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One Tambon
One Product
The Strengthening of
Grassroots Economy of Thailand

Concept & Practice
Presented by
Dr.Chamnan Wattanasiri
• Community Development Practitioner
• Civil Society / People Participation Actor
• Amateur Farmer
77 Provinces = Changwad

Districts
,255 Sub-Districts
0,787 Villages

Amphoe
Tambon
Moo Baan
OTOP
Background
It all started in OITA prefecture.

“The Biggest Agriculture Area of Japan”
OTOP Background

Prefecture Government
Led by OITA Governor

Dr. Morihiko Hiramatsu
Initiated One Village One Product (OVOP)
in early 1980s
Nature of OTOP Scheme
• OTOP is a government-led and

supported project.
• OTOP is an agency-integrated project.
• OTOP is carried out to mobilize all
available resources from all sectors to
generate prosperity for grassroots
communities.
Background of OTOP
Before 2001
4 Decades of Production

with
Plus (+) and Minus (-)
Background of OTOP
Before 2001

Concerned government agencies
extended to reach communities:
Development of Local/Community
Group/Organization
Skill Training on Handicrafts:
weaving

and making in styles/patterns

our PLUS
Background of OTOP
Before 2001








Existing local/community occupational
groups in every Tambon
Villagers have knowledge and skills
Every Tambon has its local/community
products
Available government services (knowhow & field workers)

our PLUS
Background of OTOP
Before 2001

Over supply of local/community
products
 Low quality & No identity (uniqueness)
 Disintegrate & Overlapping
government services


our MINUS
Background of OTOP
Before 2001

Rural with Undesirable Consequences
 Low income  debt,  poverty
 Fading and Dying local wisdom
 Poor & Unattractive rural /agricultural
sector
 Rural-to-urban Migration
 Loss of Human Resource

our MINUS
Concepts Behind OTOP








Local & cultural products have future /
market
Every local community already has
uniqueness (local wisdom, culture, and
tradition) and local identity
Every local community has its local
product(s)
When connected to the market, local
producers develop both themselves & their
products
Roots of OTOP
• Diversity
• Identity

Unique Product
Variety

• Diversity
• Identity

People

Place

Culture

Nature
OTOP Product Characteristics






Reflect local identity (culture, way of
life, wisdom, etc.)
Use local materials
Environmental and social friendly
Chosen to represent the community
identity
Coconut-shell
Lamp
Combination of:
 Local materials of
low or no value
 Creative idea of
its use/purpose
 Creative design
Pottery + String
Weaving

Ceramics +
History
New Dimension of Pottery
Combination of:








Pottery making skills

(local knowledge)

Idea for new purpose
(decoration)
Local clay (local

knowledge)

New design (Local
identity)
Local Herbs

+

Local Knowledge
on Traditional
Medicine

Go
International
5 OTOP Categories
Food (preservation, beverage)
 Fabric & Dressing Wear
 Decoration, Gift, Souvenir
 Herbal Product (non-medicine)
 Drink

OTOP Objectives









To create employment in local
communities
To strengthen (revitalize) local
communities
To promote local wisdom
To promote human resource development
To promote creativity of local
communities
Three Fundamental Principles


Local, Yet Global



Self-Reliance and Creativity



Human Resource Development
OTOP Producers
1. Community members

(individuals)

2. Community-based Occupational Groups
3. Community-based SME entrepreneur
who produces handmade products with
local wisdom, materials, and workers
National OTOP Committee
1. Administrative Sub-committee
2. Production Promotion Sub-comm.
3. Marketing Promotion Sub-comm.
4. Product Quality Development and Standard
Sub-comm.
5. Regional OTOP Sub-committee
•

Provincial Sub-committee

•

District Sub-committee
The Administrative Structure of
OTOP Scheme

National OTOP Committee
Provincial OTOP Sub- Committee
District OTOP Sub-Committee
“Agency Integration”














