4th Quarter 2006

Philippine Fair Trade Labeling Initiative
begins with Bote Central, Inc. and SPFTC Fair Trade Audit

Preliminary Fair Trade audits that will lead to the formal Fair Trade certification of two organizations were performed last February 2007. Bote Central, Inc, a coffee manufacturing and trading company based in Indang, Cavite and Southern Partners and Fair Trade Corporation (SPFTC), a developmental organization involved in harvesting, processing, and trading fresh and dried mangoes, in Cebu, were audited vis-à-vis the standards and indicators developed by APFTI and the Philippine Fair Trade Forum (PFTF).

APFTI, with the PFTF, for the past years, have been working to establish a national fair trade label that will respond to the following concerns of the Philippine movement 1) To distinguish products produced by Fair Trade Organizations (in the domestic market) among the influx of commercially produced products.2) To make consumers aware of the Fair Trade alternative/choice when they buy their needs.3) To promote fair trade (in the greater scheme) as an alternative way of doing trade / alternative lifestyle. 4) To respond to the growing need for identity of Fair Trade Consumers and Groups.

After a series of consultations with PFTF member-organizations, government and certification bodies, APFTI commissioned the creation of a primer that defined the scope and system of a Philippine Fair Trade Certification. The process has the following characteristics: 1) The Organization is the focal point of certification, 2) Fair Trade indicators adopted to the Philippine scenario, 3) Certification system for enterprises and accreditation system for auditors, 4) Laderized approach to certification

The Standards and Indicators that were used, has converged on the following four main areas: 1) Awareness and Practice of Fair Trade, 2) Human Resource Development and Responsibility, 3) Social Accountability and Transparency, 4) Continuous improvement and Social Development.

While much has to be refined and to be improved, especially on the aspects of documentation, the audit gave way for the best practices of Bote Central, Inc. and SPFTC to surface. Bote Central Inc. for example, drastically improved the income of small mountain coffee farmers in General Santos and Batangas through their price support system that equitably raised the price of Arabica coffee beans from as low as P10 per kilo to P80 per kilo. The fair price permitted the small farmers to invest on equipment like dryers and de-pulpers. SPFTC, in Cebu, on the other hand, has been providing capacity building programs to their producers and has been transparently presenting a price sheet to their producers on their transactions.

UP-based Bicolano organizations ask students to give “Fair Share for Bicol” at UP Fair

UP Ibalon (Bicol), UP Catandungan (Catanduanes) and UP Saro (Camarines Norte), UP-based organizations of students coming from the Bicol Region, has resolved to consolidate their booth allotments at the UP Diliman University Fair, and created a 3m x 9m Fair Trade Zone, wherein products from Sorsogon, Albay, Camarines Norte, Camarines Sur and Catanduanes were sold. The booth, which ran from Febraury 12 to 17, 2007, featured a photo exhibit of the post-calamity situation in Bicol.

The booth introduced the products and the concept of Fair Trade to the UP community, and at the same time, it created awareness on the situation of Bicol producers and communities after the calamities they have encountered. With the theme, “Fair Share for Bicol: Your Responsible Purchase Can Rebuild Lives”, the selling mission gave emphasis on the idea that by choosing and buying products from responsible small producers in this calamity-stricken region, one can contribute in providing sustainable livelihood to communities, thus, hastening the rehabilitation and recovery of the region.

The activity generated a total of P 24, 986 in gross sales. The sales amount was relatively competitive for a crafts sale in a UP fair according to the student-organizers (based on their Catanduanes received the biggest share with P 7894 in total sales (see attached sales report) and Jewam’ Crochet bags registered second with P 7438.50. The handmade scrapbooks and cards from Terestian and the Mazapan de Pili Bars from Belen’s Pinahamis were the best sellers for Catanduanes.


Soccsksargen and Northern Mindanao producers attend strategic marketing training

Ten food producers based in Sarangani and South Cotabato attended the training on “Strategic Marketing in Fair Trade” held at General Santos City, last January 16-17, 2007. The two-day course introduced to the participants the basics of product marketing and positioning, which allowed them to draft an annual marketing and distribution plan for the operations of their actual enterprises. The training program, as a major component of APFTI’s Integrated Enterprise Development Program (IEDP), asserted that despite the limited resources, small producers should still give attention to crucial marketing aspects of their operations, like product promotions, competitor’s activity and channel identification.

