Therefore, it is essential for HomeNet Thailand to provide small credit to members as a working capital to restore their livelihoods and supporting economic recovery post the impact of Covid-19 pandemic. 

“Livelihood and Economic Recovery Fund for members of the Northeastern Homebased Workers Network” began in September 2020 with a capital of 180,000 Thai Baht (180,000 THB is equal to 6,000 USD.) (80,000 THB from the network’s saving and 100,000 THB supported from Fondation Chanel). The network committee met and agreed on important rules as follows:

• The operation will emphasis as a loan fund with free interest to decrease burden of borrowers. However, the Network will collect borrowing fee only 3 percent of loans per year and spend it as operation cost. It is understood among members that with a few borrowing fees, the fund will grow slowly.

• The Fund can be lent to both individuals and groups because it is aware that the need for money may occur at both levels, individual and group. The difference between an individual and a group is the limit of funds. (Individual can borrow not more than 10,000 THB per time, and the group can borrow not more than 20,000THB at a time)

• If the borrower is an individual, it must be guaranteed by the head of his or her group. From this practice, the Fund committee will be confident in the financial responsibility of the borrower and ensure that borrowing money will be spent according to the objectives stated.

• If the borrower is a group, it must have at least 3 group’s committee members signed together in the borrowing form to show mutual responsibility.

• The borrower must specify his or her borrowing purpose and details of the use of money, such as the price of materials, and equipment to buy for the fund committee to use as information for lending consideration.

• When starting the fund, it was agreed to lend only for the livelihood development purpose.  After about a year, to mitigate suffering of the network members, the rules were updated by allowing members to be able to borrow the fund for use in necessities other than livelihood development. Later, it was found that members have borrowed to use in other difficulties such as informal debt, spending on family member illnesses, expenses for children’s education, home repairs, etc.

• Repayment will be done monthly by 1,000 THB until the borrowed limit is reached. Paid back as a monthly installment will help reduce the burden of the borrowers than paying back in large sums in a single payment at the end of the time.

Until March 2023, the Fund has considered lending money 8 times. 69 people (Some members and some groups have borrowed money more than once.) have borrowed. With the responsibility of network members who are borrowers and devotion of the Fund committees, results of the fund operation are considered good. The objectives of the fund are achieved in restoring members’ livelihood and economy as well as mitigation suffering of network members. Existence of only 3 overdue cases (equivalent to 4 percent of borrowers) who couldn’t work cause of health problems.

     There are many examples of successes that have occurred over the two and a half years of the operation of “Economic Rehabilitation Fund for members of the Northeastern Informal Workers Network” such as.

• Network members from the Beauty Salon Club Mahasarakham Province which is a group that is greatly affected by the government’s lockdown announcement during the severe epidemic Covid-19. They earned zero income for almost a year. The Club borrowed money from the Fund to buy equipment and renovate members ‘shop which 7 members could gain these benefits. 

• Plastic Basket Weaving Group at Non-Nong Wat 4 Community, Khon Kaen Province, which has 10 members, its sales have decreased by 70% due to the impact of COVID-19. The group’s president borrowed money from the Fund 3 times, firstly 10,000 THB, secondly 10,000 THB, and thirdly 8,000 baht to buy plastic strands, which are essential raw materials in basket production. In addition, they received online marketing training from Homenet Thailand and creating continuously advertising their products through Facebook. Currently, members can earn an average of about 300-400 THB per day, which is a good sign for economic recovery. 

• Before the outbreak of Covid-19, there were the claim for compensation of the fishing net homeworkers according to the piece rate calculation specified in the Homeworkers Protection Act, caused a fishing net factory to reduce sub-contracted work to the homeworkers at Baan Lao Kwien Hug in Khon Kaen.  Previously, work was sub-contracted to 12 homeworkers working as leaders of the production line. After the claim, the company sent the work to only one leader of the production line, so it made several homeworkers jobless. 6 homeworkers leaders borrowed money from the Fund, 10,000 THB per each person, to invest in buying raw materials for assembling the fishing net. It gave them the possibility to change their status from homeworkers to own-account workers who produce fishing net for sales. By selling produced fishing nets to another factory, 5-6 independent merchants and selling online at a price increase, they can hire 80 homeworkers to return to work continuously and receive an increase of 50-66 percent income. In the past, they used to get 10-15 THB per piece to produce a fishing net, at present, they get 15-25 THB per piece instead.

