3rd Quarter 2007 (October to December 2007)

APFTI pursues agenda to develop domestic market for Fair Trade

On its third year of implementing the Accelerated Market Access for Community Enterprises Program (AMACE), APFTI explored initiatives related to Fair Trade producer certification and Fair Trade market development. The organization is working on a set of strategies that can ensure a gradual yet progressive entry to the market of its partner producers. For the quarter, APFTI solicited consumers’ response to Fair Trade through a Fair Trade Caravan and test ran its Fair Trade Audit and Certification System among selected partner producers.

Fair Trade Guarantee System

APFTI advocacy manager and Social Accountability auditor, Ronald Lagazo conducted the initial run of Fair Trade audits on selected APFTI partner producers in Aklan, Iloilo, and Northern Mindanao on October-November 2007.

“With the certification, producers can build a brand reputation, which is becoming increasingly vital, especially with the modern consumers’ growing preference for ecologically sound and ethically produced goods. Investors are also becoming more cautious about the ecological-social dimensions of production and trading,” said Lagazo. With proofs to back up the claim of Fair Trade compliance, he sees hope that producers could immediately differentiate themselves over other players in the market.

The successful conduct of the initial assessment demonstrates that APFTI partner producers are willing to be transparent about their operations. It also shows their preparedness to cooperate on a consultative and participatory Fair Trade alignment process.

Bringing Fair Trade closer to consumers

With a more systematized guarantee system, producers can easily communicate Fair Trade to consumers and use the advocacy as their unique selling proposition. To do that, APFTI has recognized the need to create awareness among local consumers by increasing Fair Trade product’s availability and visibility. For the quarter, APFTI market-tested the proposition to consumers through selling activities held at the Gateway Mall and at the Philippine International Convention Center (PICC).

APFTI brought the products of some of the audited partner producers at the “Higanteng Bazaar 3: Pamaskong Handog”, which ran from December 4-13, 2007, at the Gateway Mall. The booth was merchandised in a manner that it presented the Fair Trade standards and indicators alongside selected Fair Trade aligned products, allowing consumers to make an immediate association between the products and the essence of the act of choosing them. On the other hand, the International Bazaar Foundation Fair, held at the PICC on November 25, 2007, introduced the products to expatriates and nationals from at least 32 foreign embassies in the country. APFTI occupied the booth of the European Union. Instead of merely selling EU- merchandized items, the Delegation chose to sell products coming from APFTI partner-producers, to showcase the end results of the programs that they have supported. EU is a long-time funding partner of APFTI. It is instrumental in the full implementation of APFTI’s major enterprise development programs since 2002. For the period, EU specifically supported APFTI’s producer-market linkage program called the “European Market Access for Filipino Food and Crafts Producers” under their Small Project Facility.

With the consumers’ positive reaction during these selling activities, APFTI plans to bring a Fair Trade Caravan on more malls and to infuse more creative merchandising and marketing methods in conveying the message to consumers, especially highlighting the best practices of its partner-producers.

Moving Forward

AMACE Project’s three-year implementation period will be concluded this October 2008. Appraising the gains of the program, APFTI Executive Director Rommel Agustin expressed that: “The innovative strategies implemented during the course of the project have garnered commendation from its primary stakeholders, government institutions and non-profit partners. AMACE provided more than 300 community enterprises with enterprise development support, in terms of trainings, product development and trade facilitation, while it has planted the first seeds of Fair Trade awareness among consumers.”

Seeing the importance of local-level support and patronage, APFTI, in its upcoming programs, resolved to focus on the agenda of developing a market for Fair Trade products that can support and absorb products from Fair Trade adhering producers. During the organization’s project planning write shop held in Taytay, Rizal, on December 11 to 21, 2007, APFTI identified the need to make Fair Trade products and prices more competitive, while simultaneously integrating the standards of Fair Trade to the operations of its partner producers.

The organization will fast track efforts in building a solid consumer base for the products by making them available and visible to consumers. APFTI lined up activities that may lead to the establishment of specialist Fair Trade shops and will encourage more mainstream channels to carry them on their shelves. APFTI plans to access the country’s top urban centers as distribution points for the products. To do so, the plans give emphasis on the involvement of public and private sector institutions in creating an environment supportive of APFTI’s goal of market development for Fair Trade producers and products.


