The Study of Supply Chain Model of Coconut Production in Prachuap Khiri Khan, Chumphon and Surat Thani Provinces

Abstract

The objective of this research was to study the model of coconut supply chain in Prachuap Khiri Khan, Chumphon and Surat Thani provinces which are important coconut production areas of Thailand. The information was collected by interviewing coconut growers, product collectors and fresh coconut milk shop owners from October 2018 to August 2019. It was found that the supply chain of coconut in all 3 provinces has the same model consisting of 4 levels i.e. growers (upstream), product collectors (midstream) processors (midstream), and customers (downstream). Beginning with the growers (upstream), their average age was over 60 years and most of them received primary school education. They had received information on coconut production from their family. The average area used in
growing coconut per grower was between 8-14 rai. Most of them grew their coconut trees on flat land which had loamy sand and/or sandy clay texture. The coconut trees were of tall-stem tribes with the average age of over 50 years. Moreover, most of growers had improper management practices. They applied chemical fertilizer of 15-15-15 formula once a year at average of 1-2 kg/tree. The average quantity of yield was less than 1,000 coconuts/rai/year. The next level was product collectors (midstream) or merchants. They collected and turned coconuts into various types of commercial products before delivering to customers, such as semi-dehusked, complete dehusked except the perianth area and deshelled coconut, kernel, copra and fresh coconut milk depending on market requirements in the areas. Price, quantity and quality grading of coconuts sent to the processing factory were controlled by the factory. However, for coconuts sent to various regions for fresh coconut milk shops the collectors can control the price themselves. Therefore, the proportion of coconut products
in this line should be increased. Another group of midstream operators were the processors i.e. fresh coconut milk shop, deshelled coconut factory, coconut processing factory, coconut oil extraction factory and household processor. Seventeen percent of growers in Prachuap Khiri Khan produced fresh coconut meat for value increasing of products. They should be further supported to form a group to produce such products. The end level was the customers (downstream). There were 4 products from coconut for consumption in Thailand, namely fresh coconut milk, instant coconut milk, extracted
coconut oil and other products. This study gave manageable guidelines for policy proposal to the relevant sectors so as to increase competitiveness and productive efficiency of growers in order to increase their income generating. Two recommendations were given: 1) develop the coconut production system to deliver consistent quantity and quality product throughout the year while
complying with GAP standards and 2) create networking among stakeholders in supply chain namely farmers, product collectors, processing factories to support each other on the exchange of useful
information for collaborative management approach which will maximize the benefit and creates shared value to all stakeholders.