THE CORN RROOOCTTON SECTOR OF THATLANO 7 :
WITH SPECIAL REFERENCE TO CORN EXPORTS

Thesis for the Degree-Of M; S.
MICHIGAN STATE UNIVERSITY
.PANIDA i0NGPUTlSIRI
1970

XHE‘

     

idligan State
ilivcrsity

 

 

 

 

THE CORN PRODUCTION SEQTOR CF THATLLHD

WITH SPECIAL REFERENCE TO CORN EXPORTS

Panida Jongputisiri

A RESEARCH REPORT

Submitted to
Michigan State Universitv

in partial fulfillment of the requirements
for the degree of

I STER OF SCIENCE
Department of Agricultural Econumics

1970

ACKNO‘IEEDGIfiEN'lKS

The writer wishes to express sincere gratitude to Dr.
Glynn McBride, my major professor, for his encouragement,
liberality of time, valuable guidance, constant supervision,
and recommendation in preparation of this paper. His help~
ful comments and patient editing of the text of this study
are also very gratefully acknowledged.

Special thanks are also extended to Dr. Delane Emil
Welsch who provided persona] guidance. His advice and moral
support in providing information needed in constructing the
framework of this study are very much appreciated.

The suggestions and comments made by the committee
composed of Dr. Nicolas G. M. Luykn II, Dr. M. Steinmueller,
and Dr. Lester V. Manderscheid, were very helpful and are
gratefully acknowledged.

Thanks are due to Mrs. Laura Flanders and others in the
Michigan State University Computer Center for their help in
data calculation.

Many thanks to the various officials in the Thai Ministry
of Agriculture, the Ministry of National DevelOpment and the
National Statistical Office, who provided valuable data which

enabled the completion of this study.

Appreciation is else expressed to my parents for their
financial support which enabled the writer to complete her
program at Michigan State University and to Pol. Lt. Ajiravidya
Subarnbhesaj who encouraged her throughout graduate study.

tone of the abovewmentioned pe sons .re responsible for

Q‘-

any short~comings that mav still remain. I alone accept

that responsibility.

ACKI‘IO 17 LED OMEN”. L" C
LIST OF TABLES
LIST OF FIGURE

TABLE OF CONTENTS

Chapter Page
I. INTRODUCTION . . . . . . . . . . . . . . . . . . . l
A. ObjGCtives O P O O O 0 O O O O O O O O O 6 O O l
1. To define the existing organization
and structure of the corn industry
in Thailand;
2. To analyze the economic prcblem: faced
by the Thai corn sector in the light of
uncertainty of the future international
corn market; and,
5. To suggest changes in the existing
market organization and structure
designed to increase farmers‘ income and
the national export revenue.
B. Justification and Importance of the Study , , q
l. The importance of agriculture in the
Tllai e C Orlornyw Q 0 O O O O O O O O C O O O ‘7
2. The importance of corn in Thai
agricultllre O O O O O O O O O O O C O O O 12

II.

PR ELEM IDENTIFICATION , , , . .

A. Domestic Market , , , , , , , , , , , , , , , 18
l. Inefficiency of market system organi—

2'81]- on o o 0 o 0 a o o c o o o c o c o o 18

.J. International Market , , , , , , , . , . . . 21

iv

III. CORN

E.

. “.'

,0
.LV. 1'1 Lflh

A.

V. INPL
AND

A.
B.
BIBLIOGPAPHY

Recommendation . . . . . . . .

‘. J

. The uncertainty of the corn naiket in
the light of rapt-d changes in .volrt

‘

0
supply and demand of corn and oth.r
closely related g-ictltuT l lflrod Tet

PRODUCTION IN THAI] AND . . . . . .
I118 L QTY 0 o o o 0 c o d o o o o o o o c o

l. Yield of TTnjmproved variety vs. yield
of Guatemala variety , , . . , , , ,

Geographic Location of C'rn Sectors . . .

1. Distribution of corn production by
VOlume and al‘ea C ' g Q o g g 0 Q 0 O

r:
'13

91
Onv‘ a o o o o' c o c o o o o

5—1.

Pla m1 ng e
The Relationship Between Time, Producti n-
Aroa and Production by Use of Linear

"'h. \ ‘

lit-.110. a o 4' o o o o a o o o 0

Q
Q
B
q
§
0

SB amunal Il‘dGX o o o o o o o o a o o c o
EIILE oloLLuo rOR CORN - PAD SI AND PRESENT

Change in Marketing Channel . . . . . . .

.. Bu:;ing: and selling . . . .

O
O
Q
Q
I
Q

1

2. M1 ansportation . . . . . .
3. Storage . . . . . . . . . . . . . . .
k. Credits . . . . . . . . . . . . . . .

IL ATIONS AND PROPOSED CHANGI S IN STRUCTURE
POLICY

0 O O O O O O O O O O O O O O O O 0

Summary . . . . . . . . . . . . . . . . .

O O O O O O O O O C O O O O 5 O O O C O

’25

f‘ ‘
«30

N
’3‘».

r
‘
D \.3

N
\l

R)
\O

Table

l.

10.

ll.

12,

13.

ll}. .

LIST OF TABLES

Average Export Prf,

ice of Corn (F.O,B. Bangkok)
and Tulear Average

, Thailand, l963~1969 , . . .

Indices For GNP and agricultural Production,
Thailand ’ lgEB-lgbb o a o a o o o o o o o c o I

Value of Exports of Principal Products, Thailand,
1957~196zl O O Q 0- O O O O O O O O 0 O O O O O ‘0

Share of World Corn Market of Each Major Exporting
Country, 1959»1966 . . . . . . . . . . . . . , .

Index Numbers: Agricultural Area Devoted to Upland
CrOps, Thailand, 1950-1966 . . . . . . . . . . .

Volume and Value of Thailand's Corn Export,

1957-1968 0 O 6 I O O O O O C O O C O O O C J 0

Contract Volume and Actual Export of Corn Between
Thailand and Japan, 1965-1970 . . . , . . , , .

Volume of Japanese Corn Imports by Country,
Averages 1955-1959, Annual 1965-1968 , . . . . ,
Thailand's Share of Japanese Corn Imports
Average 1960-1964, Annual 1965-1968 . . . . . .
Cultivated Areas for Corn and Production Yield
Before and After Availability of Improved
Varieties . . . . . . . . . . . . . . . . . . .
Distribution of Corn Products by Volume An Area
(in percentage) - 5 year average, 1961/62 ~
1965/66 0 O O 0 O O O O O O O C O O 0 O O O O 0
Area Planted and Average Yield of Rice and Corn
in Thailand, (1951-1966) , , , , , , , , , , , ,
Production, Acreage and Yield of Corn in
Thailand, (1950-.1966) o o o o o 0 o o o o o o 0
Yield Per Hectare in Principal CornmProducing
Countries

0 O C I 3 0 O f O t O C 9 G C O 3 O 9

Vi

I‘d

\O

10

ll

27

30

31

K}!
?\)

15.

16.

19.

20.

21.

22.

23.

Seasonal Index of Wholesale Corn Prices
in Thailand, l950~l965 , , , , , , , , , , ,
Price Received at the Farm for Corn and
Export Price, F.O,B, Bangkok, l9§9nl960
and 3-9(08"1969 O O O O O O O O O I O O 6 0 O 0
Marketing Cost, Profit of Dealers and Perm
centage of Money Received by EXporters for
Corn Obtained From Farmers and Dealers in
8 Prov:inces in Central P'gion, Thailand .
196() O O O O O O O O O O O 0 O O O O O O O 0

Marketing Cost, Profit of Dealers and Per”
centage of Money Received by Exporters for
Corn Obtained From Farmers and Dealers in
8 Provinces in Central Region, Thailand,
June 1968 - May 1969 . . . . . . . . . . . .

Prices Received by Farmers, by Provincial
Dealers and Local Merchants, Wholesale Prices
in Ranaliok and Fxport Prices. F.O.B, Banukolm
Corn, by Months, 1968- -l969 . . . . . . . . .

Mean Distance in Kilometers of Farms From
Market and Transport Facilities According to
1953 Farm Survey, Thailand . . . . , , . ,g.

Source of Credit by Region in Thailand . . .E.

Monthly Interest Rates by Region in Thailand
andTypeOfI-‘enderoooooccooooco

A7

48

51

54
so

61

flap
1.
2.

LIST OF MAPS

Location of Corn Production in Thailand , ,

Location of Corn Production Area in Thailand

viii

Chart
1.
2.

LIST OF CHARTS

Marketing Channels of Corn in 1959vl960 . ,
Marketing Channels of Corn in 8 Changwads

in Central Region of Thailand: June
1968 "' Ifiay 1969 o o o o o o o o o a o o 0

ix

LIST OF GRAPES

'Page

1. Fluctuation of Export Price of Corn by

I'Ionths’ TLIQjLLaI‘ld’ 1963-1969 0 n o o o o o o o o o 3
2. Seasonal Index of Wholesale C rn Prices

in Tl'lailand o o o o o o o o o a o o o o o o o a o 39
3. Prices Received by Farmers, by Provincial

Dealers and Local M rchants, Wholesale

Prices in Bangkok and Export Prices F.O.B.

Bangkok, Corn, by Months, 1968ul969 . . . . . . . 52

CHAPTER I
INTRODUCTION

The purpose of this paper is twofold: first, to
systematically examine the present organization in the
marketing of corn in Thailand; and second, to compare and
contrast the present situation with a preposed system of
marketing.

This research will involve a brief study of the situa-
tion as it existed in the past, an understanding of the
nature and mechanics of the present system, and finally, an
assessment of the direction in which the present system seems
to be headed thus making it possible to set forth possible
implications for corn exports policies for both governrent
and the private business sector.

