Roles of contract farming in agricultural transition in Thailand
1999
Ari Wibunphong | Songsak Sibunchit | Phruk Yipmantasiri | Kuson Thongngam (Chiang Mai Univ., Chiang Mai (Thailand). Faculty of Agriculture. Multiple Cropping Center)
When the Thai agriculture has gradually changed from export of raw materials to export of more value added goods through the development of agroindustries since the Sixth National Economic and Social Development Plan, contract farming is seen as a promising means of achieving fair benefit for both farmer producers and industrial firms. However, as the case study of contract farming development in Chiang Mai has revealed, both farmers and industrial firms have to change the perception and readjust according to the social-economic setting but keep the production competitive in the international market. The successful cases have indicated that beside the specificity of the agricultural product, the firms are able to secure the export markets, to negotiate the acceptable price, and are able to identify potential producing areas, to organize target farmers, and to disseminate information and technology to the farmers. As far as the farmers are concerned, they have to change from productivity oriented to a more quality oriented production strategy. The change requires a concerted effort by both governmental extension agents and the firms' field supervisors. Farmers' goals, technical as well as. The Thai agricultural policy emphasizes the promotion of exporting high value added, high quality products. The implementation requires high capital investment and technical skills, contract farming is seen as a promising approach to achieve the goal, with given conditions as discussed.
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