Emerging Lessons on Promoting OSH best practices adoption in Agri-Value/Supply Chains

Having the opportunity to work in Myanmar has been truly a blessing, not only because is right and just to support its sustainable development, but also to be an extra hand in helping its pure and genuine people to help themselves. In this regard, it’s been already 5 years since the first project with ILO was gladly granted to us (through open bidding process always) to conduct a couple of value chain studies in the fishery sector, followed by other interventions, evaluations and implementations of agri-fishers value and supply chains development initiatives for various clients and strategic allies like ILO, MERCY CORPS, SWISSCONTACT, USAID-WINROCK, among others, and all of them have been way above worthy to be part of without a doubt. However, until now there has been a project that took my heart, brain and soul like a storm ... in the best possible way, and that happened when I had the opportunity to join the awesome Team of the Myanmar OSH Ginger Value Chain Development Project, which is an initiative funded by the Vision Zero Fund (VZF) and implemented by the International Labour Organization (ILO)-Myanmar.

To give a short intro and context, the Vision Zero Fund (VZF) was launched in 2015 as an initiative of the Group of Seven (G7) countries: United States, France, Japan, Italy, Canada, United Kingdom, Germany, and has also recently received the endorsement of the Group of Twenty (G20) countries. As stated in its purpose, the VZF is aimed at preventing work-related deaths, injuries and diseases in sectors operating in or aspiring to join global supply chains (GSCs). Main objective of VZF is to increase collective public and private action aimed at fostering and enhancing concrete occupational safety and health (OSH) prevention activities in businesses operating in low and middle-income countries.

 The International Labour Organization of the United Nations (ILO) has been selected as the administrator and implementer of VZF-ILO projects in Myanmar, Ethiopia, and Madagascar as their current pilot countries, with an initial focus of on the garment and agri-food value chains.

During the value chain selection process conducted way back in 2017, the agri-food component of the ILO-VZF project in Myanmar selected the Ginger Value Chain among 7 other commodities, to conduct its Value Chain Analysis, and based on its findings and recommendations, to design and implement sound interventions that would address key constraints and challenges during a the next two years. Right from the outset, the project took the Value Chain Development Approach that lately was combined with the Market Systems Development Approach to be the framework for its implementation, and at the same time the basis for the identification of ongoing and/or upcoming development projects that were or may be adopting these approaches as well in other to explore synergies and shared Actions.

 The underlying reason for this implementation strategy lays on the fact that adoption and uptake of OSH measures especially among smallholders and SMEs would require complementary support from mainstream players, facilitation of access to markets, development and delivery of customized and relevant support services and a more favourable and effective enabling environment. On the other hand, promotion of compliance to good workers’ wellbeing, safety and health conditions (decent work) can maximize the impact of value chain development projects while helping in improving productivity and quality along the whole chain. Furthermore more, it has been already proven that good working conditions can help enterprises of all sizes increase productivity and thus, improve the firm’s overall competitiveness.

During the conduct of the initial value chain analysis in late 2017, it became clearer that ginger was indeed one of the bread winners crops for many farmers, who mostly plant and grow ginger as their “piggy bank” to cover the expenses during the starting of their children’s schooling cycle.

Ginger is grown in Myanmar both for the domestic and export markets. Based on research conducted by the Ministry of Commerce Office in Taunggyi, annual production of ginger in Myanmar is about 59,889 MT (2017). Triangulation of this data with the FAOSTAT database showed that Myanmar is the 7th largest producer of ginger in the world and accounts for about 3% of the world production. China and India lead the world in fresh ginger production with a global share of about 49%, followed by Indonesia, Nepal and Thailand. Bangladesh produces about 77,000 MT of ginger annually and ranks 6th in world production.

Production of ginger in Myanmar is concentrated in four regions, namely: Chin, South Shan, Mandalay, and Ayeyarwady, from where South Shan accounts for about 84% of national production or a production volume of 50,535 MT and has the highest yield per acre at 6.51 MT as well. Ginger constitutes a major cash crop of many of the smallholders in South Shan State with Kalaw, Pindaya, and Pin Laug as the top producing townships, and that’s why South Shan State became the focus of the ILO-VZF project interventions.

There is potential to promote occupational safety and health in line with legal and buyers’ requirements in developed economies such as the United States and countries in Europe. However, producers and exporters need to comply with stringent standards that like in the case of Europe countries are increasingly asking for GlobalGAP Risk Assessment on Social Practices (GRASP) certification, a supplementary module of GlobalGAP which is focused  on social practices on the farm and workers’ health, safety and welfare. Buyers in developed countries such as the United States and European countries are also paying more attention to their responsibility for the social and environmental impact of their activities. The most important social issues European buyers are concerned with include: (i) child labour; (ii) health and safe working conditions; (iii) respecting labour laws; (iv) paying minimum wage; and (v) correct use of pesticides.

