 Good morning. It is 10 o'clock and we are Tuesday, so it's our second edition of Science at 10. Today we have Dede Rwadi. Dede is for the seconded scientist in C4 and he's going to talk about value chain and how to improve the value chain related to timber in Indonesia in how many? Seven districts? Five. Five districts? Yes. And this is an ongoing research and I'm sure that Dede will be interested by any suggestion you can make to him, so please. Thank you, Rubens. Good morning, everyone. I'm honored to be here and to give some talks to you. I'm going to deliver some of the key findings of the ongoing nearly complete research project actually funded by ACR. It's about the community-based commercial forestry and when I mean with the community-based commercial forestry in practice is the small-holders plantations, small-holders timber plantations and mainly in their private lands. Although this project actually cover all other community forestry schemes like Hutan Kemasa Rakatan in Indonesian terminology, but since they are not currently produced timber commercially so most of the data that I want to present now is based on the private-owned small-holders plantations and this project will be completed by the end of this year and there are some activities but I would like to focus on the value chains on this aspect and first I think I need to read this what I mean with the value chains is we use the terminology that's developed by DFID. It's a context range of activities carried out by various actors so it's include the timber growers, windowmen, processors to produce raw materials, logs and to transform these the final product that is sold to consumer. So my research mainly focus on the small-holders so the timber growers and then to middlemen and to processors of course if you are looking if you are trying to understand about the value chain it could be unlimited up to the exporter but I'm focused on the small-holders because what we are going to do is how can we improve the constraints that can be still faced by small-holders. If you look at in Indonesian situations there are lots of small-holder plantations but they still have serious problems so they are not not really moved towards the commercial plantation due to various problems because of limited market information because of weak bargaining positions of farmers when they are building in timber marketing transactions. So we did the research in five districts in Indonesia two in Java in Gunung Kidul in Patti we are dealing with ticks the valuable timber species slow growth and the other one is Sengon Paraseriantes vulcateria it's in Patti it's fast growing species and in outside Java we collected data from Zumbawa in West Nusrat Tenggara and also in two in two districts in Sulawesi one in South Sulawesi and one in Konawa Selatan in Southeast Sulawesi. So when we are studying the value chains we are studying about the actors who are the market players on the value chains and what are their sellings what is the price the volumes and what is the relationship between the small-holders the timber growers and the middlemen and also with the processors like sawmills either in the village level and the district level. We did the data collection with partners from various institutions from University of Gajamada and Forda in Makassar and also in Bogor and also from Australian National University so I with my colleagues from NU lead the project we set together the questionnaires the methodology and then our partners did the data collections I must have also visited some of the places and then we convened the workshop to verify and validate the result. So this is some of the key findings from our study first if you look the if you look the timber markets small-holder timber market in the regions they are various price according to quality for example for TIC we can have the price starting from about 500 000 per cubic up to 5 million per cubic so it's very huge variations and this is due to quality which is mainly based on the diameter the size and also the timber quality. Similarly in Saigon in in Paracir into Spakateria the price start from 400 000 cubic up to more than 1 million so actually they are the potential for small holders to get the better price if they could do that but if you are looking the current situations most of farmers their the selling price is 10 toward the lower price for example TIC in the five regions the range between 800 to 850 000 per cubic and why because first because the timber quality usually low diameter usually small and they have a lot of defects that's in in terms of the quality and second in most situations farmers sell timber not in the form of logs but they sell trees so it means that also they have some limitation on estimating the the volume of the trees so they they are much rely on the middlemen to measure the trees and the third because the the way the farmers now in their business they selling timber when they need urgent forecast so that wise in in the sentiment we call that the typical system for small holders is the bang butuh the bang butuh it means they cut the trees where they need money or maybe you can say less forecast and that's weakening the bargaining positions of farmers because in practice when when farmers want to sell the timber they don't really care about the price they don't really care about the quality but they really care about the money that they will need and then they counting which timber they are going to sell to the middlemen so that's the situations uh what the consequences now if we are looking the timber business in small holders they plan in java for for example actually the the area is expanding the timber growth is expanding it means that the benefit is there for the small holders but actually they can do better they can get more profit if they have more little bit about the market orientations so this is the the the point that we would like to to rise to the farmers because we want farmers to invest more in timber plantation there are a lot of land to be planted and there are a lot of opportunity of market we are also studying the market structure in if we compare in java in outside java there's very big difference in java most more or less the the the market is established so we can see we can find a lot of buyers middlemen at the village level but in sumba for example maybe we can only have two or one middlemen in the village so also let's reduce the the option for for small holders to sell their the timbers so that's why uh market is more competitive in java compared to outside java uh maybe that's also why even though the government of indonesia already introduced various schemes on timber plantation like htr the government set aside five million hectares for htr but there are almost very limited area really planted by small holders one of our case study in konawa islawan for example in 2009 the community granted about 4 000 hectares of happy air that's for plantations for productions but up to now maybe only 25 hectares already planted and that also due to assistance from ngo's not really started by the small holders so i think there is something there that the timber business is not really okay not really uh interested by the farmers and there are also uh some regulation that may hindrance the small holders due to timber transaction cost timber transport documents because they have to provide that although it is uh government not not really taking money from that but the they go aside for showing the timber transport document uh rise the transaction cost for farmers so i think uh the conclusion that we we could find we can address here uh we can help actually small holders to improve the benefit uh from timber plantation business from the current situation if we can convince farmers to improve the management in timber uh plantation for example uh they can do thinning for example they can do pruning because they are a lot of timber uh actually uh the time for for prune but they are not not really care about pruning uh because they they don't really think that market will respond positively to the to the airport so uh this is what we're trying in the project we are trying to convince small holders bringing them to to sawmills directly and to show this is the price differences this is the quality differences and you can do this you can produce clear timber bigger size diameter timber if you can do thinnings pruning et cetera so we also introduce this very small and practice tools this is the tape with this we can measure diameter height and we can also determine the basal area different little bit different with the uh method that usually used by academicians but from these tools we can uh teach farmers they can select which timber they are going to uh to maintain for for bigger size and then from that point they can start uh that determine the basal area then can decide which timber that should be thin and i think it's it's very practical tools and that's maybe one of the recommendation to the extension agency in Indonesia if you can convince farmers by by uh bringing them to market and also teach them how to improve their timber management thanks thank you the main message