In more specific terms the three main objectives of this
study can be stated as follows:

1. To define the existing organization and structure of
the corn industry in Thailand;

2. To analyze the economic problems faced by the Thai
corn sector in the light of uncertainty of the future inter-
national corn market; and

3. To suggest changes in the existing market organiza~

tion and structure designed to increase farmers' income and

l

the national export revenue.

Before proceeding further, a comment is in order

regarding the second objective mentioned above.

Mention was

made about the uncertainty of the future international market

and the economic implications for the Thai corn sector.

To

provide some indication of the degree of uncertainty involved,

monthly export price figures for corn for the years 1963 to

1969 are presented in Table 1.

‘AVERAGE EXPORT PRICE OF CORN (F.O.B. BANGK
AVERAGE, THAILAND, 1963-1969

(dollars per metric ton)

Table 1

2K) AND 7-YEAR

 

 

 

 

 

 

 

 

 

 

 

 

1 7-year

Yr. 1963 1964 1965 1966 1967 1968 1969 average
Jan. 52.56 60.54 55.10 57.52 56.18 56.74 54.81 56.18
Feb. 57.51 61.07 65.41 49.01 55.80 56.07 59.84 57.82
March 62.20 61.32 68.79 52.08 55.01 56.22 62.43 59.72
April 57.74 59.98 71.68 52.99 54.94 55.95 62.58 59.58
May 57.95 60.78 75.56 52.59 56.95 57.04 56.89 59.94
June 58.04 60.79 72.27 51.65 56.18 66.94 56.54 60.352
JU1y 57.06 59.55 65.86 50.14 55.68 69.79 55.51 59.05
Aug, 57.20 56.64 61.96 49.90 54.94 65.45 52.47 56.9)
Sept. 55.78 56.02 59.44 49.52 50.95 60.27 51.55 54.75
Oct. 54.99 56.00 59.39 54.48 50.16 59.21 48.8A 54.72
Nov. 55.04 56.29 57.43 55.54 53.23 57.09 47.0l 54.72
Dec. 58.16 58.52 49.12 55.84 56.30 56.70 49.51 54.56
Avg. 56.85, 58.92 52.59 59.79 54.78 57.27

65.52

54.69

 

 

 

1The 7-year average is not less than
the Ministry of Economic Affairs, Thailand.

Source:

of Economic Affairs, Thailand, March 1970.

 

 

,—

.' “-~.‘

 

the prices noted by

Data l963~1967, Department of Foreign Trade, Ministry

Data 1968wl969, provided by Dr. Delane E. Welsch, Rockefeller

Foundation, May 1970.

->..—v

db

mason new mnemoz

Ir?

 

 

 

 

All. $2 XIII $9. .IX

 

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5

i"

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on

a

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mmaaumemfl azaaHame .mmezoz em zmoo so onmm emomxm so oneapaopqm "H snags

The above figures are presented in graphical form in
1

Graph . The average for the seven years was found to be

1:3

57.30 per metric ton. Substantial (CvldLTO‘S from the average
occured es pec ia 11y in the years 1965 and 1968. Furthermore the
years 1966 to the first half of 1968 showed consistently beloww
average prices. These fact 8 underline the chiswlrg uncertainty
of corn prices, the reason being that Thailand possess.s only
five percent of the total world market for corn.1 Therefore,
the e port price is heavily dependent on the output of major
corn producing countries as well as demand on the international
market.

Another major source of uncertainty is that exports to
Japan, which comprised 43 percent of total exports in 1968, are
on contract with the Japan Feed Grain Trades Associatidn Which
is a Japanese government sanctioned m0n0p01y.2 Thus should the
Japanese government decide to terminate the contract at any
time, or should it decide to cut down on the quantity imported,

Thailand will have to expand its other markets to absorb its

excess supply of corn.

Justification and Importance of the Study
Agriculture has played an important part in the economy
of Thailand and it is expected to play the same pivotal role

in the future. To support this statement, a comparison of

 

lUSDA, Wor3d PFPlCd'tUIdI Production and Trace
Statistical Report, September 13 69, pp. 38 ~39.

2 , ,3
Dr. Delano E. tielsch and Others, Research for Planning
Corn and Sor_ghum Dcve'onncrt in WP11'30Q 1058. p, 70,

 

5

growth of Gr ss National Product and the growth of
Agriculture Production is made by comparison of their indexes
from the years 1953 to 1963. Table 2 pres>nts this compar~

ison.

 

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’

7

Table 2 shows that GNP has increased from an index of 100.0 in
1953 to an index of 239.6 in 1963 or an increase of about 100
percent in ten years. During the same period the index for
Agricultural production rose from 100 to 327.9 or an increase
of more than 200 percent. This shows that since Agricultural
production has been increasing faster than GNP during the years
mentioned above, Agriculture must have been a major factor in
'the determination of the direction of the economy. It may also
be mentioned that in 1965, four-fifths of the country's total
working p0pu1ation was engaged in agricultural employment and
that agriculture contributed over one-third of national income.

Corn is one of the major upland cr0ps in Thailand, and it
has been produced and consumed as a vegetable for many years.
However, corn is neither a staple food for the Thai peeple nor
is it regularly used for animal feed. Nevertheless, production
has been increasing through the years and today it is one of
the most important export items in Thailand. Table 3 shows
that in 1967, corn was the fourth largest export product of
Thailand, after rice, tin and rubber.

As shown in Table 3 the export value of corn has risen
from 74 million baht in 1957 to 1,356 million baht in 1967 or
an increase of close to 1700 percent in ten years. This
makes corn the fastest growing export item of Thailand for
the years 1957 to 1967, making Thailand the world's fourth
largest exporter of corn in 1966, after the United States,
Argentine and France (see Table 4). Table 4 also points out

that Thailand has held a relatively stable share of the world

market for corn since 1959. This makes corn production one
of the major factors contributing to a favorable balance of
payments position.

According to Agricultural Statistics of Thailand (19331,
the index of area used for corn production rese from 100 in
base year 1953 to 1,535 in the year 1966, while the index of
production area for upland food crepe rose from 100 to 650
during the same period.3 This indicates that the agricul-
tural area used for corn grew more than twice as fast as the
agricultural area utilized for general upland food productions.

A breakdown of the utilization of agricultural product areas

for the upland products is presented in Table 5.

 

3A

_griculture Statistigsmgf Thailand, Ministry of
Agriculture, Bangkok, Thailand, 1966, p. 35.

 

 

 

 

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.mnmaaoe .m.p an em masses pass a

 

 

 

 

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mmw eam.a moa.H mm: mam mam ems 0mm mm am me seems

use mess

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.sma mam How coma and can mmm mmm saw mmm New heme
Wmmmrfl ommua mam mem.a wmm mom mam Hmm omm mma as egos
mmmua mam.a mmH.H mom Hem mam mam mmm an: mmm Hmm ,efle

msm.a Hmw.a mam.a omo.m mom.a HHH.m oma.m mum.m mmm.m mmm.H mo:.a nmnnem

mmm.e Hoots emm.: mwm.e em¢.m oem.m mam.m oum.m mam.m mwm.m mmm.m moflm

mmmfl mooa mmma :mma mmma mmma Hmma omma mmma wmma nmma

 

 

 

 

 

 

 

 

 

 

 

 

 

afipemn confides aev

. nmmauammfl “mzegHame
meosmomm.qemHoszm so mamomxm so asses

r

m aficme

Table 4

SHARE OF WORLD CORN MARKET OF EACH MAJOR
EXPORTING COUNTRY, l959~l966

(percent of total)

 

 

 

I -1

Country 1959 1960 1961 1962 1965 3964 1965 1966
U.S.A. ' 54.0 47.2 55.6 54.7 55.2 55.1 66.6 65.7
Argentina 26.0 21.6 12.4 16.8 11.7 15.1 12.3 15.4
France 0.4 2.3 5.0 0.8 1.7 5.7 2.5 .5.3
Thailand 2.3 4.3 4.1 2.4 5.6 5.2 3.6 5.0
Mexico - 3.8 - - 1.5 5.9 5.5 '5.5
Yugoslavia 5.1 4.3 2.7 1,4 0.5 0.1 0.2 1.5
South Africa 4.0 4.8 7.7 10.5 11.9 6.4 1.4 0.2
U.S.S.R. 1.5 1.0 2.9 6.3 3.5 2.9 “ “

 

 

 

 

 

 

 

 

 

 

Total Major ,
Exporters 71.5 89.5 88.4 90.9 67.4 94.4 90.1 94.6

Source: F.A.O.Monthly Bulletin of Agricultural Economics and
Statistics, July-August 1968: p. 54.

11
Table 5
INDEX NUMBTRS: AGRICULTURAL AREA DEVOTED TO
UPLAND CROPS, THAILAND, l950ml96'

(195071955 = 100)

 

 

 

 

 

 

 

 

Year Rice Corn Mung Beans Cassava Sugar Cane Total
1950-55 100 100 100 100 100 100
1954 96 124 95 107 . 137 122
1955 100 150 102 98 148 129
1956 104 195 105 63 175 154
1957 88 228 112 271 185 188
1958 100 298 119 ' 515 188 211
1959 105 470 157 445 211 285
1933 103 671 155 511 225 351
1961 ' 107 720 108 8 710 177 .555
1962 116 771 147 877 145 375
1965 115 982 298 994 ' 215 505
1964 114 1,297 500 745 232 573
1965 112 1,555 557 724 202 586
1966 128, 1,555 1 598 950 E 178 650

 

 

Source: Agriculture Statistics of Thailand, 1966, Ministry of
Agriculture, Bangkok, Thailand, p. 35.

 

12

,Corn in Thailand is produced mainly for export. Considu
ering this fact, it becomes necessary to examine the world
market situation and its effect on the Thai corn sector. it
is equally important that an effort be made to deve10p improved
methods of processing corn in order to expand domestic sales.
A study also has to be undertaken regarding the feasibility
of successfully marketing corn in the EurOpean market. At
present very little Thai corn is sold in EurOpe and this has
been the consistent pattern since 1957. Table 5 indicates that
the EurOpean market has only averaged about one percent 0f the
total corn exports of Thailand in the period 1957 to 1968.
Probable reasons for this situation may be the following:

1. the excessive cost of transporting corn to EurOpe
which has the effect of raising the price of Thai
corn beyond reasonable levels;

_2. the existence of effective substitutes in the
EurOpean market, weakening the demand for corn;

3. the leadership of France in the EurOpean corn
market, and,

4. the possibility that Thai corn is considered
substandard in Europe.

At present Thailand is trying to deve10p its livestock
industry for the purpose of supplying the domestic demand and
foreign exports. There is also a move towards establishing
an animal food industry using corn as the base ingredient
because of its high protein content.

Domestic demand for corn will most probably increase due

7)

 

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1 .

 

 

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14

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15

to growth in pepulation and efforts to find new uses of the
product and new ways of marketing them in the international
market. Therefore specific ways and means to stabilize
domestic demand and to increase productivity in order to meet
both the domestic and foreign market demand are of great
importance.

A second reason for the importance and justification of
this study hinges on the marketing system itself. It is
possible_that in this area some problems occur between pro-
‘ducers and consumers, in the production and marketing systems,
‘and the employment of modern technological advances in this
area. Specifically, the problems mentioned above may involve
transportation systems, the grading of corn, storage, stand-
ardwzation, processing, packaging, and purchasing and selling
practices.

The quantity of corn planted is dependent both on the
price of corn and the relative ease or difficulty in producing
and marketing the product. Thus an investigation of the costs
involved in the production and marketing of corn as well as a
Proper understanding of its present set-up may provide better
Parapective of the problems involved. This may provide valuable
~hints for a possible reorganization of Thailand's corn-producing
sector which would enable it to COpe more effectively with

the demand of both the domestic_and foreign markets.

16

The First Five Year Plan of the corn producing sector
under the development'plan provided for'the production of Shh
thousand tons of corn.4‘ According to the National DovelOpment
Board estin ate the output of corn wil.l show an increase of 50
percent during the Second Five Year_Plan (19674197l)_and will
be around 1.5 million 10.ns by ch— at time. This target, however,
appears to be slightly ambitious because for 1966, the target
of output was 1.2 million tons but the actual output rose t0-
only 1.12 million tons.5

The least square estimate (see Chapter III) indicates
that in 1971 the output of corn will be 1356.84 thousand tons.
.To suta up it may be pointed out that the corn output might fal
short of the target at the end of the present plan. In 1965,
Thailand exported 812 thousand tons of corn out of one million
tons of total production. It is estimated that by the end of
the present plan (1971), xports will increase 1.3 million
tons and 100 thousand tons will be used for domesticéconsump-
tion. Thus, the National Economic DevelOpment Boardiexpects
the preportion of exports to total production to rise from 81

6

percent to 87 percent during the Second Five Year Plan.

 

l+TheflSecond National Economic and Social Develoyment Plan,
(1967"1973) National Economic Dev velopment Board, E angkok,
Thailand, p. 12. .

5Ibid. ., p. 55.

6Ibid.,'p. 161.

CHAPTER II

PROBLEM 1DENTIFICATION

This chapter is designed to examine the problems that
are confronting the corn marketing system in Thailand. A
brief mention of the problems with respect to corn export was
made in Chapter I. It also gave passing reference to the
problems of domestic demand for corn. In this chapter,
however, an attempt will be made to identify these problems

in detail.

Export Market for Corn:

Table 4 and Table 6 in Chapter 1 presented a description
of corn experts for Thailand. It can be seen from Table 4 that
between 1959-1966 Thailand's share of the world's export trade
in corn increased from 2.5 percent to five percent. She is
the fourth largest corn eXporter in the world, even though 80'
percent of all corn exports still come from the U.S.A. and
Argentina. Table 6 gives an impression of the tremendous
increase in the export of corn from Thailand between 1957-1968.
During this period, total exports of corn increased from 64.3
thousand tons to 1480.7 thousand tons, whereas the value of
eXports increased from 74 million baht to 1,555 million baht.

The volume in 1968 was 25 times that in 1957 and the value in

17

1968 was 21 times that in 1957. Though these figures are
impressive, there are certain problems which may dampen the
Thai corn exports in the near future. These problems can be
identified as the problems encountered in the domestic market

and international marketing of corn.

Domestic Market Problems: ,
There are a number of domestic market conditions which
create problems in the export trade of corn. _They include
a) inaccurate estimate of production, b) reluctance to adept
new technology, 0) corn movement from up country to Bangkok,

d) instability of the price and, e) lack of cOOperation among

the members of various corn exporting associations until 1962.

laaccurate Estimates QT COID.PTQQU¢§iQQ=

The estimates of annual corn production are still not
accurate and a wide gap between the supply and demand frequency
occurs due to the inaccurate reporting of production.1 Even
though the acreage and output of corn have shown an increase
during the past two decades, still due to lack of information
available to the farmers and also due to inadequate capital,
the yield of corn has not recorded the expected increase. _
Farmers are suspicious of government agents and hesitate to
adopt new techniques. The output of corn could have shown a
higher increase than what has been reported if these constraints

had not been there.

 

1Sopin Tongpan, Thai Corn Export Problems, Kasetsart
University, Bangkok, Thailand, March 1970.

I..x
\C.‘

Qprn Movement From Up Countrxnpo Banghoh:

As has been explained in Chapter IV, the transportation
.system between the corn producing area and Thailand is not
satisfactory. This results in irregular movement of corn
from the upland area to Bangkok which is the principal center
for distributing corn for domestic use or for export. This,
however, gives rise to the third problem of instability of

prices.

Instability of Corn Prices:

Chapter I presented an account of the f.o.b._Bangkoh
prices of corn during different months of the year (see Graph
1). These oscillations reflect the instability in the priCe
of corn and act as a disincentive in the adeption of the pack-
age 01 improved seeds, fertilisers and farm implements by the

farmers.

Lack of COOperation Among the Exporters:

Japan has been the principal importer of Thai corn and
thus the attention of corn exporters has been focused on Japan.
Until 1962, a few coeperative associations of corn exporters
were formed in Thailand to take care of the corn export trade.
But the distortions in the domestic market, i.e., the dis-
parity between eXport and domestic prices would not permit the
members of these associations to remain loyal and comply with
the neceSsary regulations. For instance, when the domestic
price of corn exceeded the export price, the individual

exporter would be tempted to sell in the domestic market and

break the contract with the Japanese trader. 0n the other
hand, when the prices of corn in the domestic market were
lower than the export price, the trader who did not have any
contract with the Japanese importer would approach the latter,
and offer corn at a lower price. Since 1962, due to regula-
tion of corn exports by the Thai government such arbitrary
behavior on the part of exporters have been considerably
controlled, yet as has been pointed out below, the discrepancy
_between the contracted quantity and the actual export con-

tinues (see Table 7).
Table 7

CONTRACT VOLUME AND ACTUAL EXPORT OF CORN
'BETWEEN THAILAND AND JAPAN, l965~1970

 

 

 

i v M 1 Contract Volume I Actual Export
1ea1 (metric tons) (metric tons)
. 1965~66 800,000 -, 559,799
1966-67 800,000 ' 826,289
1967—68 820,000 670,6l2
1968-69 780,000 ' 605,459
1969-70 600,000 -

 

 

 

 

 

Source: Monthly Economic Report, Department of Foreign Trade,
Bank of Thailand, 1970.

Since 1962, however, the nature of the discrepancy has
changed. Previously, the contracted quantity fell short or
exceeded the actual exports on account of the arbitrary

behavior of the individual exporters. But now, more exports

h
M)
3—)

than the contracted quantity can result only through negotia~
tions between the department of foreign trade of the Ministry

of Economic Affairs of Thailand and the Japanese Feed Trade

'zj

Association (JFTA), a group of Japanese need Grain Importers.

lpternational Market Problems:

With respect to international marketing of corn, Thailand
is currently facing two interrelated problems, namely, the
predominance of Japan as an export market and the dwindling

prices of exportable corn.4

Predominance of Japan in the Corn Exports:

As Chart 2 indicates, Japan is the most important buyer
of Thai corn, though the share of Japan in total exports has
declined from 56.6 percent to h0.9 Percent between 1957-1968.
Such dependence, however, is to the disadvantage of Thai corn
exporters because the Japanese traders can impose their terms
'in the trade arguments. Already there are indications that
Japan is buying more of her corn requirements from other
countries. Table 8 indicates the amount of corn which Japan

imported from different countries during the period, 1955-68.

VOLUME or JAP AHLS3 conn IMPORTS BY COUNTRY,
AVLiAGDL 1),/w19/9. ANNUAL 1965m1968

(thousand metric tons)

 

 

 

 

 

 

 

 

 

\NYear 1955~59 196c~6n‘ 1965 1966 .1967 ' 1968
Country\\\\\\ '
U.S. . 252 867 2,502 2,254 1,584 2,542
Burma 7 1 1 3 - ‘ -
Cambodia 25 29 26 29 20 15
Indonesia 2 - h 65 120 10
Thailand 69 ' 432 576 767 699 633
Other 202 946 525 500 547 1,944
Total - ' 557 2,275 3,93A 3,598 3,960 5,194

 

 

 

Source: Japanee e Efforts to Diversify Sources of__gpicultural
lgpggpg, Econozn'ic Research Service, U. S. D. A., April 10 70, p.
Beyond l960, corn imports in Japan have doubled, but the
share of Thailand in Japanese imports has declined considerably
(Table 9). This suggests that while Thai corn exporters place
a heavy reliance on the Japanese importers, the latter are
presumably looking for other markets where they cantdictate
their terms. The crucial issue, therefore, is to promote
exports of corn in other markets rather than placing such
heavy dependence upon a single market. However, the increasing
exports to Taiwan have given hepe that the Thai corn exporters
are aware of the above problem and are making efforts to Open

new markets in addition to expanding the existing ones.

 

5‘.)
b4

Table 9

THAILAND'S SHARE or JAPANESE cone IMPORTS
AVERAGE 1960-1964, AnNUAL 1965-1968

(percentage of total)

 

Year Share of Corn Imports

 

Average:

 

1960-64 , 19.0
Annual: ,
1965 16.9
1966 21.3
1967 17.7
1968 12.3

 

 

 

Scurce: Japanese Eff\rts to Diversify Sources of AgriCultural
Imports, Economic Research Service, U.S.D.A., April 1970, p. 2.
Problem of Declining Export Prices:

Table 6 of Chapter 1 indicates that the export earnings
of corn declined from 1150 baht to 1050 baht per ton between
1957-1968. This is roughly a nine percent decline in the value
of corn exports of Thailand. The continuation of this trend
will adversely affect the export of corn. In fact, Thai
exports have to compete with the low-cost corn producing
countries such as the U.S.A., Argentina, Mexico, France, and
Brazil. The trend of the world's corn prices due to progres~
sively increasing output is downward, and therefore, this
affects the relatively less efficient exporters such as Thai-

9
land more than the major suppliers mentioned above.“ The

 

2 u' . ' .
Production, Consumption and Trade of Coarse Grains,
U.S.D.A., BBS—Foreign 272 (June 1969), pp, 40, 42, 48,

31+

solution to this problem lies in shifting the emphasis on the
.D

eXport of grains to other forms mentioned in the lollowing

chapter.

CHAPTER III

CORN PRODUCTION IN THAILAND

new

Guatemala corn is a variety of corn which is at present
pOpularly grown in Thailand. More than 80 percent of the area
of cultivation is used for growing this variety. The Guate-
mala variety was first selected in Antigua, a town in Guatemala,
in 1946 under the management of the TrOpical Research Center
of the IOwa State University of which Dr. E. I. Malhus was
Director. A substantial amount of seed was sent to Mr. Ream,
ICA Agricultural Advisor in Thailand in 1952 for yield trials
in the country. It was found that this variety was remarkably
adaptable to the climate of Thailand. Although the yield of
Guatemala corn was not particularly high, it was found to be
an Open-pollinated variety that could be further prepagated
right in the country. Furthermore it had several seed charac—8
teristics which were desirable in foreign markets.

The Thai Department of Agriculture then decided to
multiply corn seeds in order to be able to distribute them to
the farmers. More seeds were then imported from Guatemala and
multiplication was started at Kaset Klong, Bang Khen in 1953.
The second lot of seeds-was sent to several Agricultural

Experiment stations in the corn-growing regions. Demonstra-

25

."J
C\

tions regarding the relative advantages of’Guatemala corn
compared with the currently pepular variety were made to
farmers with the purpose of obtaining their support and
acceptance. In this way the new variety of corn was spread
widely among the farmers throughout the country.

Table 10 indicates the shift in quantity of production
from the unimproved variety of corn to the period from 1950
to 1966. There were no improved varieties of corn produced in
Thailand in 1950. In 1966, there were 2,800 hectare of
agricultural land used bearing Guatemala and other newly
introduced varieties. This was about nine times more than the
area of land utilized for the traditional varieties in 1966.
Furthermore, the yield of the Guatemala varieties was found
to be more than twice as much as that of the Guatemala variety.
As a consequence of the widespread acceptance of the Guatemala
variety of corn, the total area cultivated with corn increased
almost fifteen times in a spanof 16 years, jumping from

219,000 hectares in 1950 to 5,115,000 hectares in 1968.

Table 10'

CULTIVATED AREAS FOR CORN AND PRODUCTION YIELD
BEFORE AND AFTER AVAILABILITY OF GUATEMALA VARIETIES

 

 

 

Year Traditional Varieties Guatemala Varieties
Acreage Yield Acreage Yield
(1000 (metric (1000 (metric
hectare) tons/hectare) hectare) tons/hectare)
1950 ‘219 .12 o _
1966~68 515 _ .22 2,800 .A5

 

 

 

 

 

 

Source: Global CrOp Paper, "Corn," Agency for International
DevelOpment, May 1969, p. 2. ' ‘

Geographic Location_of Corn Sectors:

 

Approximately 88 percent of Thailand's corn production is
concentrated in nine changwads (provinces), namely LOp Buri,
Nakhon Sawan,pSaraburi, Nakhon Rachasima, Phetchabun,
Phitsanulok, Phitchit, Sukhothai, Kamphang Phet. Among them,
Lop Buri, Nakhon Sawan and Saraburi are the most important,
having 70 percent of the total production. While these three
changwads are major corn production areas, LOp Buri and
Saraburi are more efficient in terms of total production per
area planted (27 percent of total production from 25 percent
of area planted and 17 percent of total production from 15%
-of area planted respectfully). Respective data are presented

in Table 11.

Table 11

DISTRIBUTION OF CORN PRODUCTION BY VOLUME AN AREA
(IN PERCENTAGE) - 5 YEARS AVERAGE, 1961/62-1965/66

 

Percent of Percent of

 

 

 

 

Changwad . Production ~ Total Area Planted
LOp Buri ‘ 27 25
Nakhon Sawan 26 26
Saraburi 17 ' l5
Nakhon Rachasima h 5
Phetchabun A 4
Phitsanulok 4 A
Phitchit . 5 5
Suckhohai _2 2
Kamphang Phet l 1
Total 88 85
Kingdom Total 100 100

 

 

Source: Kasetsart University, November, 1967.

LOCATION or

CORN

D.)
Go

Map 1

PRODUCTION IN THAILAND

(9 Leading Changwads)

SOUTH

.1.

N

\O 00$ @Ul-PKN

Q 0 O O

 

Changwads
(in central plain)

LOp Buri

Nakhon Sawan
Saraburi

Nakhon Rachasima
Phetchabun
Phitsanulok
Phitchit
Sukhothai
Kamphang‘Phet

p".
\O

Planting.Season:

Cultivation of corn requires an adequate supply of water
which must be obtained either from rainfall or from irrigation.
In the central plain area which is the only corn producilg area
in Thailand, soil and climate conditions are relatively more
favorable to corn production. Corn is planted in Thailand
during the months of May and July and normally it takes 90-110
days before the crOp is ready. The farmer who depends only on
rainfall prefers to plant corn with the first rain which usually
occurs in May and harvests sometime in August. If adequate
rainfall occurs, the second crOp can be planted in August and
would_be harvested in the month of November. It may be men-
tioned here that rice is planted in the month of July or August
(depending on the rainfall) and is harvested during December or
January. The second crOp of corn therefore, competes with rice.

During the past two decades, however, the yield of corn
has increased considerably as compared to rice. As the follow-
ing table indicates, between 1951-1966 the average yield of rice
has increased by 40 percent while the yield of corn has
increased by 86.5 percent during the same period. Table 12
also reveals that while the area under rice increased by 28
percent, the area under corn increased by 54 percent during this
period. This means, that though corn and rice are competitive
craps, the preference for corn is rising, presumably due to its

rising demand for exports.

Production. Acreage and Yield of Corn in Thailand:
Table 15 explains the growth of output, acreage and yield

of corn (1950»1966).

AREA PLANTED AND AVERAGE YIELD OF RICE
CORN IN THAILAND,

'

Table 12

(”ICU-2

\ ~/,’

1—1966)

AND

 

 

 

 

 

 

 

 

—

 

 

 

Area planted Average yield . Area planted Average yield

Year ({SSoriéi) €§e§i§§) (i880ciii) tigfiiii)
1951 37,245 197 25 163
1952‘ 33,551 196 281 165
1953 38,574 213 298 173
195A 34,732 .202 331 191
1955 36,060 218 347 196
1956 57,648 250 514 225
1957 51,726 208 606 229
1953 35,987 213 792 238
1959 37,909 206 1,249 256
1960 57,008 222 1,785 506
1961' 58,619 231 1,916 521
1962 41,617 240 2,050 551
1963 41,277 253 2,612 353
1964 40,890 256 3,449 276
1965 40,492 249 3,605 291
1966 47,095 276 4,083 ', 304
Source:

Agricultural Statistic of Thailand, 1966, pp. As, 54.

 

51

Table 15

poop em v ~ - 7 ~ *-
inunUelIOu, ACREAGE ALD YIEhD 0F CORN IN TFAILAND

 

 

 

 

 

 

 

 

(1950—1966
Year .Production Acreage ‘*
~ (1000 tons) (1000 rai) (igfiigi)

1970 2
1951 4&2? 226 127
1952 44.8 951 103
1955 51.1 3 a 165
1954 62.5 791 A 173
1955 67.5 33 I 191
1956 114.8 517 196'
1957 136 8 602 ' 225
1958 186:3 2 229
1959 317 2 l 29 1238
1960 543'9 1’ 39 256
129; 59833 1’31? 53?

o- ’/ .
an age a

5
313:? 1 325% 2h? 2'76
’ r... 0/ J AC

1966 1,122.4 4108? 56%
Source: Agricultural Statistics Of Thailand, 1966, Bangkok,

Thailand, p. 5A.

 

J

'\

5-

During this period production of corn increased by 41 times,
yield increased by two times and the area under corn increased
18 times.

While these indicators of progress are significant, there
is little room from complacency. The yield of corn in Thailand
is still much lower than many other corn producing countries.
Especially, since Thai corn exporters have to compete with
their counter-parts in other countries to capture the whole
market, lower yields and comparatively higher costs serve as
an Obstacle in expansion of exports. The following table
compares the per hectare yield in the principal corn producing
countries in the world. The U.S.A., Canada and France produce
2-2% times as much per hectare as does Thailand and pose a
serious challenge to the Thai corn exporter in the world market
because Of their higher yield and lower cost Of production.
Even though Italy and Taiwan are currently importing corn
from Thailand, they also have higher yields and in the course
of time either they may reduce their imports of corn or may

become exporters.

Table 14

YIELD PER HECTARE IN PRINCIPAL CORN-PRODUCING COUNTRIES
(100 kg/hectare)

 

 

 

 

 

 

Year Average
Item 1948-52 1966
UosoA. ' 2409 4501+
Thailand 9.1 22.4
Chile 14.2 2.4
Canada 52.0 51.7
’France 15.6 45.6
Italy 18.4 35.5
Taiwan 14.1 25.2

 

 

Source: FAO, Production Year Book, vol. 21, pp. 55-56.

 

35

Estimated OutputA_Acreage and Ti 16 of COln:

 

On the basis of least souare method, the following

A.

regression equation from Table 15 is obtained:

Y1 = al‘+ bl t
Y2 = a2 + b2 t
Y3 = a3 + ‘03 t
where Y1 refers to estimated production
bl is the coefficient for one unit change in time
Y and Y3 refers to estimated value of acreage and

2
yield respectively while,

b2 and b3 are the respective regression coefficients
for the two dependent variables mentioned above.

Following values have been obtained:
2

1. Y1 = ~265.02 + 73.63t (R = .89)
2. Y2 = ~762.12 + 244.18t . (R2 = .87)
5. Y3 = 133.49 + 12.26t (R2 = .83)

This estimate suggests that our last 16 year period corn
producing sector has exhibited enormous upward movement and
based on this trend. We can Obtain following estimate the
production of corn, area planted and yield for the next 10
years (shown in Table 15).

It must be noted that the regression equation Y1 and Y2
used in estimating production have negative Y-intercept; how-
ever, it is impossible because production must be positive
even without the use of fertilizer, modern equipment, etc.-
Perhaps the reason for this is that for the years 1950-1955,

production advanced slowly because modern technology was not

used intensively, whereas the years 1956~1966 ICPVCwGLtOQ
years of‘accele rated growth caused by increasing utiliza* tion
(f modern tec ”inclo ogy. Consequently, it is possible to obtain
two regression equations, with the latter years having a
greater lepe.

It is not feasible to use the earlier years' regression
nor the latter vears' simply because technology should exhibit
more growth in production for l956w1966 than 1950-1955, and
also because continued grow th such as that of 195 6-1966 is
not practical because of d‘mluJSPln“ returlls to scale.

Therefore, the average should lepre esent a better estimate.

asonality in the_Corn Prices:

Seas na fluctuations in prices are measured by seasonal
price indices. The focus of this section will be on the
oscillations in the wholesale prices of Corn during different
months of a year. An attempt has also been made to analyze

the factors that are responsible for such seasonal variations.

IIJ'QE{AE?B

w..— —-—-—--- w-—.-—.-.—.— . -.

-..-.. .

PRODUCTION.

 

-—- _‘—— _—

AHEA PLANTED

or CORN In THAlLAND, (1967~197

A
6

ND YIELD
\
I

 

 

.- "FH‘ -.—_--—'

ou-.-—o——-.-———-—- “——.~—~...—1.

mated yield
kg/rai)

 

Year Estigggegoggtput Estipgggdr2§§eage Est?
1967 1,062.32 3,633.12
1968 1,135.95 3,877.30
1969 1,209.58 4,121.48
1970 1,283.21 4,365.66
1971 V1.356.84 4,555.84
1972 1,430.46 4,854.02
1973 1,504.10 5,098.20
1974 1,577.73 5,342.38
1975 1,651.36 5,586.56
1976 1,724.99 5,850.74

 

 

 

. 378.69

_..-- _a”'-.-—._- .‘q

35%.17
366.43

390.95
403.21
415.47
427.73
439.99
452.25
464.51

 

 

The monthly wholesale prices of corn in Thailand between
1950 and 1969 are shown in Table 16 and a seasonal index on
the basis of these data have been estimated and included in
Chart 3 which presents the.seasonal index and the standard
diviation.

The following points of interest can be noted from
table and chart.

1. The wholesale price of corn increases steadily frOm
January to mid-April because during these months the quantity
of corn flowing from the farm is almost negligible. '

2. Between May and September the wholesale price of
corn showed a decline because during these months, Thailand
has two creps of corn and for the reason explained in Chapter
IV (the problem of storage), that farmers brought the whole
produce of corn to the market. The demand for corn during
this period does not usually increase neither in domestic
market nor in the external market. The wholesale price of
corn, therefore continued to decline until the market had
excess of supply over demand.

3. From October to December, the wholesale corn price
showed an upward trend. This trend continues beyond December
as well. V

The seasonality in the wholesale corn prices thus can be
viewed in two phases. The period of declining prices and that
of rising prices. The phase of higher prices (October - May)
reflects the inclusion of storage and other overhead costs

incurred by the middleman to stabilize the supply over the

whole year. The discrepancy between demand and supply during

the different months of the year results in seasonal varia-

.L

tions in the wholesale corn price.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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CHAPTER IV'

MARKETING SY TENS FOR CORN

The principal feature in marketing of corn in Thailand
is that the external demand absorbs almost the whole of the
corn production. In 1959-60, 90 percent of the corn produced
in Thailand was eXported, but the corresponding ratio for
1968-1969 increased to 98 percent. Unlike the other develOping
nations, corn is not used in human consumption in Thailand as
a staple food and the residual amount is used as a feed grain.
In 1959-1960, 10 percent of the corn output was used for cattle
feeding but it declined approximately toh2 percent in 1968-1969.
As has been indicated earlier, the production of corn during
this period has increased more than 2 times, whereas demand
for corn feed grain has shown a very small increase.1 But the
sharp increase in output has facilitated not only the fulfill:
ment of the local demand for corn as feed grain, but also the
demand for export. As these figures reveal, the export of
corn has increased about three times over this period (Table 6).
The above discussion suggests that over this period, the

importance of the exporter in the disposal of Corn has

 

1 . . . - . fl . . .
D1V1sion of Agricultural Lconomics, Ministry of
Agriculture, Bangkok, Thailand.

40

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enormously increased. This has led to certain structural
changes in the marketing channels for corn.

Chart 1 explains the relative positive of various
agencies in the disposal of corn in l959~1960 while the cor-
responding arrangements of different marketing agencies in
1968—1969 have been presented in Chart 2. In 1959-1960, local
middlemen accounted for 46 percent of the total corn produced
by the farmer. The outside middleman purchased one—third of
the output directly from the farmer. He also procured 17
percent of the produce following from the farmer.to the money
lender and one percent of that going to the millers. The
farmer sold three percent of the produce to the brokers who
worked for the exporters. In other words, exporters also
purchased corn from the farmers, but they have to use the
service of the brokers in this process.

By l968~l969, the situation had changed considerably.
There are now three principal agencies working between the
farmers and the exporters, namely, the first seller, the second
seller and the third seller. The first seller is the local
buyer who has a direct contact with the farmer and buys about
53 percent of the better produce, but would then sell to the
second seller, to the exporter, to the broker and also to the
cattle-feeder. As Chart 5 reveals, by 1968-1969, the local
middleman (now known as first seller) had lost much of his
direct contact with the exporter as compared to 1959-1960, and
currently less than 20 percent of the produce goes directly

Vfrom the first seller to the eXporter.

As compared to 1953~1960,'a relatively new but stronger
agency seems to have emerged in the process of corn marketing
in Thailand. The third seller or commonly known as Changwad
(province) seller has more financial power and can work on a
larger scale. Even though his direct purchases of corn from
the farmer constitute a very small fraction of the total corn
production, he buys corn from the second and first sellers.

In short, about 40 percent of the corn which is exported
passes through the third seller.

Two other important changes have taken place in the
marketing process for corn over the 1959-1969 period. First,
the brokers working for the exporters have lost their direct
Contact with the farmer and now they buy either from the first
or second seller. Secondly, money-lenders have lost their
distinctive role in procuring corn from the farmers while in
1959-1960 farmers sold 17 percent of their produce to the
money~lender against the principal and interest payment. In
1968-1969 this type of obligation on the part of the farmer is
not found. However, it appears that most of the money-lenders
have turned into middlemen and are-buying corn from the farmers
in this capacity. Many of the local as well as outside middle-
men advance loans to the farmers with an understanding that
they (farmers) would sell their produce to these traders
immediately after the harvest. About 63 percent of the traders

. . 2
give credit to the farmers.

 

2 . . .
Dr. Chalyong Chuchart and others, Productigp and Marketing

of Corn in Thailand, Kasetsart University, Bangkok, Thailand,

T963, p. 42.

 

 

:—
\n

_L

Change in Marketing Margin:

Though during the last decade, the marieting channel for
corn in Thailand has undergone certain basic changes, the
marketing margin has declined over this period. The follow-
ing table presents an account of the average price received
by the farmer, the export price f.o.b. Bangkok and the

marketing margin for l959~l960 and 1968-1969.
Table 17

PRICE RECEIVED AT THE FARM FOR CORN ND EXPORT PRICE,

F.O.B. BANGKOK, 1959-1960 AND 1968-1969

 

Percentage
Price received Export price Marketing of market—
Year by the farmer f.o.b. hangkok margin ing margin

(baht/60kgs) (baht/60kgs). (baht/60kgs) (col. 3 as
% of col. 2)

 

 

,_ -_...

1959—60 h4.23 71.18 26.95 37.8 ‘
1968-69 45.59 65.75 20.16 30.6

 

 

 

 

 

 

 

Source: Computed from data shown in Table 18 and Table 19.

As indicated in the above table, even though the export
price, f.o.b. Bangkok, has declined by 5.4 percent, the price
received by the farmer has increased by 1.3 percent. Despite
the fact that a new channel, i.e., the third seller has emerged
as an important marketing agency,-the marketing margin has
decreased from 57.8 percent to 30.6 percent.

Tables 18 and 19 indicate that as compared to 1959-1960

the transportation costs in l968~1969 were considerably lower

J1“
C \

(by 21 percent). Simi-arly the profits of the outside and
local middleman have also decreased during this peliod. It
appears that with an increase in the number of middlemen and
with increasing competition among them, the share of the
farmer has gone up.

Yet, the profits of the exporter and the wholesaler
appear to be high. In 1968~l969 for example, the profit of
the eXporter accounted for 11.3 percent of the export price,
f.0.b. Bangkok. In addition, about nine percent profit was
obtained by the wholesalers and other middlemen. Even if other
costs are allowed, the broker fee, transportation, wages,
taxes, etc., the profit of the middleman appears to be
exhorbitant.

On the basis of certain data published by the Kasetsart
University for the monthly corn prices received by the farmer,
by the provincial dealer and the wholesale price in Bangkok
for the year 1968-1969 it can also be shown that the market-
ing margin appears to be high. The data on prices received
by the farmers and provincial dealers pertain to five chang-
wads in the central region and therefore may not be fully

comparable with the figures given in Tables 17, 18 and 19.

A?
Table 18

MARKETING COST, PROFIT OF DF ALFRS AND PFR? LIFICE OF MONEY
RECEIVED BY E} PO QTERS vOR CORN 0F1AINF RON FAFMLAJ
AND DEALERS IN 8 PROVINCE FS III CENTRAL REGION, THAILAND, 1960

 

,- a ma, Amount of Money
Cost and rrclit (baht/6O kgs) Percent

owa

 

.—

Corn price (f.o.b. Bangkok)

 

 

per year obtained by exporter 71.18 100
Average obtained by farmer 44.23 62
Cost 8.80
Cost of outsider middleman 6.80 10
Transportation cost 2.00 3
Profit 18.15

Profit of outside middleman
(Profit before depreciation
and interest charges are

deducted) 4.h8 6
a) capital 1.93 3
b) expenditure for exporter 9.60 13
C) pic-lib 12.1. C} yul CCI 2.11:}- 3

 

 

 

 

' Source: Dr. Chaiyong Chuchart and others, Production and
Marketing of Corn in Thailand Kasetsart University, Bang1:ck,
Thailand, 19b3, p. 177.

 

Table 19

1IATFWFT”I‘C COSCP,

I)p01 1T

THAILAND, (JU

OF D1711, 13L] 1:9

.L\1..'

(11"(1
\J- LJ\)(‘

1 68-11T 1909)

AND hFDCI‘ITAI‘E OF
I‘IOIIE Y 1111I‘FTIND BY FkPOleFN’S FOR COEII QBTAlITID FEOI1 I?!"
AND DEALERS IN 8 PROVIN

‘I'IT‘Q '0

ENE

1N (ENTRAL REGlON,

RS

 

Amount of Money

 

 

 

 

Cost and Prellt (baht/60 kgs) Percent
Average export price (f.o.b.
Bangkok) per year obtained _
by exporter 65.75 100.00
Average obtained by farmer 45.59 69.34
Cost 6.88
Transportation 1.58 2.40
Brokers 0.93 1.41
Wage“ 1.36 2.07
Tam and fees 0.03 0.05
Container cost 2.08 3.16
Office cost (rent, service,
etc.) 0.37 0.36
Others 0.53 0.81
Profit 13.28 ‘
Net profit of wholesalers - 5.86 8.91
Total profit of exporter 7.42 11.29

 

Source: Kasetsart University, Bangkok, Thailand, 1970.

 

2+9

The following po nts can be noted from Table 20:

l. The margin between the price received by the farmer
and that received by the local merchant varies between 8.3
baht per 60 kgs. in October and 13.5 baht per 60 kgs. in
July. During other months the margin varies according to the
availability of corn. However, the two prices show a consid-
erable degree of correlation, that is, the price received by
the provincial dealer is followed by the price received by
the farmer.

2. The wholesale price of corn in Bangkok shows Wider
fluctuations during the year than do the prices received by
the provincial dealer. Put in terms of concurrent deviation,
prices shown in column two and three show a high degree of
correlation. .

The f.o.b. Bangkok export prices also follow the changes
taking place in the wholesale prices in Bangkok but the
exporter has to buy corn at a loss in the months of May,
November and December when the farmer has no corn to offer,
and he has to depend only on other middlemen (see Table 20).
The margin between the Bangkok wholesale price and export
price, f.o.b. Bangkok, is very low in the month of November
presumably because of the lower world corn prices, but in the
preceeding month because of lower internal prices the margin
is considerably higher. The eXporters have to buy cornfrom
the wholesaler at a price lower than they receive in May and
December.

No definite conclusions can be reached with respect to

to these price movements and the marketing margins. It can
be only concluded that the mar,in between the emport f.o.b.
Bangkok price and price received by the fa mer is a function
of world corn prices, flow.of the corn from the farm to the

trader and the quantity of corn stored by the wholesalers.

PRICES RECEIV

LOCAL MERCHANTS
,

PRICES,

EXPORT

51
Table 20

no ov FARMERS,

' .
A

F.0.B. BANGKOK. conn,
(baht per 60 kgs)

BY PROVINCIAL DEAL
WHOLESALE PRICES IN BANGKOK AND
BY MONTHS, 19s8~1969

""1 1-
in}

5 AND

 

 

 

 

 

 

 

 

i Brice received byi Wholesale Export
Month Price receivedi the provincial corn price price
by the farmer dealer and local in Bangkok i.0.b.
merchant Bangkok
June 45.00 58.00 60.00 67.61
July 39.84 53.33 57.00 66.66
August 41.04 52.17 55.20 62.97
September 41.42 51.49 50.40 61.62
October 44.18 52.45 50.40 58.60
November 47.42 57.34 56.40 56.41
December 49.70 59.86 61.80 59.41
January 51.1 60.97 69.00 65.77
February 50.60 52.90 67.80 71.81
March 52.40 61.50 69.60 74.91
April - 65.00 66.50 74.85
May ~ 65.00 72.00 68.27
Source: Column 1, 2, 3, Division of Agricultural Economics,

Ministry of Agriculture, Bangkok, Thailand, March 1970.

Affairs, Bangkok, Thailand.

Column 4, Division of Customs, Ministry of Economic

 

 

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gagyggll Traprgxmgtgtigwxfhgndition;

Transportation plays a vital role in national develOp-
ment, particularly in the process of integrating rural and.
"urban sectors. The flow of agricultural products from the
village to the marketing center, and that of agricultural
inputs to the farmers depend largely on the transportation
network. Among the principal transportation routes, railroads
account for nearly 42 percent of the movement of all types of
goods, about one-third of the goods move through waterways
and the remaining goods move through the highways.3

Road maintenance in Thailand is generally poor and
during the rainy season large sections are impassable because
of floods. The drainage is poor and construction is defective
in most parts of the country. In 1965, out of 7,800 miles of
road only one third were suitable for all weather travel and
movement of cargo.[Jr

This is true despite the fact that during the last two
decades the government has made some effort to improve the
roads especially under the seven years Provincial Highway
Deve10pment Program (1964-1970). Some new roads have been
built and some roads have been paved but most of this improve-

ment remains confined to the urban areas. In 1953, the mean

distance between the farm, markets and the highways in different

 

3J. R. Behrman, Supply Response in Underdeveloned
Agriculture, North-Holland Publishing Company, Amsterdam, 1968,
p. 51.

b. . ' ., .. . ~ .

'H. B. Smith and others, Area and Bock 3or Thailand; Porn

fiégn Area Study, The American University, flashington, September
00
,1 o

 

51+

0

regions varied between 6 and 15 kilometers (see Table 21).
As Table 21 reveals, the average distance between the village

and highway in Thailand was 10 kilometers.

Table 21

MEAN DISTANCE IN KILOMBTERSl 0F FARMS FROM

MARKET AND TRANSPORT FACILITIES
ACCORDING TO 1953 FARM SURVEY, THAILAND

 

 

 

 

 

 

 

 

Mean Distance in Kilometers From
Region Market Tour Waterway Highway §::%igid

Central Region,

excluding southeast

coast 6.0 11.1 5.8 17.4
Southeast Coast 5.8 5.1 5.6 180.2
Northeast 1£,6 7.1 14.7 64.5
All Thailand 9.0 3.1 10.2 71.7

 

 

 

 

 

1A kilometer is equal to five-eighths miles.

Source: J. R. Behrman, Supplngesponse in UnderdevelOped
égriculture, North-Holland Publishing Company, Amsterdam,

1968. p. 54.

Moreover, most of these roads could be used only during the dry

season. Since 1953, not much has been done to improve this

situation.

Waterways:
As has been stated above, one-third of the goods in
Thailand are carried through waterways. Waterways are more

pepular in the Chao Phaya low land, north of Bangkok where

' ‘ i
n__ m-

 

\J":
\

1r
1' 7

lkl'.

[U

P
LOCATION OF CORN PRODUCTION ARFA IN THAILAND

Burma

 

Gembod is

1

I

Changwads:

LOp Buri

Nakhon Sawan
Saraburi

Nakhon Rachaisima
Phetchabun
Phitsanulok
Phitchit
Sukhothai
Kamphang Phet

\OOON'ImUH-‘KNNH

Source: Drawn from the information contained in Eact and
Figure of Thailand, Ministry of National DevelOpment, Bangkok,
Thailand, 1965.

th

(O

y constitute an interconnected network of the work canal

«J
‘

and branch systems. Fcr the m vemznt of agricultural

(4

products, waterways are most commonly used with respect to
rice. However, only Nakhon Sawan is in a favorable position
to m'ke a good use of waterways for the transportation of
corn. As can be seen on Map 2, Nakhon Rachasima and Petchabun
have no direct access to any river. 0n the other hand Phit-
sanulok, Phitchit, Sukhothai and Kamphang Phet have small
rivers which are not navigable during most part of the year
because the four rivers, Ping, Vang, Yum and Nahn are rain-fed
rivers and become shallow during the period when corn needs to
be transported. For this reason waterways are not pepular for

the transportation of corn.

 

The railroad system in Thailand is also not very well
develOped. In 1966, the total mileage of railroads was less
than 2,300, and all lines were single track except a 56~mile
double track stretch around Bangkok.5 Most of the railroads
link the big cities or towns and as Table 21 indicates the
average distance of the village to the railroad station is
about 72 kilometers which means the farmer is not in a position
to use railroads for transporting his produce.

The transport system therefore is not favorable to the
farmer, especially for corn. The only important route acces-
sible to the farmer is the read. As has been pointed out

_b.

5H. H. Smith, pm, (2:15., p. 53+.

57

earlier, most of the roads are only fair-weather roads, and
therefore, most of the corn is shipped from the village to
the market in bullock-carts during the dry season. he cost
of transportation is high and involves a great deal of time.
It appears that corn was not considered an important product,
hence the neglect in the improvement of its transportation.
It would appear that the transport facilities for corn need
to improve in the future if its potential importance as an

export crOp is to be realized.

Storaag:

Since most of the small producers work on a small scale
and since corn is not used for consumption, the whole of the
output is sold to the middleman immediately after the harvest.
A small amount Of corn is seld to dairy farms, swine farms and
poultry farms. Up till now no serious thought has been given
to the question of storing the corn. Since farmersido not
have storage facilities, they are compelled to sell their pro—
duce immediately after the harvest. It appears that.the large
fluctuations in the price of corn shown in Graph 3 and Table
16 (Chapter III), are due to heavy arrival of corn in the
market during the postnharvest month.

The small quantity which is produced by the small farmer
precludes any effort on his part to build warehouses at the
farm level. 'The local and the outside middleman also seem to
have no inducement to store the corn because of the pressure
of demand from exporting firms. Since more than 90 percent of

the corn is exported, the whole stock of corn is brought to

.58

Bangkok where the exporting firms keep it in their warehouses.
To sum up, it can be stated that the stor ag ge of corn is done
only by the eXporter and the farmers and middlemen have
practically no storage facilities.

During .he last 12-15 years farmer COOperatives have
built some storage barns at the village leVe' l to facilitate
the storage of agricul tural products at t‘ne farm level. But
these storage barns are very few in numbers, their capacity
is very small and they do not have any scientific way to

preserve the quality of the produce.

Credit:
The greatest need for credit to the farmer is at the

time of growing and harvesting the creps. Most farmers do not

hDV‘D afloan-l‘n thrfihfi‘r‘. ."ghrq fhornf‘pnn hrs-urn to An “A Cmd Cw
. ‘ _- -_ ~ VJ . '. . .. .. .,_-. U1- - - - v . _ ‘ J.‘ s- .... . I \V- I

, ml" M (‘7?
viv viz» u. .1.; “AV \-

lenders and/or the middleman Usually the local as well as
Ithe outside middleman finance the farming Operations with
tacit understanding that the farmer will sell their produce
to them. Even though from h2 to 52 percent of the loans (in
different regions of the country) are taken for family living,
weddings or funeral services, the farmers are obliged to sell
their produce to the money~lender cum-middleman.6
The following table gi es an account of the various

sources cf credit in the four_important regions in Thailand

and their relative importance. _As the above table indicates,

 

6Pantum Th13ayamondol and others, fifriCultnre Credit in
Thai_land, Kasetsart University, Bangkok, Thailand, 1965,
pp. 22—23.

 

local stores and crOp buyers provide about 22 percent of the
credit in the Central regions Which is the corn-producing

area. In other regions, however, farmers rely more heavily
on their relatives. About 63 percent of the traders in the

7

Central region advance loans to the corn producer. However,

the fact remains that they are obliged morally, or otherwise
to market their produce to the middleman. The c00perative
and other institutions are still in the initial stages and
do not help the farmers in obtaining credit on fair and
reasonable terms.-

The monthly rate of interest varies between 1.8 percent
and 3.5 percent for the individual's source, though the
institutional sources (such as government, COOperatives and
banks) provide loans at 0.8 percent.8

The very fact that 53 percent of the corn is sold by the
farmers to local middlemen and 39 percent to the outside
middlemen (figures relate to 1968-69) gives an indication that
in the marketing of corn, farmers are under the pressure of

the middleman who provide loans to them in cash as well as

in kind.

 

7Dr. Chaiyong Chuchart and others, op..git., p. 1&2.

8Dr. Chaiyong Chuchart, 2p. cip., pp. 39mh0,

60

Table 2

SOURCE OF CREDIT BY REGION IN THAILAND
(in percentage of total)

 

 

 

 

 

 

Source of Credit 0:32;:1 ' North Northeast South
i

Relative 22.6 47.0 58.5 43.0
Neighbor 16.7 19.9 4.3 12.?
Local Store 13.9 3.0 4.6 10.9
CrOp Buyer .7.9 10.1 -6.5 13.8
Landlord 10.7 0 5.2 0
Money Lender 14.2 8.9 7.5 1.5
Institutional Lenders

(Gov't, COOp, & Bank) 3.0 9.8 10.8 13.7
Others 11.0 _ 1.3, 2.6 40.4
Total 100.0 100.0 100.0 100.0

 

 

 

Source: Pantum Thidyamondol and others, Agricultural Credit
in Thailand, Kasetsart University, Bangkok, Thailand, p. 57.

 

 

MONTH

T“;

J.:..

 

Type of Lender

 

Relative
Neighbor

Commerci
Lender

Local

al

Store

CrOp Buyer

Landlo

Money Lender

Other

Institut
Lender

Credit COOp.
Other Gov't.

Agency

Commer
Bank

Weight

Average Rate.

rd

ional

cial

ed

—.

__._. -.- _— -n--.—-- _4

 

“' Tf’jTII \‘(1 (V [f1
1.1‘I .L 4".) L.: J‘Jo ) J. L

..—. _.—_ --.——- m-

61

d

v 1
flanle

‘~.-r\'1,'n(l I~1T
4'..‘"...J;IQ a.)

23

2 131710 1 01“? I N T H A: L AN D
AND TIPE 1? LENDER

Region

,-__., -.—._-~—-———v~—- ..

—.-—-—-- ----—--—--—-- ‘0 .

 

Central
Plain

1.7
2.4

2.3

2.2

 

_.-..

North

...._ —-.¢_—_—.~--..——o—-

2.6
3.3

1+.8
5.4
4.7
N.A.
5.0
3.4

0.8
0.8

0.8
N.A.

3.3

 

Northeast

(\
1.0

3.3

4.3
6.2
3.9
1.8
7.3
7.0

 

South

_-_ ~— -.._-_._,,..._ A“ ...._ .-

1.1
2.3

2.0
2.7
1.3

N.A.
3.6
2.2

0.8

 

Mean for
All Areas

A...-— —n--———-*——’<-— - « -

1.8
2.6

2.9
3.5
2.9
3.5
3.3
2.5

0.8
0.8

0.8

2.4

 

 

4N.A.

Source:

- Not available.

Pantum Thidyamondol and others, Agricultpral Credit
in Thailand, Kasetsart University, Bangkok, Thailand, p. 40.

.-_-.-_~——-—-—-—..--_-. ‘ *

'I

We...“ _-*_——’ ,m -w.

 

 

CHAPTER v

SUMMARY, IMPLICATIONS AND SUG
CHANGING THE MARKETING STRUCTU

" !

GESTIONS FOR
RE nND POLICY

The previous chapters have focused on the trends in pro»
duction, acreage, yield, prices, exports, and the marketing
system of corn. Some of the implications of the-foregoing
analysis follow:

1. OVer the last 16 years, corn production and yield
have recorded substantial increases. The yield of corn,
however, is still low as compared to other principal corn pro~
ducing nations. Since corn is primarily an export crep, this
has far reaching implications for the export price and demand
in the future.

~2. Production of corn in Thailand is centralized in the
central region because Of the soil and other physical conditions.
This suggests that the supply of corn depends on the weather
and other exogeneous factors mostly beyond the control of man.
In short, the corn producing sector in Thailand suffers from
all the drawbacks Of a localized industry.

3. The rholesale price of corn fluctuates over the
different months in a year, but as has been explained in
Chapter II, the seasonal price index shows two phases of price

movement, an upward movement, (October-May) and a declining

62

trend, (mid May«September). This eXplains the lack of
stability in the supply of corn during different months in a
yeare—stemming mainly from lack of storage facilities at the
farm level.

4. The price fluctuations are also the result of an
inadequate transport system in the countryside. Lack of good
feeder roads and inaccessibility of th> farmer to main street
and the highway is another major factor explaining the
instability of the prices.

5. The marketing channels for corn are undergoing basic
changes, yet the marketing margin has declined due to improve-
ment in the system. Still, the share of the farmer in the
wholesale price or the f.o.b. Bangkok export price of corn is
only 69 percent. Moreover, the export prices do not follow
the trend in the wholesale price in Bangkok or the price
received by the provincial dealer, (Graph 4). In certain
months, (September-December), the export prices stay below
the level of prices received by the provincial dealers because
during these months the eXporter has to buy corn frOm other
channels at the going price in order to fulfill his export
agreement. Obviously, during the above months, the provincial
dealer and wholesaler would prefer to charge high prices for
corn.

6. The margin betnecn f.o.b. Bangkok eXport price and
Bangkok wholesale price of corn is low in certain months, while

very high in others, depending on the demand for exporting corn.

’-

01+

7. The fact that institutional credit is not adequate
in Thailand, provides some explanation of the high cost of
credit with the rate of interest varying from 0.8 to 3.5
percent per month, coupled with an obligation for the farmer'
to sell his produce to the lender.