From the example mentioned above, although this Fund is not a big amount of money but in just two years, this fund has helped nearly 100 members of the Northeastern home-based workers to recover from the Covid-19 crisis. Under supporting of HomeNet Thailand the same type of fund is operated in the Homebased Workers Network in northern, central, southern and Bangkok, Thailand. It created positive results to economic recovery among homebased workers’ members of Homenet Thailand Association.

Suntaree Hattee Seang-ging

Homenet Thailand

April 2023

Daonapa Panyawong
Homenet Thailand
April 2023

Tian Kaew Organic Rice Group

Baan Bua’s Organic Rice Group established in 1980 with 153 members. Later, it was registered as Baan Bua Organic Rice Cooperative under Phayao Provincial Office of Agriculture and Cooperatives. At registration, they must restructure their internal management system to follow cooperative rules. The Cooperative Board need to organize lots of meeting to make decision in all activities, the operation get difficulty with high expenditure. It’s hard to develop new products and not flexible to run its business as well.

In 2016, members of the cooperative produced organic rice for 1,500 Rai (equivalent to 240 Hectare). Therefore, they have lots of organic rice in inventory which cannot be sold. It created big problems for the cooperative in terms of revolving funds and storage space. There are 8 members who decided to leave the cooperative and established a small group named Tian Kaew Organic Rice Group to support the operation of the cooperative. It aims to process organic rice into multiple products and create more value products. This small group will have faster and easier operations to meet the needs of the market which will help to reduce inventory of the cooperative and increase marketing competitiveness of organic rice. The cooperative and the small group will focus on different marketing channels. The cooperative will focus in wholesales by selling a big lot of product in one deal but Tian Kaew Organic Rice Group will focus on retail sales. On the other hand, it will process organic rice into cosmetic and finished food products such as soap, lipstick, shampoo, and crispy rice.

 To focus on retail sales, the quantity of rice must be changed to half a kilogram or one kilogram to make it easier for customers to carry. Tian Kaew Organic Rice Group will sell at markets organized by both private and government within the province and outside. After observation from several sales, they found out that the rice packaging is not attractive enough, it can’t take people’s attention to buy products and the brand is still not well-known among consumers. In 2020-2021, the coordinator of HomeNet Thailand in the north and group members worked together to develop packaging of the products to get more attraction and improve branding to get acceptance and well-known by consumers as following.

1. Installed a group name sign in the production location to show standardization and impression to people who pass by. Develop promotion sign at the sale booths for publicize of the group. 
2. Develop group logo and packaging of crispy rice and organic rice to attract consumers’ attention. 
3. Working with group members to identify uniqueness of the products for communication with consumers such as products of the group are environment-friendly products, it produces and journey from watershed forest to consumers, consumers who buy products of the group will help promoting decent work by creating jobs and good quality of life for producers.

Products of Tian Kaew Organic Rice Group get accreditation of organic standard from government agencies every year. To build trust among consumers, the production process is certified organic with no chemical substance, it created safe environment from upstream to downstream. The rice field located in the forest upstream. It is safe because there is no farming that uses all kinds of chemicals. The fertile ecosystem has water to nourish agricultural areas. All group members have been trained in organic rice processing. Therefore, all products of the group that are processed are safe from chemicals. Purchasing group products is not just the mutual support between producers and consumers but also to contribute to the environment preservation as well.  It can be considered as Social Solidarity Economy development.

Improvement of attractive packaging as well as communication stories of the products resulted in sales at both provincial and national markets. It also helps the group to export to China through private trade agents about 3,000 kilograms per month. Based on this export, the group members earn regular and greater income because the group pays 2 THB more expensive than the general market to its members. The organic rice production process requires more attention than normal rice that in general uses chemicals in the production process. Selling rice at a higher price is therefore creating morale and encouragement in members.  At the end of the year, the group members will receive dividends from profits gained which depending on the sales of each year.

