWF and NTFP‐EP. To be awarded the Geographical Indication (GI) status under the future GI law of Cambodia, can provide some form of protection against misuse of such products as Mondulkiri Wild honey. which, if awarded GI status, will be specifically identified as originating from Mondulkiri. Consequently, its reputation, quality and other distinct characteristics are attributable to its geographical origin. GI labeling is a form of intellectual property certification that is recognized internationally. There are only two other products that are being piloted so far for GI designation in Cambodia, Kampot pepper and Kompong Speu palm sugar.
c. Product development, production and enterprise systems improvements:
Working Capital Support to MWHN: $2,500 was allocated as working capital support to MWHN mainly to cover for procurement of honey from MWHN members (outside of the CEDAC purchase agreement), and direct costs (eg. processing, packaging, transport from village to Sen Monorom, and other overhead costs) in 2009. The funds were deposited to the bank account set up by the JMC. Disbursements were agreed on a rolling basis based
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on a monthly budget plan for business operations (eg. packaging area improvements, materials purchase, travel and allowances, marketing costs, etc.) An end of year business review and general assembly of the MWHN will be held in December where the over‐all financial status of the enterprise will be declared to the members.
Setting up of honey packaging capacity in Mondulkiri: In their business plan the honey collectors planned to package on their own around 200 litres of honey this year which they will market in Sen Monorom province and other markets tapped. For convenience and accessibility, the group decided to have the packaging area in Sen Monorom, provincial capital. They rented one space in town and made minimal improvements to the packaging center cum shop. This was rented and used for the duration of the honey season especially during the April Festival, but has since been closed since June/July to save on rental fees. The size, location and management of the shop has also not been fully agreed so the group felt it premature to try to keep the place this year. This will be reviewed at the end‐of year business review meeting.
Technical assistance in processing and packaging in Mondulkiri: NTFP‐EP and WWF provided technical and monitoring support for the processing and packaging of the full production of MWHN. An instruction guide for honey handling, processing (filtering), packaging, storage and moisture reduction has been documented and translated into Khmer for application and standard setting. The same instruction guide has been shared to CEDAC and other honey collector groups in other provinces. WWF and NTFP‐EP in particular supervised the processing and packaging of 200 liters of Mondulkiri Wild in Sen Monorom, which was directly sold and distributed to buyers outside of CEDAC. NTFP‐EP coordinated the procurement of additional or replacement of harvesting, processing and packaging materials and equipment, which will also enhance the processing and packaging facility of MWHN for the coming honey season 2010.
Testing of honey moisture reduction technique and set‐up of processing room/facility in Phnom Penh: NTFP‐EP contracted the services of a private company7 who has a facility for honey drying in Phnom Penh to test the process and level of moisture reduction with the technique of the private company. Moisture reduction would ensure quality maintenance of the wild honey and improve its shelf life. The result was a moisture reduction of anywhere between 5‐15% of 67 liters of honey that was tested but the cost was found to be expensive. Costing and quality monitoring were also done to consider whether to sub‐contract moisture reduction or for MWHN invest in this capacity themselves. Ultimately the latter was seen to be part of MWHN’s enterprise vision. However, it was found that MWHN may not be ready to incorporate moisture reduction in their production system as yet. Furthermore, the group has not decided on the location and management of their common center (for processing, packaging, marketing and information sharing) in Sen Monorom, while their commune level honey collection/consolidation centers have already been established. On the other hand, Sahakreas CEDAC have the physical space at their main CEDAC shop to set up a small processing and packaging room, and the labor to oversee the process. As an interim measure, an agreement was made between NTFP‐EP and CEDAC to set up one room for simple honey drying and packaging (following the technique of NTFP‐EP partners in Indonesia and Vietnam) for all honey supplied from the communities in the provinces linked to CNWG, starting with Mondulkiri and Koh Kong provinces. The materials and
7 The company, Mekong Rain, previously Cambodia Biologicals, Ltd., previously marketed wet season honey from Koh Kong province, but has since moved on to cashew nut processing and marketing.
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equipment were agreed to be on loan to CEDAC until MWHN is able to identify a longer‐term, if not, permanent, central location for its enterprise operations in Sen Monorom town. At such time some of the honey processing and packaging materials will be handed over to MWHN. CEDAC is anticipated to be able to make its own investment in materials/equipment within the next year or two, as a newly established social enterprise. Within this period, some of the honey drying and packaging materials and equipment have already been purchased and are being used (while some equipment is still being sourced because they are not available in Phnom Penh) to process and package the remainder of the honey supply this season. The CEDAC honey processing and packaging room is expected to be fully set up and running by December.
Enterprise reflection: A system to establish transparent and accountable operations through at least quarterly business meetings have been established within MWHN. Currently, WWF directly assists MWHN in the organizational aspects, to make sure, for example, that the meetings happen. NTFP‐EP provides technical support during the meetings as needed. The regular meetings are meant to be a forum to report and discuss the operations including a) status of members compliance to the sustainable honey harvesting guidelines; b) status of bee tree monitoring and over‐all forest situation (ie. reports on illegal forest activities); and c) status of business performance (ie. is the production and sales target being met?) and financial standing over‐all.
