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Competitiveness of Local Agriculture

The Case of Longan Fruit Trade between China and the North of Thailand


Notes de l'Irasec
Narat Hasachoo and Phattaraporn Kalaya
Irasec, Bangkok, août 2013, 19 p.

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At the present time, policymakers are trying to add barriers, other than tariffs, to international trade. These are commonly known as Non-Tariff Measures or NTMs. For example, there are Good Agricultural Practices (GAP) codes, standards, and regulations that affect the exportation of agricultural products. Longan is a politically and economically sensitive fruit that grows mainly in the North of Thailand. Longan production completely depends on China because that country represents more than 80 percent of Thailand’s export market. If there are any NTMs that might obstruct the exportation of Thai longans to China, they will surely affect Thai farmers, especially the ones located in the northern part of Thailand, where 172,229 households grow longans. One of the methods that can be used to analyze the entire agricultural system is supply chain analysis. This research will study and analyze the effects of NTMs on the local longan supply chain in the northern part of Thailand, from growers to distributors, focusing on the supply chain that trades with China through the Greater Mekong Subregion or GMS. Purposive sampling was applied to choose Pa Daet District as a case study, and then followed by snowball sampling to choose the players involved in the chain as a sample. A major focus of the study is the analysis of the current NTMs on each player and their economic impact on each player in the supply chain. The other part is identification of local supply chain current coping strategies. One of the main outcomes is to understand and be able to analyze the economic impact on stakeholders in the supply chain if NTMs obstruct or even stop the longan trade with China.

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Competitiveness of Local Agriculture

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