Pro4ucta diventfication ia a mutegic tlecmon for integrated fore« indratry a it will contribute added value either in terms of income 1eneriltion or creation of employment, and to improve raw materiala. utilization and to b~n rmrket opportunitin.7b He the impact of product diversification a dudy waa conducted at an integrated teak aawmill in Cepu, Central •.liva. TM •average annual UH of lo1• are 21,896.16 cum oonmting of l 9,!69.46 cum (99'£) f0r •wmDl and•J,117.80 cum• (10%) for verae-r milL TM avmwe produetioR of •wn timber ia 9,681.48 cum per year ooverift6of the espo~ quality grade (COS), domedic quality grade~ and raw materialafor further proce• with volume• 1,190 •.03 cum (74%); 1,317.80 cum (14"), and 1,119°.66 cum (12%), re•pectively.The average production of veneer u 1,394.868 cum per year cona.ting of the. esport quality lftlde 121.076 cum (9%), domatic quality 180.970 crim (18%), induatrialmaterial 200.189 cum (14%), and dock 892.078 cum (64%). The amaunt of •raw materiai. oonaumedfor ,Parquetteand moulding factories on averageis 8,318.86~ cum ,,.r year. 7Jle additional production oosn of other woodproceaed products (veneer, ~quette, moulding) on averafe ia Rp ~186,816,483 per year with the coefficient variation around 10%. The averageadditional income before ma generated ia Rp 886,234,808, per year, w.ha.t the additional employment opportunitia created are 262 or 18,600 rnanday• or 660,200 manhoura per year.
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