At the project sites in Xaiyaboury, it is a common practice for the teak traders to select and buy the most vigorous standing trees of the smallholders' plots. In exchange, the traders take care of harvesting, paperwork and transportation. This practice often leaves the smallholders in an advert position to negotiate with the traders, in terms of pricing and selling small logs.
Being highly aware of this situation, Flourish project, particularly the project field coordinator, screened the local traders and selected Thongsouk, a local teak trader based in Xayaboury, to target as the project private sector partner. The project aims to facilitate establishment of a partnership between Thongsouk and the target local communities at the project site. The partnership is expected to secure benefits of both parties but also to ensure teak plantation is sustainably managed. One of the key expected outcome of the partnership is trading timber as in cubic meters.
The effort has been paid off. After long lasting and tireless discussions, the project finally and successfully persuaded Thongsouk to buy timbers as in cubic meters from the local smallholders. However, we are just half way there, we are waiting responses from the local smallholders whether they accept the offered prices and quantity from Thongsouk. The project will continue facilitate dialogues between Thongsouk and the smallholders.