First Asian African Cooperation OVOP Seminar in Thailand 12th - 16th December 2011 at Khon Kaen University

THAILAND

KENYA : ETHIOPIA : UGANDA : MALAWI

Japan International Cooperation Agency (JICA) Regional Strategy Unit for Africa/Economy and Infrastructure

Kenya Office

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Table of Contents 1.0 Introduction………………………………………………………… 2 2.0 Objectives of the Seminar…………………………………………... 2 3.0 Overall goal………………………………………………………… 2 4.0 Expected outputs…………………………………………………… 2 5.0 Opening remarks…………………………………………………… 3 6.0 Overview of Thailand……………………………………………… 4 7.0 Concept, evolution and future of OTOP in Thailand……………… 5 Country reports 8.0 Kenya……………………………………………………………… 8 9.0 Ethiopia……………………………………………………………. 10 10.0 Malawi…………………………………………………………….. 12 11.0 Uganda……………………………………………………………. 13 Visits to OTOP groups 12.0 Prae Pan Shop in Khon Kaen City……………………………….. 15 13.0 Saiyapor Group (Jute Processing) at Tokpaen Village…………… 17 14.0 Weaving Group at Ban Suksomboon- Chumpae District………… 18 15.0 Wangtarn TAO (Sub-District Organization Administration)……. 19 16.0 Makhamkaew Group (Sweet Tamarind Processing Group)……… 20 17.0 Boonmee Khanom Jeen (Rice noodle production Group)……….. 22 18.0 Phutabberg Community Tourism Enterprise…………………….. 23 19.0 Herbal Agricultural Plots Study – Khaokho Talaypu……………. 25 20.0 Discussion on field case studies ………………………………… 27 Country based Group Discussions 21.0 Group Discussion 1 (The role of OVOP/OTOP for community

Activation and OVOP implementation in home country)………. 27 22.0 Group Discussion 2 (Analysis of current country situation

in each OVOP program)………………………………………… 27 Certificate Presentation Ceremony 23.0 Wrap up and closing session……………………………………… 29 Conclusion 24.0 Conclusion and Recommendations………………………………. 30 Annex…………………………………………………………………….. 32

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1.0 Introduction Under various Technical Cooperation agreements between the government of Japan and other governments, JICA continues to support the One Village One Product (OVOP) programme implemented under different line and relevant Ministries. Similarly there are arrangements between JICA and government agencies in a number of Africa countries that are implementing OVOP some of which include Kenya, Ethiopia, Malawi, Uganda among others. The first Asian Africa OVOP seminar held in Thailand between 12th – 16th December, 2011, was a follow up to the first African regional OVOP seminar which took place in Nairobi Kenya between 8th – 11th November, 2010. The five day seminar was organized by the faculty and staff of the Research Development Institute (RDI) of Khon Kaen University. It drew participants from the four countries in the region that are currently at various stages of implementing OVOP. These are Kenya, Uganda, Ethiopia and Malawi. The Thai OVOP known One Tamon One Product was designed by the government in 2001 as a local entrepreneurship stimulus program, which supports uniquely made products that have market appeal. Villages are encouraged select products, improve their quality have them branded as a “starred OTOP product” for local and international promotion. The first day of the seminar was hosted by the (RDI) of the Khon Kaen University under the guidance of Prof. Sinee Chuangcham, who was also in charge of facilitating the field trips to various OTOP projects. The seminar facilitation was also supported by Mr. Aizono Kenji the Regional OVOP Advisor currently based at the JICA Kenya Office. 2.0 Objectives of the seminar The seminar aimed at providing participants with the opportunity to learn from Thai’s experience of the philosophy and implementation subsystem of the OVOP scheme through lecturers, discussions and study tours. This would enable the participants to design and implement activities in line with the philosophy of the OVOP movement in their own countries. 3.0 Overall Goal Community capacity development utilizing the concept of OVOP will be promoted in the participants countries. 4.0 Expected outputs To understand general information of OTOP To understand outreach support systems in OTOP To understand business support systems in OTOP To understand experiences from successful projects on OVOP in selected countries

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Day I - 12th December, 2011 5.0 Session 1: Opening Ceremony Prof. (Dr) Suthipun Jitpimolmard – Vice

President of KKU for Research Affairs. The official opening of the seminar was presided over by the Vice President of Khon Kaen University who started by extending his warm welcome to all participants in Thailand. He noted the great enthusiasm in the participants towards support of the OVOP programme in their respective countries. He thanked the Research Development Institute (RDI) of the University for adequate preparations made towards the seminar. He noted that KKU which is 48 years old is well experienced in matters of research. It has over 30,000 students and over 10,000 post graduate students in various disciplines. He noted that being in charge of research and technological transfer and academic services, the University has 25 centers of excellence and over 30 research groups in different parts of the country. In the spirit of sharing of experiences and knowledge, RDI has been supporting Thailand One Tambon One Product (OTOP) programme over the last 10 years. They have developed a training curriculum for OTOP in important courses such as entrepreneurship and Small Medium Enterprise (SME) management. OTOP is a government policy with strong political support modeled along the Japanese OVOP experience. He noted that there is strong potential for African OVOP in various commodities and expansion of OVOP in additional countries. He noted the various degrees of progress in the implementation of OTOP in Thailand. It enhances local entrepreneurship in the uniquely locally made and marketable products drawing from Japanese experience of adopting into ones local social community context. He hoped that seminar participants will learn from the experts and entrepreneurs the Thai long experience in commodity development and make new products. He thanked the JICA and the RDI for organizing the seminar, wished all participants meaningful discussions and lastly declared the seminar officially open.