Bicol producers prepare for new markets

Producers from the provinces of Catanduanes and Sorsogon, in the Bicol region have pushed through with APFTI’s Integrated Enterprise Development Program (IEDP). Executive Director Rommel Agustin emphasized the strengths of Bicol producers, “In implementing the program in Bicol, APFTI has worked to optimize the region’s evident advantages: the region’s rich natural resources, traditional food preparation techniques, time-honed handicrafts skills, and the boldness of people to experiment and mix these old knowledge with new ideas.” The current food product enrollees have product lines that range from pili delicacies, corn coffee, pickled fruits and vegetables, dried fish, and peanut butter. While crafts makers, in this batch, produce baskets, bags, fashion accessories, and furniture.

Food and handicrafts producers worked with APFTI’s training, marketing and technical experts on activities that prepared them in accessing wider markets. IEDP, which started in the region last quarter, is composed of trainings, product development, and market access facilitation programs. The program aims to build the capacity of producers by giving them business and technical inputs and by aligning their practices to the standards of Fair Trade. For this year, the intervention prepared partner producers to their participation at the Orgullo kan Bikol, the region’s annual trade fair.

Product development for food processors

APFTI improved the product quality food producers by enhancing their packaging and labeling design and improving their product’s recipe and formulation. Producers of pili-based delicacy and a producer of coffee collaborated with APFTI’s packaging and labeling designer, Raphael Ramos, in improving the external appeal of their products. Ramos rendered new packaging and labeling ideas after an on-site assessment of each producer’s capacity and marketing direction has been conducted. Shalom Foundation, Uncle Frank’s Coffee, Fritz Enterprise, City Sweets and Miguelito Food Products received new label design ideas. APFTI also advised them on possible packaging alternatives.

APFTI also sought the expertise of food technologist Ressa Mendoza in perfecting the formulation of products of two producers who are priming to expand their operations. Sarilikha Food showed interest in improving the quality of their peanut sauce, a new product that they are exploring to launch next year. Fritz Enterprise on the other hand, sought advice in improving the consistency and oil content of their pili-based candies (choco pili and mazapan). Fritz Enterprise is exploring the possibility of exporting its products to US on a small scale.

Product design development for crafts

Woodworks, abaca and coco-fiber producers, in Sorsogon, explored new product design ideas in an on-site product development conducted by 10-29 designers Eric Legario and Roberto Tambalo. The project, which ran for three months, assessed and appraised the existing skills and technology of each producer. Designers Legario and Tambalo rendered 8 new designs for each manufacturer, considering their prospective markets.

Using driftwood, majority of furniture designers have shifted the focus of their production to smaller items. Upon seeing that they have existing craftsmen who are adept in carving, the designers capitalized on highlighting the detailed carvings to their designs. On the other hand, majority of the abaca-based and coco-based producers also have skillful sewers. Capitalizing on that, the designers rendered designs that fused indigenous materials with modern components like straps, and plastics.

Production planning and visual merchandising trainings

APFTI held 2 trainings for Bicol producers during the quarter. Catanduanes producers took a course on “Visual Merchandising” on November 14-15, 2007. Design consultant Heide Cardenio acted as the resource person for the session. The producers were familiarized on the importance of displaying their products in a manner that the best features of the products can be noticed. The course provided them with techniques in merchandising and space management that can aid them in getting buyer’s attention and interest during fairs and exhibits.

On the other hand, Sorsogon producers participated in a “Production Planning” workshop held on November 20-21, 2007. System consultant Maria Jovena Vendivil provided the inputs for the training. The course introduced to producers measures that they can adopt in addressing common problems encountered during production and in designing a model of an efficient production area. The training showed the value of standardizing procedures as it interrelated these adjustments with corresponding financial gains.

OK Bikol

Despite the series of typhoons that hit Bicol during the quarter, 9 food producer and crafts manufacturers still managed to arrive and to participate in this year’s Orgullo Kan Bicol (OK Bicol), held at the Megatradehall 1, SM Megamall, on October 11-14, 2007. Handicrafts producers sold furniture, bags, house ware, fashion accessories made of indigenous materials such as jute, karugmoy, raffia, sinamay, driftwood and coco fiber. Food producers carried Bicol delicacies and pili-based candies. The following producers joined the fair: Ravago’s Meat Products, Lydia’s Native Products, Sarilikha Food Products, Terestian Crafts, J-en Handicrafts, BC Abaca Trading and Handicrafts and J-Anne Licup Woodcraft. APFTI partner producers generated a total of P 1,079,070 in cash and negotiated sales.