At present, HomeNet Thailand play role as a group consultant of Tian Kaew Organic Rice Group. The group is well-known to government agencies. Therefore, government agencies such as Community Development, Phayao Province, Rice Department, Provincial Commercial Office, University of Phayao, Chiang Mai University, and Maejo University continuously support development of the group. These agencies and universities help in research and development of the group products as well as financial support for different kinds of development. However, the group still faces many challenges such as

• Raise quality of the products to meet standard of the Food and Drug Authority (FDA) as well as maintain standard quality of the Department of Community Development as the group product has been selected as a  5-star product of the province.
• Develop packaging of all products, as of now, there are only 2 types of products improvements while there are 5 types of products.
• Development of products for export both at the provincial and foreign level. Even though some products got foreign attention, the group still has limited management knowledge and skills for export level.
• Enhance processing products into different types of rice products for more value added.
• Use processing equipment in the production line to increase productivity such as large rice press equipment, crispy rice processing machines, soap forming mold etc. 

Baan Fang Min Occupational Promotion Group in Dok Khamtai Subdistrict, Dok Khamtai District, Phayao Province, was established in February 2017. It consists of 20 members who were given the opportunity to develop skills in making quilted bags by Homenet Thailand. The group’s products, which include cosmetic bags, shoulder bags, and backpacks, have received support from markets both within and outside the community and are encouraged to be sold at various exhibitions hosted by the government sector.

The COVID-19 epidemic occurred in 2019. It made orders freeze down and the government sector stopped organizing activities. Finally, they were unable to produce any products for sale across all channels because there was no market to sell products. As a result, members lack income to support their families. At the same time, the problem of social distancing and epidemic problems was one of the reasons that everyone was in a stressful situation. To replace the original occupation for the group members to continue earning income during COVID-19, the committee of Baan Fang Min Occupation Promotion consulted with HomeNet Thailand. Based on the idea that food is a basic need of everyone, the group came up with food product. By producing crispy pork rinds for sale because most northerners usually eat crispy pork rinds with Nam Prik Num (Northern Thai Green Chili Dip), or they are processing as another food. After the COVID-19 situation unfolds. Tourists can purchase crispy pork rinds for others. In addition, the group president is a food seller at the morning fresh market. So, it is good social capital for the group for trial selling products through the group president. The group organized training to make crispy pork rinds, which was sponsored by Dok KhamTai Community Development Office on July 14, 2020, and received support for materials and equipment from Mr. Jeeradej Sriwirat, who is MP. of Phayao Province in the 3rd area. When members received knowledge and production skills from training., the University of Phayao and HomeNet Thailand have provided the group with funding and equipment to enable them to produce products for sale.

At present, Baan Fang Min Occupational Promotion Group has learned and developed its own crispy pork rind recipes to gain consumer acceptance. The group sells crispy pork rinds at Mae Tam Fresh Market.  

here are 3 types of crispy pork rinds that are called Sam Wai (three generations). It is easier for consumers to understand what kinds of crispy pork rinds they should buy. Firstly, Gajok crispy pork rinds, which are so small and crunchy that they are suitable for teenagers. White crispy pork rinds, which are bigger pieces. After frying, it will be white, most often put in various curries, such as banana flower curry and various salads. Therefore, they are suitable for general consumers, and another type is crispy pork rinds that use raw materials from the part that fat and meat is mixed, has no skin, soft, and is suitable for the elderly to easily eat. To promote the group’s crispy pork rinds, the University of Phayao has come to help with the design and making Sam Wai crispy pork rinds’ stickers to create a unique selling point. It also made the package more beautiful and worth buying. The group sells all three types of crispy pork rinds at retail and wholesale markets. Including mass production up to customer orders. In 2022, the group’s logo was developed by HomeNet Thailand, to build a well-known brand of crispy pork rinds. The logo has been put on the package and the labels are produced to publicize the products as well.

