The Analysis of Production for Khai Bananas Supply Chains A Case Study of Chanthaburi and Phetchaburi Provinces

Abstract

This research aims to study the supply chain management system of Khai Bananas (Musa AA group) for the purpose of determining its present status as well as solutions in order to enhance the production capacity by achieving higher quality and being able to increase the export level. The data collection method applied includes semistructure in-depth interviews based on SCOR-Model and comparison between cost, profit, and production quantity and quality. This research was conducted in two provinces namely Chanthaburi and Phetchaburi, where Khai Bananas are largely and commercially grown. According to the research, Chanthaburi province has a different approach in terms of supply chain management when compared to that of Phetchaburi province. In Chanthaburi province, the product is mainly exported to China thus making quality of the product is the most important goal of postharvest management. Here, mixed intercropping is practiced together with several other crops such as durian, rambutan, mangosteen, and longkong. In Phetchaburi province, on the other hand, domestic market is its main target. Competition in terms of pricing and low-cost production is therefore emphasized. Row intercropping is then practiced along with one or two other crops namely lime and papaya. According to the analysis, it can be found that the costs of production and logistics, including total costs of Chanthaburi province are 18.35, 7.78 and 26.13 baht per kilogram, respectively. In terms of quality, there are difference in quality product between Chanthaburi and Phetchaburi provinces. The average of selling price and profit of Chanthaburi province are 29.86 baht/kg and 5.27 baht /kg, respectively. This is higher when compared to the average selling price and profit of Phetchaburi province which are 11.76 baht/kg and 2.60 baht/kg, respectively. It is also found that the costs of production and logistics as well as the total costs of Phetchaburi province are only 3.65, 4.50 and 8.15 baht/kg, respectively. In terms of average production capacity per rai (1 rai=0.16 hectare), Phetchaburi province has an average production capacity of 2,071.37 kg/rai which is higher than Chanthaburi province that has an average production capacity of only 419.54 kg/rai. Furthermore, there is a difference in the cost, profit, production quantity, and selling price of the product between Chanthaburi province and Phetchaburi province with a statistical significance level of 0.05. Regarding production limitations, it can be found that the majority of farmers did not make any plans prior to the actual production process nor did they follow the GAP quality management system. A large amount of chemical fertilizers and pesticides were widely used. As for the solutions and enhancement of production capacity, it is suggested that production planning prior to the actual process should be implemented among farmers such as conducting soil analysis and determining the planting and cropping period in accordance with GAP quality management system. Also, farmers should be encouraged to use organic fertilizers, manure, and bio-substances in replacement of chemical fertilizers and pesticides. Lastly, farmers should be encouraged to form a support group as a way of strengthening their negotiating powers regarding the price of their products and production factors. Contract farming should be promoted among farmers by the government in order to lessen the fluctuation of product price and simultaneously encourage farmers to practice professional production management.