Marketing Chain and Power Relation on Black Magic Wood (Agarwood) Commodities in Lombok Island

Abstract

The global demand for agarwood (Gyrinops verstegii) is immense, hence the market price is skyrocketing. Sapwood (gubal) is the most valuable derivative product of the agarwood commodity. However, such derived compounds are not without value. White aloeswood, which is then processed into black magic wood (BMW), is one of the items that was once deemed trash but eventually saw tremendous demand. The purpose of this research is to investigate the flow of transformations in products from beginning materials to BMW manufactured products, the added value gained by every involved party, and the power relations among the parties in the BMW value chain. Data was gathered through observation, in-depth interviews, Focus Group Discussions (FGD), and document analysis. All the data was analysed descriptively. Several key results were achieved from this research: (1) commodities transformed from raw materials to finished products: wood waste carving→ making of imitation carving→ imitation carving processing→ finishing → BMW products. (2) The biggest benefit gained by upstream players and leaving farmers and craftsmen behind. (3) The power relations among the parties revealed that large business actors control power and profit. Farmers and craftsmen only offer cheap wage labour in the midst of BMW industry with multiple profits.