2. CaNDO Craft enterprise development assistance a. Business plan development: The CaNDO staff in cooperation with NTFP‐EP, facilitated the development of a production and marketing plan (with CCC as the main market) of the community based crafts enterprise (CBCE) of Poy commune. The CBCE production targets, a market scanning and CCC 2007‐2008 sales report analysis were used to inform the CCC business plan. NTFP‐EP facilitated the CaNDO staff and members of the management committee of Poy CBCE to develop a 3‐year business plan (2010‐2012) of the CaNDO Crafts Center (CCC). The market scanning showed among other things, that CCC has a competitive advantage in terms of its raw materials (natural/NTFP and organic) and producer base (indigenous artisans). Two of its weaknesses are internal [business] capacity and erratic production. However, it was recognized that CCC has a potential niche market for fairly traded handcrafted products, which also communicates strong culture and environment messages. The CCC business plan highlights these strategies:
CCC will target handicraft products developed by the indigenous people and rural artisans that are functional, of good quality and design, with competitive pricing.
CCC will establish an integrated Cando Craft Center across production, marketing, design, distribution and professional training in relevant areas.
CCC will continually build and strengthen staff capacity in enterprise management in order to operate efficiently.
CCC will support and promote the handicrafts of the indigenous and rural artisans through providing value addition skills, product development through innovative (blending traditional and functional or traditional and contemporary), natural materials and environmentally friendly techniques
CCC will strengthen and expand its sales within the existing channels and explore new channels in both domestic and international markets.
CCC will develop and market 3 product lines: Cando Traditional Craft‐ rooted in traditions that come from community and culture and represent the highest art form of original skills and techniques of
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the indigenous communities. The rage of product features is the highest quality traditional textiles and wooden weaving, jewelry and carvings providing an educational and authenticity to the range.
Cando Craft‐ using the traditional techniques and iconography developed into a modern and functional forms that are mid‐priced. Indigenous expressions and cultural meanings are accessible to consumers, ie the range of products shall be for home, personal or work uses.
Cando Contemporary‐ a contemporary high end designer range with global design collaborations in order to enter the high end international markets and establish ongoing innovation in skill and design. It will be known for high quality and traditional, natural and global design combining the indigenous and rural Cambodian artisans’ accessories/items by the modern designers into different product lines that meet the requirement of the high end customers.
CCC also aims to strengthen and develop local design and innovation capacity as well as support (culturally and environmentally) appropriately technology in order to maintain both regular demand for handcrafted products as well as to meet the producers’ income requirements while being sensitive to cultural beliefs, systems and practices.
Given the scale and nature of the enterprise, the business planning process will need to stretch beyond the case study period. The CaNDO Board gave an initial review of the CCC plan in August. One of their main comments was about realistic sales projections. CCC has only been marketing since mid‐2007. Sales income in May 2008 was USD 3,174.23, and a year after in May 2009, sales income increased by 90%. The CaNDO Board’s comment was to lower the projected sales target down to 100% in 2010 rather than the projected 300% sales, as indicated in the draft business plan. As a result and with the assistance of NTFP‐EP, CCC began marketing trials of one of the CCC product lines, CaNDO Craft, in this period. NTFP‐EP and CCC will return to the business plan projections for 2010 with some experience or lessons learned from the trial marketing activities that were supported by this case study project. b. Marketing and Promotions: NTFP‐EP provided direct marketing services to CCC during the case study period. The following were the main activities conducted.
Cando Craft at Café Living Room Bazaar during the April Festival. CaNDO Craft items were sold at the indigenous and natural products bazaar at Café Living Room in late April (as part of the 2009 April Festival). Total sales garnered were USD 166. Mondulkiri Wild honey and CaNDO Craft were the bestsellers.
Indigenous products bazaar in Ratanakiri. As part of the 2009 April Festival on Forests, People and NTFPs, an indigenous products bazaar was organized on 25 – 26 April 2009 at the CCC in Banlung, Ratanakiri province. The bazaar was modeled from the bazaar concept in
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Phnom Penh, ie to consolidate different community products into one venue. The bazaar was organized by CaNDO in cooperation with NTFP‐EP and CNWG. It was the first indigenous products bazaar held in Ratanakiri province. The bazaar aimed to: a) To promote and raise awareness about indigenous handicrafts, non‐timber forest products and agricultural products of indigenous people to local consumers; b) To create market linkages and identify market support needs for indigenous products and NTFPs; c) To provide an opportunity to expose indigenous communities and CBCEs to the market, and provide an opportunity for them to sell their products directly to consumers. There were seven product booths set up that displayed traditional rattan and bamboo baskets, cotton spinning and natural dyes, traditional wear and indigenous textile, forest food, agricultural products and medicinal plants. The bazaar was visited by more than 350 people including tourists, NGO staff, indigenous producers, and other residents of Banlung. Visitors appreciated the event, and requested to organize a bigger one next year onwards. The exhibitors earned more than USD 707 from selling their products. In addition, it was a good opportunity to educate visitors about indigenous crafts, natural
products, ecotourism and indigenous culture in Ratanakiri province.
Other direct marketing activities and market linkages made in Phnom Penh. Since the first forest food, indigenous products bazaar at Café Living Room during the April Festival, NTFP‐EP has organized or participated in subsequent product fairs/bazaars for marketing of CaNDO Craft, Mondulkiri Wild honey and other natural products and crafts such as during the Environment Week outdoor events in June, and the now regular every last Sunday of the month NTFP Sunday Bazaar at Café Living Room, which started in August. Up to 55% of product sales from these fairs/bazaars are out of CaNDO Craft, which are mainly indigenous Kreung handwoven textile (utilizing natural and synthetic dyes), scarves and table runners, and other value added products such as mobile phone cases, pencil cases, women purses, notepads, diaries, ID card holders, tissue boxes, backpacks, pillow case. etc. As of October, CaNDO Craft garnered a total sale of $820 through bazaars in Phnom Penh. During this case study period, NTFP‐EP began servicing existing and new market linkages for CCC such as NGOs for custom‐made orders such as workshop bags, natural seeds ID holders and other buyers such as Watthan Artisans of Cambodia, Orange River, Rajana, I Ching and others.
