GOSPEL HOUSE HANDICRAFTS

Marketing Fair Trade Products

Gospel House Handicrafts (GHH)

Start: 1983

Field of action: Madampe, Sri Lanka

Members: about 90 young workers

Gospel House Handicrafts is a small enterprise that manufactures a wide variety of objects, in particular, objects made of wood. It offers training programmes and employs about 90 young adults in the context of fair trade. In fact, giving young adults the opportunity to earn a fair salary, in good working conditions, allows them to regain their dignity and self-esteem. GHH works with the International Fair Trade Federation (IFAT) and the Asian Fair Trade forum (AFTF).

Recently, GHH was able to invest in new machines and extend its production and its storage space. The lack of trade outlets in the fair trade market, however, prevents GHH from employing more young adults.

Most of the Gospel House puzzles are made from Albizia Falcataria wood, an exotic tree species that is grown near tea plantations to protect these from the violent winds typical for Sri Lanka. This tree holds the record for growth: it can reach 7m in just over a year, 21m in four years and 30m in ten years. Because of its superficial roots, the Albizia are cut when they are about eight years old, because from this age on they present a danger to the tea plantations and are less resistant to typhoons. Our partner uses a raw material that in no way damages the forest and that can be recycled.[1]

Gospel House Handicrafts responded immediately to the national crisis caused by the tsunami in 2004. In just a few hours, it sent the first of a series of trucks filled with food, water and other emergency supplies to the worst-hit areas. After consulting other organizations using the local contacts, and the families affected, Gospel House also organized a number of long-term development projects in the district of Tangalle. They worked with the villagers, encouraging them to form cooperatives, and provided the seed capital for a large number of income-generating programmes. Money was also made available to buy the grounds and to build houses.[2]

Context

GHH is located in a province in the north west of Sri Lanka. The village of Madampe is remote and the lack of attention from the government has put it in a situation of extreme poverty. This is particularly true as regards the educational system that offers no support to the youth. The rising unemployment rates lead to devastating effects on the local economy and the crime rate is increasing.

The economic instability of Sri Lanka and the recent abolition of a quota system have destroyed most of of the exports from Sri Lanka due to lack of competitiveness.

The fair markets also suffered so that GHH had to turn to the conventional markets to maintain its level of activity and of sales. If Gospel House wants to survive and show a certain profitability, it will have to direct its activity and its products at the needs of the market. It should also reduce its dependence on fair markets and improve its position on the conventional market.

Attending international trade shows

To meet their objectives, they would like to be able to attend large and well-targeted commercial events and exhibitions, first, to serve the existing customer base and, second, to identify new customers. This would allow increasing the order book of the fair and conventional markets and creating a worldwide network of regular customers.

The aid is given, therefore, at the preparation stage of these events which require effort in supervising production, so that it is of a high standard. Efficient marketing tools (brochure, catalogue, business card, samples, Internet site, etc.) are also a necessity.

The ultimate goal is to promote GHH and its products internationally and thereby be able to offer, on a long-term basis, employment to the young adults in Madampe who are marginalized.

[2] Source : Ten Thousand Villages