PHILIPPINES RATTAN VALUE CHAIN STUDY - Aboutphilippines

dynamic.To improve vertical integration, the rattan gatherers and permittees need assistance on (a) accomplishing legal andtechnical requirements to ensure continuous rattan operations, (b) improving their operating and managementskills (especially in post-harvest handling of the poles), and (c) learning to negotiate better with buyers to achievebetter distribution of gains if they deliver better quality poles. Improved backward integration, such as contractselling, could also help narrow the gap between large-scale businesses and small producers. A specific effort led bythe NTFP Task Force shows promise that this strategy will improve vertical integration (see box).5.2.2.2 WAYS TO PROVIDE NEW INFORMATION, SKILLS, AND KNOW-HOW TO ENTERPRISESTable 12 summarizes some the leading ways new information, skills, and know-how are being provided torattan sector actors.Table 12: New Information, Skills and Know-HowResource institutionsNew Information, Skills,and Know-How Methodology of Services Target BeneficiariesIndustry associations(CFIP)Information exchange• Sources and uses of different rawmaterials• Standardization of measurement,quality, and other productspecifications across the industry• Brokering supplier and subcontractorservicesDevelopment and use ofmanagement informationsystemManufacturing firms andsubcontractorsNGOs (NTFP TaskForce, etc.)Capability building• Technology transfer• Managerial skills training• Business development services• Product development• MarketingTraining and consultancyCommunity producersand POsGovernment agencies(CITEM, etc.)Marketing support• Exposition missions and trade fairparticipation• Licensing and accreditationTrade fairs and exhibitsProducers andmanufacturers5.2.2.3 WAYS TO ORGANIZE ENTERPRISES TO LIMIT THE EFFECTS OF HIGH TRANSACTION COSTS,AND LACK OF CAPACITY TO ACHIEVE ECONOMIES OF SCALEProduction of rattan poles could be improved if rattan producers organized around their common permits tocut and sell rattan and implemented quality and grading programs at the start of the commodity flow.This model has been done in Agusan and has allowed producers to reduce transaction costs when they obtainedthe “one-stop shopping” checkpoint. Agusan, by federating its members, has also reduced transactioncosts for transport and warehouse services as well as in dealing with buyers on sales and the government onpermits and documentation requirements. Representatives from Agusan indicated that they still need assistanceand more direct information from end buyers to improve quality. An encouraging sign was that manufacturerspresent at the workshop were just as eager to be able to work with an organized group of collectors/permitteeslike Agusan.For the manufacturing industries, the CFIP and CFIF are administering common services and facilities, sothat each of the firms does not have to invest and spend for these. Services include technology adoptiontraining, skills improvement program, trade fairs and exhibits, and market matching or brokering and linkingsuppliers and buyers.FRAME: PHILIPPINES RATTAN VALUE CHAIN STUDY 27