Production of product promotion and extension materials. Information and promotional materials have been either developed or are being reviewed for suggested improvements during this period. These include CaNDO craft product tags and sewn label, CCC brochure, product catalogue, and CaNDO Craft flyer. CaNDO will also be featured in a one‐page advertising space on the 3rd edition (2009‐2010) of Stay Another Day publication, which is a GTZ‐supported sustainable tourism initiative. The new edition will come out in November. Likewise, the NTFP Sunday Bazaar will also
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be featured in tandem with Café Living Room in the same publication (see photo above).
c. Product development, production and enterprise systems assessment and installation:
CCC enterprise systems assessment. A rapid enterprise assessment was conducted by the NTFP‐EP Marketing Officer in February 2009 through interviews with CaNDO staff and visit to CCC. The initial enterprise assessment covered observations and query around production system and flow, availability and type of support infrastructure, product usage and product development, marketing, management (systems and practice). At the time, a broad capacity‐building and enterprise development support plan was agreed between CaNDO and NTFP‐EP. CaNDO expected to receive additional backstopping resource from an Australian Business Volunteer (ABV) for 4 months from late March. However, due to internal issues and personal circumstances of the business volunteer, the ABV assignment was discontinued in May. Subsequently, NTFP‐EP conducted a follow up 2 day meeting with CaNDO to conduct a more comprehensive systems assessment of CCC in production marketing, finance and over‐all management. Recommendations were developed from this meeting.
Enterprise systems development and installation. Based on recommendations developed out of the systems assessment meeting between NTFP‐EP and CaNDO, both teams worked again in late July to begin the actual development of prioritized system and guidelines for quality control, inventory management, and purchasing of semi‐finished and finished products from CBCEs. Further to this, a plan was developed for other aspects not covered in the 2 days for installation/ improvement as recommended in the systems assessment.
Natural dye technique improvement. In July, CaNDO and NTFP‐EP facilitated a field visit of a Korean natural dye expert from Goel Community, an NGO based in Phnom Penh with a natural dye cotton textile livelihood project in Takeo province, to Kuy village in Poy commune to observe and learn from the traditional natural dye technique of the indigenous Kreung members of the CBCE. At the same time, the Goel team also shared their experience and process as well as some comments to CBCE team for improving the technique and quality of Kreung natural dyes (mainly the application of appropriate mordant for the dyes). One of the aims of the visit was to also identify the main colors and raw materials used for the Kreung natural dyes, and to document the dyeing process. 5 main colors were identified to be available in the area, and the traditional dyeing techniques for each: black/gray, brown, yellow, orange and red. Indigo was also found in the area. (see attachment for natural dyeing technique of Kreung people). The linkage made with Goel Community was found to be beneficial and complementary. Goel team also emphasized and supported the retention and respect for the Kreung indigenous knowledge in natural dye production, as well as attention paid to environmentally friendly techniques and materials. CaNDO and NTFP‐EP agreed to continue cooperation with Goel Community for
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capacity building of CaNDO staff and CBCE members in natural dye production. A 6‐month natural dye improvement training plan (October 2009‐April 2010) was designed which will include a one‐week learning exposure on natural dye production to Goel Community production area in Phnom Penh for seven (7) participants, followed by a one‐month intensive training course for up to three (3) Kreung weavers who are also traditionally knowledgeable about natural dyes and one (1) CaNDO staff, followed by another month of village practice (in Ratanakiri) and finally a one‐week refresher course in Phnom Penh. This is a critical process that aims to improve the quality of specific CCC natural dyed products to export standards.
CCC product costing and pricing review. An initial costing and pricing was done during the business planning process across the three (3) CCC product lines – CaNDO Traditional, CaNDO Craft and CaNDO Contemporary. CCC developed a pricing policy of including 5‐10% culture and environment premium for the CBCE. However, the CCC profit margins across product lines and market channels have not been finalized yet. A 5‐20% mark‐up is currently being considered based on CaNDO Craft market testing through the bazaars and other market linkages, conducted during this period. Price adjustments will be made at the end of the year based on results of sales of CaNDO Craft in 2009, recalculations of costings (eg. natural dye production cost, marketing overhead and the like) and further market feedback.
Product design and development. One second‐hand sewing machine and one pattern machine with sewing kits were purchased as investment for CCC. Consequently, a Phnom Penh‐based producer was sub‐contracted to undertake prototype development of up to ten (10) CaNDO Craft value‐added designs such as notebooks/diaries, business card holders, women’s shoulder bag, pillow case, pencil case, women’s wallet, etc, which were market‐tested in Phnom Penh and Siem Reap by NTFP‐EP. Additionally, workshop bags were custom‐made for two (2) clients, NTFP‐EP regional secretariat (for their regional meeting in Vietnam), and WWF, which garnered $1000 worth of sales. Other value‐added orders for more complicated designs such as backpacks, laptop bag and others were sub‐contracted to another NGO social enterprise project (for disabled men and women) called Watthan Artisans of Cambodia.
Working Capital Support to CCC. $2,500 was allocated as working capital support to CCC primarily for procurement of products (indigenous crafts and textile) direct from the CBCE members and for product development and value‐added production as above.