To reduce environmental problems in the community which are caused by the smoke from frying and wastewater from washing pork skin, Homenet Thailand has consulted with the group to move to new location out of the community. By moving the group from the Phra That Pho Ngam Temple to the area of the group president’s garden. She allowed the group to work on her land where members can build a new building in 2022. The new office of the group makes it easier for members to produce crispy pork rinds and reduce pollution problems that affect the environment in the community.

Baan Fang Min Occupational Promotion Group operates based on the principles of social solidarity economy (SSE). Focus on producing quality products, safe for health while the production process takes precautions to reduce its environmental impact such as smell from frying and wastewater from pork skin washing. The production location far from the community helping to drain wastewater into the pond for preliminary treatment.

The group is managed through participation practice, starting with group management, production process and sharing benefits with members. Crispy pork rinds will be produced three times a week, on average 12 times per month. After deducting all costs and 300 THB as monthly contribution to the group, each member will be paid about 2,000 THB in a month.

The money gathered by the group each month is used for members’ activities or helping the community when getting in trouble. In the past, the group brought survival bags to help low-income families affected by COVID-19 infections and flood victims in the community.

The challenge is the production process to obtain good quality and standards since the quality of pork skin recieving each time is inconsistent. It is difficult to manage because each part of the pork skin will have a different flavor when frying. To maintain the same quality, The group needs to develop production skills or improve quality standard. Essentially, as crispy pork rinds are a food product, to gain trust from consumers, the group needs to improve quality to meet at Food and Drug Authority-FDA Standard.  

Due to the majority of the group’s members being elderly, production capacity will also be a challenge for the group. The group is unable to produce a big number of products. In contrast, the group is getting more orders every day because crispy pork rinds are inexpensive, simple to sell, and people can eat them at any time. During economic downturns, people tend to buy cheap goods therefore the group needs tools or small equipment to help in the production process.  Which will help to increase production quantity, reduce work burden, or speed up the production process.

3 types of crispy pork rinds are Gajok pork rinds for teenagers. 
White pork rinds for Middle Age and Soft pork rinds for the elderly.

Crispy Pork rinds in large and small packages. To get more comfortable for trading.

Network of Informal Workers in Songkhla Province

HomeNet Thailand has worked with informal workers in Songkhla province, which is in the southern part of Thailand. The targets with whom we work live in rural and urban areas. In rural areas, there are home-based workers and farmers groups. Meanwhile, informal workers who live in urban areas include groups of street vendors, motorcycle taxi drivers, beauticians, homebased workers such as garment homeworkers and casual workers. Main tasks of Homenet Thailand are to promote organizing and strengthening of informal workers organizations, policy advocacy, economic empowerment activities such as production skills development and marketing. Networking between informal workers from different sub-sectors is also introduced. As a result, there is an informal workers’ network was known as “The Informal Workers Network in Songkhla Province.”

The Rice Fund is one of the tangible samples from development of products, branding and marketing toward establishment of linkage of informal workers in the network. It creates mutual benefits between producers’ group (Pinto Khaw Group), traders (Leaders of the Rice Fund), and the consumers in urban areas who are members of the Informal workers Network and the urban poor who live in Songkhla City.

Initiative 

Ranod District, Songkhla Province, is an important area to produce rice in the lower south region. There is approximately 70,000-80,000 Rai of rice planting areas (Data from Agricultural District, 2020). It was found that over the past decade, the rice fields have steadily decreased due to rising production costs, low paddy prices, and climate change, leading farmers to change their occupations or replacing rice fields with oil palm plantation.  

From the issue that arose, farmers from Ban Mai and Takria sub-district formed the “Nong Ai Than Large-scale Agriculture Group.” In 2019, There are 36 members and 740 rai of areas. The group aims to increase productivity and reduce production costs. For instance, it will be less expensive to collectively buy seed rice under a group’s name than buying individually. Introduce technology and innovation to be used appropriately in increasing productivity and quality in the rice field. There is a collaboration in group management throughout the production chain, moving from production planning, processing, and marketing, including putting in place of the agricultural infrastructure. The development of production procedures that are secure and adhere to hygiene standards. The group has registered as a community enterprise.

