Study of Supply Chain Management of the Sugarcane in Udon Thani

Abstract

This research has the objective to study the supply chain management and the results from the supply chain management of the sugarcane industry in Udon Thani. The Key Informant in this research were 15 people consisted of sugarcane farmers (upstream), quota supervisors (mid water), sugar mill operators (downstream) and those involved in the sugarcane production industry in Udon Thani Province. Data was collected by the in-depth interview using open-ended questions in a format of structured interview. The analysis was conducted in 2 qualitative analysis methods, content analysis and analytic induction. The result showed that 1) In terms of environment and the sugarcane cultivation process, there was a need to focus on the fundamental factors for sugarcane cultivation including soil preparation in the area,  preparation for sufficient water sources, a water system for cultivation, selection of suitable sugarcane varieties for the area. 2) The direct labor cost calculation was the wage involved in the sugarcane cultivation process which can easily be calculated from the beginning to the end of the production process. The labor cost in sugarcane cultivation consisted of the labor cost for land preparation, for planting, for maintenance, and for harvesting, and for logistics. The factory handled most of the value-added creation, and also operated accordingly to the regulations for the sugarcane product process. However, the  sugarcane farmers did not benefit from the upgrade done by the factory