An Analysis of Marketing System and Marketing Margins of Smallholder Rubber Farms in Chiang Rai and Phayao Provinces

Abstract

This study aimed to analyze marketing system and marginal marketing of smallholder Para rubber plantation in Chiang Rai and Phayao provinces. The simple group consisted of 409 members of the office of welfare Fund for Para rubber plantation. Results of the study revealed that most of the informants (83.23%) sold Para rubber yields in the form of Para rubber lump and the rest was fresh latex. The distribution channel of Para rubber lumps was through E-auction (51.08%) and the rest was sold to peddlers and local middlemen (12.15 and 20.00%, respectively). In 2015, Chiang Rai and Phayao provinces could produce 56,189 tons of Para rubber and it was sold through E-auction for 25,001.75 tons and to various levels of middlemen (31,187.25 tons). It was found that this E-auction had no marginal marketing whereas selling to middlemen had (262.78 millions baht). The said marginal marketing raised from a deficit due to the price of Para rubber lumps was lower than the production costs (95.46 millions baht or 86.69 percent of the net profits). The peddlers and the local middlemen could get profits from the deficit for 36.54 and 58.93 millions baht, respectively.