The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

For example, rattan cutting permits are available to a range of applicants, including
Indigenous Cultural Communities (ICCs), cooperatives, private individuals,
corporations and rattan gatherers associations. Gatherers' associations have been
established in many places to enable gatherers to apply for permits. Some of these
associations have taken up marketing responsibilities and, in some cases, perform
some semi-processing.
There are two levels of traders involved in getting rattan from the permit holders
to the semi-processors and manufacturers. There are small-scale local traders who
normally deal with just one or very few permit holders. These traders handle a fairly
small volume. Their sales are to small manufacturers in their area, or to larger,
provincial traders. Larger provincial traders buy from permit holders or from local
traders and sell directly to semi-processors/retailers or manufacturers. They normally
have higher capital availability, pay their suppliers in cash and are paid in cash by
their buyers. Most have regular business partners, though some spot sales do occur.
The larger traders have large stockyards and storage facilities, vehicles and semiprocessing
machines, and even employ full-time administrative staff, and other regular
and contractual workers.
Transactions between raw material traders and semi-processors or finished
product manufacturers are more competitive than transactions at earlier stages in the
PCS. The provincial traders often have several customers and so they have bargaining
power. Even so, strong business relationships dominate the trade. Most transactions
are carried out as bulk sales between established business partners. In some cases,
industrial buyers extend credit or advance payments to traders. Small-scale
manufacturers buy their raw materials from gatherer associations or private permittees
within the town or province that is most accessible to them. Larger manufacturers
require larger quantities of inputs and need to have regular and reliable supplies.
The semi-processing and the manufacturing stages require specialized machines,
such as a polishing grinder or a surface milling machine and rattan peel and core
processing machines. Some private traders and some gatherers associations have
invested in this machinery. In other cases the final product manufacturers buy raw
cane and do all semi-processing and final manufacturing. Numerous small family
enterprises exist, as well as some large and highly mechanized units. Small-scale
manufacturers buy their raw materials from associations or private permittees within
the town or province most accessible to them. Medium- and large-scale manufacturers
buy larger quantities from traders. They have large factory areas and complete facilities.
They employ up to 150 in-house employees, including full-time administrative staff,
plus numerous sub-contractors (up to 600 per firm).
Labor working in medium to large semi-processing or manufacturing unit can
earn wages in the range of P2 000-3 000 per month. Normally this is their principal
occupation. Also, many subcontractors are engaged, especially at peak times. Many
of these people do other jobs as well, but rattan work is the main occupation for
most.
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