Production of Japanese Rice through Contract Farming System in Wiang Pa Pao District, Chiang Rai Province, Thailand

Kanokon Seemanon^1, , Masahiro Yamao¹ and Kenji Hosono¹

¹Graduate School of Biosphere Science, Hiroshima University, Japan

Cite this paper:
Kanokon Seemanon, Masahiro Yamao and Kenji Hosono. Production of Japanese Rice through Contract Farming System in Wiang Pa Pao District, Chiang Rai Province, Thailand. American Journal of Rural Development. 2015; 3(2):41-51. doi: 10.12691/ajrd-3-2-4

Abstract

Many companies in Thailand have encouraged farmers especially the northern regions to cultivate DOA 1 and DOA 2 Japanese rice varieties (scientific name: Oryza sativa var. Japonica) through contract farming system in which each company may have different model and management approaches. Therefore, this study explored the currently prevailing contract farming of Japanese rice in Thailand especially in Wiang Pa Pao district, Chiang Rai province, to identify the advantageous and disadvantageous points of Japanese rice production, and to examine the important role of each stakeholder in Japanese rice production. The data of this study were collected from two state agencies, two rice millers, six collectors and thirty contract farmers who were selected for in-depth interviews by using questionnaires and interview forms. The contract farming model and management details were different in each rice mill such as signing a contract, purchase price, commission fee, specifications of rice quality, and so on. Lack of financial liquidity and fluctuation of contract price may influence the confidence of Japanese rice growers in the future. Moreover, lack of quality seeds was another obstacle of Japanese rice production in Thailand. The contract farming of Japanese rice involved many parties as follows: rice mill, collector, contract farmer, and state agency namely Chiang Rai Rice Research Center (CRI) while each stakeholder had different significant roles for the example; CRI produced rice seed to distribute to rice mills, and has developed varieties of this rice. Moreover, it established the Japanese rice community center to produce more rice seeds, and has encouraged farmers to raise the standards of production for the competitive domestic and international markets.

Keywords:
contract farming Japanese rice stakeholders agricultural marketing agricultural economics

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