Profitability and Market Chain Analyses of Sumatera Benzoin at Sampean Village District of Humbang Hasundutan North Sumatera Province

Exas DL Gaol, Bintang C Simangunsong

Abstract


Sumatera benzoin is one of Indonesia’non-timber forest products and traditionally produced from Styrax community forest. This community forest has not been intensively managed due to lack of farmer’s market acces and its fluctuated gum prices. Profitability and market chains of benzoin bussines was then analysed. Fifteen farmers at Sampean Village - one of the Sumatera benzoin producer centres - were interviewed and observed. The average of forest area managed by a farmer was about 5 ha with gum production of 201.6 kg per year. The annual production cost and profit of a farmer were estimated about Rp. 4.99 millions and Rp.10.47 millions, respectively. When farmer’s labour was taken into account as a variable cost, the farmer’s profit would drastically decline to Rp. 1.47 millions per year, which was much lower than farmer’s income generated from padi or coffee plantations. Two type market chains of Sumatera benzoin were also identified: a main line and a secondary line. The secondary line was found as the most efficient market chain with value of Rp. 43000 per kg and had the highest farmer’s share of 69%.


Key words: market chain, non-timber forest products, production cost, styrax forest, sumatera benzoin


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