3. Staff and and Partner capacity building in Community based NTFP Enterprise Development a. NTFP‐EP Marketing Officer (local staff) Recruitment and Capacity Development: The NTFP Marketing officer went on an income monitoring and marketing study tour in Jakarta, Indonesia with another local Cambodian partner of NTFP‐EP. Both were oriented on Honey and Crafts marketing by Dian Niaga, a social enterprise in Jakarta, Indonesia and they also participated in an NTFP‐EP training on Enterprise Development and Impact Monitoring Reporting by NTFP‐EP enterprise development staff based in Manila, Philippines. The experiences, learnings and enterprise development tools (including honey processing techniques) are now being applied in the provision of enterprise development assistance to local CBNEs in Cambodia.
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b. Training on financial management: As part of improving the internal control systems of the honey CBNE, NTFP‐EP conducted a refresher course on financial management for 11 officers (2 females) of MWHN. All of them were trained on the foundation of accounting and practice through simple presentation slides and tools. After the training, all participants practiced according to the current honey enterprise finance situation. 6 participants were able to fill in the accounting form and only 3 participants were able to record the finance system of the group. The group agreed to install the forms and steps for their financial system. The Mondulkiri wild honey network finance system are set up as below:
a. One bank account was established at the Mondulkiri provincial branch of Acleda Bank, with 3 signatories (one representative from Krangties, one from Pu Chrey and one from WWF staff).
b. They have 3 officers in charge of different role and responsibilities for money management (one is leader who for checking and approval, one is accountant who will check all incomes and expenses of the group and record the data into the accounting system, and another one is cashier who will handle the money which withdrawal from bank then record all incomes and expenses for the cash on hand and do cash reconciliation with accounting).
c. They set up 2 simple books for recording incomes and expenses with simple of accounting form such as receipt book for buying honey from members, delivery receipts, payment and receipt voucher, etc.
d. All reports will be done by hand by themselves and NTFP‐EP staff is requested to help to computerize its annual income statement for the group.
c. Business plan training workshop: NTFP‐EP facilitated business planning sessions for
MWHN and CCC also served as capacity building and mentoring for the officers and staff. For example, CaNDO staff facilitated the CBCE (village level crafts production planning) in Ratanakiri.
d. Filtering and Packaging orientation: An orientation on filtering and packaging was
conducted in July at Cedac shop to two staff of Cedac (1 female). The right filtering, how to drop the honey into the jar without bubble and how to take out the pollen and bubbles were demonstrated. NTFP‐EP and WWF field staff continues to provide processing and packaging advice (and monitoring) at CEDAC and MWHN.
e. Impact Monitoring Orientation: Impact Monitoring Report guidelines and other forms for income monitoring were orientated to 6 CaNDO staff in Ratanakiri. After the orientation, the participants were divided into three groups to practice using their data from the CBCE. All participants were able to fill all impact forms and analyzed the data for writing the report. However, according to the capacity of the MWHN only two simple tools (1‐ Consolidated producer profiles and 2‐ Community profile) for project impact monitoring was oriented to 11 officers (2 females). All tools for the impact monitoring were oriented to 3 staffs of WWF (1 female).
f. Community based honey enterprise monitoring: NTFP‐EP and WWF team jointly developed a tool for honey enterprise monitoring and has been administered through focus group discussions among honey enterprise members, committee, non‐members, local authorities and WWF project field staff. The monitoring tool covers the following aspects: a) enterprise capacity and effectiveness; b) delivery of training and extensions; c) quality production; d) financial management effectiveness; e) marketing effectiveness; f)
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forest protection and sustainable resource management; and g) equity and benefit‐sharing. A validation workshop will be conducted in November and the final results will be provided to MWHN for their end‐of‐year business review meeting in December.
g. Financial reporting: To accompany the above, the sales and operational expenses of
MWHN are being collected to determine the financial standing of the enterprise. This will also be reported at the end‐of‐year MWHN business review.
h. Community‐based enterprise development orientation and capacity building
assessment and planning workshop: NTFP‐EP Regional Enterprise Development Coordinator facilitated an orientation of CBNE framework and cycle to NTFP‐EP and WWF local staff as a way to frame the assessment of staff capacity building needs in CBNE development. Through a workshop and consultation process, training and mentoring needs of the individual staff and teams in order to become effective CBNE facilitators. A general plan was developed to guide the organizations for future staff capacity building support. Due to conflict in schedule, CaNDO team will only undergo their CBNE orientation and capacity needs assessment and planning in December. This will be resourced and facilitated by NTFP‐EP.
V. Key Results and Findings
1‐ Mondulkiri Wild Honey Network and the CaNDO Craft Center have a business plan and is now being implemented.
2‐ Mondulkiri Wild Honey and CCC (particularly for CaNDO craft product line) secured
buying agreements or purchase orders. Working capital and marketing support were directed towards sales and distribution via different market channels and marketing activities.
3‐ Mondulkiri Wild honey Sales in this period via NTFP‐EP marketing support amounted to $14,371.28.