The course was also discussed to Iligan-based producers as the final topic that completed the allotted set of trainings under the IEDP. A training on strategic marketing was held last January 22 and 23, 2006 at Iligan City. For these sessions, a group-coaching method was used. The activity combined both structured and experiential approaches in training, banking on the idea of “learning-by-doing”. The participants, at the end of the course, drafted a do-able and capability-focused marketing plan.

Northern Mindanao producers formulate productivity and quality plans

A seminar addressing the productivity and quality concerns of small producers was given to 20 crafts and food producers in Malaybalay, Bukidnon last January 25-26, 2007. The discussion tried to resolve the dilemma commonly faced by small producers---that of striking a balance between improving the production output and the quality of the products made. Constantly occurring production problems were brought up such as: time constraints, workers inefficiency, and uncontrolled operational cost. The discussion allowed the resource speakers to provide practical means to minimize these concerns.

APFTI explores other market access opportunities for Aklan, Guimaras and Iloilo producers

The Integrated Enterprise Development Program (IEDP) utilizes trade fairs as the major marketing avenue wherein outputs of APFTI’s product development program are being presented to the buying public. While participation on such fairs has generated encouraging sales results, APFTI still continuously looks for other avenues that can possibly open up more market access opportunities to its partner producers.

Last January 15-21, 2007 APFTI Marketing Supervisor Jennifer Garana went to Aklan and Iloilo to study other marketing initiatives and opportunities for partner producers within Region 6. While the idea of linking with international and local buyers outside the region could be sustained, potential avenues such as the local shops and selling activities on special events/celebrations can be determined. Together with DTI’s provincial offices, the “Pasalubong Centers” in Kalibo and Guimaras were visited. Garana also looked into the operations of Kalibo and Hugod Aklanon Shops in Boracay, as well as, brainstormed with partner producers on the APFTI’s and Hugod Aklanon’s possible involvement to the upcoming 8th Aklan Pina Fiber Festival.

Food product development for Iloilo producers

APFTI started the implementation of the food product development program to 10 new partner producers who have availed of the Integrated Enterprise Development Program. The sessions that have began this month, will run for three months and were expected to develop 3 new packaging and labeling designs for each partner producer. The food product development was also expected to improve the sensory, ingredient and nutritional characteristics of the products. The following producers underwent the program: AML Food Products (pulvoron), Atsarap Foods (pickles), Badiangan Ginger Planters and Producers Coop (ginger tea), Barotac Viejo Nutri Foods (noodles and cookies), Iloilo Federation of Dairy Cooperatives (Dairy), Jim’s Deli Pasalubong Center (cakes), PJ Delicacies (biscocho, garlic toast), Rgies Delicacies (yema, butterscotch), Pinaka-MMT Multipurpose Cooperative (banana chips), and UMA Foods (pickles salted eggs).

APFTI checks Bicol partner producers after typhoon

APFTI Executive Director Rommel Agustin with the members of APFTI’s Enterprise Development Unit visited the provinces of Albay, Sorsogon, Camarines Norte and Camarines Sur to look into the condition of the organization’s Bicol-based partner producers who were seriously affected by the typhoons Reming and Milenyo. The post calamity situation of its producers has an immediate effect to the delivery of APFTI’s basic programs and services. With the visit, measures to adjust with the current production and resource realities of the producers were drawn up. The group saw the need to constantly coordinate with the Department of Trade and Industry provincial offices (since majority of the producers were still encountering telecommunications problems) to closely address new challenges that may surface because of the situation.

Product development for Bicol producers continues

Since the product development program for partner producers in Bicol was abruptly disrupted by the series of typhoons that hit the region last year, APFTI has decided to continue the program this quarter after an assessment of the producer’s current condition was done. The visit of 10-29 Designers Juan Miguel Dionisio and Eric Legario to Sorsogon and Albay producers has targeted to deal with the limited production capacity of the producers. They also resolved to come up with prototypes that would maximize the resources available in the area.


APFTI holds design training for local artists in Antique

Tapping UP College of Fine Arts professor Leonardo Rosete, APFTI gave Fair Trade Design training to Antique-based local artists and designers last February 1 and 2, 2007 at the DTI Antique conference room. The strategy of constantly innovating new designs while adapting to local and export markets trends, has been seen as a decisive factor that will give small local enterprises an edge in a design-led product manufacturing competition. Seeing the advantage of having trained designers, APFTI saw the need to develop local talents, mostly coming from the academe, that could possibly aid in the implementation of its product development programs in particular, and in the long run, the development of Antique’s crafts manufacturing sector.