In 2020, HomeNet Thailand had contributed to the development of the group’s capacity by setting up database system on production, developing rules and regulations of the group, and management structure.

In 2021, Nong Ai Than Large-scale Agriculture Group and HomeNet Thailand worked together to develop a proposal to request funding from the government under the project to enhance large-scale agriculture through modern agriculture and market connectivity. Obtained a 2,900,000 THB budget to construct a community rice mill, an agricultural drone, 1 agricultural vehicle, and packaging machines. Later, Kubota Co.,Ltd. also supported the tractor and a balers cost around 1,200,000 THB to the group.

Currently, Nong Ai Tan’s Large-scale Agriculture Group got a juristic person by registering as Ordinary Parentship. Main activities of the group are farming, drone services, providing seed rice to members, and rice processing under the “Pinto Khaw Brand.” Its slogan is “Produce by farmers, mill their own rice and sell rice on their own.”

Pinto Khaw Group’s has a clear management structure. A group committee has been nominated to share responsibility. There is bookkeeping which accountability on income and expense, available for transparency review as well as having a group regulation and profit-sharing rules. 25% of profit goes back to members as dividends, 10% is group management expenses, 10% is for public benefits, 15% is for social welfare of group’s members, and 40% is Investment Fund. At the same quality, the rice selling prices are set cheaper than general market price. 

In 2022, HomeNet Thailand cooperate with the group committee in development of the marketing strategies, data collection, improving packaging, co-creation of the group logo and branding. Homenet Thailand also provided trainings on finance and accounting as well as online marketing. Meanwhile, supporting the networking of informal workers groups in Songkhla Province. Facilitation of learning, exchange and sharing experiences platform which can create mutual help planning amongst the network members.

Turning point 

            During the COVID-19 crisis, it was hard hit to livelihood of informal workers in Songkhla City such as garment workers, beauticians, street vendors, and motorcycle taxi drivers. The Network of Informal Workers in Songkhla Province called a meeting to discuss how to support its members on food security. There were two ways of implementation. Firstly, promote city farming by growing vegetables around members’ houses. Secondly, promote establishment of the Rice Fund to mitigate hunger among members. The idea was trialed in 2022, with 4 leaders and 400 kg. of rice.

            The Rice Fund means a life connection that connects members from different occupations in the Network of Informal Workers in Songkhla Province. Pinto Khaw Group has rice, while members in the city also need to eat it. Linking producers and consumers together under the Social and Solidarity Economy Principle, peer assist peer, trust, and mutual benefit. Pinto Khaw Group produces fresh, aromatic rice at a lower price than the market by milling rice according to orders. Without any insecticide, rice will be delivered to leaders in the city and distributed to consumers who are mostly urban working poor. Additionally, a portion of earnings is set aside to assist members in need. 

The Rice Fund is operated by identified a trade leader, she/he will look for a cluster of 10 consumers who are members of occupational groups in the Informal Workers Network or her/his kinship or other community members. A cluster of consumers will buy rice through its trade leader twice a month. Currently, the Rice Fund has identified 7 trade leaders who can sell rice to cover more than 100 beneficiaries. In each time, one trade leader distributed about 300–400 kg of rice within her/his cluster. In the buying and selling process, the group will deduct 1 THB of profit per kilogram of rice and keep it in the Rice Fund. The Rice Fund aims to be utilized its saving to assist members of the Networked of informal Workers in Songkhla Province when facing difficulty circumstance.

Challenges

The Pinto Khaw Group has insufficient revolving fund to buy  paddy from members. Most of the paddy must be sold to the merchant. There were shortage of rice selling in the network market, the group can’t consistency deliver rice to consumers from all clusters. Moreover, all trade leaders and most of the members are women workers, it is trouble for them to lift heavy rice.

