Product Diversification
Urgency about Product Diversification
One of the most significant issues in the construction industry plantation base is weak product diversification, the slow deepening of the industrial strategy or poor development of downstream products. The impact of this fact has been known by researchers, policymakers and even the public at large, that the added value resulting from the industrial base is not the maximum plantation. If it were so, the value added is not enjoyed by farmers as stakeholders in the largest planters in number – and most politically important – because the small elasticity of price transmission mostly plantations and agricultural commodities in the broad sense. In terms of marketing and control of international market share, and agricultural commodities generally suffer from symptoms of a highly asymmetric market structure between international markets and domestic markets. Symptoms of asymmetry is often analogous to a similar phenomenon on the relationship between peasant producers and traders or consumers, as commodity producers ditas plantations are mostly located in developing countries, while consumers downstream oil products in developed countries.