Iligan and Bukidnon producers improve safety and quality systems, showcase products

Two successive trainings on safety and quality systems were conducted for Iligan and Bukidnon food and handicrafts producers enrolled under the IEDP.

A seminar on “Hazard Analysis Critical Control Points (HACCP)” was given to food producers on October 1-2. On the other hand, a session on “Crafts Design Development” was provided to crafts producers on October 4-5. HACCP, an internationally prescribed food safety management system, looks into ways to eliminate food contamination as it identifies safety control points at different stages of food processing. For the craft sector, the training gave the producers with means on how to be updated with the latest trends and on how to adapt to these developments in consideration of the existing designs, techniques, materials and resources that they have.

Later that month, another two-day seminar on “Good Manufacturing Practices (GMP)” was provided to food producers on October 23-24, 2007. The training provided the participants with templates in preparing a sanitation guideline for their operations. The session also oriented them on Bureau of Food and Drugs (BFAD) certification process and facilitated the preparation of documentary requirements for the issuance of BFAD License to Operate (LTO).

Caraga Producers join Buy Pinoy 2007

Caraga producers joined the 14th Buy Pinoy Exporter Fair, organized by the Philippine Exporter’s Confederation (PHILEXPORT), on November 29 to December 2, 2007, at SM Megatrade Halls 1 and 2. APFTI’s product development outputs were showcased during the fair, which included holiday and home décor, fashion accessories, furniture and home furnishings. Participating producers were: Create Food, Joy Table Sauce, Marjeck Food, De Lara Agsam Novelties, Adolf Coco Beads, RJ Wood, Top Zion and CHMAI.


Antique producers improve product labels, re-compute prices

Thirty producers (30) from the food and crafts sector of Antique have partnered with APFTI in developing their entrepreneurship as small business holders and in accessing new markets for their food and handicrafts products. In cooperation with the provincial office of the Department of Trade and Industry (DTI), APFTI began implementing its Integrated Enterprise Development Program (IEDP) in November, for 10 food producers and 12 crafts manufacturers in the province. APFTI Executive Director Rommel Agustin signified the organization’s commitment to maximize possible avenues for market access during the signing of the Memorandum of Agreement (MOA) on November 20-21, 2007.

APFTI also created partnerships with the province’s individual muscovado sugar millers. The organization opted to use an industry-focused approach in developing the province’s muscovado sugar industry. Seven (7) small sugar millers underwent the initial stage of APFTI’s In-Depth Coaching Program. After a round of consultations, APFTI Area manager Regina Gaza designed a specific program that responds to the needs of the small millers’ product quality, production efficiency and market-matching requirements.


Costing and pricing training

As the opening training course, “Effective Pricing and Costing” was provided to 30 IEDP producers from Antique, on November 28-29, 2007. The training taught methods of computing a price that can aid in enhancing the product’s market-ability without compromising the value of labor and the need to maintain a reasonable profit. At the end of the session, the producers came up with price computations for five kinds of products that they make. APFTI Training Officer Liza Zurbito observed: “The session enabled them to realize that, for a time, they have undervalued their products because of the notion that the only way to make the goods competitive in the market, is to keep prices low.”


Packaging and labeling design

Seventeen (17) Antique food producers improved their product labels in a packaging and labeling design development activity carried out by two graphic designers from APFTI. The designers visited each producer and assessed their business goals and marketing directions. The design process gave considerations to these producer-set directions, as designers added these elements to the final logo and label designs. The provinces’ food producers offer a range of traditional and new products that include bandi candies and other muscovado sugar based delicacy, vegetable-based noodles, bakery products, and processed meat and fish products.


Public and private sector initiatives recognize the value of Fair Trade

The importance and value of promoting the standards and principles of Fair Trade have steadily gained recognition among public and private sector institutions involved in SME development.

APFTI participated and exhibited Fair Trade products and advocacy materials during the OTOP Summit, held on November 28, 2007 at the Philippine Trade Training Center and at the 2007 Buy Pinoy Exporters’ Fair held on November 29 to December 2, 2007, at SM Megatrade Hall.