Mondulkiri Wild Honey Sales via NTFP‐EP by Market Channel
Market Channel Total sales in
US$ Total % sales
Bazaar & event $ 1,280.67 9% NGOs $ 182.20 1%
Wholesale buyers $ 12, 645.41 88% Retail shop/buyer $ 263.00 2%
Total $ 14, 371.28 100%
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4‐ CCC sales in this period amounted to $1,919.49
5‐ The Mondulkiri Wild Honey enterprise demonstrated specific progress in skills, capacity and efficiency (through systems and technology) in CBNE development, although continuous improvement and assistance are still needed beyond the case study period, in terms of:
a. Market. Defined market for 2009‐2011. Mondulkiri Wild is a competitive product to other locally harvested and marketed wild honey (from other provinces). Target domestic market but not closed to export market if opportunities open up within the business plan period.
b. Product. Observation of a general decline in harvestable volume but not critical decline. Factors of decline not studied whether this is related to climate changes, changes in forest habitat conditions or due to human or other factors.
c. Production System. Quality needs improvement especially in handling during collection, processing and packaging; simple drying and packaging room supported by equipments for improving honey handling and quality standards.
d. Technology. Simple technology used; Quality and efficiency in packing needs improvement. Some new simple honey processing techniques were found such as using thin nylon or cloth to take out bubble from honey, using wax paper to take out pollen so that we can improve the honey quality and can keep it for long time. Using sterilizer machine for cleaning and drying jars and bottles before packaging in jars in order to improve marketability.
e. Staffing and Skills/Roles. At the MWHN level, this is still not clearly defined. Besides the honey buyer, the MWHN leaders have generic organizational roles rather than clearly defined business/ operational roles, ie in charge of product deliveries, processing, etc. The MWHN will have to review their enterprise structure to differentiate between governance and operational roles and responsibilities.
f. Business and Financial System. A system is in place at MWHN but is still greatly reliant on external support in report preparation and financial monitoring. Currently, NTFP‐EP and WWF staff is supporting the MWHN cashier and accountant in recording and report‐writing.
Cando Craft Sales via NTFP‐EP by Market Channel
Market Channel Total sale US$ Total sale %
Bazaar and event $ 827.81 43% NGOs $ 1,091.68 57%
Grand‐Total $ 1,919.49 100%
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6‐ CCC is a complex enterprise, nonetheless, it shows much potential. It requires systematic
enterprise development assistance and professionalization to achieve its 2010‐2012 business plan. Some progress has been made during the case study period along the following parameters, however continuous improvement and assistance will be needed around the CCC business plan implementation:
a. Market. This is still loose and undefined for 2 out of 3 product lines. Domestic market positioning for CaNDO Craft as a mid‐range priced functional product and souvenir line has been initiated in this period.
b. Product. Volume for textile is reasonably stable, however, not yet for traditional crafts such as baskets and the like. CCC will need continuous improvement in quality of natural‐ dyed textile. The plan for capacity building around natural dye technique improvement into next year is anticipated to be a foundation for this. c. Production System. Quality control & criteria, inventory management system and purchasing guidelines are developed and installed, which will be fully operational by 2010. d. Technology. The focus for this year is natural dye improvements, which is mainly around
the application of mordanting technique for color and light fastness. Documentation of technique and materials for the 5 main colors (ie. black/gray, brown, yellow and orange) produced by the Kreung producers were conducted towards standardization. A partnership with Goel Community was established to support the producers’ and CaNDO staff capacity building particularly in this area.
e. Staffing and Skills/Roles. These are still not clearly defined at CBCE level, however CCC has
BUILD-UP STATUS OCT-09 START-UP
MARKET
PRODUCT
PRODUCTION SYSTEM
STAFFING & SKILLS/ ROLES
Undefined
k
Unpredictable volume
Poor quality; not able to meet production
targets
Inadequate, Undefined
Defined market ‐ domestic target (2009‐
2011)
reported a general decline in volume compared to last
season
2009 production target met; quality controls still weak
still inadequate in terms of in‐house capacity; external technical support
provided
Defined / Targeted
Stable volume
Quality improved; optimal capacity
not met
Adequate, Defined
COSTING Partial / Arbitrary
Cost plus
Full / Standardized
BUSINESS & FINANCIAL
SYSTEM
Irregular, incorrect Improved financial
system
More regular, accurate
SKILLS IN PROGRESS EFFICIENCY
TECHNOLOGY
NTFP-EP Adapted from UMFI Enterprise Devt Framework
Inefficient less inefficient but improvements still
needed
Less inefficient
Figure 2: MONDULKIRI WILD HONEY ENTERPRISE
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began to review staff skill sets needed. With assistance from NTFP‐EP, CCC staff has been mentored in business planning, income monitoring, marketing and in specific areas of enterprise systems development and monitoring (eg. purchasing and quality monitoring). A CCC marketing officer will be recruited by November and in the interim, will be working alongside NTFP‐EP Marketing Officer for capacity building. As a team, direct servicing of buyers and potential markets are expected to be stronger in the coming year.
f. Costing. A cost plus pricing strategy has been developed (ie. adding premium for community based natural resource management and cultural protection). Profit margins have not been fully determined pending market testing and re‐costing particularly of CaNDO Craft based on incorporation of costs for marketing, natural dye production and value addition.
g. Business and Financial System. Improved recording and reporting systems installed. Simple analysis, some forms and procedures are still lacking but development is underway as facilitated during the enterprise systems assessment and installation process. A simple recording system has been installed in excel sheet. Monthly sales and income reports and annual financial statements shall be prepared.
7‐ Some gains in efficiency, productivity, employment (mainly by way of direct participation in the CBNEs) and quality are a work in progress. Working towards sustainability will be critical.
