Market development of local peatland commodities to support successful peatland restoration

Abstract

Peatland degradation and community livelihood are often driven by market forces. Successful peatland restoration including community livelihood improvement programs is therefore highly correlated with market development of various local peatland commodities that are introduced to replace fire-using farming activities. However, since the development of local peatland commodities is often under subsistence marketplaces, investigation of their market is not attractive and has received little attention. This paper investigates the market structure of the local peatland commodities developed by the local community under peatland livelihood programs using Rapid Market Appraisal (RMA) technique and market structure analysis to quickly draw challenges and opportunities of market development of peatland commodities. We also analyze a business model applied by the local community, particularly their strategy to adapt to market dynamics and to secure market competition. The information is essential to serve as a basis for formulating appropriate interventions needed to develop a more established market of local peatland commodities, which as a consequence will prevent peat forest conversion. The investigation finds that at least three types of peatland commodity market structures are evolving in the research site. Each of them has different challenges and needs different interventions to make the livelihood programs more sustainable. Meanwhile, the local community is more oriented towards sales than the marketing of peatland products. They have not prepared a specific strategy yet to adapt to and win the dynamic market competition. It needs significant efforts to change its business culture if relevant stakeholders intend to develop the local peatland commodity market as a part of peatland restoration and community livelihood improvement programs.