Prof. (Dr) Suthipun KKU Vice President giving opening remarks

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6.0 Session 2: Overview of Thailand – Dr. Chaichan Wongsaman Thailand has a size of 513,115 Square Kilometers and is basically an agricultural country that is located in the South East Asia. It has a population of 65 million people with a rural population of 66% who are basically farmers. Political administration – The country has 77 Provinces (Changwat), 926 Districts (Aphur), 7,409 Sub Districts (Tambons), 74,427 Villages Moo Ban Age structure: Between 0-14 years (19.9%), 15-64 (70.9%), 65 years and over (9.2%) with a youthful population but gradually moving towards an ageing population. They have high literacy levels ie 92.6% and the main ethnic groups are: Thai (75%), Chinese (14%) and others 11%. The total life expectancy is 73.6 years with male 71.2 and female 76.1 years Main exports: Computers and accessories, cars and parts, electrical appliances, para-rubber, textile and footwear, sugar , jewelry and rice. Main imports: Oil, machinery, iron and steel, chemical products, electrical appliances. Major trading partners USA, China, Japan and ASEA Countries Future opportunities The country has many opportunities in the Tourism sector since the Thai people like travelling.

Dr. Chaicharn Wongsaman giving his presentation on the overview of Thailand

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7.0 Session 3: Concept, Evolution and future Direction of OTOP Thai Khon Kaen – Pensupa Siriwasat, Community Development Department (CDD) Khan Kaen Provincial Chief

One Tambon One Product (OTOP) is a community developing policy to assist rural communities use their local knowledge and heritage to develop and market unique products and earn additional income aimed at sustainable community strength. Objectives

• Create jobs and income for local communities • Strengthen community self-reliance • Promote Thai wisdom, local raw materials and local labor • Promote human resource development • Promote community’s creativity in product development in harmony with local

culture and norm. Thai OTOP Principles

1. Local yet global- Application of local knowledge tradition and skills in production of specialty products acceptable in local and international markets.

2. Self-reliance and creativity - To promote local people to be more independent not to rely on government and external supports.

3. Self-reliance and creativity - Encourage innovative application and preservation of local knowledge, tradition and skills in product development Products with unique characters of traditionally village and Tambon specific.

4. Human resource development - Promote continuous human resource development at all level and have sufficient knowledge and skills in entrepreneurship having commitment in production of products and services with customer concerns.

OTOP products are categorized into three types Community based group - Production groups established by local producers who participate in management and produce Thai Wisdom Products. Single Entrepreneur - Outstanding producers in the community who produce Thai Wisdom Products. SME Producers - Entrepreneurs in the community who are registered as legal and produce Thai Wisdom products. Thai Wisdom Products Legal raw materials that are tax compliant, not counterfeits, not harmful to community and environment nor violate Thai culture and tradition and whose production is approved by relevant authorities. Five categories of Thai Products Food; Agricultural producers and qualified processed food products Beverages; Alcohol/alcohol free/instant Textile; woven and knitted materials from natural and synthetic and synthetic fiber dress and ornaments

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Decorative items; Wooden crafts/woven yarn from natural and synthetic fiber/ceramics/bronze ware etc Herbal products; Spa and healthcare products Management structure at national level The creation of OTOP administrative sub-committee was appointed by the committee to promote SMEs in 2007 Composition Deputy Prime Minister - Chairman Deputy Minister Ministry of Industry – Vice Chairman Deputy Minister Ministry of interior – Vice Chairman Deputy Minister Ministry of Agriculture – Vice Chairman And other 17 members Directors of SMEs – Member and Secretary Management structure at the provincial level Composition Governor of Khon Kaen – Chairman Deputy Governor – Vice Chairman And 21 sub –committee members from government agencies and private organization CDD Provincial Chief – Sub-Committee and Secretary OTOP Provincial working groups are place to carry out Marketing Affairs – Ministry of Commerce Production Affairs – Ministry of Agriculture Standardization – Ministry of Industry Management mechanism at District level Composition District Chief – Chairman Sub-committee members are from government agencies and private organizations as well as representative of civic sector CDD Chief – Member and Secretary OTOP mechanism at network level Composition Representatives of OTOP groups and entrepreneurs District level – Committee members are elected from representatives of every group Provincial level – Committee members are elected from representatives of every district Regional level – Committee members are elected from representatives of every province National level – Committee members are elected from representatives of every region. Registration process This is done on local producers who want OTOP status or groups who require to be subjected through classification and ranking process. The registration which is validated after every two years provides updated data on new entrants and those opting out. It also keeps track of other activities like diversification of products. Registration is open and

