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

Rattan farmers grow rattan as one of the several crops; rice is by far the most
important food crop, along with bananas, vegetables, root crops and rubber. Farmers
plant rattan seeds along with rice in a newly cleared swidden field, or after the rice
is established. Practices vary even within a community. The rattan seedlings are
protected during the 1-2 years that the field is used for rice cultivation (after that the
field is left fallow). The rattans used are multi-stemmed, small-diameter varieties that
lend themselves to multiple harvests. This is a good strategy as the establishment
time for rattan is fairly long, but once the rootstock is established stems can be
harvested regularly (typically every 2-4 years). Rattan provides more than 75% of
some farmers' cash income. Farmers typically wait for an order from a trader, and an
adequate price, before harvesting.
There are two levels of traders. A few of the rattan farmers in towns and villages
in the rattan-producing areas do some trading. They accept orders from regional
traders and purchase rattan from other farmers in their area to supply the order.
These village traders may have some rudimentary storage facilities. In some cases
they deliver the rattan to the regional traders (or, rarely, to a manufacturer) or the
regional trader may pick it up from them. The village traders may do some sorting.
The regional traders tend to have long-term relationship with one or a few
buyers. They also maintain relationships with a number of local rattan traders whom
they can contact to arrange for cutting and collection of rattan on order. These traders
normally provide the transportation, arranging for collection from the local traders.
They also frequently provide advance money for the orders placed, arrange the
necessary transport permits, and pay the official and unofficial charges required for
transporting the material. Traders have to pay a Forest Product Royalty (IHH),
irrespective of the source ---- whether forest or plantation ---- of the rattan they procure.
It is likely that the burden of this payment is passed on to the farmers in the form
of low prices for their rattan produce.
Most of the rattan from the gardens in Kalimantan is used to make lampit. The
main market, for over 90% of the production, is Japan where it is sold as tatami, the
traditional floor covering. In addition to the lampit a number of other rattan-based
products are manufactured in the area. Most are woven products, including various
types of mats and webbing (from peel). Lampit is the most important product. In
1993, there were 53 lampit enterprises in South Kalimantan employing over 12 000
people. Lampit manufacturers are concentrated in two cities in South Kalimantan
---- Amuntai and Banjar Baru. They range in size from small family-based enterprises,
through and several with 40-70 workers, up to one with 145 workers. Some do all
processing and manufacturing in-house, while others perform parts of the processing
procedure on a sub-contract basis. The sub-contracting is often undertaken by families,
in their homes.
The market functions in a very top-down way ---- the manufacturers typically
place orders for raw material through regional traders, who in turn place orders with
village traders, who organize local farmers to supply it. The price seems to be
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