Market for timber and non-timber products

Aulia Perdana

Producer characteristics

• Sells what is produced, not producing what sells

• Lacking business/entrepreneurial skills

• May not meet market requirements and demand

Question: Is there a market for products with

– Low quality

– Low added value

LINK methodology: A participatory guide to business models that link smallholders to markets / Mark Lundy, Gertjan Becx, Nancy Zamierowski, Alexandra Amrein, Jhon Jairo Hurtado, Erika Eliana Mosquera, Fernando Rodríguez. -- Cali, CO : Centro Internacional de Agricultura Tropical (CIAT), 2012. 171 p. -- (CIAT Publication No. 380)

ACIAR Projects

• FST/2011/076

– Enhancing livelihoods and food security from agroforestry and community forestry in Nepal

• FST/2012/039

– Development of timber and non-timber forest products’ production and market strategies for improvement of smallholders’ livelihoods in Indonesia

Characteristics of markets and sellers

Traded commodities and products

Commodities Plant oils and polysaccharides Vegetable & fruits Edible mushrooms Cardamom, turmeric & spices Gnetum gnemon (melinjo) Goat meat & milk Wild forest honey Silk Stimulants Sallo timber & small bamboo Basketry Honey Dyes and mordants Aromatics Furniture

Participatory Rapid Market Apprasial

Identify market structure and characteristics in relation to the production system, harvesting, post-harvest processing and marketing practices, Characterize the product flow along the value chain, identifying added values, chain actors and their roles, price structure and margins at each chain actors Analyze constraints and opportunities for change

Recommendations

• Market targeting, segmenting, differentiating

– existing customers, competitor customers, non-buying in current segments, new segments

• Product development

• Market testing