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voluntary to any producers or groups and has clear criteria to ensure transparency and no external influence especially for single entrepreneurs. Part of the criteria is strength potential of production, development product standards, knowledge in management, marketing production and development of OTOP network. The registered groups get trained on financial management as a key area for investment and marketing. Similarly they are trained in various topics such as group management etc. Way forward Develop OTOP as per development strategy of Khon Kaen Province, further development of OTOP product standards, establishment of a center for community promotion at district level, promote marketing of OTOP products with good standards and prepare marketing plan of OTOP products (Display and sell) in collaboration with related agencies. Marketing strategy of OVOP products OTOP city in Khon Kaen which takes place twice a year OTOP walking city to sell OTOP products Region OTOP fare – six times in six regions once a year OTOP city and media sale Question and answer session Q – What criteria is used in the registration of textiles? A – It is the design, texture and the finished product Q - Who are members of the Sub-District Committee? A - The CDD at the District level work with other government agencies under the

guidance of the governor at Provincial level and District Office. The CDD does most of the functions while committee members just come to screen the applications

Q - What are the leading export products? A - Textile and agricultural products Q - Is service industry also considered as OTOP? A - Yes it is. Q - Who control all the committees and who pays for them? A - There is collaboration amongst various players and there is limited government

support and is not a top down approach. For registration department the CDD at District level uses their budget allocated by the Ministry of Interior.

Q - After every registration, how many new groups join OTOP? A - Between 80% -90% of the groups are retained while the rest are new.

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Prof. Sinee Chuangcham and CDD Provincial Officer during the presentation on OTOP 8.0 Country Presentation – Kenya Overview: Kenya is basically an agricultural country and this accounts for 27.1% of the GDP while 18.8% is from industry and 54.1% is from the services sector. There are many informal sector businesses with many small SME. Implementation of OVOP started in 2008 with the technical assistance from the government of Japan. OVOP is anchored in the country’s vision 2030 and prioritized in the first Medium Term Plan (MTP) of the vision as supported by the Master Plan for Kenya Industrial Development. The general objective is to empower communities in Kenya to achieve economic growth by making use of locally available resources in order to promote OVOP approach for economic development, support value addition and use of local resources, create rural job opportunities, facilitate skills and technology, promote use of locally produced products and enhance wealth generation amongst communities. OVOP in the Kenyan context OVOP is a strategic movement designed for regional development, aiming at creating sustainable communities through community development and using local resources to create outstanding products through value addition and community spirit. One local community creates at least one marketable product with own brand.

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Governance Structures OVOP National Coordinating Committee Draws members from all the relevant government Ministries and public agencies and is the highest decision making organ which is open to coopt other members when need arises. Its responsible for overall policy guidance, implementation of OVOP, approval of work plans, resource mobilization and awareness campaigns. OVOP National Secretariat (ONS) The ONS comprises members drawn from the Ministry of Industrialization and other organizations as recommended by the National Coordinating Committee. It implements work plans, mobilizes resources, plans and executes OVOP strategy and carries out monitoring and evaluation. OVOP District Committee Basically promotes the concept at the local level, coordinates implementation, identifies resources and carries out monitoring at the level. They receive applications for submission to the national secretariat and also design and develop capacity building programmes OVOP Service Providers in Kenya Various service providers are engaged in areas such as training and awareness, value addition (design and packaging) project financing marketing and promotion. Screening and selection criteria Level of community ownership, utilization of local resources, value addition, market potential, leadership self reliance and sustainability and business plans. Phase one was implemented in a total of eleven districts between 2008 – 2011, with different stages of implementation in each district. The second phase which started in November, 2011 will cover 14 additional Districts Achievements The project has undertaken OVOP training for all the District Industrial Development Officers DIDOS, training of various committees in the pilot districts, sensitization at the Ministry headquarters, exposure to various international forums for officials. Regional exhibitions have taken place in various places, model groups identified, held community leaders training, gotten export markets for some groups. Question and Answer session Q - What are some of the challenges of implementing OVOP in Kenya? A - Ownership of OVOP at high political level remains a challenge

The potential is some regions is limited due to the arid nature Capacity building amongst the people is still low and the need to buy in support of governors under the new constitution.

Q - What is the role of the ODC? A - Introduce the concept to heads of departments and sensitize the groups

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Each ODC member carries out recruitments of the groups. A meeting is held with groups to receive proposals, evaluate needs and link hem to service providers.

Q - How are the markets for products captured? A- Starting and developing market strategies through exhibitions, creating websites

etc Q - Which support is being offered? A - Encouraging of self-reliance, mobilizing them to pool resources, and generate

their own resources. The government facilitates links with potential financiers.

