 |
Socio-Economic Study
of Dairy Farming in Northern Thailand
Benchaphun Ekasingh, Kuson
Thong-Ngam, Boonloom Chiva-Israkul, Boonserm Chiva-Israkul, and Somkid Promma. |
Objectives:
1) to compare the roles and potentials of men and women in small-scale
dairy farming in the North of Thailand.
2) to find out factors affecting production efficiency among different
groups of farmers
3) to assess the impact of dairy farming on the quality of life
4) to find out the level of knowledge, practices, attitude and training
needs
5) to improve training curriculum for dairy farmers.
Research methods:
Collected data using questionnaires and focus group interviews in 5
provinces of Northern Thailand covering 211 dairy farming households with 375 farmers.
Analysed data using 1) descriptive statistics 2) multiple classification analysis 3)
discriminant analysis and 4) logistic regression. Improved modules of training were also
tested to find out its appropriateness.
Results:
1. Gender roles, potentials and training of male and
female farmers.
Female dairy farmers have important roles in dairy farming in the North
in nearly all dairy farming activities. They have contributed work equivalent to about 63
per cent of the work of male farmers (Men worked an average of 4.5 hours a day, women
worked about 2.9 hours a day.) Women roles increase as farm sizes increase (to about 78
per cent of that of male farmers). Women help men to work so that dairy chores go smoothly
every day. Constraints to women contribution in dairy farming are heavy housework, low
levels of knowledge and opportunity in dairy farming as well as business/cooperatives
management. (Table
1)
The testing of training curriculum indicates that training of female
farmers should be conducted in separate sessions from those for male because of women's
greater time contraints, their lower knowledge in dairy farming and their lower
acquaintance in training by officials. More training for female farmers will make dairy
farming more productive. On the other hand, more training for male farmers is also
desirable although it needs to be more problem-oriented and topic specific. Training of
both male and female farmers should also include topics concerning business/cooperative
management and simple farm accounting.
2. Efficiency and effects on quality of life.
Dairy farming in Northern Thailand is moderately efficient. 58 percent
of dairy farmers in Northern Thailand enjoy some profit from their operations and can
sustain their farms. This group of farmers have on average 50,685 baht of profits per farm
per year and have an average cost of 7.35 baht per kg. of raw milk. The other group of
farmers (42 percent) especially those who are new farmers cannot attain efficiency in that
they lose money on average of 30,304 baht per farm per year with 13.31 baht average cost
of a kg of raw milk. (see Table 2, 3 , 4 )
The results of this study finds that factors that help increase
efficiency are appropriate farm size (6-10 milch cows or more), yield of milk (8-12 kg or
more per cow per day on average), more experience (6 years or more), size of grass land
(about 5 rai), management of concentrate feed (about 6,000 baht per cow per year), fixed
cost (about 20,000 baht per farm per year) and labor (about 350 man-days per farm per
year). The last 3 factors should be managed to an appropriate level, not too high or too
low. Besides, in the group with efficient operations, farmers have not too high a debt
(not more than 70,000 baht of standing debt) and not too high level of non-farm employment
(not more than 10 percent of total income from non-farm sources).
With respect to quality of life, it is found that most dairy farmers
have better living conditions compared to the past, have more milk consumption among both
children and adults, have more leisure time and have good attitude to dairy farming.
Nevertheless, these better quality of life can only come about if households do not have
too high levels of debt. (Table 5)
Discussion and conclusion: It is found that dairy farming in old
sites i.e. in Chiang Mai-Lamphun areas is relatively successful while it has some problems
in new sites like in Chiang Rai, Lamphang and Phetchabun. These problems need corrections
from the government, in terms of extension, training, better services, finding of problems
and solutions to the problems. In old sites, dairy farmers expand farm size using low
capital investment. To be able to administer manageable levels of debt is essential to
good dairy farming. New farmers not only have lower levels of income, but also have high
levels of debt. This will create problems eventually.
