Analysis of marketing system of Thai canned asparagus
1996
Kunyarat Jeamworakunchai
Objectives of study were to investigate the market structure, conduct, performance of canned asparagus industry in Thailand and the stability analyze of quantity, value and export prices by interviewing the producers in 1994 and the instability indices using logarithmic variance. Most of the products were exported to foreign market with only a small portion sold in domestic market. Market of canned asparagus was monopoly with only few producers. The differentiation of products were the quality of raw meterial, size and container, brand name and the services. The barrier to entry was rather high due to inadequate quantity of raw material, marketing, and production technology. Furthermore, the business is vertical integrated from the production of raw material to the marketing of finished product which made it difficult for new firm to enter the business. Product price was determined by cost of production and world market price. Market performance showed low return of business due to small quantity produce which resulting from inadequate raw material and small market of the product. The analysis of instability indices showed that canned asparagus exported to the Netherlands and Denmark in term of quantity had the highest instability indices followed by value and export prices. The instability was resulted from the instability in product supply rather than demand which was rather constant and elastic. Therefore, it was recommended that government should pay more attention on research concerning production technique, the analysis of cost and return, then promote asparagus at farm level while providing export promotion for canned asparagus.
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