Presentation by the participant from Kenya 9.0 Country Presentation – Ethiopia Background - This is one the oldest countries on the continent with a population of 75 million out of which 83% are rural based and agriculture contributes to 47% of the GDP. OVOP was introduced in 2010 after various discussions between JICA and the government through the Ministry of Agriculture. The OVOP explored the possibilities of product development through value addition of local products such as foods and handicrafts. Importance of OVOP to Ethiopia Mobilization of human and natural resources in order contribute to the economy and improve the livelihood of the rural communities of Ethiopia Progress of OVOP in Ethiopia The project implementation was started in 2010 by setting up various committees at both nation and local levels. This was followed by sensitization workshops in various Districts as a result of which pilot districts have been selected based on the following criteria; - Availability of service provides - Availability of infrastructure - Availability of unique products - Willingness of the community

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A baseline survey has been conducted followed by needs assessment as a result of which infrastructure preparation, procurement of machinery and equipment, implementation of training and support has began. Market study tours have been carried and also business management courses provided to various OVOP groups. Provision of technical support for groups has been done, processing material and equipment delivered to some group and practical training started for some groups. Information on possible sources of finances has been collected and availed to groups. Information on marketing is also available, while OVOP promotion materials have been put in place. The first round monitoring has been done by the regional steering committee. Some of the challenges include - High turn-over of JICA staff and delays in provision of support. - Weak business consultation networks and gender imbalances in the groups. - Limited understanding of OVOP by stakeholder and little commitment - Low integration among WOREDAs There is overall optimism for OVOP due to strong technical committees at all levels and the enthusiasm in the OVOP groups. There is political support and commitment at cabinet level. Future plans Business support to OVOP groups in the first round and supply of construction materials and evaluation and review of the first round has been done in order to prepare for the second round.

Presentation by the participant from Ethiopia

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10.0 Country Presentation - Malawi The OVOP was officially launched in 2003 after visit by government officials to Japan. OVOP secretariat which is currently in the Ministry of Trade and Industry, has successfully carried out implementation of the first and the second phases. Objectives of Malawi OVOP

- Promote the OVOP approach of economic development at community level - Promote value adding technologies such as agro o processing and craft making at

community level. - Facilitate product quality control and packaging - Facilitate small scale business skills developing at community level - Promote market linkages between producing communities and domestic

international markets OVOP National Board Provides policy direction for OVOP activities, oversee implementation of the Programme, approve funding and resource mobilization. Ministry of Trade and Industry Provides oversight to the secretariat, secures their budget and human resource and other support services required by the secretariat. OVOP National Secretariat Coordination and implementation of the programme, resource mobilization, technical support, evaluation market facilitation progress reports and management of public relations. OVOP District Committees Promotion of OVOP concept at local level, formulate of projects, support preparation of proposals, screen applications and support implementation of the approved projects. Being a senior member of the OVOP family in Africa, so far there are projects in 28 Challenges of the project

- Misrepresentation of the beneficiary identification by the political class - Lack of community initiative - Inadequate business planning - Huge requests falling short of business experience - Lack of necessary infrastructure for the businesses such as energy and water - Inadequate financial management skills to manage loans - Lack of certification for the products due to low quality - Inadequate marketing knowledge

Opportunities Presence of political will with good government budget support and strong interest from the community. There is support from the national policy for decentralization and availability of many local resources for development.

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Question and Answer session Q - What is the role of the private sector in Malawi A - The biggest challenge is the availability of working capital, so government offers

a letter of comfort for OVOP groups to access financial support. Q - What is the mobilization approach A - Malawi adopted an open ended approach for both existing and new groups after

the sensitization in 28 Districts. The approach is demand driven but government catalyzes demand through training.

Q - How often does the government interface with actual producers of raw materials. A - On quarterly basis as planned but not very regular. District Officers meet annually

to exchange ideas and create networking forums. Q - Is there any inter-ministerial struggle to own the OVOP process? A - There are no struggles for ownership. Initially it was in the Ministry of

Agriculture which had a narrow focus, then moved to the Ministry of Local government and currently is in the Ministry of Trade and Industry.

Presentation by the participant from Malawi 11.0 Country Presentation - Uganda Background: 70% of Uganda’s population is engaged in agriculture with main crops being maize, coffee, banana fruits and fish but with little transformation of the products due to scarcity of required capital and funds. Uganda started implementing OVOP in 2008, as an integrated community development approach to create wealth, sustainable development and transform rural communities through value addition of local resources, human resource development and marketing of the local products Expectation from Uganda OVOP

- Transform the existing natural and agro resources into value added products - Achieve at least two value added products per sub-county on the market - Improve productivity and competitiveness through human capital development

and use of better manufacturing practices

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- Attain gainful employment for the target communities Governance structure At the apex, there is the OVOP National Steering Committee which is comprised of the government, various ministries and public organizations, farmers associations and the private sector associations among others. Below that, there is an OVOP Coordination Committee comprised of representation from various Districts selected from regions. Progress of implementation During the implementation period the following has been achieved;

- Awareness creation; this has been done through seminars and training. - Business Plan Development; with support from consultants, business plans have

been developed and adopted. - Capacity building; training opportunities have been availed in business

management, quality improvement and marketing. During the first phase, there was awareness creation, selection of groups in various districts, screening and approval of proposals, technical support to selected pilot projects and implementation of the evaluation process.