Sources:
Ekasingh, Benchaphun, Kuson Thong-Ngam, Boonserm Chiva-Israkul, Boonlom Chiva-Israkul
and Somkid Promma. 1997a. Socio-Economic and Farming Systems of Dairy Farmers in the
North. Chiang Mai: Multiple Cropping Center. (in Thai)
Ekasingh, Benchaphun, Kuson Thong-Ngam, Boonlom Chiva-Israkul, Boonserm Chiva-Israkul
and Somkid Promma. 1997. Roles, Efficiency and Training of Male and Female Dairy
Farmers in the North. Chiang Mai: Multiple Cropping Center. (in Thai)
Table 1 Work hours of male and female dairy farmers in Northern
Thailand, 1996
| Work hours |
Small Farms |
MediumFarms |
Large Farms |
All sizes |
| |
Hours |
No. |
Hours |
No. |
Hours |
No. |
Hours |
No. |
| 1. Routine work on dairy farms(hours/day) |
| Men |
4.3 |
102 |
4.6 |
83 |
5.3 |
15 |
4.5 |
200 |
| Women |
2.6 |
89 |
3.0 |
74 |
4 |
15 |
2.9 |
178 |
| 2. Other kinds of work on the dairy
farms(hours/year) |
|
|
|
| Men |
781 |
102 |
736 |
83 |
721 |
15 |
758 |
200 |
| Women |
437 |
89 |
448 |
74 |
613 |
15 |
456 |
178 |
| 3. Total work hours in dairy farming
(hours/year) |
| Men |
2,374 |
102 |
2,437 |
83 |
2,675 |
15 |
2,423 |
200 |
| Women |
1,397 |
89 |
1,565 |
74 |
2,098 |
15 |
1,526 |
178 |
| 4. Ratio of work between females and males in dairy farms |
0.59 |
|
0.63 |
|
0.78 |
|
0.63 |
|
Source: Benchaphun Ekasingh, et al, 1997b. 
Table 2 Milk yield (kg per cow per day), net profit and return
to family labor (baht per household), by district and province, 1996.
| Province/District |
Milk Yield (kg/milk cow/day) |
Net Profit (baht)per
household |
Return to family
labor (baht) |
| Chiang Mai |
|
29,582 |
|
65,771 |
|
| San Kamphaeng |
9.29 |
|
33,328 |
|
72,777 |
| Mae On |
9.03 |
|
25,737 |
|
58,580 |
| Lamphun |
|
35,963 |
|
69,989 |
|
| Muang |
8.95 |
|
72,853 |
|
113,185 |
| Ban Ti |
9.92 |
|
16,882 |
|
47,646 |
| Lampang |
|
-1,945 |
|
39,963 |
|
| Mae Ta |
5.74 |
|
-1,945 |
|
39,963 |
| Phetchabun |
|
5,174 |
|
44,713 |
|
| Muang |
6.36 |
|
-2,848 |
|
36,749 |
| Bung Sam Pan |
6.44 |
|
14,400 |
|
53,872 |
| Chiang Rai |
|
-18,872 |
|
22,801 |
|
| Tueng |
7.31 |
|
-12,104 |
|
36,751 |
| Kun Tan |
7.08 |
|
-24,409 |
|
11,388 |
All |
8.18 |
17,589 |
|
55,200 |
|
Source: Benchaphun Ekasingh, et al, 1997a,b.
Table 3 Distribution of net profit per household and return to family labor, by
province, 1996.
| Province |
Net
profit per household |
Return to family
labor |
| |
negative |
positive |
negative |
positive |
| Chiang Mai |
27.3% |
72.7% |
5.2% |
94.8% |
| Lamphun |
36.4 |
63.6 |
9.1 |
90.9 |
| Lampang |
58.3 |
41.7 |
8.3 |
91.7 |
| Phetchabun |
44.2 |
55.8 |
9.3 |
90.7 |
| Chiang Rai |
75.0 |
25.0 |
25.0 |
75.0 |
All |
40.9 |
59.1 |
9.1 |
90.9 |
Source: Benchaphun Ekasingh, et al, 1997a.
Table 4 Problems in dairy farming in Northern Thailand, from farmers'
interviews, 1996.
