PROJECT TITLE:

Fair Trade Marketing and Product Development Assistance to Non-Government Organizations (NGO's), Cooperatives, Small Community and Family Enterprises.

PROJECT SITE:

          Nationwide Assistance to Producers NGOs, Grassroots           Organizations, Community Enterprises and Cooperatives

IMPLEMENTING ORGANIZATION

            PREDA FAIR TRADE PROGRAMME , PREDA FOUNDATION

TABLE OF CONTENTS

  I.PROJECT IMPLEMENTATION

  Program Assessment

Product Design, Research and Development

            a. Product Selection

b. Ordering and Production

c. Packaging and Branding Items

d. Promotional And Contacting Potential Canadian Importer

                    Product Design, Research and Develop

Trade Fairs

Producers' Visits

Promotion and Marketing of Products

Fair Trade Networking and Advocacy

Trainings/Seminars/Conferences

Organic Mango Standards

II. PRODUCERS' PROFILE

          a. Daila Herbal Community Enterprise

          b. John Bosco

          c. Reindeer Industries

III. ANNEXES

IV. PHOTO DOCUMENTATION

PREDA FAIR TRADE PROGRAM

2002 MIDYEAR REPORT

PROJECT TITLE:

Fair Trade Marketing and Product Development Assistance to Non-Government Organizations (NGO's), Cooperatives, Small Community and Family Enterprises.

PROJECT AREA AND SCOPE:

Luzon and Visayas with limited extension to some parts of Mindanao. The project provides technical assistance in the form of product development, fair trade marketing and business capability trainings to producers NGO's, grass roots organizations, community enterprises, cooperatives and family based entrepreneurs.

I. PROJECT IMPLEMENTATION

Program Assessment

At the start of the year 2002, the PREDA Fair Trade conducted its annual program evaluation.

Major accomplishments were discussed that contributed to the success of the projects  which are as follows:

–the conduct of center-based and area-based training

–producer's social development assistance such as improvement of their workshop

–product development

Recommendations were also made to further improve project implementation:

–Product Sourcing for new product line

–Improve promotion and marketing strategy

–Improvement of web page

–Research for new market/buyer

Product Design Research and Development

Product design and research was concentrated on the preparation to participate in Edmonton Festival otherwise known as the KLONDIKE DAYS EXPOSITION in Edmonton, Canada. The Preda Fair Trade was among the 26 organizations selected from the Philippines that will join the product exhibition and trade fair to showcase the products. The exhibit will start on July 15^th, 2002 until July 29^th, 2002. The activity will be held in Northland Park, Agricom Hall A, Edmonton, Alberta, Canada.

The event is considered to be a great opportunity for the PREDA Fair Trade and partner producers to expose and promote the products in Canada and possibly to enter into the mainstream North American Market.

A.  Product Selection

After series of workshops and discussions, the PREDA Fair Trade team selected the following products from producers to be displayed in the KLONDIKE EXPOSITION :

–Bamboo products from DOREVI of San Carlos City, Pangasinan

–Wrought iron  from BAMPCI of Angeles City, Pampanga

–Escoba animal stuff from LINGAYEN HANDICRAFTS of Lingayen, Pangasinan

–Wood handcrafts  from Michaels Concept of Cebu City

–Christmas decors from Reindeer Industries of RAGO of Bicol

–Capiz products of John Bosco

–Pumice products from A-D Arts and Crafts of San Marcelino, Zambales

–HERBAL soap from DAILA, Pasig City

–Dried mangoes processed in Cebu City

B.   Ordering and Production

Finally after the product selection, the final order list was made and the production started. It was necessary for the Project officer and the product designer to conduct periodic area visit to monitor the production and ensure quality control.

C.    Packaging & Branding Items

Aside from the individual items to be sold, a special gift set composed of several items of the same product line was introduced as part of the retail marketing strategy.  The packaging material as the box for the gift set is itself another product to be manufactured and sold. The special packaging material is envisioned to attract buyers and thereby buy the contents as well as part of the gift set. 

List of special gift package:

1. Christmas packages - composed of different colored Christmas ball, capiz starlet lantern,  angels and small musical instruments.

2. Angel set - composed of different  capiz angels with candle holder.

3. Bathroom set - compose of different pumice scrub and herbal soap.

For Advocacy purposes the products were specially labeled with the Guardian Angel image on it. This will carry the PREDA's advocacy campaign that every buyer is encouraged to be “DEFENDERS OF CHILDREN'S RIGHTS”. (see www.preda.org for information on the campaign with Fair Trade issues)

D.   Promotions and Direct Contact with potential Canadian Importers

Mainstream Canadian importers were reached thru the internet. They were invited to visit the exhibition booth for and possibly to transact business opportunities.