Progress during the ongoing phase Resulting from lessons learned, there is focus on improved productivity and efficiency, increased awareness campaigns amongst communities, technical support to product development and links to financial institutions for support. Challenges Some of the notable challenges include

- Inadequate funding by the government to the ministry implementing OVOP ie Ministry of Tourism Trade and Industry.

- Limited level of collaboration between various government schemes and programmes

- Lack of machinery and standards for agro-processing

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Recommendations and conclusions There is need to continue heavy investment in human resource development, make the people to fully change their mindset and establish linkages with agents dealing in production, marketing and distribution.

Presentation by the participant from Uganda Question and Answers Q - What is Uganda’s experience in product certification process? A – Currently, several groups are going through the necessary requirements in order to

be certified by the Uganda National Bureau of Standards. The second phase will basically link products to the bureau of standards.

Q - What is their experience of the Thailand model? A - They intend to be sending at least 12 group representatives to Thailand yearly

from next year to learn as part of the training process. Day 2: 13th December, 2011 - Field Visits 12.0 Gift Shop Prae Pan Shop in Khon Kaen City This group is comprised of owners who weave various handicrafts in the rural areas for marketing in the Khon Kaen city where they own a retail shop. They have over thirty years of weaving experience but have been in OTOP for closer to 10 years, during which period they have used their profits to buy a shop in the city of Khon Kaen. The main objective of the business is to

- Preserve and teach others the techniques and traditional patterns of hand weaving. - Provide lasting career and steady income for the women - Encourage women participation in community affairs through weaving.

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Their goals

- Organize village groups to manage projects production and marketing, grown individually as villagers.

- Keep free from alien influences the design and techniques inherited from their ancestors.

- Preserve the environment by using natural dyes and replanting of used trees, in order to benefit their families and the society at large.

The group has 250 members drawn from 7 different villages and have a committee represented by two people from each village. Monthly committee meetings are held to plan and also address problems facing members. Main activities

- Drawing on the skills of their ancestors to produce cloth blankets, placemats, table runners, silk cloth mudmee cloth.

- Weaving age old patterns into beautiful and original cloth, pagoda, naga, elephant, horse, trees flower.

- Using the old weaving techniques and natural dyes from tree flowers, fruits backs etc.

The profits are used for charity and social security (10%), human resource development (20%) education support for members and destitute (20%), benevolence for members (10%), dividends to members (40%) Benefits from the OTOP programme They have received various training in product development and in marketing. Their products which are already certified by the relevant authorities, are currently being exported to Japan and China among other places. They rely on young generation weavers who easily understand marketing trends.

Some of the hand woven and naturally dyed products at the Prae Pan Gift Shop

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13.0 Saiyapor Group (Jute Processing) – at Tokpaen Village This is another OTOP group engaged in the weaving of sisal to make various items such jute bags, bags, mats, hats for sale. The group has been in business for 15 years growing jute as the main crop in the area due to poor soils. The production process involves soaking the jute in water and drying it in order to weave various items. The group has engaged 20 active members who weave the products in their homes to supply to the group main center. They have recruited 30 additional weavers from other villages who also contribute to the weaving since their products are certified and standardized. Non-members can also buy the raw materials and weave the items to sell back to the group. Five Star Certification - This is a five star certified group that has already won several awards under the OTOP promotions. The art is highly skilled as a result of which there is little competition. They market their products through the middlemen. The middlemen men also assist in the redesigning of their products to meet specific customer requirements. Though the demand for their products exceeds supply, they are reluctant to increase supply in order to maintain quality and standards. The group members undergo a rigorous training which eliminates those who fail to qualify. The business is very flexible and affords members time to engage in other gainful activities. Profits are shared on the strength of the shareholding while the yearly dividends are also available to members. The relevant authority ensures that the right quality is maintained and is supported by selected members. Their activities also conform to the environmental standards. Book keeping is done by members who also get additional advise from hired experts. The land being occupied by the group has been leased while the building has been constructed using their profits. They have benefitted from funding through the Community Enterprise Fund of the Ministry of Agriculture which provides interest free loans.

Tour of the sisal weaving group

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A member doing the weaving from sisal

Some of the products from sisal weaving group 14.0 Weaving group at Ban Suksomboon – Chumpae District The group leader has been trained in Japan under women leadership empowerment programme. We met members who benefit from the group’s welfare system. This group which existed long before the OTOP programme, uses natural dyeing materials from plants. They also grow silk cocoons from mulberry. 41 out of 110 households in the village are engaged in weaving, while the rest are farming cane and rice. Weaving is part of their tradition since good housewives are expected to understand weaving using indigenous knowledge. Quality standards have been developed for local products, where over 20,000 people have been trained on standards over a three year period. The products have intellectual property rights and protected. Certification is provided by the relevant department of Industrial Promotion within the Ministry of Industry. They have governance structures and regulations that guide members while policing errant members. They have a good record keeping system and do not rely on outsiders for support. They use the natural dyeing process to make various market desired colours while ensuring that the practice is environmental friendly. Such groups and community based organizations are exempt from tax by the government.