Results

• The Rice Fund is one of the concretes development practices, starting from business development and end up at mutual help among members of the informal workers’ network. Linkage between producers’ group (Pinto Khaw Group) who sells rice at the desired price, the trade leaders who gain profit from selling rice. The clusters of consumers who are members of the Network of Informal Workers and the urban poor who live in Songkhla city, can buy quality rice at a fair price.  Benefits from operating the Rice Fund are distributed fairly in the marketing chain. It helps creating strong relationship among members of the network and creating lining platform for learning and sharing between members of the network.
• When purchasing 1 Kilogram of rice, the group deducts 1 THB of income as a fund to support the network members facing difficult times. Currently, there are about 4,000 THB available. It becomes an innovative idea to develop the network welfare.
• Linking the networks of informal workers in Songkhla through the Rice Fund has inspired group members on the benefits from organizing and working together.  

Embroidered fabrics were difficult to market between 2016 and 2017 due to high prices and the fact that they were products used on special occasions. Therefore, repeat purchasing are so infrequent that members have irregular income. 20 members who graduated from grade 6 to vocational school have joined a meeting with Homenet Thailand to discuss and find a solution to move forward. The group then changed its strategy by making low-cost products, and it will be easy for customers to make purchases. So, the group will be able to sell products and continuously provide income for its members. Later, the group received support from the Community Development Department of Songkhla Province for training on printing and dying batik. Batik is unique cloth of people in the southern region of Thailand. The group then changes from making hand-written batik with candles and bead embroidery to block printing technique. The group has developed many product designs to produce souvenirs and household items such as plate mats, bag accessories and hair clips, etc. These products can be sold at the local market. In 2020, the group was impacted by the COVID-19 pandemic, resulting in difficulty selling the product. So, Homenet Thailand assisted the group in developing a Business Model Canvas (BMC) and provide training to develop online marketing channels.

The Bo Yang Batik group was continuing to develop it products between 2021 and 2022. The group’s products include sarongs, shawls, skirts, shirts, bags, and masks. Handicraft is highlight of the group products that have beautiful patterns, colors, and maintains the traditional process as well. It also reflects the local lifestyle of women in the south who still use batik sarongs in their daily life from the past till present.

To adhere to the Social Solidarity Economy principle, Bo Yang Batik Group is organized based on participative working, which involves teamwork in production, and operation. The level of participation and responsibility are varying according to duties, such as production, group management, benefit sharing, caring of members when they got sick, visiting patients, providing meals, and participation in activities organized by other agencies. ” Workers must be the center of business and development, ethically giving priority to ownership and unity of community, emphasizing on participation and democracy,” said the group’s president.

            At present, Bo Yang Batik group is in Laem Son community in the Songkha Municipality. The group is a learning center for students and women who are interest in supplementary jobs. The group consistently displays and sells products at trade fairs on behalf of Songkhla Municipality.

The main customers of the group are working women over 30 years old who are required by government policy to dress in traditional Thai Cloth and Batik or who dress for grand and elegance looking. There are also people in the community and tourists.

Non-formal Education and One Tambon One Product (OTOP) shop of the province are partners who are sale promotion of the group products.  Likewise, they are important customers because they will regularly place orders for sale or use within their organization. At the same time, they will give opportunity for the group to have marketing space or participate in government events where the group will meet and are able to build relationships with customers for promoting new products. 

Additionally, product development is supported by other allies such as Rajamangala University of Technology Srivijaya, Songkhla Vocational College, Songkhla Municipality, Non-Formal Education, and HomeNet Thailand Brand.

The Bo Yang Batik Group has received support from Songkhla Municipality from inception to the present. The Group has been registered as an occupational group by the Social Welfare Division of Songkhla Municipality. That group’s members will have the chance to participate in the development of the group’s capabilities and consistently take part in other events hosted by the municipality. Additionally, the group has obtained funding for skill development of its members and high-quality products development. They are also getting support to visit successful organizations and receiving a budget from local Health Funds for promotion of health protection of its members.

