INTRODUCTION TO ENGLISH LANGUAGE TEACHING BY ROHADI, M.Pd [email protected] .
THE VALUE CHAIN OF TEAK GROWN BY … · THE VALUE CHAIN OF TEAK GROWN BY SMALLHOLDERS: LESSONS FROM...
Transcript of THE VALUE CHAIN OF TEAK GROWN BY … · THE VALUE CHAIN OF TEAK GROWN BY SMALLHOLDERS: LESSONS FROM...
THE VALUE CHAIN OF TEAK GROWN BY SMALLHOLDERS: LESSONS FROM INDONESIA
IUFRO 3.08, 11-15 October 2015
Dede Rohadi, Hugh Stewart, Tuti Herawati, Digby Race
Presentation outline :
Background Methods Actors in smallholder teak value chain
system Marketing chain Smallholder selling prices Collective marketing Conclusion
About the study• Part of ACIAR funded project (FST/2008/030) - CBCF• Focus on value chain improve benefit for smallholder
teak growers
Teak produced by smallholders
Teak produced by state owned company
National timber production
2012 2013
1.32 0.40 3.43 0.43
4843
Teak log production (million m3):
• Why teak?
5
Value chain approach
KEY
QUESTIONS
Distribution
of benefits
Opportunities
to ‘upgrade’
Source: ILO (2009), p. 26.
1. ACTORS – ‘market players’ within and outside the value chain
2. ACTIVITIES – identify specific activities of different actors
3. RELATIONSHIPS & LINKAGES – between actors
4. TRANSFORMATION OF PRODUCTS – products at each stage
5. VOLUME OF PRODUCTS, NO. OF ACTORS & NO. OF JOBS
6. VALUE AT POINTS ALONG THE VALUE CHAIN – costs & profits
7. GEOGRAPHICAL FLOW OF PRODUCTS – ‘global’ market
8. SUPPORTING FUNCTIONS – knowledge &information flows
9. RULES & REGULATIONS
Mapping the value chain
Forest
productionHarvesting Transport
Middleman
traderProcessor Wholesale
Retail
Export
Value chain models (3 models, 7 cases)
1. Individual Growers Brokers Processors
(Model 1)
2. Individual growers Group of Growers Brokers Processors (Model 2)
3. Individual Growers Brokers Processors
(Model 3)
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Mapping the value chain
Actors in smallholder teak value chains
Category Actors Roles
Tree Growers
1. Individual farmer • Grow trees• Sell standing trees
2. Farmer Group • Hire middlemen to harvest trees, process, sell logs or squared plank
Brokers 1. Informants • Connect growers and brokers (paid by fee basis)
2. Middlemen • Harvest trees into logs• Transport and sell logs
3. Traders • Buy and re-sell logs• Process logs into sawn timber
Processors 1. Sawmills • Buy logs, process and sell sawntimber
2. Wood based industry
Buy logs or sawn timber and process into wood based products
Marketing chains
Gunungkidul: Model 1 (Case 1); Model 2 (Case 5); Model 3 (Case 7)Konawe Selatan: Model 1 (Case 4) and Model 2 (Case 6)
Model 1: Individual growers – Brokers (Middlemen) – ProcessorsModel 2: Individual growers – Group of Growers – ProcessorsModel 3: Individual growers – Group of Growers – Brokers – Processors
Value chain model Case Study Location Product(by ind. growers)
Price (IDR/m3)
Model 1
(Grower-Broker-Processor)
Case 1 Gunungkidul Standing trees 848,439
Case 2 Sumbawa Standing trees 800,000
Case 3 Bulukumba Standing trees 808,671
Case 4 Konawe Selatan Standing trees 536,500
Model 2
(Grower-Group of Grower-Processor)
Case 5 Gunungkidul Standing trees 1,340,270
Case 6 Konawe Selatan Squared plank 1,750,000
Model 3
(Grower-Group of Grower-Broker-Processor)
Case 7 Gunungkidul Standing trees 1,642,640
Prices of smallholder teak in different value chain models
0
1
2
3
4
5
6
Log price (IDR million)
< 13 13-22 23-30 > 30 > 45 > 54
Log diameter (cm)
Relationship between log diameter and price
Model 2
(Grower-Group of Grower-Processor)
Case 5 Gunungkidul 1.34 0.85 58
Case 6Konawe Selatan
1.58 0.54 194
Model 3
(Grower-Group of Grower-Broker-
Processor)
Case 7 Gunungkidul 1.64 0.85 94
Collective marketing (certification scheme)
Conclusions
1. There is no ideal value chain model for smallholders.
2. Middlemen play important roles in smallholder teak value chain.
3. Tree growers tend to sell small size and poor quality of logs that lead to low selling price.
4. Collective marketing potentially increase benefits to tree growers.