Value Chain of Rice Exported from Thailand to Sweden

University essay from Högskolan i Borås/Institutionen Handels- och IT-högskolan

Abstract: Thailand is a leading rice exporting country that exports rice for one-third of world‟s export volume. Rice from Thailand is exported to markets in every part of the world including Sweden. Thai rice products are available to be accessed by Swedish consumers in supermarket generally. The purposes of this study are to analyze the entire chain of rice starting from farm in Thailand to consumers in Sweden. Stakeholders in the chain are examined and value-added by each stakeholder is defined. Role of governance in the chain is analyzed to underline the governance relationships and interaction of actors. Moreover, roles of government institution are examined to describe its impact on the chain. Data for the analyses are collected through two activities which include a review of relevant literature and gathering from government offices of Thailand and international institutes.The results of the study reveal that there are at least twelve actors involving in the value chain of rice exported from Thailand to Sweden which include farmers, local collectors, farmer‟s organization, central market, millers, brokers, wholesalers, retailers, exporters, International rice traders and brokers, Associated Marketing Services (AMS), Swedish importers and Swedish consumers. Rice from producers is taken through numbers of path before it‟s reached to consumers. Value of rice is raised along the chain it is taken through according to the costs incurred and marketing margin of each stakeholders. Profits are shared largely to stakeholders who have high bargaining power which are millers and exporters. The governance in domestic rice market goes forth and back along the chain. Prices of rice are influenced by local supply and demand of both local and international consumption.The policy measures adopted by Thai government create affects to the rice value chain to some extent; anyhow the chain typically adjusts itself by the market mechanism of demand and supply. Swedish government applies EU legislation in the country since Sweden has become the member of the European Union in 1995. Further to EU legislation, there are non-legislative requirements developed by market itself that rice exporters must be aware.

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