Market for timber and non-timber products

This presentation by Aulia Perdana from ICRAF given during the Forests Asia Summit in the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" shows producer characteristics, characteristics of markets and sellers, traded commodities and products and recommendations.

1. Market for timber and
non-timber products
Aulia Perdana

2. 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

3. 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)

4. 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

5. Characteristics of markets and sellers

6. 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

7. 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

8. Recommendations
•Market targeting, segmenting, differentiating
–existing customers, competitor customers, non-
buying in current segments, new segments
•Product development
•Market testing