Participation in Trade Fairs

The PREDA Fair Trade assisted three (3) producer groups in participating in the  National Trade Fair in the National Capital held last March 13-17, 2002 at the SM Mega Trade Hall, Mandaluyong City, Metro Manila.  The Producers who were assisted were:

ØDOREVI - producer of bamboo crafts from Pangasinan

ØGEFA - Fashion  accessories

ØMichael's Concept soft wood novelties based in Cebu City.

The assistance provided aside from facilitating their participation to the Trade Fair included their participation fee and the design for their booth designs.

The participation of the producer groups was generally successful in terms of being exposed to the various designs they have seen during the trade fair. They were encouraged by the experience to further develop their products to compete with other similar producers. Such healthy competition among the producers is regarded as a valuable pressure for them to strive harder. Aside the valuable insights and learning, the producers also gained good sales and booked orders as follows:

1.GENUINE FASHION ACCESSORIES (GEFA) Philippines, International

Producer of Fashion accessories  based in Cebu City

          Cash Sales from spot selling           Php    116,880.40

          Booked Sales                          Php    165,270.00

          Booked Order under negotiations        Php    720,000.00

2.DOREVI INDUSTRIES

Producer of bamboo handicrafts based in San Carlos City, Pangasinan

          Cash Sales from spot selling           Php      80,000.00

          Booked Sales                          Php    185,326.00

3.MICHAEL'S CONCEPT INTERNATIONAL

Producer of Wood handicrafts

          Cash Sales from Spot selling           Php     55,000.00

          Booked Sales                          Php     40,000.00

          Booked Order under negotiations        Php     15,000.00

Producers' Visit

Visit to DAILA Herbal Community Enterprise - March 4, 2002

The Program Director, Project Officer and Promotion and Marketing Officer visited the main office of DAILA Herbal Community Enterprise and met with  the President and Chief Executive Officer, Ms. Aleli Pansacola. DAILA  Herbal Community Enterprise is a producer of natural and herbal soap (please see producer's profile).

The visit resulted to a partnership whereby the PREDA Fair Trade will assist the producer in promoting and marketing of their product. If marketing of the products gains positive result, PREDA can extend producers assistance in terms of Human Resources and Life Skills Development Training.

Another future visit was arranged to investigate the actual condition of the farmers that produce coconut oil and the production of herbal soap.

Visit to Lampshade Producer and Glors handicraft - June 13, 2002

In coordination with the Department of Trade and Industry, the project team visited two small producers  located in Olongapo City as follows:

a.  LAMPSHADE PRODUCER

They are producing geometrical shaped lampshades made up of cardboard, Mt. Pinatubo volcanic ash, wrought iron and finished with water-based paint. At the moment, the group is merely composed of five (5) members, however there is a great potential to expand because of the product uniqueness.

To start  the partnership,  PREDA will assist the group by conducting  design consultation to develop several  product lines which will be promoted later.

Also the group were given PREDA Fair Trade orientation.

B. Glors handicraft - Producer of different Philippine novelty items. PREDA found out that  Glors handicraft is a potential producer of nativity set.

Promotion and Marketing

Promotion of New Products

It's good that some products promoted as early as year 2000 is now generating orders. Even though it is not yet in the big volume, it's a good sign that these products had a chance in an export market. Below are the new products which generated orders:

Whereas it is expected that it will be difficult to receive orders for the new samples, the PREDA Fair Trade is preparing the samples for the new catalogs and the upgrading of the product website to include the new samples. A CD Catalogue is also planned for this year.

 Fair Trade Networking and Advocacy

 Zambales Mango Festival ( March 22-26, 2002)

           The Preda Fair Trade on the other hand held a campaign with the slogan “FAIR TRADING WITH MANGO FARMERS”. It is a campaign urging the traders to give fair and better price for the mango produce of the farmers.

         The Zambales Mango Festival was a bigger success that last year’s. There were more participation during the parade and the mango trade fair. It helped to raise social consciousness on the plight of the Zambales Mango Industry and the cultural heritage of Zambales.

Philippine Misereor Partnership (PMP)  Meeting - April 25, 2002

The Programme Coordinator and the Project Officer attended the Central Luzon-Philippine Misereor Partnership (PMP) meeting held on April 25, 2002 at the Diocese of Iba, Zambales.

The Meeting was facilitated by Lulu Cipriano, PMP Coordinator. The activity started with a short organizational introduction of participants followed by the discussion focused on the basis of partnership and guiding principles.