Office of the Prime Minister
Ministry of Finance
Ministry of Interior (Community Development Dept.)
Ministry of Agriculture and Cooperatives
Ministry of Industry
Ministry of Commerce
Ministry of Public Health
Ministry of Foreign Affairs
Tourism Authority of Thailand (TAT)
Ministry of Education
Ministry of Science, Technology and Environment
Board of Investment,
Etc.
5 Categories of OTOP Products
Food
Beverage
. Fabric and Dressing Wear
4. Furnishing, Decoration
and Souvenir
OTOP Focus in 11-Year Road Map
2001 Ministerial Integration
2002

In search of OTOP

2003

OTOP Product Champion (OTOP)

2004

Standard Campaign

2005

OTOP Marketing Promotion

2006

In Search of Excellent OTOP (PSO & OVC)

2007

Knowledge – Based OTOP

2008

Entrepreneur Promotion

2009

OTOP Tourism Villages

2010
2011

OTOP Network Promotion
OTOP Value Creation for Creative Economy
OTOP Producer Registration Year 2010

Categories

Quantity

1. Community Based
Occupation Group

22,199 groups

2. One-person Owner

10,303 owners

3. SMEs

726 enterprises
Total

33,228 producers
OTOP Product Registration Year 2010
Catagories

Quantity
20,330 products

Food

3,073 products

. Beverage
3. Fabric & Dressing Wear
4. Furnishing, Decoration &
Souvenir
Non-Medicinal Herb

Total

21,386 products
31,334 products
9,050 products

85,173 products
The Activities of
OTOP

Market Promotion

Overall Operation

OTOP City Fair

OTOP Registration

Regional OTOP Fair

OTOP Product Champion

OTOP Midyear Fair

(OPC)

Entrepreneurship
Development

OTOP Village Champion
(OVC)

Knowledge-based OTOP

OTOP Tourism Village

Young OTOP Camp
OTOP Sale Figures (Baht)
2001

245 million

2002

16,714 million

(8 million $)
(557 million $)

2003

33,276 million

(1,109 million $)

2004

46,362 million

1,545 million $)

2005

55,104 million

1,837 million $)

2006

68,105 million

2,270 million $)

2007

71,460 million

2,382 million $)

2008

77,705 million

2,590 million $)

2009

63,009 million

2,100 million $)

2010

68,484 million

2,283 million $)

2011

70,487 million

2,349 million $)
Points for Development Consideration
From 2001-2006

Domestic Sale = 85.97 %
International Sale = 14.03%
 What does this tell us about development?
 What development approach should we take to
strengthen rural or grassroots economy?

 Or How should we approach to the
development of grassroots community?
• Product Classification System for Standard and Quality
• The system has Criteria & Indicators.
5-star product
4-star product
3-star product
2-star product
1-star product
1-star

(below 50)

477 products

2-star (50-69)

2,654 products

3-star

(70-79)

2,904 products

4-star

(80-89)

3,498 products

5-star

(90-100)

1,449 products

Total

10,982 products
Knowledge-based OTOP
(KBO)

OTOP

Producers

Private
Sector

OTOP

Producers

Govern
ment

University

Formatio
n
Stage

University

Private
Sector
Sustainabili
ty
Stage

KBO for Sustainability
OTOP
KBO
Contest
OTOP Village Champion: OVC
P-People

P-Place

Community can
become a tourist
People participation
attraction.
4 Ps

P-Product

P-Preservation

Existing prominent
OTOP products in a
community.

Community can
maintain its local
identity.

4-Ps for Community Strengthening
OTOP Marketing Promotion
OTOP Mobile to the Factory/
Department Store/Supermarket

OTOP Delivery
OTOP 2 Countries Relations
OTOP Distribution Center (DC)
Excellent knowledge of Thai heritage to the world
stage
Young OTOP Exchange Program to ASEAN
International Young OTOP Champion Camp
Existing social capitals – groups & local wisdom
Government’s Commitment - National Agenda
Agency Integration – Effectiveness
People/ Community Participation
Focused Policy on Grassroots Economy
Sufficient and Competent Government Field
Workers
 Knowledge Based Development of Products
 OTOP Brand






 Maintaining Standard & Quality
 Continuing Production for mass order
 Entrepreneurship Development