APFTI integrates gender and development to its programs and services

Members of APFTI’s board, management and staff attended a three-day standard course on Gender Sensitivity at Legenda Hotel on February 7-10, 2007. With Fair Trade Principles calling for gender equity in the conduct of operations of APFTI’s partner producers, the need to deepen the organization’s understanding on the framework of gender and development became an apparent imperative. The workshop explored ways on how to integrate the concepts of Gender and Development to APFTI’s banner programs and services and on how to include its call (of providing women and men with equal treatment and opportunities) to APFTI’s orientation, training programs and public campaigns.

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Fair Ware Designer’s Training motivates APFTI’s designers

UP Professor Leonardo Rosete gave APFTI’s pool of designers, the 10-29 Designs for Fair Trade, a one-day workshop on how they could further integrate the principles of Fair Trade to their design development projects. The session, held on February 20, 2007, discussed that product development under the Fair Trade framework, should take into consideration sustainable use of materials and should carefully deliberate on the skills and competencies of local artisans. The session also identified issues related to Fair Trade, that designers would most likely encounter during the process. The need to develop a work protocol, that is capability-focused, gender sensitive and culturally responsive, in engaging with partner producers, emerged during the discussions.

APFTI showcases P.E.A.C.E project in Agusan del Sur at PACAP exhibit

Philippine Australia Community Assistance Program (PACAP) gathered its partner institutions at a forum and an exhibit that celebrated its 20th year as a small grant facility in the Philippines. Held at the Waterfront Hotel in Davao City last Feburay 20-24, 2007, APFTI had the chance to present the goals, as well as the initial outputs of the Promotions and Enhancement of the Arts, Crafts and Environment (PEACE) in Agusan del Sur Project. PACAP has chosen to fund the initiative that was crafted by APFTI and Tao Foundation, after it has been selected at the Panibagong Paraan Project Grant Competition sponsored by the World Bank.

Through the exhibit, APFTI had the chance to showcase and to market the newly developed products of 7 artisan groups, which are mostly Manobo, Higaonon and Banwaon peoples. The PEACE project attempts to give marginalized groups in Agusan del Sur sustainable sources of livelihood through the development of their indigenous crafts and by opening new market avenues for their products.

Soccsksargen producers undergo packaging and labeling design development

Thirteen food producers from Region 12 (Soccsksargen) improved their product labels through the food packaging and labeling design component of APFTI’s Integrated Enterprise Development Program (IEDP). APFTI designer Noel Pelagio enhanced the labels of food products that range from value-added tuna products, processed meat and chicken, rice and corn coffee, wine, virgin coconut oil, jams and jellies, muscovado sugar, taro and banana chips. The labels of the following were enriched: Kimkyt’s Food, Malapatan RIC Cooperative, Sunrays Foods, KM foods, Cresing Food products, CGL Agri Business, Shalom Coconut Products, Grasel Food, Kablon Farm, South Valley Foods, Sultan Kudarat Framers and Millers, Trice Food Products, and Vmotril’s Food Products.


APFTI conducts proposal write-shop for different sectors in Caraga

Government and civil society representatives from Caraga participated in a 3-day proposal- writing workshop organized by APFTI last February 26-28, 2007, at Tagbilaran City in Bohol. Through the activity, APFTI was able to generate project concepts with partner-institutions and organizations that rightfully address the needs of small producers from the region. The activity also served as a venue wherein the proposal-writing module being developed by APFTI was functionally tested. The module could facilitate the development of relevant project concepts that local and international development institutions could possibly fund and the specialization of APFTI on SME-related matters could be tapped and utilized. The workshop tackled budding concepts such as that of: developing a packaging center, a common producer display shop, pre and post harvest facility for vegetable production, a seaweed drying facility, and value added abaca-based products.


Manobo and Higaonon peoples re-appraise their crafts’ price

A seminar on product costing and pricing was given to groups involved in the Promotions and Enhancement of the Arts, Crafts, and the Environment (PEACE) in Agusan del Sur. With indigenous peoples coming from the Manobo and Higaonon lineage as the project’s main beneficiaries, APFTI and Tao Foundation saw the need to re-evaluate the group’s product pricing considerations and instill to them the importance of giving a suitable monetary value to their work. These groups, most of the time, fall prey to abusive crafts middlemen who set thoughtlessly low prices for products made by indigenous groups. Most traders also insensitively alter cultural designs and ask indigenous peoples to imitate market-demanded crafts from Africa or India, deliberately alienating them from the final goods.


