The role of farmer organizations and networks in the rice supply chain in Thailand

Abstract

Purpose The purpose of this paper is to examine the development of rice supply chain in the context of the role of rice farmer organizations and cooperative networks in Thailand. Design/methodology/approach Primary data were solicited from the cooperatives and members of cooperatives for this study through questionnaire administration. The questionnaire containing a five-point Likert scale was posed to respondents to ascertain their problems before and after joining the network (for cooperative) and after joining the cooperative (for members). This study employed the independent two-sample student t-test (two-tailed) to test for significant difference in the means of scores regarding the problems of cooperatives before and after the cooperative network, and also to test for significant difference in the means of scores of the problems of members of the cooperatives before and after joining the cooperative. Findings The study revealed that key production and marketing problems such as increased transaction costs and market uncertainties confronting the cooperative organizations have been diminished as a result of the networks. Key problems of the members of the cooperatives such as exploitation and opportunistic behavior of traders to whom they sell their products have been reduced as a result of joining the cooperatives. Research limitations/implications This paper is not without caveat. The governance structures in relation to leadership, financial arrangements and bargaining power balance have not been analyzed in this study and these are avenues for further research. Originality/value To the best of the authors’ knowledge, this study is the first that examined the combined roles of farmer organizations and cooperative networks in developing the rice supply chain in Thailand.

Factors influencing farmers' satisfaction with the activities of horticultural cooperatives in Thailand

“…Members' participation in meetings and business of the cooperatives, and flow of information influenced satisfaction of the members (p < 0.01). These results are consistent with previous studies revealed that members' satisfaction with the activities of rural cooperatives activities is dependent on their participation in meetings and business of the cooperative and the resulting benefit of access to production and marketing information (Sathapatyanon and Kuwornu, 2019;Sathapatyanon et al, 2018;Arcas-Lario et al, 2014;Sadighi and Darvishinia, 2005).…”

“…The value of the businesses of the cooperatives, members' investment in shares of the cooperatives, and profitability positively influenced the members' satisfaction with the cooperatives (p < 0.01). The results are consistent with previous studies that profitability of the cooperatives leads to more commitment of the members to the activities of the cooperatives and the more satisfied they become (Sathapatyanon et al, 2018;Dejene and Getachew, 2015;Dejene, 2014;Österberg et al, 2009;Bruynis et al, 2001;Gray and Kraenzle, 1998;Fulton and Adamowicz, 1993). Moreover, services offered by the agricultural cooperatives contribute to increasing its organisational effectiveness and therefore the satisfaction and loyalty of members of the cooperatives Sathapatyanon and Kuwornu, 2019;Sathapatyanon et al, 2018;Promme et al, 2017;Yacob et al, 2016;Mohamed, 2004).…”

“…The results are consistent with previous studies that profitability of the cooperatives leads to more commitment of the members to the activities of the cooperatives and the more satisfied they become (Sathapatyanon et al, 2018;Dejene and Getachew, 2015;Dejene, 2014;Österberg et al, 2009;Bruynis et al, 2001;Gray and Kraenzle, 1998;Fulton and Adamowicz, 1993). Moreover, services offered by the agricultural cooperatives contribute to increasing its organisational effectiveness and therefore the satisfaction and loyalty of members of the cooperatives Sathapatyanon and Kuwornu, 2019;Sathapatyanon et al, 2018;Promme et al, 2017;Yacob et al, 2016;Mohamed, 2004). Previous research revealed that several factors including the size of farm operations, dividend policies, input price level, and specialisation in farming are important for cooperative members' commitment, loyalty, and satisfaction (Sathapatyanon et al, 2018;Fulton and Adamowicz, 1993).…”

“…Moreover, services offered by the agricultural cooperatives contribute to increasing its organisational effectiveness and therefore the satisfaction and loyalty of members of the cooperatives Sathapatyanon and Kuwornu, 2019;Sathapatyanon et al, 2018;Promme et al, 2017;Yacob et al, 2016;Mohamed, 2004). Previous research revealed that several factors including the size of farm operations, dividend policies, input price level, and specialisation in farming are important for cooperative members' commitment, loyalty, and satisfaction (Sathapatyanon et al, 2018;Fulton and Adamowicz, 1993).…”

“…However, the literature on this subject is scanty. Only few studies have been conducted to examine the activities and roles of cooperatives, and satisfaction of cooperative members in food supply chains in Thailand Sathapatyanon and Kuwornu, 2019;Sathapatyanon et al, 2018;Promme et al, 2017). Therefore, this assessed the determinants of members' satisfaction with the activities horticultural cooperatives in Thailand.…”