 Marketing Expansion
 Competitive Advantage – Brand & Image
 Knowledge Based Development of Products
(Technology)
Needed Support
 Packaging Design
 Entrepreneurship Training Program for
Entrepreneur & Officer
 Web Design & Technology
 Food science Technology
Q&A

Thank you for your attention

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2007 otop-thailand-mar 25 2013

  • 1. One Tambon One Product The Strengthening of Grassroots Economy of Thailand Concept & Practice Presented by Dr.Chamnan Wattanasiri • Community Development Practitioner • Civil Society / People Participation Actor • Amateur Farmer
  • 2. 77 Provinces = Changwad Districts ,255 Sub-Districts 0,787 Villages Amphoe Tambon Moo Baan
  • 3. OTOP Background It all started in OITA prefecture. “The Biggest Agriculture Area of Japan”
  • 4. OTOP Background Prefecture Government Led by OITA Governor Dr. Morihiko Hiramatsu Initiated One Village One Product (OVOP) in early 1980s
  • 5. Nature of OTOP Scheme • OTOP is a government-led and supported project. • OTOP is an agency-integrated project. • OTOP is carried out to mobilize all available resources from all sectors to generate prosperity for grassroots communities.
  • 6. Background of OTOP Before 2001 4 Decades of Production with Plus (+) and Minus (-)
  • 7. Background of OTOP Before 2001 Concerned government agencies extended to reach communities: Development of Local/Community Group/Organization Skill Training on Handicrafts: weaving and making in styles/patterns our PLUS
  • 8. Background of OTOP Before 2001     Existing local/community occupational groups in every Tambon Villagers have knowledge and skills Every Tambon has its local/community products Available government services (knowhow & field workers) our PLUS
  • 9. Background of OTOP Before 2001 Over supply of local/community products  Low quality & No identity (uniqueness)  Disintegrate & Overlapping government services  our MINUS
  • 10. Background of OTOP Before 2001 Rural with Undesirable Consequences  Low income  debt,  poverty  Fading and Dying local wisdom  Poor & Unattractive rural /agricultural sector  Rural-to-urban Migration  Loss of Human Resource our MINUS
  • 11. Concepts Behind OTOP     Local & cultural products have future / market Every local community already has uniqueness (local wisdom, culture, and tradition) and local identity Every local community has its local product(s) When connected to the market, local producers develop both themselves & their products
  • 12. Roots of OTOP • Diversity • Identity Unique Product Variety • Diversity • Identity People Place Culture Nature
  • 13. OTOP Product Characteristics     Reflect local identity (culture, way of life, wisdom, etc.) Use local materials Environmental and social friendly Chosen to represent the community identity
  • 14. Coconut-shell Lamp Combination of:  Local materials of low or no value  Creative idea of its use/purpose  Creative design
  • 16. New Dimension of Pottery Combination of:     Pottery making skills (local knowledge) Idea for new purpose (decoration) Local clay (local knowledge) New design (Local identity)
  • 17. Local Herbs + Local Knowledge on Traditional Medicine Go International
  • 18. 5 OTOP Categories Food (preservation, beverage)  Fabric & Dressing Wear  Decoration, Gift, Souvenir  Herbal Product (non-medicine)  Drink 
  • 19. OTOP Objectives      To create employment in local communities To strengthen (revitalize) local communities To promote local wisdom To promote human resource development To promote creativity of local communities
  • 20. Three Fundamental Principles  Local, Yet Global  Self-Reliance and Creativity  Human Resource Development
  • 21. OTOP Producers 1. Community members (individuals) 2. Community-based Occupational Groups 3. Community-based SME entrepreneur who produces handmade products with local wisdom, materials, and workers
  • 22. National OTOP Committee 1. Administrative Sub-committee 2. Production Promotion Sub-comm. 3. Marketing Promotion Sub-comm. 4. Product Quality Development and Standard Sub-comm. 5. Regional OTOP Sub-committee • Provincial Sub-committee • District Sub-committee