GAINS IN PROGRESS TYPE
OF KEY
INTERVENTIONS Efficiency Productivity Employment Quality
BUILD-UP STATUS OCT-09 START-UP
MARKET
PRODUCT
PRODUCTION SYSTEM
STAFFING & SKILLS/ ROLES
Undefined
k
Unpredictable volume
Poor quality; not able to meet production
targets
Inadequate, Undefined
defined for CaNDO Craft; not for 2 other
product lines
stable volume for textile weaving; colors and patterns random
improved quality for
semi‐finished textile and
value‐added products
d d d f l
CCC staff still building capacity; creative partnerships
Defined / Targeted
Stable volume
Quality improved; optimal capacity
not met
Adequate, Defined
COSTING Partial / Arbitrary not yet standardized; partial costing
Full / Standardized
BUSINESS & FINANCIAL
SYSTEM
Irregular, incorrect
some installed and improved systems
More regular, accurate
SKILLS IN PROGRESS EFFICIENCY
TECHNOLOGY
NTFP-EP Adapted from UMFI Enterprise Devt Framework
Inefficient natural dyes not standardized in quality & color
Less in‐efficient
Figure 3: CaNDO CRAFT ENTERPRISE
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NTFP
Honey
‐ Use of cloth strainers or backpack size filter cans to be taken by collectors in the forest; ‐ Larger can filters/ strainers at association’s village collection point ‐ Big stainless steel filtering containers (upgraded from previous aluminum cans) of 100 liters are used to filter from 2‐3 days before flowing into jars and bottles. ‐ Using nylon or thin cloths to flow the honey from storage/big containers into filtering containers to reduce bubble formation during the filtering process. ‐ Using sterilizer machine for cleaning and drying jars and bottles before packaging ‐ Honey drying room will be set up in Cedac shop supported by simple equipment and technique.
‐ All members (79 members) applied the 1st filtering at the forest collection area which ensures quality from outset. ‐ An officer is responsible for quality inspection and procurement of honey from members; payment is provided at procurement ‐ 2nd honey filtering is administered at the village collection area. They can filter honey 20 liters in2 hours and half using big filtering containers into 20liter capacity jerry cans. ‐ Bigger filter cans are used for dual purpose – filtering as well as for
‐ More than 1600 liters of honey were processed faster in the packaging center in Sen monorom ‐ Packaging processes are improved and increased the number of honey packaged.
‐ With simple technology 2 women from 2 communes were hired to process the honey in the second step at the village collection area.
‐ Quality standards are set from collection to packaging. ‐ System for monitoring is established and agreed by MWHN. ‐ Application of such standards are vouched by MWHN technical partners ‐ These standards strengthen marketability of Mondulkiri Wild.
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moisture reduction; at least 80 liters of honey can be filtered and/or dried ‐ Big sterilizing equipment reduces time to clean and dry jars for packaging ‐ Set‐up of CEDAC drying facility reduces labor cost and overhead compared to sub‐contracting the services.
Crafts ‐ Enterprise systems assessment ‐ Business planning ‐ Natural dye technique improvement ‐ Product care improvements ‐ Enterprise system is improved through assessment and installed some systems such as quality control, inventory management, and purchasing system. ‐ 3‐year business plan of CCC will be
‐ Production of weaving and crafts group will be market defined. ‐ CCC staff will have clearly delineated roles and shall focus on production coordination and quality control and enterprise capacity building; Marketing functions will be carried by a different
‐ Number of traditional crafts and Cando Crafts products is increased. ‐ All products ordered from buyers and customers are met for product value addition. ‐ Note book, visit card book, backpack for women, workshop bag, shoe case, pillow case, pencil case, and other small shopping bags are developed as
‐ A value addition producer has been employed based in Phnom Penh for prototype development and also for sewing the simple value added products instead of sub‐contracting. ‐ A CCC marketing officer will be hired by September.
‐ Quality criteria are now developed and will be implemented ASAP. ‐ Storage and display facilities of CCC were inspected to ensure that the quality of natural dyed products are well‐maintained. ‐ Natural dyed textile were instructed to be washed before starching ; ‐ mordanting process to be developed to
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fully implemented in 2010 ‐ 6‐month training course on natural dye modern technique is ongoing. ‐ Simple equipments such as sewing machine, pattern machine, automatic scissor, and other sewing kits are used by one contracted producer to develop product prototype and sampling for Cando Craft Center.
staff. ‐ Product brand and product lines are defined and fully implement in 2010. ‐ Some product items of office and conference product line are developed as prototypes and sample. ‐ Successful testing is defined for CCC markets such as souvenir shops and other NGOs in Cambodia.
prototype and sample for CCC.
improve colorfastness of natural dyes ‐ Quality of product value addition is improved by the contracted producer in order to meet with buyer requirements.
8‐ Other results: a. MWHN formulated their policy for revenue sharing. This will be tested for implementation as an outcome of their end‐of‐year business review in December. Below is what they have agreed as stipulated in the groups’ by‐laws: Enterprise profit shall be divided accordingly:
Deposit to working capital fund: 50% Honey collectors (Members) share: 20% Resource management: 10% Operational fund (admin, etc.): 20%
Detailed expenses which will be covered by the 20 percent administration fund. Only when deemed necessary; For strengthening the capacity of the management committee; For administrative affairs; For contribution to social activities.
Detailed rules in sharing profit among members: According to his or her capital shares Active members will get up to 3 percent share from profit while non‐active members will not receive any cash share.
