About a year or so ago, the cost of
reed from my supplier was $6.99 per pound. Over the course of the year since,
reed prices have steadily increased, and when I checked a few days ago, reed was
up to a whopping $8.79/pound!
Coupled with the unbelievable increase
in shipping costs, I found myself concerned over the future of basket weaving
in America. I'm sure I don't have to explain to you the effect sharp price
increases in a struggling economy would have on a small basket-weaving business,
let alone not being able to readily get the raw materials needed.
This led me to investigate what exactly
is behind this shortage and consequent increase in the price of rattan reed.
One supplier mentioned shipment problems from China.
I
found several articles that report an Indonesian ban on the export of raw
rattan materials effective around the beginning of 2012.
You can read one of the articles here.
Since around 85% of the world's
consumption of raw rattan comes from Indonesia, this seems to be the most
plausible explanation, and would also explain why China cannot fill the demand
for reed at this time (China imports from Indonesia, then exports to the United
States).
I
believe that destruction of rain forests has contributed to the decision by the
Indonesian government to keep its supply in-house, and to only export finished
products made in their country that use rattan (rattan furniture is a big one
for them).
I
also read that the Indonesians have initiated a cultivation program for rattan
in an effort to safe-guard the long-term supply.
Based on what I found, I am not holding
out much hope that reed prices will drop anytime soon, or that it will become
any easier to obtain supplies of reed.
The Indonesian ban is in place for at
least the next two years.
All of this calls for a need to find
ways to reduce waste, conserve reed, or perhaps try using other more readily
available materials for weaving.
It used to be that using wood slotted
bases added significantly to the cost of a finished basket, but it is definitely
one way to use less reed!
Do you have any cost-cutting ideas?
What have you heard about the reason behind the rattan shortage? I'd love to
hear from you!