Economic incentives and comparative advantage in fresh milk production in Thailand.
1989
Kanit Likhitvidhayavuth
For all farm sizes to increase domestic fresh milk production which received NNPR(Net Nominal Protection Rate) of at least 36.65-51.01 % (or NPR (Nominal Protection Rate) 50.42-66.23 %) NIT (Net Implicit Tariff Rate )of unfavourable distortion on tradable input used, at least 0.21-21.08 %. (or IT (Implicit Tariff Rate) 10.31-33.28 %) NERP (Net Effective Rate of Production) received by dairy farming was at least 46.14- 76.78 % (or ERP (Effect Rate of Production) 60.87-93.93 %). In Saraburi, RCR (Resource Cost Ratio) of the small size farm was 1.07; of medium size farm, 1.11; and for large size farm, 1.04. In Chiang Mai, RCR of small farm was 1.16; for medium size farm ,1.28; and for large fame, 0.90. In Ratchaburi, RCR of small farm was 1.23; for medium size farm, 1.14; and for large farm, 1.10. Resource cost of each farm size in Saraburi was comparatively better off than in Ratchaburi and Chiang Mai. Average price of fresh milk at whick RCR is equal to one in 4.45 baht/kg., only 0.43 baht/kg. higher than imported price of recombined milk. Government maintains its protection, especially for the small dairy farms. It should set a policy on down-stream dairy processing activities, dairy farming practice and productivity should seek improvement in breeding, feed quality, local material feed utilization, and dairy farm mamagement. Furthermore, appropriate locations for future dairy farming promotion and expansion should be identified.
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