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Day 3: 14th December, 2011 15.0 Visit to Wangtarn TAO (Sub-District Organization Administration) - Role of

Local Authority in OTOP Development The visit was in order to learn about the role of the community in support of the OTOP program. Thailand has a decentralized system with resources being allocated from the central government. At the Sub District office, we met the Chief of the Sub District, staff members and departmental heads. The Council has an elected Chairman with representatives from each village, from where two representatives sit in the council sub district. This is an agricultural area that grows tamarind for both local and export markets. Tamarind is collected from farmers to a central point where it is processed and packaged for sell. This group is an example of the business that is not interested in joining OTOP, since they already have capital and marketing channels. Most groups in the area are not interested in OTOP, though their businesses are run along OTOP principles ie use of local raw materials, human resource development, and self reliance (local wisdom). They see OTOP as beneficial to beginners who are yet to get markets. The Sub District is under the Ministry of Interior and has a chief with two assistant where one is in charge of budget and administration, while the other is in charge of technical matters. There are many government officers handling sectors such as health, agriculture, infrastructure, planning etc where each head of department links with the parent Ministry. The secretary general takes care of all sectors and is appointed by the government. TAO has a council that approves development plans and budgets for projects. Additional details; Whereas the government exempts them from taxation on profits, they pay taxes on land and buildings. They have various government supported community based enterprises. The tamarind business is year long and engages people fully, offering employment to the youth. The area is rich in agri-business and tourism. The council takes care of other services such as education for kindergarten, health, environment and support for the disabled etc.

Seminar participants join the staff of the Wangtarn Sub-District Local Authority for a photo

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16.0 Makhamkaew Group (Sweet Tamarind Processing Group) The business is owned by the third generation owners who process a variety of products from Tamarind. The production process involves mixing the peeled tamarind with sugar syrup for sweetening for 10 days. After mixing and drying, the items are graded, sorted and packaged for marketing. The process provides villagers with full time employment throughout the year. Sales are based on the orders placed. Raw materials are sourced from farmers and middlemen. They have distribution outlets in main cities while the rest of it is exported.

Participants observing the drying of the raw tamarind in the sun

Sweetening of Tamarind in pots containing Sugar Syrup

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The family business member displays their products

Some of the processed tamarinds ready for sell

Some of the processed tamarinds by-products ready for sell

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17. Boonmee Khanom Jeen (Rice Noodle Production Group) - OTOP Group Single Entrepreneur

This business is an example of a Single Entrepreneur, where the owner prepares various colors of rice noodles for sale to various places. She started the business as a young girl by hawking noodles and got support to expand to start making noodles, when she got married. Over the years, she has perfected the art and is able to make big sales to customers and has also acquired a 300 capacity business premise. The special flour for making noodles is soaked in warm clean water and sieved to make various strings that are soaked in boiled water and rinsed ready for packaging. Various plants and fruits such as pumpkins are used to produce various colors. Dry noodles are also available for marketing and all have a shelf life of one year. Benefits from OTOP This business has been an OTOP member for 10 years and has received technical support in product development and improvement. The business employs 22 permanent staff but cannot meet the demand for the noodles, since they also sell other food products in the premise which serves as a restaurant. In order to stay ahead of many competitors and meet the increasing demand in the market, she continuously improves the taste and varieties of noodles and also supplements her supplies by sourcing additional noodles from the sister. She is aiming at attaining export quality since she already has five-star OTP certification.

Preparation process of the rice noodles

Dry rice noodles ready for sell

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18.0 Phutabberg Community Tourism Enterprise - Utopa Company Enterprise This is a Tourism Enterprise which is run by a group Chairperson, a Vice and treasurer who are all members of one family. The business was started by Thai Tourism Authority who later experienced management problems before asking the villagers to take over. After taking over and involving the local community, the business has been growing very fast. It is a four (4) years old registered company with officials and clear governance structures. The business attracts various tourists from all parts of Thailand, especially cities. They generate their revenue by renting tents (which include blankets and pillows) to visitors who want to camp for any number of days. The place is popular during valentine and also during engagements. Apart from camping, the other pull factor is the presence of the national park in the vicinity and the Para flyer (parachute) competitions that usually take place at the site. The area is dotted by various retail businesses who also pay rent in order to sell their wares. Collected revenue is used to meet overheads, pay dividends to members and also assist the needy in the society. Since the camping area is limited, they are unable to accommodate more tourists and therefore cannot meet the demand for space. The parking space is for 500 cars and can accommodate an average of 2,000 people per night and 10,000 during peak seasons. Dry seasons are usually peak seasons since rains make the roads impassable. During the rain season the available space is also used to cultivate cabbages for sale. Revenues are ploughed back after deducting overheads which include labor and security. There are 250 members holding a total of 3000 shares, where each share is equivalent to 100 Baht (3 US Dollars). The earnings are apportioned as follows; ploughing back (20%), community members (25%), social welfare (25%). Individual businesses in the premise collect their own revenues which they contribute to the welfare. Question and Answers Q- What are their long term plans? A - To increase tourists especially during the rain season and also construct tourist

resort. - Improve the record keeping and install support systems. The road is a government

project but residents are communist party members and not really favored in resource allocation. The local community protects the forest against logging.

