The Current Status and Future Trends of Farm Production and Marketing of Para-Rubber in the Upper East Coast Provinces of Southern Thailand

Abstract

The research aimed to: 1) describe the current status and future trends of para-rubber production and marketing in the study area; 2) identify the marketing costs of farmers; and 3) study the marketing system of para-rubber. Data were collected from 462 farmers, 108 middlemen, and 17 processors. The study area was 4 provinces in the Upper East Coast of Southern Thailand: Chumpon, Suratthani, Nakhonsrithammarat, and Patthalung. The surveys were conducted by using structured questionnaires, in-depth interviews, and workshops. The data were analyzed by descriptive statistics, cost analysis, and marketing channel analysis. From 2005 to 2010, planting areas increased but total yields declined, due to heavy rains and floods. The rubber prices fluctuated but had an increasing trend. On an average, the planting area was 2.7 ha and had been cultivated for 17 years. The major variety was RRIM 600. The majority of farmers (63%) sold most of their para-rubber in latex form, while rubber sheets (31%) or cup lumps (18%) dominated less often. Hired help was often paid by a split of sales revenue. The product price, relationship, and shipping distance affected selecting the sales channel. Most preferred self-transportation to middlemen (81%), who usually set the price lower than the central market price. The marketing costs were from sheet making, transportation, and deductions for low quality. Sheet making at 3.65 THB per kg was mainly labor costs (72%). The transportation cost of cup lumps, latex and, sheets were on average 1.04, 0.86, 0.48 THB per kg, respectively. The cup lumps had quality deductions of 11% average from full price, and cup lump wetness and contamination had affected 65% of farmers, while 46% had sold sheets with deductions averaging 2%. Fluctuating prices and lack of knowledge about market channels and prices were the major problem for 45% of the farmers. Farm producers mainly sold latex or dry rubber (sheets, cutting scraps, and cup lumps). The latex marketing channel was through collectors for processing plants, that could both be local or larger scale. The dry rubber marketing channels included also collectors, central market, and processing plants. Rubber processed to primary products (smoked sheets, block, and compound rubber) was mainly exported. The latex marketing channels are gaining importance because farmers prefer to sell in latex form. They are likely to sell to a local village collector close to the farm. The demand for local processing plants that transform latex to rubber sheets or block rubber as well as the latex processing plants will likely increase.