Iligan and Bukidnon producers go through product development

APFTI improved the packaging and labeling design of 9 food producers in Iligan and Bukidnon last March. These enterprises were: Faj House of Cakes, Iligan Vegetarian, Ruban’s Food Craft, Ardaiel’s Food, El Pancho Meat Products, Silver Lights Bakery, Unlad Kabayan Migrant Worker’s Association, Loulen’s Bakeshoppe, Tita Viz’s Finest Pie’s and Pastries, and NM Foods. With improved product packages and labels, APFTI aspires that small producers can expand their markets by establishing their own brand identities.

In the same way, to update the designs of crafts producers in tempo with current design trends, 8 crafts producers underwent product design development. They were: Morson’s Home Industries, Community Development Worker’s Association, Unlad Kabayan Migrant Services Foundation, BS Crafts, Cares Enterprises, Visayan Home of Furnish, RM Rattan Furniture, and finally, Matungao Women Mat Weavers.


Soccsksargen producers prepare new designs for Yamang Mindanao

Two APFTI designers were sent to Soccsksargen last March to do on-site product development for 7 crafts producers in the region. The new product prototypes were later presented at the 2nd Yamang Mindanao Island Trade Fair. The following enterprises have updated their designs: Sumariva Crafts Philippines, Inc., Banga Cornhusks Association, Libun Halung Matul, Sarangani Handicraft Industries, Royal Bamboo Crafts, T’boli Trade and Crafts, and General Santos Gardener’s Cooperative.


Soccsksargen food producers improve product quality

APFTI addressed a number of production concerns of 4 food producers specializing in dried fruits, juices and muscovado sugar production in Soccsksargen by deploying a food expert in the region last April. The following producers, prior to the engagement, brought up to APFTI various points for improvement to their processes and product quality: Vmotril, South Valley Foods, Sultan Kudarat Millers Association and Grasel Food Products

Ms. Elena Fernandez advised the enterprises about food product issues like: shelf life, GMP, ingredients, nutritional value, and sensory characteristics. Vmotril Food Products in Tupi, South Cotabato worked for the removal of latex paste in their banana chips and the establishment of methods that could maintain size and shape consistency. South Valley Foods in Banga has asked for possible variations to their durian pastilles and preservation techniques for rambutan. Sultan Kudarat Farmers and Millers Cooperative consulted Fernandez about measures that could advance their manufacturing process to the stage, wherein they could come up with a muscovado worthy of a BFAD certification. Lastly, Grasel, also in Tupi, explored with Fernandez the procedure for coming up with new product variations and improving the product’s shell-life.

APFTI explores solidarity economy through the Bayanihan network

APFTI , in partnership with the Asia Fair Trade Forum, hosted a “learning journey” meeting with the proponents of the Bayanihan Banking Window (BBW) last March 28, 2007. BBW is an alternative investment and financing scheme that links socially responsible investors with socially responsible entrepreneurs through a consolidation of a mutual fund.

A background on the solidarity economy was presented during the session. APFTI, seeing much parallelism of the initiative to the goals of Fair Trade in bringing about socio-economic and environmental responsibility to trade, shared and signified its commitment in strengthening the network.


APFTI polishes Aklan food producers’ manufacturing practices

A two-day seminar on Good Manufacturing Practices (GMP) and Standard Sanitation Operating Procedure (SSOP) was provided to 25 food producers in Aklan on March 28-30, 2007 at the Bread and Butter Hall at Kalibo. The seminar provided inputs in preparing manufacturing guidelines that reinforce the production of safe, healthy and quality food products


Seminar introduces alternative and low-cost packaging to Bicol producers

Packaging expert Froilan Dy introduced to 18 food producers based in Bicol new and alternative packaging techniques that they can utilize in marketing their products. The seminar was held on March 27-28, 2007 at Legazpi, Albay. A demo was conducted to familiarize the producers on a number of possibilities that they can explore in packaging and labeling their products. The facilitator also provided information on the sources and the cost of different packaging materials. Through this activity, APFTI was able to establish producers’ appreciation to effective packaging and labels and its contribution in making an impression to consumers.