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Seminar participants viewing the scenery from the Community Tourism Enterprise

Seminar participants in a group photo with the officials of the Community Tourism Enterprise

Part of the camping site at the Community Tourism Enterprise

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Day 4: 15th December, 2011 19.0 Herbal Agricultural Plots Study Khaokho Talaypu – Petchman Province

Herbal Agricultural Products This is an 80 acre scenic beauty at 3,000 feet above sea level comprising natural farming, forestry plantation, rice fields, chemical free green gardens, indigenous vegetables and herbs, free-range ducks, resorts service centre, kitchen with natural foods health and beauty products and other native materials. Balancing of body, mind and environment that offers an alternative to city dwellers who are health and environmentally conscious. This is a prove that it is possible to improve the quality of life without relying on things from other places/countries. The owner of the business in a trained attorney who opted out of practice to do business in the rural area, starting with one acre and expanding to 80 acres. Emphasis is in use of local solutions while relying on development in technology and living to benefit others, the environment and the society. The country has more natural resources than the US and UK combined. Some of the main products from the farm are;

1. Resort accommodations A one and half storey house, the lower part dug into a hillside secluded on a forested slope 2. Country lake home A one a half storey house situated on the shores of the lake 3. Rice field home A wooden house reminiscent of traditional country \dwellings and located on the margin of a rice field. 4. Piney wood home A simple compact abode situated in the tranquility of a flower garden beneath the shade of a pine grove.

The farm has a factory for making products and a retail outlet that offers hundreds of local products such as foods drinks (ready made foods, sweets, snacks, herbal and other drinks, fresh organic fruits and vegetables), cosmetic and aroma products to customers. They also carry out corporate social responsibility to support and give back to the community.

Workers in the farm laboratory Farm products on display in the farm shop

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Participants with the sole entrepreneur (seated third from R) of the Khaokho Talaypu farm 20.0 Discussion on the Field Case Studies – Lessons learned from the field trips No. Main area Way forward 1 Policy level • Mainstream OVOP in the National Development Strategy

• Get high level government commitment and consistency in the whole OVOP process

• Get strong policy direction by the relevant government Ministry

• Have strong local government structures within the decentralized system

• Have a bottom-up consultative process • Have an exit strategy out of the OVOP for those who no

longer require support. 2 Product • Strong promotion campaigns for the local products

• Use of indigenous knowledge in product development • Value addition for all products with clear value chain

support in order to get high returns • Practice diversification of products in the business

3 Leadership • Have good and commitment leadership for the groups • Have very committed and organized group members • Establishment of strong systems at local level • Emphasis on patriotism to consumption of local products

4. Systems • Good financial management systems and financial discipline

• Independent systems that have less reliance on the government

5. Marketing • Continuous sharing of knowledge on the expectation from the market

• Taking advantage of marketing opportunities and striving for customer satisfaction

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Day 5: 16th December, 2011 Country based group discussions 21: 0 Group Discussion 1: The role of OVOP/OTOP for community activation and

implementation in home country *Criteria for setting up OVOP model groups based on discussions Item Category Main Criteria 1. Systems • Emphasis on self-reliance

• Based on good leadership • Good accounting, record keeping and management

practices • Confirmation to the needs of the society

2. Products • Use of local resources in making products (organic means of production)

• Intellectual property rights for the products • Confirm to standardization and quality certification

by relevant authorities • Value addition using local knowledge and technology • Capacity to diversify to other products

3. Marketing • Products with potential for marketing in the regional and international markets

• The products should be branded for identification • Products to be market driven and meet customers

satisfaction 4. Group dynamics • Groups should be gender balanced in membership

• Group activities should be environmental friendly • Emphasis on human resource development in groups

22.0 Group Discussion 2: Analysis of current country situation in each OVOP

program. Item Level Strengths Weakness 1. Policy level • Anchoring of OVOP

in the National Medium Term Policy for Vision 2030 (K)

• Mainstreaming OVOP in the Ministry’s performance contract (K)

• Strong government policy for OVOP (E)

• Low OVOP awareness by government leadership (K.)

• Poor institutional linkages (K)

• Products characterized by low and local standards (E)

• Absence of District Level Committees (U)

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• Existence of export communities and model groups (E.)