As in most of the global value and supply chains, there is high scope to increase productivity across all functions in the ginger industry. Integrating OSH measures to food safety and work organization initiatives across all functions in the chain have paved the way to improve performance and productivity. It would seem also that voluntary attempts by importers to promote social standards including OSH in their supply chains are likely to happen in channels where actions to improve social and OSH performance are of high relevance to securing sustainability of supply/production and meeting the requirements of the end markets. Promotion of OSH by importers and lead firms is more likely also in supply chains operating in markets where external pressures stemming from wider social, political and regulatory sources that create ‘reputational risks’ are strong, like those previously indicated.

As articulated during the Stakeholders Consultation, the Shan – Myanmar ginger industry has already started their process to be able to establish a stronger market presence in European countries, the United States, Middle East, and Canada for both fresh and processed ginger by 2020. Development directions implemented in 2018-2019 were and are focus on building a sustainable supply of organic ginger products and improving capacity of the industry to comply with food safety/quality, social, and environmental standards. An integral component of the industry’s competitiveness vision is the sustainable creation of safe and healthy workplaces by:

 (i)   Mainstreaming of OSH in core practices in ways that raise value as well as facilitate the gainful participation of the South Shan – Myanmar ginger industry in global value chains; and

 (ii)   Facilitating workers’ access to healthcare services and social protection

 The integration of OSH across all functions in the chain will not only increase longevity of workers (with majority also family members) but will also contribute to improving compliance to process and product standards. 

From interviews with different stakeholders, it appears that the industry has not yet fully established its unique selling proposition and product identity, including inherent characteristics of the common ginger varieties in Myanmar. Ginger is used as a spice in cooking and as ingredient in candies, beverages, liqueurs, ice cream, baked goods, curry powder blends, sauces, and various condiments. It is also used in herbal medicine to treat several ailments including nausea, motion sickness, migraine, dyspepsia, and to reduce flatulence and colic. 

Drawing on findings from the OSH assessment and the focal points of action identified by industry players and stakeholders, the following were the set of intervention strategies and approaches implemented so far by the project to improve OSH performance in the ginger supply chain; parallel to enhancing competitiveness in overseas export markets:

1. Awareness raising among farmers on the use of agrochemicals and other OSH hazards (e.g. physical and ergonomics);
2. Capacity building to input retailers and the Department of Agriculture on effective information sharing on the safe use of agrochemicals;
3. Support the creation of farmers groups and enhance their capacity to promote information sharing on good OSH practices at the community level;
4. Promote certification processes that help eliminate or control OSH hazards (organic and Good Agricultural Practices);
5. Support to OSH management systems and Lean Factory Designs that keep workers safe and inventory undamaged among ginger processors;
6. Promotion of productivity enhancements among traders in Aung Ban market that enhances working conditions and inventory management;

In addition, and thanks to a close, efficient and fruitful collaboration with the USAID-Winrock’s VC-RD Project Team, better levels of impact and outreach were achieved by all players engaged in the Myanmar Ginger Value Chain, having the following as the most important and relevant to them:

1.   Strengthened local capacity produce organic inputs and provide advice on proper use and handling

2.  Strengthened capacity of IFGLLID, MoALI, and MFSPEA to provide support to input companies in the delivery of health and safety advice to farmers

3.  Developed local capacity to conduct OSH awareness campaigns and training including strengthening of safety culture

4.  Developed local capacity to provide services that will enable farmers to adopt GAP and organic farming

5.  Facilitated formation of cooperatives

6.  Established postharvest facilities to enhance viability of collective enterprise initiatives which can facilitate access of farmers/farm workers to social security, provide the incentives to maintain sanitary and hygienic conditions in the farm and home, ensure compliance to food safety and quality standards, and minimize postharvest losses

7.   Improved visibility of Myanmar ginger in the European and US market parallel to upgrading its image with emphasis on its product attributes and social (special focus on OSH) and environmental integrity

Finally, the cooperative business model promoted by ILO-VZF Project embodied the hope of building market systems that truly serves people and communities. A key challenge, however, in the promotion of cooperatives is the lack of knowledge and understanding of the business model among farmers and a general lack of cooperative education and training programme in Myanmar. In order to address this challenge, under the endorsement from The Cooperatives Unit of the ILO (COOP) that has been a formal entity within the ILO since 1920, we have contributed to develop a series of training tools on cooperative development which were customized to the context of ginger farmers in South Shan. Toolkits consisted of peer-based learning methodologies and those intended to develop the capacity of meso level organizations/trainors to develop training to farmers or target groups.

We’re already looking forward to come back to Myanmar and further support the consolidation of the meaningful and effective actions taken by the Myanmar OSH Ginger Value Chain Development Project of ILO-VZF.

Stay tuned for more updates and stories from beautiful Myanmar.

https://youtu.be/JVJSCv4G_Kc