Economic Analysis of Production and Marketing of Soft-Shell Turtle (Trionyx sinensis)

Abstract

Culture of soft-shell turtle for export has been a good income earning occupation for Thai farmers. But farmers now have marketing and price problems. The farmers have been trying to adjust the culture practices to lower their cost of production. This study reviews the status of soft-shell turtle culture, analyzes the profitability of farming the species, analyzes the market and price systems, and explores the problems and constraints to the production and marketing of the product. The research result found that majority of the farmers grow soft-shell turtle as a second occupation(82%). Average numbers of pond is 1-3 ponds. From the survey data derived from interviews in March 1999, the analysis showed the total cost of farm production was 241 baht per kilogram, farm price was 323 baht per kilogram, and net profit was 82 baht per kilogram. The second survey in December 1999 found that farm price decreased to 150 baht per kilogram. The farmers reduced their total cost to 128 baht per kilogram and realized a net profit of 22 baht per kilogram. The main culture problem is diseases that reduced more than half of the farm price of the defective (diseased) turtles. The market analysis found that farmers normally sell live soft-shell turtle to brokers or collectors by whole pond harvest and use the "a average-price selling approach". The product is then delivered to the exporter, and the broker gets a commission fee for the services. The collector totally owns the product when he/ she buys the product from farmers. The collector then sells the products to the exporter by size-grading approach. Some products are directly shipped to China by air, but almost all of the products are said to be transported to Hong Kong by air and then to China by boats or cars. Lately, however it became more difficult for Thai turtle exporters to export to China because China has set up Non-Tariff Barriers (NTBs) against Thai products. The NTBs argued to embargo the products include such reasons of disease problems and genetic mixing between Chinese and imported strains, etc. The exporters determine the buying price by following the auction price in Guangzhou, China. The price changes everyday. Trend of the price has been decreasing every year. The price also fluctuates by season. During the Chinese cold season (October-March) the Thai farmers get the highest price. The biggest market (China) has strong influence on the farm price movement. This research recommends that farmers should receive supports-proper knowledge of culturing technique and correct and up-to-date marketing and price information. China's import barriers directly affect Thai farmers. The Thai government should negotiate an import quota with China. As to reasons being used to justify an embargo of Thai turtles, there should be a mutual agreement between Thailand and China on the product certification and standards. Thailand should also look for other markets. To manage the distribution of export quota, the farmers then need to group in order to have a stronger bargaining power to sell their products and to improve the quality of the products.