Study on distribution channel of longan in domestic and foreign markets
2005
Dollakorn Kuancome(Maejo University, Chiang Mai (Thailand). Faculty of Agricultural Business. Department of Agricultural Business Administration and Marketing) | Jamnian Boonmark(Maejo University, Chiang Mai (Thailand). Faculty of Agricultural Business. Department of Agricultural Business Administration and Marketing) | Pattama Sittichai(Maejo University, Chiang Mai (Thailand). Faculty of Agricultural Business. Department of Agricultural Business Administration and Marketing)
Production of longan was increasing in the last few years. The produces were distributed to both domestic and foreign markets in the form of fresh, dried, frozen and canned longan. Some of these important customers are : Hong Kong, Taiwan, China, Malaysia, Canada, Singapore, United Kingdom, Netherlands and USA. A majority of farmers sold fresh longan to vendors, local and exporter agents. Fallen fruits were sold to dried longan subcontractors, dried longan and canning factories. Pricing for fresh fruits was determined collectively by the merchants visual inspection, while pricing of dried ones was done through longan grading machine. The longan produces was transported primarily by road, followed by barge shipment. In foreign distribution channel, two distribution channels were found in China. The first channel was transit from Hong Kong to China at Nanhai-Li Sui in Kuangchou, the biggest wholesale market in China, then forwarded to other cities within 4-5 days. The second distribution channel was from Klong Teoy harbor (Thailand) to Shanghai (China) within 12 days. Recommended resolutions to prevent longan distribution channels problems were : 1) proactive government roles in longan standard setting, transportation system improvement, quality control management, collective bargaining, merchandise exchange, tariff rate, flexible import regulation including better public relations to interested public, 2) encouragement of farmer collaboration and direct collective transaction to the consumer by the government and provide for free market pricing, 3) the Northern region of Thailand should function as central transaction center with China, 4) promote and collaborate with China importers to arrange Thai Fruit Festival to increase the awareness of Thai longan quality, 5) collaboration of government and private sector for new market, 6) increase rapport with importers and 7) encourage value added processing.
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