For use of public space, the group started by running activities inside the municipal building. Later, the space was narrow to accommodate a big event. The group then relocated to another location. However, the municipality offers electricity service and facilitates the use of the municipal meeting room for members’ meetings and training on various events. At the same time, the municipal helps to coordinate and facilitate the group participation in its and provincial events. Promote the group as a model for elderly and youth to visit and learn from. Including routinely updating the group on news from the Social Welfare Division of Songkhla Municipality. Encouraging group members to participate in activities outside of their jobs, such as participation in International Women’s Day events or sending group leaders to receive good person awards from the Sub-District Administration. Despite the changing of municipal officer, there has been no change in the relationship between the group and the municipality. The Songkhla Municipality also acts as an important customer, for instance, it will regularly order products from the group to use in the municipality events.

The ongoing operations and development of the group are key factors that foster collaboration between the Group and the Municipality. The group’s leaders and members have shown their volunteer minded in other municipal activities, not just as a receiver from the municipality but also as a giver in other things that the municipality or another government agency’s needs. Most importantly, the group has a clear plan and works hard to convince the municipality to incorporate their plan into the municipality development plan. As a result, it will be simple to ask for support or funding from the municipality.  

Jantana Chareanviriiyapap
Homenet Thailand
April 2023

Price of the products of Phetsamut Sweet Fish Processing Group started from 35 THB per Kilogram and currently increasing to 90 THB per Kilogram. The group markets its products at Mahachai Wholesale Market, Chonburi Souvenir Market and Roi Et Provincial Market. Previously, there were few competitors, about 3 stores, but at present, it has increased to 14-15 stores. So, there is high competition, each store will reduce the selling price to increase their competitiveness.  On the opposite, Phetsamut Sweet Fish Processing Group will focus on different selling points, especially focusing on good quality products, fresh, high fish proportion, less flour and stable taste. Based on this quality, the group can determine the selling price and negotiate with customers.         

In 2009, HomeNet Thailand started working with Phetsamut Sweet Fish Processing Group through implementing project activities on Youth Volunteers. The project aims to improve quality of life, Occupational Health, and Safety (OHS) of informal workers by educating young people, children, and grandchildren of those who are homeworkers. They gained knowledge and awareness on OHS as well as environmental problems impacted from production process to the community. After receiving knowledge on OHS and environment at the workplace problems, these youths go back and work with their parents who are members of the group to protect the problems. Later, the leaders and group members learned about OHS and working environment from their children as well as enhancing their understanding on informal workers’ issues, therefore, they realized that joining with the network of Homenet Thailand will directly benefit to them. The group, then, apply to be a member of Homenet Thailand and continuously join Homenet Thailand activities. At present, their representative has been elected as a committee of the Central Region of Homenet Thailand.         

During COVID-19 crisis, the group faced serious problems in their operation. In some periods production had to stop. It was restricted by government measures, raw materials and products are unable to be transported at all. The leader of the group had to sell 2 private cars and mortgaged their land to secure a bank loan of 600,000 THB for family expenses, help group members with living expenses and taking care of sick members “Fortunately, we worked with Homenet Thailand to campaign regarding coverage of social security for informal workers. All our members enrolled in the Social Security Section 40 for informal workers. They received both cash grant and sickness compensation. It was sufficient for each family to get food” said the leader of the group.

            In the past, Homenet Thailand has been working in studying the production process of the group to analyze and provide knowledge about OHS and environment at the workplace. In addition, Homenet Thailand providing knowledge on labor rights and social welfare but did nothing with group business. Homenet Thailand observed that their business was running well. Until there was COVID-19 crisis, the lockdown policy caused the group to have no income. Sick members have no money for medical expenses and the group has no reserves to help. Therefore, the group leaders and Homenet Thailand came and analyze the problem together. It found out that the group’s business is under a family management, whenever a family leader faced serious problems, other group members can’t move forward. Therefore, they began to develop new plan to work together again.

From the Business Model Canvas Training process that the group received from Homenet Thailand. It helps group leaders and members analyze group operation and found out that the group management is quite simple, there is no system regarding finance, accounting, costing, inventory management, even customers information. Normally, they still worked by using memorization and with small notes. Marketing is running based on experiences of a group leader, lacking situation analysis to move forward.