The Programme Director of PREDA was nominated to attend the forthcoming 4^th National Consultation of Misereor Partners in Tagaytay City as NGO representative of the Central Luzon Cluster.

Visit to Social Action Center of Gratia Plena (SAC-GP), Nueva Ecija -     May 3, 2002

The visit was conducted by Donard Angeles, Project Officer to facilitate the initial contact with the said group that is also a partner of Misereor in preparation for the partnership in promoting the organic/sustainable farming.

Ross Quin, Executive Vice President and Operations Manager of SAC-GP together with some community leaders were very happy to hear the partnership concept and they are very willing to support it.  A visit to the organic mango and livestock farm was then facilitated after the meeting. It was observed that the technology they are utilizing is indeed a ”Farmer Friendly Technology” which farmers can easily learn and adapt.

Meeting with Social Action Center of Gratia Plena - May 28,2002

The meeting was participated by Ross Quin and Edna  Peria of Gratia Plena and  Alex Corpus Hermoso and Donard Angeles of PREDA. Meeting was held at PREDA Center last May 28, 2002.

Both organizations being MISEREOR partners had come-up with the following partnership.

1. Short term -  PREDA will buy organic fertilizer and botanical pesticides

2.Long term - transferring of technology on organic/sustainable farming

3. Supply of organic mango for the Preda Fair Trade processing.

Coordination with the Department of Trade and Industry (DTI)

Through DTI, PREDA was able to visit new producers in Olongapo City which have potential in developing new product lines.

Facilitation of Partners' Visit

PREDA facilitated the buyers' visit to the producers as follows:

          A.  Connie Valkholf of Fair Trade  Organisatie -

                    January 9-10, 2002

          B.  Wayne Mc Gee from UK - March 8-15, 2002

          C.  Timothy des Francs of Boutic Ethic - March 15, 2002

          D.  Cooperazion Terzo Mondo volunteers - June 18-21, 2002

Trainings/Seminars /Conferences:

For the past years, there has been a tremendous increase of sale for the processed tropical fruits specially dried mangoes and juices. As a result the PREDA Fair Trade is now expanding its services by assisting mango producers (farmers, cooperatives, people's organization) to go organic.

To start with, consultation on Fair Trading and Organic Mango was conducted. The Project Coordinator together with the Project Officer attended series of seminars on Organic Agriculture and Certification.

·Consultation on Fair Trading and Organic Mango

Result:

A total of 22 participants coming from Nueva Viscaya Mango Cooperative and LAKAS Aeta group of Botolan, Zambales attended the mango organic consultation.

The participants were welcomed by Fr. Shay Cullen and challenged them to go organic as it is the demand of the market especially in Europe.

Topics discussed were: 

a. Orientation on PREDA programs and services given by  Robert Garcia, PREDA's Paralegal Officer.

b. Fair Trading and its principles by Mr. Alex Corpus Hermoso, PREDA's Programme Director.

c. Organic Mango Farming by Ross Quin of Gratia Plena, Nueva Ecija.

d. Overview on Philippine Organic Standards and Certification given by Edna Peria and Ross Quin of Gratia Plena

e. Partnership Planning

-assist  producers in market linkage

-exchange of information – organic mango

·Attended series of organic consultation and seminars

 The Programme Director – Mr. Alex Corpus Hermoso and the Project Officer, Mr. Donardo Angeles attended a series of consultation and seminars on organic farming and certification. The seminar was facilitated by the Department of Agriculture-Bureau of Agriculture and Fisheries Product Standards and Organic Certification Center of the Philippines (OCCP). Preda is a member organization of the OCCP since its 1^st National Congress.

a. Public Consultation on Standards of Organic      Agriculture                              

       Baguio City

                 May 22, 2002

          b.  2^nd National Organic Agriculture Congress

               Philippine Trade Training Center, Pasay City

               June 21, 2002

          c. Seminar on Export Requirements for Organic Products,                 Certification and Inspection

               Philippine Trade Training Center, Pasay City

               June 22, 2002

           The networking will eventually result into assistance to farmers in their production of certified organic mangoes. It is expected that with a more focused project on the production of organically grown mangoes the Preda Fair Trade will later on process organic dried mangoes and juices.

 RECOMMENDATION:

           The existing Fair Trade market for processed tropical fruits will soon demand organically grown mangoes and other tropical fruit products. Therefore at this early stage it is proposed that a new project focusing on the production and farming of organic mangoes and other tropical fruits be introduced. Preda will submit a new project proposal towards this objective.

ORGANIC MANGO STANDARDS: