socio-economic and marketing of organic agriculture

Socio-Economic and Marketing of Organic Agriculture

Rapee Dokmaithes

Department of Agricultural Extension and Communication

Faculty of Agriculture at KamPhaeng Saen

Kasetsart University

What is the Socio-Economic

Social Behavior Knowledge Attitude Practice ………..

Economic Income production cost Price ………..

Marketing

Cultivation areas of organic agriculture in Thailand

(increase 20.97%)

Source: Panyakul.V, 2015

The average farm areas

Aveg. Farm Area in organic agriculture

Aveg. Farm Area in agriculture

North 12.3 20.9Central 88.1 22.7N.East 19.6 19.5South 64.3 14.5

Total 22.9 19.4

(rai/head)


The certified Organic productItems Product

Rice Hom mali rice, red brown jasmine rice, Aromatic black (Hom-nin) rice, glutinous rice

Bean and cereal peanut, soybean, sesame

Vegetable All fresh vet. Inc asparagus, baby corn

Fruit Mango, banana, papaya, longan, coconut, pineapple

Beverage Coffee, tea, honey, herb tea

Processing product Cereal snack, salad cream, chili paste, coconut milk

Raw material for food industry

Sugar, cassava powder, palm oil, sweetener

Meat product Tiger prawn, Beef, egg

Healthy product Coconut oil, rice bran oil, child food, vinegar, Germinated brown rice

Skin-care product Soap, shampoo, essential oil


Organic product in Thailand

Items domestic processing International Total (ton)

Rice (ton) 800-1,000 200-300 12,690 13,690-13,990

Fresh product (ton) 2,415 976 25 3,426

Processingproduct (ton) 560 - 18,673 19,233

Non-food product (ton) 2 - 22 24

Total (ton) 3,777-3,977 1,176-1,276 31,410 36,373-36,673

In 2014

market value 1,201 M (66.1% )

market value 552.25 M (30.4%)


Organic market value in Thailand (2014)

Value (Million baht)

Domestic market 514.45 (22.1%)

- Modern trade 306.00 (59.48%)

- Green shop 151.62 (29.47%)

- Green market 24.02

- Member market 1.28

- Direct market 1.45

-Food&Beverage business 30.08 (5.85%)

International market 1817.10 (77.9%)

Total 2331.55

EUN.America


Export value of organic product (2014)

Rice Freshproduct

Processingproduct

Non-food product

EU 59.76 70.49 37.32 79.71

N.America 26.46 34.12 0.29

Pacific 1.73 5.57

East Asia 7.81 21.21 20.00

Asean 3.06 29.51 1.78

Others 1.16

Export value (Million Baht) 552.25 60.75 1,201.00 3.10

Export Ratio 30.39 3.34 66.09 0.17


Production cost of organic agriculture

of <

OA CA

Total cost

Labor cost **

Raw material cost

** Rice production **

Income – Profit of organic agriculture

CA CFA OAYield (kg./rai) 727.68 801.50 615.76Price (baht/Kg.) 7 8 45Income (baht/rai) 5,093.76 6,412 27,709.2Cost (baht/rai) 4,154.47 3,722.58 4,478.82Profit (baht/rai) 939.29 2,689.42 23,230.38Variable cost (baht/Kg.) 3.29 2.46 4.43

BEP-price (baht/Kg.) 5.71 4.64 7.27

Thongchaisuriya S., 2015

A case of Rice production in Ratchaburi province, Thailand

Socio-Economic of Consumer on organic product

Perception Knowledge Attitude Behavior

Market survey

Research

Consumers' Knowledge on Organic product

Understanding on organic product

The different of standard between safety and organic product

Hydroponic product is one of organic products

Sufficiency farming system is one of organic agriculture

The Q logo is one of organic agriculture standard

Organic agriculture can use chemical fertilizer which they need

Organic agriculture can use chemical pesticide in safety level for consumer

Organic agriculture must not have any chemical substance contaminated

GMOs is not organic product

Synthetic chemical substance can be used in organic processing product

TEST?


Logo of organic agriculture standard

Perception


Consumers’ Attitude on Organic product

75%

10%

11%

4%

safety-healthyprice levelreliabilityProduct


Safety-healthy aspect

63.9

23.3

4.6 8.2

Most safetymore safetysame safetyMost nutrition


Price level aspect

44%

16%

38%

2% suitable price

High price

High price(Acceptable) withhigh qualityHigh price with overprofit


Reliability aspect

39%

57%

4%

Allreliability(Thai&foreign)

Reliability withinternational standrad

All non-reliability


Product aspect

5%

16%

18%61%

less beautiful shape/colourproduct (non enough ferlizer )

less beautiful shape/colourproduct (more insect)

same beautiful shape/colouras normal product

Natural shape/colour product


Place to buy organic product

self cultivation12%

green market9%

green shop21%supermarket

35%

farm/saler11%

restaurant8%

internet3%

direct sale1%


Frequency to visit organic shop/restaurant

1-2 times/year

19%

5-6 times/year

23%1-2

times/month38%

once a week20%


Money spending on Organic product

<200 baht22%

200-400 baht47%

401-600 baht16%

601-1,000 baht8%

>1,000 baht7%


Reason to buy organic product

safe from non chemical

66%

safe from non hormone

10%

more nutrition

17%

environmental friendly

4%

help farmer3%

others0%


How to increase demand

get low price27%

reliability on certificated

20%

more diversified product

14%

more conviniece to buy …

more product

information10%

others8%


The organic product on Consumers’ need

Rice:

• Riceberry• Hom Mali,

Fresh vegetables:

• salad set• kale• iceberg

lettuce

Fresh fruit:

• grape fruit• Mango• water

melon

Processing product:

• Juice• chili paste• meat

Non food product:

• Soap• Shampoo• washing

detergent


Source of Reference

Thongchisuriya, S.. 2015. Comparative Analysis of Financial Cost and Benefit for Rice Plantation between Traditional Rice Method, Non-Toxic Rice Method, and Organic Rice Method in Ratchaburi Province. Available on-line at http://econ.eco.ku.ac.th/2016/is/IS%205715.pdf

Panyakul, V and C. Kongsom. 2015. A study of production and market situation on organic product. A research paper. Available on-line at http://www.greennet.or.th/library/book/1839

http://econ.eco.ku.ac.th/2016/is/IS%205715.pdf

http://www.greennet.or.th/library/book/1839

socio-economic and marketing of organic agriculture

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