At the same time, the group developed its skill based on real-world learning. It developed from the experience that has been done and transferred from the past. There is no record or collection of production data at all. To produce sweet fish, there are many techniques such as looking at color of the fish, thickness, or thinness of fish sheets, frying and fire level. Sauce mixing, thick or clear, based on suitable of different kinds of fish. Level of dried fish leads to different production methods. Lack of note taking and transferring production knowledge to others, generated heavy burden on the group leader and the first experienced members. Generally, they had to engage in production process and control the production quality all the time. The head of the group did not have time to look at the overview of the group’s operations. With no one taking care of the overall development, the group lacked product development and other skills development.  

Product standard is another important issue that the Group must develop. The group received advice from HomeNet Thailand and the advisory group to apply for standard accreditation from the Food and Drug Authority-FDA. The group has been trying to apply since 2011, but the results of standard assessment from FDA did not pass because the production premises were at the homes. Limitation of the homeworkers is the use of the home as a workplace. They do not have sufficient funds to buy land to build production buildings separated from their homes, so they do not pass the requirement of the FDA.

From the limitations of the group in operating the business in the past 2 years (2021-2022).  HomeNet Thailand has therefore come and helping them to improve and develop their business. Starting from finding knowledgeable people in the community to work as a volunteer to help teaching 2 representatives from the group to be able to do record keeping on finance, products, and raw materials inventory. Calculated costs and profits using the simplest form that are not complicated. Some jobs which required specific skill sets such as accounting and finance, the group will hire an expert to work. It found that the initial stage of improving the work style by changing casual habits into day-to-day tasks was quite difficult. In the beginning, they did some things but forgot to do others, the advisory team need to often check. In early 2023, it was found that there was a regular record, some data may not be detailed yet, but it can tell how much profit in each work order or getting a job which risky to be loss or not. It leaded to better planning of raw material procurement. Even during the rainy season, fish often have problems with drying and having poor color, the group still get quality fish products. The group leader told HomNet team that “We can develop well plan to order raw materials. It is expected that this year, sales, and profits tend to be increased not less than 50%”

In terms of skill development, there is a workshop to teach production techniques to members of each division. Recording of production steps and observations, precautions, and problems encountered for further study and review. These information and data will need to be summarized and reviewed periodically for members to gain confidence and be able to take responsibility for their work. At the beginning of 2023, 2-3 members have equipped with better knowledge and understanding that they can produce good quality of sweet fish on their own.

            Problems that the group will have to overcome in the future is to create bargaining power with customers on quality of the product, not the price.  At present, there are more than 15 sweet fish producers in the area who sell their products at competitive prices. “Our group must develop itself into a market where consumers are health conscious with clean and safety food. Do not compete in a market using price as a final decision which we will have a reasonable profit and able to pay fair wages to the members,” the group leader said.

            Currently, the group is gathering fund to build a new production building to meet FDA standard and further applying for Halal standard. Then, the group will produce sweet fish for export. The leader has already known a marketing channel for export, but the group need to develop production skills to be precise and compiled with Halal and FDA standard. The products will have more markets and help increasing members’ income.

Phetsamut Sweet Fish Processing Group started as a family business and being able to develop and support other people to have jobs. Create employment and generate income for more than 50 households in the community for more than 30 years. Most importantly, 80 percent of these workers are elderly people which the group helps them to have a job and earn more self-sustaining from welfare payments from the government. Helping these elderly homeworkers to be proud, feel valued and dignified as same as workers of other ages.

The group is a good example of mutual assistance between a micro enterprise and homeworkers. According to economic conditions, instead of fighting, there will be regularly negotiation on wages payment between head of the group as an employer and homeworkers as employees. Meanwhile, the head of the group will tell all members to apply to be insurers in the Social Security Scheme, Article 40 to gain benefits from the government when there is a risk. Homeworkers will receive knowledge and encouragement to have greater access to social protection scheme provided by the government. In addition, the leader of the group will always support the group members when they are in trouble. It is considered as one of the groups that practicing social solidarity economy principle.

Kanoknart  Thepnupa
Homenet Thailand 
April 2023