Marketing of Rubber Smallholders in the Upper Part of the South of Thailand

Abstract

A Study on rubber marketing system took place in 6 provinces in upper part of the south. The survey conducted in the year 1993-1994 with the sample size of 168 rubber farmers and 31 middlemen dealers. The result indicated that the low level of NR price in this period affected farmer;s imcome. Government has intervened in auction market by price support. Three yeas average of unsmoked sheet in the auction market was higher than local market at 0.33 baht per kilogram which was the same as ribbed smoked sheet price at factory. However smalholders having access to middlemen in order to obtain ribbed smoked sheet price at factory. However smalholders having access to middlemen in order to obtain higher value for their rubber because of the marketing practices was more convenience for them whithout waitout waiting their time.
Marketing margin from local market to factory was 0.55 baht per kilogram while the market cost was 0.36 baht. The study suggested that the government should use the INRO (International National Rubber Organization) mechanism to intervened market at exporter level and storage rubber surplus in stock warehouse until the free market price was above cost of production. In the local, it provided and alternative marketing outlet for smalholders by improve operation of auction market in order to promote promote free market system.