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b. The MWHN enterprise activities have generated social impacts such as: individual members (and the leaders) have started to exhibit greater awareness and interest to participate in forest protection activities. There has been a clear and demonstrated link made between income/livelihood to forest protection.
leaders/officers show greater confidence in speaking out and making presentations to government authorities and others because of the exposure they had gained through the project.
the project has established a basis for forging strong cooperation/relationship between the community and local authorities, eg. commune council, district authorities and more recently with the provincial government and line departments (like department of commerce and the forest cantonment)
• the honey enterprise project has also facilitated cultural revival, ie rituals/traditions for forest product collection are being remembered and shared within the community and to outsiders. Traditional beliefs and practices are finding its way into the harvesting rules/ policy, eg. no collection in spirit forests, etc.
The Mondulkiri Wild Honey Enterprise: Creating Ripple Effects in Cambodia
It was not long ago when Pich Pony impressed the participants of the NTFP National Workshop held in Phnom Penh in December 2006. This was the first gathering of NGOs, local communities and government offices to discuss the status and potentials of the NTFP enterprise here in Cambodia. Who would imagine that one day Pich Pony will lead his Bunong indigenouc community members in an enterprise project that would make a difference to their lives?
Pony has come a long way. Since then, he is now the leader of the Mondulkiri Wild Honey Network’s Joint Management Committee8. The network is currently composed of two honey groups, Prey Rodang from Pu Chrey commune, and Krung Ratuon from Krangties commune. A seasoned honey hunter, but also have learned improved harvesting, handling and processing techniques from India and Vietnam, through exchange visits and trainings facilitated by NTFP‐EP partners, Pony can now confidently stand in front of NGOs, governments’ officials and visiting community members and talk about sustainable honey harvesting.
The honey enterprise project in Mondulkiri province started with limited external support since 2007. With an initial working capital support of $4000 dollars, which was just enough to buy a first batch of filtering materials, procure 400 liters of honey from honey group members, and a simple honey label design, the group had a successful test marketing of Mondulkiri Wild. After this, Pony and the organized honey group decided to take bolder steps to operate their community based honey enterprise. .
8 This is the structure to jointly manage the honey groups from Krangties and Pu Chrey. The function of this committee includes overall management of the honey enterprise, decision making for the business, managing finances and representing the groups in business transactions.
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In their second year, 2008 with additional funding of their operation especially for promotion and marketing assistance, the group was able to increase their production target from 400 liters to 1800. They were able to buy more filter materials so that more members can use them. The new packaging equipment (scales, blower, etc) made packaging more efficient from village to province level.
Moreover, while it took them almost one year to sell the 400 liters in their first year of marketing in 2008, this year, 95% of their production was sold within the first half of the year through a purchase agreement nixed with Sahakreas CEDAC. This positive result is due to the partnership with NTFP‐EP, which also brought with it more proactive marketing assistance from NTFP‐EP. With this assistance, the project was able to expand its six (6) buyers/outlets9 through the wide distribution network of CEDAC as well as the direct marketing strategy employed by NTFP‐EP with the bazaars and product fairs participation this year. The various articles published in different national newspapers in Cambodia and media coverage also helped in popularizing the “Mondulkiri Wild Honey”, the group’s product brand name. Now the product is being sold in the mainstream market in Phnom Penh like Lucky and Pencil Supermarkets.
Aside from doubling the individual income of 87 honey collectors10 from increased buying price of their honey, the group also collectively earns income. This year their gross sales has now reached to at least $14,000. After setting aside money for emergency fund and operation cost, the net will be equitable shared among active members11.
But more than the income, the project contributed in increasing sense of pride among these villagers. It has been receiving visitors from different provinces who are interested to replicate their project. Now more honey groups have been established and selling their packaged honey products in the market.
Amy Maling, WWF Mondulkiri
VI. Lessons Learned 1. Professionalization of CBNEs and cultural and development sensitivity are not mutually
exclusive. Harmony can be achieved through mutually beneficial relationships between CBNEs and their NGO and social enterprise partners, along complementary skills, expertise and shared values.
2. CBNEs take time, dedicated resources, a solid enterprise vision and a bankable plan to build skills, efficiency and moreso profitability and sustainability.
9 Living Room, Bunong Center, CEDAC, Don Bosco, Bethany Cares, Free the Bears 10 The collectors benefit individually from increased price of honey which is used to be $2.5/L now $5.00/L 11 The group has rules and regulations in terms of benefit sharing. Only those active members will get 100% share.
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3. Community members recognize the value of their forest better when they have NTFP‐related enterprises that work. CBNEs that work create stronger sense of ownership and incentives for participation in forest protection and management.
4. The role of facilitators, be they the NGO staff or other technical partners of community based organizations, are critical to CBNE development and operationalization. These CBNE facilitators must be themselves skillful and knowledgeable about CBNE development. Staff expertise on CBNE development should be strengthened and resourced.
VII. Conclusion The fund support from FAO/ITTO for this case study project has been timely and critical, without which a clear focus on a more systematic approach to enterprise development assistance would not have been triggered. If anything, the downside of the support is mainly the duration of the support. Ten (10) months was found to be insufficient as it became clearer through the course of the case study that the enterprise development support has to be systematized to ensure cost efficiency among other things; systematization coupled with empowerment and capacity building objectives require both a balance of results and process‐oriented approaches. Consequently, this requires more time to achieve significant impacts. Nonetheless, we believe that progress has indeed been facilitated effectively.
