Supply chain of Nam Dok Mai mango for export: Case study in Phitsanulok province

Abstract

     This research studied the supply chain of mango (Nam Dok Mai) for export to increase product value. The main objective of the study was to analyze the mango growers’ capital structure and income and to determine whether the supply chain added value in production and distribution thereby adding “value” to the mango growers, as well as to study the role of the regional cluster composition for this product. Data were collected from in-depth interviews and observations using 7 key informants. The results of the study showed that the SMCEs (Small and Micro Community Enterprises) had changed to a new supply chain. The production costs have been dramatically increased, growing at around 10 percent each year due to rising costs of production such as fertilizer and chemical products, while income has dropped, causing a decline in fruit quantity. The two causative factors were: 1) external factors which cannot be controlled, such as the impact of temperature, drought hardiness, cold snaps, rainfall, insect damage, disease resistance, thrips, and water shortage; and 2) internal factors such as low levels of integration in the SMCEs and within the mango supply chain planning. Cluster studies using 4-factor analysis (the diamond model) found that the demand and current competitive position of the SMCEs and the exporters were identified as key strengths through raising domestic and international customer demands as well as the increasing new market in both the EU and Asia. Less competition was perceived to result in higher demand with fewer producers. Moreover, export companies usually organize transport for their mangos, normally from the farm gate. However, key factors such as not being able to obtain Good Agricultural Practice certification, unsuitable technological advancement, and inefficient management were recognized as weaknesses. The government and other educational institutions have not yet produced notable results due to disorganized information dissemination.