Buyers Market

It’s a buyer’s market. Since December 2010 it has been an uncontrolled down slide of price. Price from 33,000 for a kilo had reached 15,000 for a kilo. Farmers are getting the whole pressure down the line in this supply chain. Gambier prices can again come down, Even though the Gambier production had a considerable drop, it can’t match up with the reduced demand.  

The suppliers and big collectors of Gambier where expecting that the Gambier prices will not drop below 18,000 idr/kg, as it would be difficult for the farmers to survive. But what we saw was that the farmers still survive and still make Gambier. In kapur ix 80-85% and pasair selatan 60% of the farmers are working for Gambier.  In Kapur ix the farmers have no other alternative other than to make Gambier. Yes there is rubber and palm, but not all Gambier farmers can convert themselves for these commodities. Only around 10-15% of Gambier farmers can work in palm and rubber plantations. The other farmers have to make Gambier for their livelihood. In Pasasir Selatan, the situation is different, when the Gambier prices where high last years a lot of fishermen, paddy farmers started doing Gambier, for them to change back to their previous work fields would be easy.

Quality of the Gambier tends to improve a bit due to the less demand. As farmers very well know that it would be difficult for them to sell if the quality is bad. Suppliers and collectors are pressing the prices as they don’t know what would be the prices for the coming week.

Although Local news papers are reporting continuously about the drop in Gambier prices and its consequences among the farmers. the farmers are hoping that the prices to go by July 2011.