Problems |
Chiang Mai |
Lam phun |
Lam pang |
Phet chabun |
Chiang Rai |
All 5 provinces |
| |
---------------
% of samples in each province------------- |
| Low success in artificial insemination |
34.6 |
31.8 |
50.0 |
70.5 |
47.6 |
44.5 |
| Higher prices of concentrate feed |
48.7 |
27.3 |
23.8 |
9.1 |
4.8 |
28.4 |
| Sickness of dairy cows |
17.9 |
27.3 |
8.3 |
15.9 |
28.6 |
19.9 |
| Low prices of raw milk/limited market outlets |
15.4 |
6.8 |
4.2 |
6.8 |
23.8 |
11.4 |
| Lack of credit sources/high debt |
6.4 |
18.2 |
16.7 |
11.4 |
- |
10.4 |
| Inadequate officials |
7.7 |
4.5 |
4.2 |
6.8 |
19.0 |
7.6 |
| Problems in raw milk quality control/late payment by purchasers |
10.3 |
4.5 |
12.5 |
- |
- |
6.2 |
| Others |
10.3 |
20.4 |
45.8 |
18.2 |
14.2 |
18.5 |
Source: Benchaphun Ekasingh, et al, 1997a.
Table 5 Farmers’ standard of living after dairy farming in
Northern Thailand, 1996.
| Standard of living |
Chiang
Mai |
Lam
phun |
Lam
pang |
Phetcha
bun |
Chiang Rai |
All 5 provinces |
| |
-------------- % of samples
in each province------------ |
| Better than before |
92.3 |
95.5 |
87.5 |
45.5 |
85.7 |
82.0 |
| Not better than before |
6.4 |
4.5 |
8.3 |
36.3 |
14.3 |
13.3 |
| Worse than before |
1.3 |
- |
4.2 |
18.2 |
- |
4.7 |
Source: Benchaphun Ekasingh, et al, 1997a.
Dairy
Farmer’s Productivity and Capital Need in Chiang Mai Province
Tanya Limkhumduang, Benchaphun
Ekasingh, Boonserm Cheva-Isarakul and Kamol Ngamsomsuke
This study deals mainly with milk production function to assess
productivity and find optimum level of capital need for different dairy farming groups
classified by farm size and loan repayment performance. In addition, this study was to
identify loan and loan repayment practice among dairy farmers who borrowed from Bank for
Agriculture and Agricultural Cooperatives (BAAC). Semi-structured interview and formal
survey were used to gather the data. A total of 100 dairy farmers were selected for
this study.
Dairy farmers have different capital needs depending on their farm size
and loan repayment performance. Dairy farmers in good and average repayment
performance groups can be lumped together as one group as the difference of their optimum
level of capital need is minimal. Total capital need for the dairy farmers in good
repayment performance who owned 5, 10 and 20 cows was about 70,402, 106,265 and 160,313
baht respectively, 70% of which was required as fixed cost (building and equipment but
excluding value of cows) to initiate farms and about 30% as operational costs (i.e.
purchasing concentrate feed and seed etc.) While the dairy farmers in poor repayment group
who owned 5, 10 and 20 cows required capital about 41,778, 63,086 and 95,225 baht
respectively, 70% of which was required as fixed costs and 30% as operational costs.
However, for new dairy farmers starting with 5 cows, their total capital
need which also includes the value of cows is about 166,778 baht, 92% of which is required
as fixed costs and 8% as operational costs at 12.5% of interest rate (Table 6).
Table 6. Total capital requirement (baht) by including value of cows for
new dairy farmers by different farm size
Items |
Farm size
5 cows |
Farm size
10 cows |
| |
interest rate 9% per year |
| Building and equipment |
33,597 |
50,756 |
| 50% of operational costs |
13,480 |
20,354 |
| Value of cows |
125,000* |
250,000* |
| Total |
172,077* |
321,110* |
| |
interest rate 12.25% per year |
| Building and equipment |
29,366 |
44,347 |
| 50% of operational costs |
12,412 |
18,739 |
| Value of cows |
125,000 |
250,000 |
| Total |
166,778 |
313,086 |
Note : average price of cow is
25,000 baht per head
*amount of loan is not applicable at existing BAAC interest rate.
Source: Tanya Limkhumduang,
Benchaphun Ekasingh, Boonserm Cheva-Isarakul and Kamol Ngamsomsuke. 1998. "Dairy
Farmer’s Productivity and Capital Need in Chiang Mai Province." Agricultural
Economic Report No. 46. Multiple Cropping Center. Faculty of Agriculture, Chiang Mai
University. (back to Gender Roles..
)
| MCC
Home |About MCC | Sustainable
Agriculture | Decision Support Systems
| Agri-business&Management |
| Graduate Program | Supporting Units
| Related Links | Search | Publications | Events | CMU Home |