The production and export of rice is indeed an essential sector in the economy of Thailand. The country is holding its competitive advantage as a rice exporter in the Chinese market of rice import. It’s good to know more about the factors contributing to the competitiveness of Thai rice companies in the Chinese market.
Economic Research into the Industry Efficiency, Structure, Production & More
The rice company Thailand is becoming now more competitive due to economic research being conducted. This is also in regard to the industry structure, technological & production capabilities, & efficiency of various sizes of rice milling plants and farms. Thus, gaining a comprehensive understanding of the efficiencies is achieved.
The several factors of labor and production are also studied upon. This further led in the expansion of an economic study. This allows a better description as to enhance the Thai rice export market and also the import market. The said analysis also balances ethical issues like the cultural effects of larger farms and the appropriateness of cheaper labor. This way, it’s possible to stay sensitive in the Thai way of life and economic demands. Thus, farmers of different sizes will lower the production costs and increase yields.
Brand Strengthening of Thai Rice
The brand of Thai rice is strengthened through some of the effective efforts. And, this helps improve the rice position in the market and protect it against adulteration. The research project is also conducted in addressing this kind of strengthening. This is also in benefiting the industry and the government policymakers.
Market research and ethnographic research is conducted relevant to export destinations. Thus, a researcher can identify the way consumers view the Thai Jasmine rice. This further provides more valuable insights into the significant improvements to be made.
In effect, test products are then formulated to be sold into the high-value markets. Improved branding on the sales and the clientele satisfaction rates are also achieved. Indeed, a detailed product development program is carried out by the large industry group or the government rice department.
Farmers Investment in Capital & Greater Care & Effort
Farmers are adopting the newer and higher value of products. That essentially makes the rice company in Thailand even more competitive. They invest in capital and greater effort and care to obtain the needed return. It was observed in the case of contract farmers growing their quality vegetables. The rates of return are indeed a lot higher than the produced regular crops that are sold to middlemen.
Exporters Upgrade of the Value of Products
The rice company in Thailand is becoming more competitive due to the efforts made in upgrading the value of products. Two known rice exporters were interviewed in a study claiming that Thai rice is consistently commanding a higher price than the rest of its competitors. In the years 1995 to 2000, the export price of Thai husked rice reached up as high as 936 US dollars. This is higher than the 303 US dollars per ton of the Vietnamese husked rice. This already accounted for an average price difference for all kinds of Thai rice. This differential reflects more about the quality differences.
Technological Improvement & Productivity Enhancement
One more factor that makes the rice company in Thailand competitive is technological improvement & productivity enhancement. This has so far generated sustainable and rapid economic growth. Plus, this raises the standards of living of the farmers as well. Indeed, technological improvement has been an essential factor enabling Thai farmers to develop a comparative advantage.
It’s just good to keep all these significant factors in mind making the rice company Thailand competitive!