• Strong policy in place to support OVOP (U)

• Draft SME policy in place (U)

• Strong political will for OVOP (M)

• Strong National policies for OVOP (M)

• Inadequate funding by the authorities (All)

• Delays in decision making (M)

2. Implementation level

• Strong OVOP secretariat in place (K)

• Work plans and trained DIDOs (K)

• National Technical Committee (U)

• Technical support from JICA (U)

• Full time OVOP secretariat (M)

• Committees at District level (M)

• Resource constraints (human and capital) (K)

• Systems not well established (K)

• Low technology (E) • Weak research

initiatives (E) • Limited support from

JICA (U) • Bureaucratic reporting

system (M) • Dual reporting for

District Officers (M) 3. Community

level • Strong Cooperative

movement (K) • Abundance of local

resources (K) • Strong community

commitment and development committees (E, U & M)

• Devolution of resources to the rural areas (M)

• Limited product diversification (K)

• Misunderstanding of the OVOP concept (K)

• Weak governance structures within groups (K)

• Low participation by women

• High dependency levels at community (M & E)

• High levels of illiteracy (M & E)

• Poor infrastructure (U)

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Main priorities for consideration in the role of OVOP

1. Strengthening of the OVOP implementation systems at all levels (K) 2. Improvement of OVOP awareness at all levels (K) 3. Enhancement of OVOP secretariat to deliver services (M) 4. Reactivate the services of committees in communities (M) 5. Need for OVOP committees presence at the District level (U) 6. Enhanced and strengthened collaboration with JICA (U) 7. Need to strengthen the committees at community and regional levels (E) 8. Need to address the dependence syndrome of the community (E)

Certificate Presentation Ceremony 23.0 Wrap up and closing session Remarks by the representative of the participants – Mr. Erastus Kimuri – Ministry of Industrialization Kenya He thanked the JICA Kenya Office and the Research Development Institute of Khon Kaen University for organizing the seminar. He noted the commitment of the Thai people in all they did and how they were well organized. He noted the efficient use of the local resources which had reduced the problem of rural urban migration, being one of the biggest challenges in Africa. He acknowledged use of other technologies that have resulted in food security such as harvesting of rainwater for irrigation. Remarks by the representative of JICA Kenya Office – Mr. Evans Maturu In his closing remarks he thanked the members of the faculty and staff of the Research Development Institute for the preparations and the logistical support especially during the field visits. He noted that all the objectives of the seminar have been achieved by all the participants. He expected the participants to open up exchange programs and networks that would ensure sharing of information among the growing OVOP family in Africa. He also wished all the participants a merry Christmas and happy new year. Remarks by the Vice Preseident of Khon Kaen University – Prof (Dr.) Suthipan Jitpimolmard In his closing remarks the Vice President of Khon Kaen University congratulated all the participants for successfully completing the seminar and for being awarded with certificates. While noting that the country has achieved food security, he pointed out the negative effects of this development such as obesity, high blood pressure, diabetes and cancer, amongst other effects that he has been dealing with during his medical career. He thanked all the facilitators’ for the seminar arrangements, wished all foreign participants safe journey back home and lastly declared the seminar closed.

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Conclusion 24.0 Conclusion and Recommendations Being the first Asia African Cooperation OVOP seminar, it gave participants from Africa a practical perspective of Thailand OTOP, which was useful for internalizing what they had learned in theory during the first OVOP regional seminar in Kenya in 2010. It is worthwhile noting that challenges inhibiting OVOP momentum, such as inadequate resources and capacities are common across African countries. Similarly, the level and degree of political commitment and high level awareness, which is a necessary condition for OVOP drive, seem to be varied amongst various OVOP member countries in Africa. Thailand OTOP offers some of the “tried and tested” best practices that can be domesticated and replicated by the African countries depending on the circumstances of each country. This was enriched by the both the class and practical approaches which were applied during the seminar period. The lessons learned can be applied to demystify some of the perceptions and misconceptions that have characterized the process in Africa. Lastly, it remains the desire of all the participating countries that subsequently, similar seminars be organized to give participants an opportunity to not only share experiences but also review various progress made in the implementation of the acquired knowledge.

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Participants receiving certificates for completion of the seminar from KKU Vice-President (R)

Group photo of participants with the Vice President of Khon Kaen University (seated fourth from R) after the closing ceremony of the seminar

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Annex 1: List of Seminar Participants No Name Country Email address 1 Aizono Kenji Kenya Aizono.Kenji.2@jica.go.jp 2 Kiyonori

Matsushima Kenya Kiyonori.Matsushima@gmail.com

3 Evans Maturu Kenya MaturuEvans.KY@jica.go.jp 4 Erastus Kimuri Kenya ekimuri@industrialization.go.ke 5 Lewell Njehia Kenya l_njehia@yahoo.com 6 Kigozi Jimmy Uganda Kigjim@yahoo.com/jkigozi@mtti.go.ug 7 George

Owoyesigire Uganda gowoyesigire@yahoo.com

8 Bataringaya Julius

Uganda juliusbataringaya@yahoo.com

9 Masanori Sunada

Uganda Sgt.SUNADA@gmail.com

10 Mieko Ouchi Malawi mieko.ouchi@gmail.com 11 Kamia Kaluma

Sulumba Malawi kkalumasulumba@yahoo.co.uk/OVOP@globlemw.net

12 Shadrick Foster Mangwiro

Malawi sfmangwiro@yahoo.com

13 Chikusa Seki Ethiopia chigusa.ethiopia@gmail.com 14 Fekadesilassie

Beza Ethiopia fekade93@yahoo.com

15 Germame Garuma Cheger

Ethiopia ggermame@yahoo.com

16. Alemtsehay Hailegiorgis

Ethiopia Ser.alems@yahoo.com