Changes in production, values, and marketing margins of Thailand pork industry
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Abstract
The objective of this study was to determine changes in Thailand pork industry since the last 20 years in contexts of the changes in production development, structural, production cost, prices, value of pork industry, and marketing margins. The concept of cost and marketing margin analysis were applied in this study. The results of the study indicate that during the past 20 years the structural changes in production associated to the doubled its pork production capacity with declining swine farmers, the middle scale swine farmers increase from 16 percent to 30 percent, and vertical marketing or contract production increase from 25 percent to 45 percent of total swine production. In addition, the cost of production has average growth rate at 3.31 percent per year that is slightly larger than the growth rate of farm gate prices which has average growth rate at 3.28 percent. The marketing margin has average growth rate 1.09 percent per year where the large sharing is retail margin. Relative to prices, farmer’s share of retail price has fall steadily about 0.45 percent per year as the same direction of farm to wholesale margin. This decline share reflects the concentration in retail marketing and the lower negotiate arrangement in marketing alliances.
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References
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