Analysis of the Value Chain and Economic Contribution of Betel Nut Trade (Areca Catechu L.) in Jayapura City

Abstract

This study aims to analyse the value chain structure and the economic contribution of betel nut (Areca catechu L.) trade in Jayapura City, Papua. The research uses a mixed-methods approach with primary data obtained from 55 respondents consisting of farmers, collectors, and retail traders selected using the snowball sampling technique. The analyses used include Value Chain Analysis (VCA), marketing margin analysis, Hayami method value-added analysis, business income analysis, and household income contribution analysis. The research results show that there are four marketing channels for betel nuts, with the three-tier channel (farmers–collectors–retail traders–consumers) being the most dominant. The marketing margin analysis indicates that retail traders obtain the largest margin, while farmers receive the lowest price share with a farmer’s share of 37.65%. The value-added analysis shows that although farmers generate the highest proportional value-added, the absolute economic benefits are more accumulated by the intermediaries due to the low prices at the producer level. Business income analysis shows that all value chain actors operate economically viable businesses (r/c ratio > 1), but there is significant income disparity among the actors. Betel nut trade contributes significantly to household income, ranging from 47–64%, which underscores the important role of this commodity as a livelihood source for the local community. This study concludes that the betel nut trade in Papua has high economic as well as socio-cultural value. Therefore, policy interventions need to focus on strengthening farmer institutions, post-harvest innovations, and improving market access to create a more equitable value distribution in the areca nut value chain