Presently, the enterprises are still on the cusp between start‐up and build‐up stages. However, demonstrated progress has been made within the case study period, along the parameters of enterprise development particularly in markets, product quality, product system and technology, staff skills, and in enterprise systems. The following specific results were achieved: a) the development and operationalization of the Mondulkiri Wild business plan; b) the drafting of the CCC business plan for 2010‐2012; c) the market testing of CaNDO Craft product line; d) the initiation of the domestic market positioning of Mondulkiri Wild as a community branded, pure, sustainably harvested, quality wild honey; e) the installation of production and enterprise systems for CCC, and improvements in MWHN; f) the establishment of market linkages and technical partnerships particularly with Sahakreas CEDAC around quality standards, and the preparation for installation and management of a simple processing and packaging facility in Phnom Penh. In addition, NTFP‐EP local staff and partners are oriented in CBNE development and are beginning to build their capacity through coaching, training, and actual practice as service providers and community based enterprise facilitators.
Finally, NTFP EP’s intermediary role in the provision of enterprise development and marketing support to MWHN and CCC has been critical in this period. It was found that this role needs to be sufficiently resourced and well‐linked to be effective and beneficial to the CBNEs. The role of NTFP‐EP as enterprise facilitator and market intermediary remains relevant even beyond this period and will likewise be critical to other CBNEs and other partner‐members of the Cambodia NTFP Working Group (CNWG), in which NTFP‐EP currently serves as over‐all facilitator. This role is vital to the CBNEs as they continue to develop into fully functioning, efficient, profitable and sustainable enterprises. Continuing CBNE
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improvements and concrete enterprise development assistance along the parameters that remain work‐ in‐progress at this juncture, will still be needed, while remaining committed to the vision of empowered CBNEs. NTFP‐EP is committed to support the CBNEs in the succeeding years, however, it will need to secure and invest in strategic partnerships. Its future strategic partnerships will enable it to strengthen and be effective in its role in Cambodia as CBNE facilitator and market intermediary.
VIII. Attachments ‐ MWHN Business Plan ‐ CCC Business Plan (DRAFT) ‐ CCC Enterprise Systems Assessment and Plan ‐ Natural Dye Techniques of Kreung People (DRAFT) ‐ Posters, flyers and other information and promotional materials
Natural Dye techniques of Kreung People 1. Gray and Black Color from Rochhuy bark Ingredients:
Rochhuy bark 1kg Normal water 2liters Mud (black) 2kgs Cotton thread 1kg Methods/Process:
Pound Rochhuy bark Mix bark with mud Wring and dry in the sun from 1 to 2 days Cook porridge/rice soup and take to mix with dry thread
Soak thread with bark and mud in normal water
Soak it 3 days for gray color Soak it 5 days for black color Wring and dry in the sun from 1 to 2 days Again soak in normal water from 3 to 5 days Untangle/straighten the thread and then dry in the sun 1 to 2 days
2. Brown Color from Kandorl bark Ingredients:
Kan tong (Kandorl) bark 2kgs Normal water 5liters lime 20gs Alum 100grs Cotton thread 1kg Methods/Process:
Put bark, lime, alum, thread into water Boil it one (1) hour Then keep it in the pot 3 nights
Wring and dry in the sun from 1 to 2 days Cook porridge/rice soup and take to mix with dry thread
Untangle/straighten the thread and then dry in the sun 1 to 2 days Medicinal benefits:
Boil root of Kandorl tree and water to treat cough
3. Yellow Color from Romeat Ingredients:
Romeat bulb/rhizome 1kg Normal water 2liters lime 20gs Pat Preulit leave 100grs Cotton thread 1kg Methods/Process:
Crush fresh Romeat Crush fresh leave of Pat Preulit Soak thread with Romeat and Pat Preulit that already crushed and lime
Soak it for 4 days
Wring and dry in the sun from 1 to 2 days Cook porridge/rice soup and take to mix with dry thread
Untangle/straighten the thread and then dry in the sun 1 to 2 days Medicinal benefits:
Mix with other traditional medicine for treating stomach ailments
For skin care
4. Black Color from Trom leaves Ingredients:
Trom leaves 2 Kapha (...kg)
Normal water 20 liters lime 20gs Run (bemban) 5 stems Lard (pig) 50 grs Cotton thread 1kg Methods/Process:
Soak Trom leave in normal water 3 days Pour out all limpid water and keep thick water that remain in the bottom of jar
Mix lime with lard and thick water Then completely stir and squeeze it by hand (1 time = 2 hours)
Keep it 5 to 7 days Pour out the limpid water (cannot count time to pour the limpid water) and wait until they can receive the thick water remaining in the bottom of jar (1day)
Then filter the thick water to take out the all water using bamboo stem and make it as pieces
Break Run to take axis of Run Burn axis of Run to be ash and keep the ash Take ash to mix with water to make ash water
Take ash water mix with above pieces and dye the threads
Soak it for 5 days Wring and dry in the sun from 1 to 2 days Soak it again with repeat water and keep for 5 days
Wring and dry in the sun from 1 to 2 days Cook porridge/rice soup and take to mix with dry thread
Untangle/straighten the thread and then dry in the sun 1 to 2 days
Medicinal benefits: Not yet identified
5. Yellow and Orange/Red Color from Chalout bark Ingredient: Chalout bark 1 Kapha = 15kgs Normal water 2liters
Lime 10gs Slek Mlou 100grs Cotton thread 1kg
Methods/Process Boil Chalout with lime and Mlou leaves Then keep it to be cool Soak thread for 3 days if we want light red If soak thread for 5 days if we want red or dark red
Wring and dry in the sun from 1 to 2 days
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Cook porridge/rice soup and take to mix with dry thread
Untangle/straighten the thread and then dry in the sun 1 to 2 days
Medicinal benefits: Can boil it for treating stomach ailments and diarrhea