Marketing Channels of Beef Cattle in the Lower Southern Region of Thailand

Abstract

     This study explored the marketing channels and marketing margin of beef cattle in the lower southern region of Thailand (Trang, Phatthalung, Satun, Songkhla, Pattani, Yala and Narathiwat provinces). Primary data were collected from 235 cattle farmers and 91 cattle traders at different levels by purposive sampling. This research used structured questionnaires and in-depth interviews as the research instruments. The data were analyzed with qualitative analysis and quantitative analysis to obtain the marketing channels and marketing margin. The empirical study showed a highly competitive cattle market structure. The marketing channel analysis also showed that cattle were mostly traded on the local market for local consumption. There were two ways that cattle were supplied and used: (1) local merchants bought cattle directly from the local farmers, and the cattle were then slaughtered, eviscerated, or cut and sold to beef retailers or to consumers directly; and (2) local merchants purchased the cattle from Prachuap Khiri Khan, Phetchaburi and Nakhon Si Thammarat provinces and sold them to the wholesalers in Songkhla, Pattani, Yala and Narathiwat provinces. The marketing margin was 110 baht per kilogram based on a marketing cost of 28.30 baht per kilogram and a marketing charge of 81.70 baht per kilogram. There was sufficient space to accommodate an opportunity for beef cattle marketing from outside the lower South . All parties involved with the livestock should focus on increasing the number of beef cattle in this region. However, the lack of roughage due to limited areas of available pasture was the main problem obstructing the development of beef cattle in this region. Therefore, to meet the demand for beef in the market, increased pasture availability is an important factor to address.