An Economic Returns of Rice Production Between Farmers Who Are Members and Non-Members of Agricultural Cooperative: A Case Study of Klong – Luang Agricultural Cooperative Ltd.,: Changwat Pathum Thani

Abstract

This study tries to identify whether there is any gain from becoming a cooperative member as compared to those who are not member. A case study method was employed and the selected case was Klong Luang Agricultural Cooperative Ltd. The specific objectives of the study were : 1) To study the use of inputs on rice production of the two groups of farmers. 2) To study rice marketing practices 3) To study rice production functions, and 4) To compare production costs and net income of rice production between the two groups of farmers. All data in the research study were collected through field surveys in crop-year 1988/89 in which 160 farmers were interviewed. Stratified random sampling technique was employed. Half of the interviewed farmers were cooperative members and the remainders were non-cooperative members. The survey revealed that most cooperative members bough production inputs from the cooperative and satisfied with the services provided. Prices and delivery costs were cheaper. Non-cooperative members purchased inputs from stores in the vicinity areas. Some of them purchased from the cooperative due to lower prices. Non-members, however, indicated that there were more brand and number of merchandises to select from private stores. The study of rice marketing practice revealed that the cooperative did not perform any marketing function. The cooperative did not assemble nor processed any paddy. All the harvested paddy was sold to local merchants. Prices received by both groups were relatively similar. The average prices received by member and non-member farmers were 3,570 and 3,588 baht/Kwien respectively. Local merchants used irrigation canals to determine the purchasing boundary which was familiar by farmers. Selling was operated at the farmers home. Farmers were satisfied with the price offered. The estimated production function indicated that labors, fertilizers, and other chemical contributed only 18 percent of the total output (total production). Eighty-two percent of total variation in output was explained by other factors. For average cost and average net income from rice production, the cooperative members paid lower production costs and received higher net income. The average costs of production paid by cooperative members was around 168 baht/rai, lower than that of non-cooperative members. Net income of cooperative member was about 27 baht/rai, higher than that of non-cooperative members.