The OTOP Summit, organized by the Department of Trade and Industry, gathered local government executives and trade officials from different parts of the country to showcase best practices and approaches in developing the competitiveness of their OTOP products. The event also recognized best market-performing products developed during the course of the program. APFTI showcased through an exhibit, the programs it has been implementing to ensure that small community enterprises can enjoy the same opportunity to access appropriate markets. DTI awarded and recognized APFTI during the closing program.

In another event, APFTI facilitated the participation of its partner producers from Bicol and Caraga in the Buy Pinoy Exporters’ Fair. A complementing advocacy booth was set up in order to educate consumers on the development impact of supporting local producers with sound social and environmental practices. An annual event organized by the Exporters Confederation of the Philippines, the Buy Pinoy Exporters’ Fair gives local consumers the opportunity to buy export quality products. It also allows local manufacturers to position themselves in the domestic market by introducing their products to local consumers and meeting local retailers and institutional buyers.


APFTI joins PhilSEN

As a new member of the Philippine Social Enterprise Network (PhilSEN), a coalition of non-profit and business organizations working for the socio-economic development of disadvantaged sectors, APFTI shared its expertise on enterprise development in a forum establishing “Communities of Practice (COP)”. The network sees COPs as discussion avenues that focus on the unification of efforts for the development of a particular industry chain wherein a number of social enterprises are dependent at. It aims to merge knowledge and programs that address common issues and concerns that may surface upon analyzing value chains.



Communities of Practice

The forum held in Boracay from October 22-24 identified the need to create distribution channels for raw and processed products harvested and made by marginalized producers. It also discussed the role that private and non-profit business development service providers can take in helping social enterprises with their logistical requirements. APFTI signified its participation to the Essential Oil, Bamboo, and Seaweed CoPs, since a number of APFTI producers are working within the bounds of those value chains. The organization further expressed its willingness to explore partnerships pertaining to the use of appropriate technology, creation of marketing channels, and the institutionalization of linkages with other network members who are similarly supporting producers within those sub-sectors.


Bamboo value chain tour

As a member of the Bamboo CoP of the Philsen Network, APFTI participated in a study tour to Dumaguete City last December 7, 2008. The exposure activity looked into the value chain of Buglas Bamboo, Inc. (BBI), a leading bamboo-based enterprise that develops and markets products coming from small bamboo producers. The study mission visited bamboo producers’ communities and analyzed the strategies that the company has employed to organize communities and looked into the systems instituted to ensure quality and supply chain efficiency. The participants saw the sharing of experiences as an effective tool that can encourage replication of good business and social practices.

Asian Forum on Solidarity Economy:
APFTI co-hosts Asian Forum on Solidarity Economy

APFTI, together with the Asia Fair Trade Forum (AFTF) and the Christian Businessmen’s Forum (CBF), hosted the Asian Forum on Solidarity Economy. The forum gathered Socially Responsible Investors (SRIs) and Socially Responsible Enterprises (SREs) from 26 countries in a four-day conference, which ran from October 17-20, 2007 at the University of the Philippines in Diliman. The forum served as a venue for sharing information, showcasing best practices and building alliances that can lead to the creation of a solidarity economy that will be operating under the framework of social and environmental responsibility. The event was the culmination of a five-year work-group strategy initiated by Corporate Social Responsibility-Small and Medium Enterprises-Asia (CSR-SME Asia) and the Charles Leopold Mayer Foundation (FPH).

New initiatives on Corporate Social Responsibility, Fair Trade, Solidarity-Based Supply Chains, Ethical Investments and Micro-finance were discussed during the forum’s plenary and workshop groups. The session drafted outlines on how groups advancing the concept can systematically work together and complement each other’s strengths and inadequacies. A “Think Tank” was formed to consolidate the insights that surfaced during the forum and to translate them into a more precise policy and action agenda.

APFTI Advocacy Officer, Ester Gamboa and Advocacy Manager, Ronald Lagazo facilitated the sessions on “Becoming a Socially Responsible Entrepreneur” and “Making Fair Trade Work in the Philippines”.

APFTI showcases indigenous crafts in ASEAN crafts show

APFTI exhibited the indigenous crafts of artisans from Mindanao in the 25th anniversary of the ASEAN Handicraft Promotion and Development Association (AHPADA) International Expo, a 4-day show, which ran from November 22-25, 2007, at SMX Convention and Exhibition Center, SM Mall of Asia.

