Value chains and market analysis for the potential commodity of Tuah Tani Tonggak Negeri forest farmers group

Abstract

The pattern of community involvement in forest edges has become a new trend in forest area management. KHDTK Kepau Jaya deployed a collaborative peat forest management program through the empowerment of the Forest Farmers Group (KTH) Tuah Tani Tonggak Negeri in a conservation partnership scheme. Therefore, the types of commodities with the most expanse potential were then identified. Furthermore, it was necessary to analyze the market chain, supply chain, and value-added from the potential commodities. This study employed a qualitative descriptive SWOT analysis while the market chain and value-added were analyzed by using value chain analysis by the Hayami method. The results found that red chili was the most potential commodity to be cultivated in the area of KHDTK Kepau Jaya by the KTH. This commodity had a turnover of IDR 47,000,000. The levels of the marketing chain were generally simple. Even though the biggest profit was obtained by UD Anugrah Tani, in this case, the largest percentage of added value per unit commodity was obtained by the farmers. The total value added in the first and second supply chain types were IDR 52,250,000 and IDR 4,562,000, respectively.