  • 23. The Administrative Structure of OTOP Scheme National OTOP Committee Provincial OTOP Sub- Committee District OTOP Sub-Committee
  • 24. “Agency Integration”              Office of the Prime Minister Ministry of Finance Ministry of Interior (Community Development Dept.) Ministry of Agriculture and Cooperatives Ministry of Industry Ministry of Commerce Ministry of Public Health Ministry of Foreign Affairs Tourism Authority of Thailand (TAT) Ministry of Education Ministry of Science, Technology and Environment Board of Investment, Etc.
  • 25. 5 Categories of OTOP Products Food Beverage . Fabric and Dressing Wear 4. Furnishing, Decoration and Souvenir
  • 26. OTOP Focus in 11-Year Road Map 2001 Ministerial Integration 2002 In search of OTOP 2003 OTOP Product Champion (OTOP) 2004 Standard Campaign 2005 OTOP Marketing Promotion 2006 In Search of Excellent OTOP (PSO & OVC) 2007 Knowledge – Based OTOP 2008 Entrepreneur Promotion 2009 OTOP Tourism Villages 2010 2011 OTOP Network Promotion OTOP Value Creation for Creative Economy
  • 27. OTOP Producer Registration Year 2010 Categories Quantity 1. Community Based Occupation Group 22,199 groups 2. One-person Owner 10,303 owners 3. SMEs 726 enterprises Total 33,228 producers
  • 28. OTOP Product Registration Year 2010 Catagories Quantity 20,330 products Food 3,073 products . Beverage 3. Fabric & Dressing Wear 4. Furnishing, Decoration & Souvenir Non-Medicinal Herb Total 21,386 products 31,334 products 9,050 products 85,173 products
  • 29. The Activities of OTOP Market Promotion Overall Operation OTOP City Fair OTOP Registration Regional OTOP Fair OTOP Product Champion OTOP Midyear Fair (OPC) Entrepreneurship Development OTOP Village Champion (OVC) Knowledge-based OTOP OTOP Tourism Village Young OTOP Camp
  • 30. OTOP Sale Figures (Baht) 2001 245 million 2002 16,714 million (8 million $) (557 million $) 2003 33,276 million (1,109 million $) 2004 46,362 million 1,545 million $) 2005 55,104 million 1,837 million $) 2006 68,105 million 2,270 million $) 2007 71,460 million 2,382 million $) 2008 77,705 million 2,590 million $) 2009 63,009 million 2,100 million $) 2010 68,484 million 2,283 million $) 2011 70,487 million 2,349 million $)
  • 31. Points for Development Consideration From 2001-2006 Domestic Sale = 85.97 % International Sale = 14.03%  What does this tell us about development?  What development approach should we take to strengthen rural or grassroots economy?  Or How should we approach to the development of grassroots community?
  • 32. • Product Classification System for Standard and Quality • The system has Criteria & Indicators.
  • 33. 5-star product 4-star product 3-star product 2-star product 1-star product
  • 34. 1-star (below 50) 477 products 2-star (50-69) 2,654 products 3-star (70-79) 2,904 products 4-star (80-89) 3,498 products 5-star (90-100) 1,449 products Total 10,982 products
  • 37. OTOP Village Champion: OVC P-People P-Place Community can become a tourist People participation attraction. 4 Ps P-Product P-Preservation Existing prominent OTOP products in a community. Community can maintain its local identity. 4-Ps for Community Strengthening
  • 39. OTOP Mobile to the Factory/ Department Store/Supermarket OTOP Delivery OTOP 2 Countries Relations OTOP Distribution Center (DC) Excellent knowledge of Thai heritage to the world stage Young OTOP Exchange Program to ASEAN International Young OTOP Champion Camp
  • 40. Existing social capitals – groups & local wisdom Government’s Commitment - National Agenda Agency Integration – Effectiveness People/ Community Participation Focused Policy on Grassroots Economy Sufficient and Competent Government Field Workers  Knowledge Based Development of Products  OTOP Brand      
  • 41.  Maintaining Standard & Quality  Continuing Production for mass order  Entrepreneurship Development  Marketing Expansion  Competitive Advantage – Brand & Image  Knowledge Based Development of Products (Technology)
  • 42. Needed Support  Packaging Design  Entrepreneurship Training Program for Entrepreneur & Officer  Web Design & Technology  Food science Technology
  • 43. Q&A Thank you for your attention