The exposition gathered crafts manufacturers and indigenous artisans from ASEAN member-countries to realize its goals of correlating the appreciation and awareness of cultural roots among people to the aspiration of economic progress. In its concurrent sessions, APFTI Executive Director Rommel Agustin, gave a presentation on “Production, trading, and valuation of artisans’ art under the framework of Fair Trade,” specifically highlighting the goals of the movement to provide fair valuation and fair payments to indigenous artisans, and the need to build artisan’s capacities and capabilities that can empower them in trade.


APFTI conducts Gender Responsive Planning

For the quarter, APFTI embarked on gender mainstreaming activities that aim to make the programs and services of the organization more people-focused and gender responsive.

It joined the rest of Cordaid partners in coming up with gender indicators that can be used in evaluating current programs and services, as well as in formulating indicators for the program’s stakeholders, particularly within the level of the enterprise. APFTI participated in the “Gender Mainsteaming in the Entrepreneurship Sector”, hosted by the Ahon sa Hirap Foundation, at the ASHI office from October 21-24, 2007. The session identified the need for organizations to push above the level of providing women with “welfare and access” and institute mechanisms that can guarantee women’s participation and control by embarking on gender responsive capacity building programs and by raising awareness on gender issues among their stakeholders. The presence of those mechanisms, the workshops have revealed, can translate socio-economic improvement to transformation in power relationships among genders. The group affirmed that more than a program requirement, the creation of a gender-responsive learning community among Cordaid partners can make the sharing of experiences and practices possible.

As a follow-up session to the initial Gender Sensitivity Training for its staff, the organization also “gender-diagnosed” its core documents, programs and policies and projected action plans in a Gender Responsive Planning (GRP) session held in Tagaytay from November 5 to 7, 2007. The two-day session targeted to build APFTI’s skills and knowledge in putting the GAD framework to operations, particularly, in its annual work plan and future projects. Training facilitators, Ms. Aida Santos and Ms. Len Mesina designed a hybrid program that reviewed basic GST concepts and prepared the organization in conducting gender-responsive planning.



APFTI shares experiences on enterprise development among grassroots enterprises


APFTI participated in a multi-stakeholder forum “Rural Democratization and Development Forum” organized by the Philippine Network of Rural Development Institutes, Inc. (Philnet-RDI) in Davao City, on November 27-29, 2007. The forum surfaced experiences and stories of grassroots-led organizations addressing issues of peace, rural democratization and development in Mindanao. Arnel Astillero, APFTI Program Development Manager, joined the forum and gave inputs related to the organization’s programs and strategies in developing community enterprises, particularly, in Northern Mindanao, Caraga and Soccsksargen.


APFTI joins MFIs in re-visiting social responsibility missions


APFTI Executive Director Rommel Agustin served as a resource person on Fair Trade. Interrelating it to the concept of social responsibility and social performance, he emphasized that the efforts of enterprises to integrate social responsibility to their operations have a direct and immediate positive effect to their central goals of profitability and viability. The participants affirmed the need to re-consider their policies that put efficiency above their original mission of bringing about social development. Organized by the Services Provider and Capability Enhancer, Inc. (SPACE), a non-government organization that provides capacity building programs to NGOs and POs, the “Social Responsibility and Social Performance Forum” gathered profit and non-profit organizations, majority of which are micro-finance institutions, that works for the socio-economic development of marginalized sectors through enterprise development.


APFTI reinforces awareness on Fair Trade among PUP students

The Entrepreneurship Students Society (ESS) made Fair Trade the theme of their Annual Entrepreneurship Grand Seminar, held in celebration of the College Week of the College of Business on November 23, 2007 at the Jasmin Manila Room, PUP Graduate School. APFTI provided an orientation to 250 students on the concept and principles of Fair Trade. The sharing of Ms. Vie Reyes of Bote Central, Inc. complemented the discussion. She shared among the students, the approach that they have adopted in sourcing, processing and marketing their Fair Trade coffee. The orientation serves as a regular activity that introduces the concept of Fair Trade to the organization’s expanding membership. A year ago, the organization adopted the advocacy of Fair Trade, putting it in its vision statement.