Journal Name : Journal of Sustainable Forestry |
Volume : - | No. : - | Year : 2017
The commercial opportunities for sengon (Paraserianthes falcataria L.Nielsen) are expanding rapidly in Indonesia, but there remains a lack ofsupply 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 bene?ts 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 speci?c market segments and make forestry a more pro?table 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.