Supply chain management of processed agricultural products: a case study of Dok Jig Korat noodle brand

Abstract

The objective of this research was to study supply chain management (SCM) of processed agricultural products through a case study of Dok Jig Korat Noodle (DJKN) Brand, SCM’s problems and the constraints of DJKN. Mixed methods research by combining both quantitative and qualitative techniques was applied. Structured interview, in-depth interview, questionnaires and non-participant observation were used to collect data from DJKN supply chain stakeholders in Kham Sakasaeng and Nonsung Districts of Nakhon Ratchasima Province. The respondents comprised a rice mill entrepreneur, a DJKN entrepreneur, 20 wholesalers and retailers, 20 local restaurant owners and 80 consumers. The data were analyzed using descriptive statistics and content comparison was applied for SCM analysis. The following were the research findings. First, DJKN-SCM can be divided into three parts. The upstream part was a rice mill entrepreneur and the main activities were paddy collection, rice mill process and distribution to customers. The midstream part was the DJKN entrepreneur and the main activities were preparation, planning and distribution of raw materials, machinery, equipment and labour. The downstream part consisted of wholesalers, retailers and consumers. The consumers were local restaurant and DJKN general consumers. Second, the problems which the DJKN entrepreneurs confronted were as follows: (1) the production factories and noodle production were not certified by related authorities, (2) the production volume could not meet existing customers’ demands due to the increasing need to supply large-scale entrepreneurs, (3) rice, the main production material, was scarce because of the farmers’ changing habit towards growing more jasmine rice, (4) the production technology was still at a primitive stage and (5) the production techniques relied mainly on personal expertise and lacked young enthusiasts to carry on tradition. Finally, the results of the analysis of averaged value added, from upstream through midstream and downstream parts in the SCM of DJKN to the rice mill entrepreneur, the DJKN entrepreneur, wholesalers, retailers, large gift shops and restaurants were 11.65, 5.55, 2.78, 20.00, 111.12 THB/kilogram, respectively.