Farmers’ Profitability based onThai Silk Value Chain for Development of Community Sericulture Enterprises in Nakhon Ratchasima Province
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Abstract
This paper aims to evaluate a sericulture value chain model and the determinants influencing profitability for sericulture farmers. Three community enterprises in Nakhon Ratchasima province were selected for this study. Findings from an activity-based costing analysis indicate that labor costs are about 80 percent of the total cost with Thai silk fabric costing an average of 767.8 baht per meter and with a profit of 398.8 baht per meter. Estimates were calculated using the backward method of a multiple regression model. The estimates revealed that factors influencing profitability for sericulture farmers differs for each community enterprise. Demographic variables and natural dying, the method used for product development, positively affected profitability for sericulture farmers. The value added factors preferred by the farmers included uniqueness, quality, and the collective group, all of which were significantly influential factors in profitability for the sericulture farmers. Thus, community enterprises should develop production processes based on activity costs, establishing community uniqueness, and through the selection of sericulture products with high added value and which are suitable for the group. The government sector should invest in new sericulture business models as well as encourage new generations to use Thai silk products in everyday life. In addition, strengthening of community networks and competency must be encouraged to build competitiveness.
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