The objectives of this research were i) to study marketing channels for timber produced by smallholder farmers, ii) to analyze margin distribution and efficiency of local timber marketing systems, .iii) to analyze market integration through vertical price correlation and price transmission elasticity, iv) to identify the main problems faced by farmers and market agents, and v) to identify the opportunities to improve market linkages between farmers and market agents. The research was conducted in late 2000 in Lampung Province. The six districts selected for the study have significant timber production at both the farmer and industrial forest plantation levels. Analysis methods were qualitative (for market organization) and quantitative (for marketing margin, price correlation coefficient, price transmission elasticity, and econometric (simple regression)). The timber species that dominate local timber marketing channels are teak (Tectona grandis) and Sengon (Paraserianthes falcataria), a long-rotation premiumquality and short-rotation low-value timber species respectively. Two timber marketing models exist, one for jati and one for sengon. Other timber species produced in the study area are marketed through either the jati or sengon model, based on their rotation length and value. There are six marketing channel for farmer-produced timber: (1) farmer local household/final consumer, (2) farmer chainsawer final consumer/household, (3) farmer chainsawer furniture maker, (4) farmer sawmiller trader household and furniture maker, (5) farmer chainsawer trader furniture maker and household, (6) farmer trader from outside of province (Jakarta). The marketing channel for plantation timber is direct from plantations to forest industry companies. Margin distribution analysis for the sengon timber group shows that farmers receive the highest price level by selling sawn lumber through marketing channel 1 (Rp 350.000/m3 of sawn timber, representing a 51% profit margin). For the jati timber group the highest price margin is received by farmers through marketing channel 6 (Rp 550.000/m3 of logs, 35% of the log price in the Jakarta).
Publication year
2004
Authors
Tukan, C.J.M.; Yulianti; Roshetko, J.M.; Darusman, D.
Language
Indonesian
Keywords
marketing, timber, price elasticities, tectona grandis, paraserianthes falcataria, tectona grandis, paraserianthes falcataria
Geographic
Indonesia