Functioning of farm-grown timber value chains: lessons from the smallholder-produced teak (Tectona grandis L.f.) poles value chain in Southern Benin

Abstract

The study examined the functioning of the smallholder-produced teak poles value chain in Southern Benin from an analytical perspective combining the governance structure, the institutional environment, and the distribution of consumer price among chain actors. The objective was to identify bottlenecks militating against improved functioning of the farm-grown timber value chains. A fieldwork was carried from August 2008 to September 2010, to identify the agents and the organisations involved in the value chain. Data were collected on the functions performed, the costs borne and the income received by each category of agent, the marketing channels within the value chain, the interactions among agents, the consumption of the product, and the role of the organisations connected to the value chain. This was done by combining semi-structured interviews, focus group meetings, and structured interviews. In addition, data were collected on the institutional environment from both primary and secondary sources. The following agents were involved in the value chain: nurserymen, planters, local intermediaries, brokers, traders, and consumers. The forest service was the main governmental organisation involved in the functioning of the value chain. The governance structure in the value chain was driven by a mixture of government and the market. Various weaknesses were found in the forest policy, the forest regulation and their implementation. Planters’ share of consumer price was lower than traders’ return. The relevant policy options to address these issues were discussed.