Lending Credit for Animal Raising in the Three Southernmost Provinces of Thailand

Abstract

There is very few animal raising in the three southernmost provinces of Thailand (Yala, Pattani and Narathiwat). The limitation of credit is one factor influencing. This study aimed to investigate availability of credit for farmers who wish to raise animal, through 28 bank managers.

            The result revealed thay very bank provides credit to farmers. Criteria for loan project evaluation are based on: farmer's properties, objective and possibility of investment turn-over. Credit was issued to both individuals and groups. Most bank managers perceived that crop cultivation was less risky than animal raising, thus placed greater emphasis on providing credit for crop production than animal raising. When credit was available for animal raising, beef cattle and chickens received a higher priority than other animals.

            Most bank managers safisfy with the outcomes of credit provision. Main problems sofar encountered are difficulties to monitor the project, limited ability for loan repayment. Farmers invest in animal raising are facing problems of knowhow lacking and less support from government sector. To promote animal raising in the three southernmost provinces of Thailand; intensive training, domestic and international market development as well as provision of long term, low interest rate credit loan are required.