Jukka Kainulainen. Start up support to forest producers organization in Amhara Region, Ethiopia

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1 Jukka Kainulainen Start up support to forest producers organization in Amhara Region, Ethiopia The IUFRO 3.08 Symposium in Kuusamo, Finland, April 3-5, 2011

2 Kyyjärvi FMA 2 Founded 1951 Operating area is Kyyjärvi rural district Forestry area ha The average size of family forest holdings is about 40 ha Wood reserve is about m3 Sustainable harvesting potential m3 512 members

3 MTK and FMAs have three projects in Mexico, Ethiopia and Vietnam Ethiopia September August 2011 Vietnam September August 2011 Mexico

4 Project objectives Ultimate goal is to contribute to poverty reduction through: establishing and strenghtening forest owners organisations training forest producers in sustainable forest management creating and improving market information system on forest products 4 creating and improving advisory services

5 5 Project model Local cooperative alliances will make the work on the ground and will have a full time forestry coordinator Finnish Forest Management Associations will make advisory services available and support the project MTK coordinates and reports Projects will be scaled-up if the results are promising The Finnish Ministry of Foreign Affairs provides funding, local cooperatives contribution is c. 5 % (Vi+Et)

6 6 Key challenges The role of forestry must be clearly defined in country s forest policy framework Land tenure and ownership rights have to be secured Forest producers must be able to govern and manage their forests according to their own values and targets Producers need free market access in order to get economic benefits Forest owners cooperation and organisation has to be created / improved Advisory services and forest management plans are key components when striving towards SFM

7 Ethiopia Finland Population 80 million 5.3 million Area 1.1 million square km 0.34 Million square km. 7 GDP 72 billion dollar (2009) billion dollar (2009) GDP/Capita 900 USD 34,150 USD Forestry contribution 2.5% 20% Forest area About 2.3% 76%

8 Feasibility Study on: Policies Strategies Legal frameworks Institutional set-ups Experience Resources availability 8

9 BoEPLAU Cooperatives (6,000) CPA BoARD 9

10 Forest extension 10

11 Market potential Bahir Dar pole marketing Depot 11

12 Resources and sustainability 12

13 Project planning 13

14 Workshop with major stakeholders 14

15 The project objective/purpose is: 15 The framework for increased financial returns from forest management and utilization to small scale farmers improved through increased capacity for service delivery among union and cooperatives as well as mechanisms for involvement in pole marketing.

16 The Programme Components are 16 1.Institutional Development of Forest Producer Organisations. 2.Increasing Forest Producer Financial Returns from Forest Management and Utilization.

17 Project Framework 17 1 year pilot project. With options for scaling up. Financing through AgriCord and Finnish Forest Producers Organisations Twinning arrangements between Forest Producers organisations in Ethiopia and Finland Zenbaba Honey Products Development and Marketing Union Kyyjärvi FMA

18 NEXT STEPS Bylaw: modificated to meet the needs of all forest products and carbon trade (coop + union) Customer oriented approach: products have to be tailored to meet the needs of the end customers Plantation management: try to grow good quality trees, which meets the standard of end products thinning, pruning, selection of stems etc Inventories: enough accurate to needs of timber and carbon business, but possible to carry out by cooperative staff 18 Harvesting methods have to improved: hauling of long trees is difficult if end products will be produced near the plantation, then transportation is easier to landing sites

19 NEXT STEPS Re-organisation of cooperatives: modification to meet needs of trade of forest products. Agunta model is good to improved and copied to others Modification of the Union: marketing system for other forest products have to be build up Training: inventories, forest management, harvesting Market information system: From Union market information of end users and from cooperatives information of sold volume and unit prices New products: charcoal, essential oils, etc 19

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