Understanding the timber value chain in community-based forestry in Indonesia: Analysis of sengon in central Java

Setiasih Irawanti; Digby Race; Hugh Stewart; Nunung Parlinah; Aneka Prawesti Suka

doi:10.1080/10549811.2017.1381029

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Understanding the timber value chain in community-based forestry in Indonesia: Analysis of sengon in central Java

Journal article

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Understanding the timber value chain in community-based forestry in Indonesia: Analysis of sengon in central Java

Setiasih Irawanti, Digby Race, Hugh Stewart, Nunung Parlinah and Aneka Prawesti Suka

Journal of Sustainable Forestry, Vol.36(8), pp.847-862

2017

DOI: https://doi.org/10.1080/10549811.2017.1381029

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Abstract

commercial tree growing

market pathways

sengon

smallholders

small-scale farmers

The commercial opportunities for sengon (Paraserianthes falcataria L. Nielsen) are expanding rapidly in Indonesia, but there remains a lack of supply for the processing industry of the desired volume and quality of timber for processing from this fast-grown tree. This article discusses recent analysis of the value chain of sengon in Indonesia to determine (i) who the stakeholders were and how each added value, and (ii) how the benefits were distributed among stakeholders. Information was collected from a mix of farmers (as tree growers) and other actors involved in the value chain. The research revealed two broad types of value chains for sengon-'direct' and 'traditional', with the potential increased income for farmers being as high as 35% when they use the direct approach, compared to the traditional approach. As expected, the further 'downstream' the position of the stakeholder in the value chain, the greater the monetary value added to the sengon timber and subsequent products. If farmers were to acquire a greater understanding of the market dynamics for sengon, they could better target the sale of their forest products to specific market segments and make forestry a more profitable enterprise. While village traders in the traditional value chain play an important role connecting small-scale tree growers to commercial markets, the sustained viability of their role is uncertain if more farmers adopt the 'direct' approach.

Details

Title: Understanding the timber value chain in community-based forestry in Indonesia: Analysis of sengon in central Java
Authors: Setiasih Irawanti (Author) - Ministry of Environment and Forestry, Indonesia
Digby Race (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
Hugh Stewart (Author) - University of the Sunshine Coast - Faculty of Arts, Business and Law
Nunung Parlinah (Author) - Ministry of Environment and Forestry, Indonesia
Aneka Prawesti Suka (Author) - Ministry of Environment and Forestry, Indonesia
Publication details: Journal of Sustainable Forestry, Vol.36(8), pp.847-862
Publisher: Taylor & Francis Inc.
Date published: 2017
DOI: 10.1080/10549811.2017.1381029
ISSN: 1054-9811
Organisation Unit: Tropical Forests and People Research Centre; University of the Sunshine Coast, Queensland; Forest Research Institute
Language: English
Record Identifier: 99450560802621
Output Type: Journal article

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Collaboration types: Domestic collaboration; International collaboration
Web Of Science research areas: Forestry

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