8. Little effort has been made to meashre the demand
for corn in the domestic market, especially for cattle feed-
ing. The residual nature of such demand has an implication
of unstable supply in the domestic market and the resulting
variations in the price.

I 9. Since corn is mainly.an export crOp, any unusual
gap between the f.o.b. Bangkok export price and the domestic
price of corn is likely to have serious implications for the
quantity of corn exported. Whether or not the contract for
export is fulfilled by the exporter will depend on the
difference between the two prices. Whenever the wholesale.
price in Bangkok of the provincial prices of corn are higher
than the f.o.b. Bangkok (eXport) price, the exporters do not
hesitate to go back on their export commitments, on the other
hand, when prices within the country are lower than the f.o.b.
Bangkok export price, they try to persuade importers abroad
to buy larger quantities.

10. Thai corn exporters depend very heavily on Japan
for the export of corn, albeit the Thai preportion of Japanese
corn imports is declining. There has been very little effort

on the part of the exporters to search for new markets.

65

11. There has been very little effort to diversify
the use of corn in the domestic market. The emphasis so far
has been on exporting the grain, rather than the processed
corn or canned meat which could be obtained sy expanding the

c ttle feeding industry. In short, no effort has been made

9)

to increase the use of corn at home and increase the export
of corn-based products. The world demand for Thai corn may
not be significant in the future due to the high cost of corn

production and rising competition in the world market.

Recommendations:

 

It seems apprepriate to assume that the corn producing
sector will continue to occupy an important place in Thai
agriculture, and that the export of corn and corn-based
products (meat, corn oil and processed corn) will remain
important in the future. Therefore, it is desirable to
introduce certain changes in the system to improve its per-
formance. The following suggestions can be made to change
the structure of the corn producing sector and to increase
its efficiency:

l.A Intensive Cultivation of Corn:

All efforts should be made to increase the yield of corn
in Thailand by providing better inputs such as improved seed
and fertilizers. The Guatemala variety has increased the yield
substantially, still there is enough room for improvement.
Hybrid varieties of corn should be deve10ped, and be made avail-
able to farmers in adequate quantity. Research stations and

demonstration farms to this effect should be set up in.order

!

to CUVQlOp high yielding varieties, (H.Y.V,) of corn.
Further improvement in yield of corn appears to be a

precondition for maintaining a competitiv position for Thai

corn in the international market. Besides establishing a

researcx and experiment station for the H.Y.V., simultaneous

efforts should also be made to increase the supply of

H,
(D
H

tilizers and better plovs. This will require extensive
credit programs for the corn producing sector. The intensive
cultivation program should, therefore, include better and more
intensive cultivation of land.

2. Experiments for gr wing corn in the changwads outside
the central region should be established. New varieties may
be develOped for these changwads that have relatively less
favorable physical condition for corn production. This will
help in increasing an aggregate output of corn in Thailand.

3. For the stabilization of corn prices, a comprehensive
storage program should be suggested both at the farm level as
well as in the provincial markets. A warehousing pregram on
a large scale can be undertaken either by the government or
by the government—sponsored farm cooPeratives.. The farmers
may be allowed to keep their produce in these warehouses during
the loan months, (May-September) against a nominal payment on
warehousing cost. The storage program should be given high

riority in the next five year plans. It might be pointed out

"(:5

n this context that a large scale storage program can be

P.

completed only over the long run.

4. DevelOpment of feeder roads and an improved transport

system is also urgently needed for improving the efficiency

0

of the corn producing sector. These will be omplementary to
the wareh0*sing program and will pr sumably help in t.e stabi-

lization of prices. Very little progress has been made in the

direction of developing feeder roads in the countryside and
masing the provincial highways workable for year around use.

It seems that the seven year national highway construction
and rehabilitation program (1965-1971) is biased toward
national highw'ys and little thought has been given to the
develOpment of roads in the countryside. During the Second
Plan, (1967-1971) out of 7.31 billion baht envisaged, 6
billion baht have been allocated for the develOpmeqt of
national highways.2 It can therefore be suggested that in
the next Five Year Plan 40 to 50 percent of the transportation
outlay be devoted to provincial highways including the feeder
roads.

The warehousing program coupled with the plan for
develOping provincial highways will bring forth further
improvement in the efficiency of marketing system for corn.
It may also be heped that this will reduce the marketing
margin and it is likely to benefit farmers as well as other

participants in the system.

1The Second National Economic and Social Devplgpment
Plan (1967—1971), 0p. cit., p. 13”.

r
cEEh.£i£n1 p. 137.

 

TT‘5

Institutional changes for improving the farm credit
'structure should also be given serious consideration and still
more encouragement is needed for the coOperativos because
they can provide cheap credit to the farmer without any
strings. In the develOpment plan a subsidized credit program.
should be included as to enable the farmer to obtain credit
at a low cost.

The above preposals are likely to improve the internal
conditions of the corn procucing sector. However, for
improving the foreign trade in corn, the following suggestions
can be presented.

a) The marketing of corn_in the external as well as in
the domestic market can be improved by introducing grading
and standardization for corn. The ministry of agriculture
should appoint the necessary personnel to grade the various
categories of corn on the basis of norms set by the govern-
ment. It appears that the exportable corn is not subject to
strict quality control and this may affect the Thai corn
eXports in the years to come. ' o

b) Detailed programs should be made for extending corn'
eXports to other countries. Efforts should be made to have
trade negotiations with such countries, and unnecessary
dependence on Japanand Taiwan should be avoided for the
GXport of corn. The Board of Trade should be made responsible
for Opening new markets for Thai corn.

c). Long term trade agreements should be made with the

importers of Thai corn so that the eXporters, the middlemen

69

m

.nd producers of corn can plan their Operations in advance.
This would insure more stability in the f.o.b. Bangkok export
price, would provide a guarantee to the exporter with respect
to the quantity to be exported, and would therefore, give an
incentive to all other participants in the corn sectors.

d) There should be effect to promote diversification
in the use of corn. It seems reasonable to believe that
Thailand cannot depend definitely on the eXport of corn in
the grain form. Effort should therefore be made to make an
increasing use of corn in the domestic market. A pragmatic
approach would be to encourage the cattle feeder industry under
the next Economic and Social DevelOpment Plan. The emphasis
should be shifted from exporting corn to the eXport of meat.
Supplementary industries using corn could be the cereal
industry and corn oil industry. Encouragement should be given
to the use of breakfast cereals (such as corn flakes) within
the country. In the initial stages promotion of these products
could be confined to the urban populations but gradually their
use might be extended all over the country. 'The fact that
between 1960 and 1966 the per capita GNP in Thailand increased
by 30 percent (from 2050 baht to 2628 baht), gives rise to an
Optimism that the demand for breakfast cereal can be increased
with intensive promotional effort.3

The marketing channel for corn has shown considerable

 

I”— at..-“

)The National_Economic and Social Develonment Plan,
Op. Cit., p. 13.

7O

'1'
,0;

years a.

mprovenent during the past few

i- I.

continue to improve, and L

received by the wholesaler or exporters will continue

hopefully will

the share of the farmer in the price

to rise.

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Japaane Efforts to Di v: rsify .ourc«s of

:~-—

0
Agricultural Imports, USDA, LhS — Foreign 292

 

 

. The Agrigulturgl_§ituation fn the Far East and

 

0ce>ra USDA, BBS m Foreign 262.

__. The Ir‘-c134'rel Situatioq in the_Far East and
chgna, U6 Dfl, LBS - foreign 2.00.

 

 

 

 

 

. The Aer 1C11lvl'7 Situation in the Far East and
chana, USDA, LCRS - lQIOiI—gn 29:3.

. Pro ducti on, Con. eumntionA and Trade of Goa so
, ERS ~ boreign 2/2.

1,.-
(LfdlllS
mm

 

The Sec ond 1'1ione] Vcoioric and So 'al Devele—
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DU“... L1, v.1 llbb‘ UJ. 1.116” r J' MU 11lfil Seer , .L’vtllb-LU1\., lllclllo’ll‘. .

 

 

 

 

. Ehog Production Year Book, 1967, vol. 21.

. Agricultural Statistics of Thailand 1966,

Nizistry of Agriculture, Bangkok,l Thailand

 

. The L3end: F"cts and Pisuree 19 65, nistry of
Nati onal DLVLlOpuent Bangkok, Thailand.

 

 

. World Agricultural Production and Trade:
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. Thailand Monthly Report, Bank of Thailand,
September 1966, Vol. VIII, No. 9.

 

 

. FAO Monthly Bulletin of Agricultural Economics
and Statistics, Julywhugust 1966.

 

~ . Global CrOp Paper Corn, Agency for International
DevelOpment, May 1969.

 

Behrman, Jere R. Supply Response in Under ev
North-Holland Publishing Company, Amst e1

Q>Ted iIgriculture,

 

71

 

 

 

L.
,
Smith, U. H. and others, Area ar3 Lam” for The ila 9nd,,Foreign 1
[1339.11- 319.135.1261 The American U11... ». {31.1.1-1}; , '1'."'11131'1f‘111[3LOI1 ,

’u ca..."-

--‘- fr r If (
130111Lm3l‘ -9U ‘.

 

 

Se;
Thiayahondol, Pantum and oth6rs,“vr16111rro Credit in
Thailand, Kac.ts art Unive1ui1 B:‘.ng ;1:ok, 1na11cho, 1965.
i Corn Fvnort Pro1lem Kasetsart

Tongpa1, Sopin, The

 

University w’é ngnok,

and

Dr. Delane E.
6d Sorehum Develo
Bangliok, Thailand.

 

@97101’14. U

1hallaud l9/O.

for Plenntne orn
Kazsetsart University,

1:03: 11;81"C}“_
Thailand,

others,
in