Gender, value added chains, and certification in the furniture industry

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Information about Gender, value added chains, and certification in the furniture industry

Published on October 14, 2014

Author: CIFOR



At the 2014 IUFRO World Congress, CIFOR scientists shed light on the role of women in forest value chains in the face of forest loss and a range of uncertainties generated by ever‐increasing demands for food, timber, and ecosystem services in a globalized world.

1. Gender, Value Added Chains and Certification in Furniture Industry IUFRO WORLD CONGRESS 6-11 October 2014, Salt Lake City USA Herry Purnomo, Endang Suhendang, and Bayuni Shantiko

2. I. INTRODUCTION •Green Economy:advocated after Rio+20 summit in June 2012. •‘The Future We Want’ (UN 2012) to further mainstream sustainable development •Poverty eradication •Promoting sustainable patterns of consumption and production •Protecting and managing natural resource development UNEP 2011

3. Furniture in Indonesia Annual export $1.4 billion Small and medium- sized enterprises (SMEs) account for 95% of production. Livelihoods of ≈ 5 million people in Java, depend on furniture industry and its chains

4. Furniture industry in Jepara 11,981 businesses 0.9 million m3wood processed yearly 26 % of Jepara’s economy. Annual export $110 million Women are paid less than men In many consumer’ countries, including Japan, European countries and Indonesia, women make decisions about selecting which furniture to buy.

5. Furniture business unit types in Jepara Type of business Number Independent enterprises Log pond 726 Sawmill 101 Dry kiln 20 Workshop 8080 Ironmongery 168 Warehouse 528 Showroom 1974 Subtotal 11,597 Integrated enterprises Log pond and sawmill 137 Workshop and showroom 78 Workshop and dry kiln 71 Workshop and log pond 37 Workshop and warehouse 15 Other integrated business unit 46 Subtotal 2 384 Total 11 ,981

6. Wood traders Furniture producers Furniture retailers Road network

7. The Stakeholders Correspondence Analysis of Stakeholders and their role (78%)

8. Research Question What are the effects of different scenarios including green certification for upgrading small-scale furniture producers to women? Gender is a social construct of the differences between women and men, not a matter of sex (Kabeer1999).

9. II. METHODS Participatory Action Research (PAR) On the Reflection phase we implemented Value Chain Analysis (VCA) Focus Group Discussion (FGD) Reflec-tion Plan- ning Action Moni- toring

10. a)Market-based, indicated by many customers and many suppliers b)Balanced network, indicated by supplier having various customers; commitment to solve problems through negotiation; c)Directed network, indicated by main customer takes at least 50% of output; customer defines the product and provides technical assistance; and imbalance of information d)Hierarchy, indicated by vertical integration; III. RESULT Jepara Furniture Value Chain

11. Role of women in value chains Both men and women are involved in all nodes. However, women are more concentrated in warehouses than anywhere else along the value chain. Men make more decisions and work in better paying jobs. Women are perceived to lack furniture-making skills

12. Type Most frequent score Very weak Weak Medium Strong Very strong Most frequent score Market based 0 1 0 9 0 strong Balanced network 0 0 5 5 0 medium to strong Directed network 0 0 3 6 1 strong Hierarchical 0 0 5 2 3 medium Strength of women’s roles in value chain types

13. Scenarios based planning to upgrade small-scale furniture producers 1.Moving Up •Small-scale producers move up to the higher stages in the value chain 2.Green product

14. Buyer Perspective for certified furniture Urban buyers (Wulandari et al. 2011) Conventional 41% Green23% Greener20% Greenest16% 0 5 10 15 20 25 30 35 40 1 5 10 15 20 25 Willingness to pay more (% ) Consumers (%) Putro, 2010

15. 3.Small-Scale Association (collective action) •Organize themselves locally 4.Collaborating Down •Small-scale producers collaborate with wood traders and tree growers

16. Examples of Actions --PAR Scenario Action SME association Establishment of Jepara Small- scale Producers Association (APKJ) Management training Moving up Participation in trade exhibitions in Jakarta and Jepara Internet marketing portal: Workshops e.g. CHAFTA(China- ASEAN free trade area), structure of furniture industry Training -marketing, quality control and finance Collaborating down Negotiation with farmers to plant trees Participation in tree planting Green products Chain of custody training (CoC)

17. MAIN IMPACTS Improved incomes (statistically significant) They produced certified furniture Better furniture governance: the association involved in decision making process and its implementation

18. The existing impacts of (non gender sensitive) actions in each scenario on women Scenario Favourable impact Very low Low Medium Strong Very strong Score Mode Moving up 0 1 2 6 1 strong SME association 0 1 7 2 0 medium Collaborating down 0 1 7 2 0 medium Green product 0 1 6 3 0 medium

19. Potential impacts of actions in each scenario on women’s roles Scenario Potential impact Very low Low Medium Strong Very strong Score Mode Moving up 0 0 2 6 2 Strong SME association 0 0 3 7 0 Strong Collaborating down 1 0 1 8 0 Strong Green product 1 0 3 4 1 Strong HOW TO: Actions need to be designed specifically for women

20. IV. DISCUSSION Women preferred a market- based value chain because in it they earn more money. Green certification results medium impacts, but projected stronger impact in the future Men dominate the furniture industry and people perceived this dominance as natural.

21. There is a 'social acceptance' of women as flexible workers because of their ties to the household, carrying the burden of multiple roles e.g. caring or children and preparing family meals. Jepara reflects the socially derived gender division of labour and is situated at the intersection between productive (paid) and reproductive (unpaid) work (Elson 1999).

22. V. CONCLUSION Women actively involved in value added creation in furniture industry There was no verification of women workers’ preference to be secured in value chain governance, in fact, they prefer a market-based relationship Green certification is also a way to improve value added obtained by women.

23. Publications Fauzan AU, Purnomo H. 2012. Uncovering the complexity: An essay on the benefits of the value chain approach to global crisis studies –a case study from Jepara, Indonesia. In:Suter, C. and Herkenrath, M. (eds). World Society in the Global Economic Crisis, 149–169. Lit Verlag, Munster, Germany. Purnomo H, Achdiawan R, Melati, Irawati RH, Sulthon, Shantiko B. Value-chain dynamics: strengthening the institution of small-scale furniture producers to improve their value addition. Will be published in October 2013, at Forests, Trees and Livelihoods Journal.

24. ThankYou

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