Effects of Thailand-China Free Trade Areas on Garlic Growers in Mae Hong Son Province

Abstract

The objectives of this study were to identify the socio-economic status of garlic producers and to determine the effect of Thailand-China Free Trade Area establishment on garlic producers in Mae Hong Son Province. The data collected by interviewing 142 samples of garlic producer in Mae Hong Son Province, and analyzed the data by using SPSS for Windows. Thai-Chinese Free Trade Area establishment affected the garlic producers in Mae Hong Son province in many aspects, 1) there were effects on the production. The garlic producers in Mae Hong Son province had decreased the cultivation area; consequently, the income and the production decreased. The increasing use of fertilizer, insecticide and fungicide were observe.  Furthermore, they ignored the technology that helped them to transform the garlic into another product because they aimed to increase only the garlic’s weight, 2) there were effects on the marketing. The price of the fresh garlic, dry garlic, and the price after the Chinese garlic penetrated the Thai market were decreased because the smuggling of the Chinese garlic and the production cost of Chinese garlic were cheaper than Thai garlic, 3) there were effects on the economy. The income decreased because of the decreasing of cultivation areas, and the compensation from government was only in the first year after Thai-Chinese Free Trade Area, 4) there was an effect on the quality of life by increasing the stress of the garlic producers in Mae Hong Son province because of the decreasing of their income, 5) the socialization of the garlic producers in Mae Hong Son province had a little effect from Thai-Chinese Free Trade Area.