Rubber market chains in Indonesia

Rubber (Hevea brasiliensis) has generated substantial profits to communities living near forests in many countries. In Indonesia, rubber producers have taken advantage of international demand, national development schemes, and high competition among wholesalers working for processing plants.

Supported by local authorities, they organise auctions for the entire production of some villages. This has many benefits; wholesalers reduce their collecting costs and farmers get better prices. This practice is also a strong incentive for communities to organise themselves effectively. Conservationists are concerned, however, about the loss of biodiversity as communities convert mixed rubber agro forests into monocultures.

This practice also presents risks to producers:

• Industries using rubber complain about decreasing quality.
• There are risks for producers relating to possible global market changes, such as product substitution or competition, as shown by the recent drop in global rubber prices.

Patrice Levang
IRD-CIFOR, PO Box 0113 BOCBD, Bogor 16000, Indonesia.
p.levang@cgiar.org