Organic rice supply chain structue in sathing phra peninsula
The organic rice supply chain structure in Sathing Phra Peninsula reveals a distinctive pattern where farmers serve as primary producers, comprising 63.46 per cent of stakeholders, followed by groups operating both production and distribution functions at 23.08 per cent. Groups involved in processing and distribution represent only 9.62 per cent, while those covering the complete value chain constitute merely 3.85 per cent. Notably, no enterprises operate exclusively as processors or distributors, reflecting local farmers’ self-reliance characteristics (Table 1). The upstream segment demonstrates the highest participant concentration, with exclusive producers accounting for 70.21 per cent, predominantly in Singhanakhon and Krasae Sin districts. Groups engaged in production and direct sales represent 25.53 per cent, while complete value chain operators comprise only 4.26 per cent, all located in Ranot District. The midstream segment involves only 13.46 per cent of participants, with most operating combined processing and distribution functions at 71.73 per cent, primarily in Singhanakhon District. Complete value chain operators constitute 28.57 per cent, all in Ranot District, indicating limited processing activities and absence of clearly differentiated processing businesses. The downstream segment encompasses 63.16 per cent of participants, divided into production and direct sales groups (25.53 per cent), processing and distribution groups (26.32 per cent) and complete value chain operators (10.53 per cent). Significantly, no exclusive distributors were identified, demonstrating integration of production and distribution roles within the same farmers or enterprises (Table 2).
This structure exhibits unique characteristics where farmers and small-scale enterprises maintain roles across all supply chain stages, lacking clear role differentiation in large-scale operations or specialized processing industries. While demonstrating strength in self-reliance and flexibility, it reveals limitations in value addition and market expansion capabilities. These findings align with
Panpluem and Yin, (2021), who found organic rice supply chains are shorter than conventional chains, with fewer intermediaries. However, while their Yasothon Province study showed shorter chains enabled better farmer returns, Sathing Phra Peninsula farmers continue experiencing low bargaining power and inability to determine prices independently. This connects to
Kerdsriseam and Suwanmaneepong, (2015), who emphasized strong intermediaries’ importance between farmers and collectors/exporters, contrasting sharply with Sathing Phra Peninsula’s lack of specialized processing or distribution enterprises. Furthermore,
Pakdeenarong and Hengsadeekul, (2020) identified critical risk factors including equipment shortages, lack of organic rice mills and labor shortages, reflected in this study’s observation that processing activities remain limited with only 13.46 per cent participant involvement. The comparative analysis reveals that while exhibiting typically shorter characteristics, the supply chain lacks crucial supporting factors, particularly strong intermediaries and specialized expertise at each stage, representing a fundamental reason why farmers fail to fully benefit from organic farming practices.
Current situation of organic rice distribution in sathing phra peninsula
This study on organic rice distribution in Sathing Phra Peninsula reveals significant market structure constraints despite 95.74 per cent of farmers producing under comprehensive organic agricultural standards. The distribution system shows paddy rice sales dominating at 51.06 per cent, while higher-value milled rice represents only 8.51 per cent, resulting from limited processing technology, insufficient marketing knowledge inadequate group management systems. Most farmers (72.34 per cent) sell to groups, mills, or intermediaries, preventing independent price determination and forcing them to sell organic rice at conventional rice prices despite greater labor investment. Additionally, 74.47 per cent of farmers lack product names or brands, preventing market differentiation, while distribution channels remain predominantly offline (65.96 per cent) with online sales at only 19.15 per cent (Table 3). Analysis of farmer groups reveals three distinct categories based on marketing behavior: Traditional Marketers (51.06 per cent) selling only paddy rice through conventional channels without value-added processing or brand identity; New marketers group (31.91 per cent) beginning market adaptation by selling both paddy and milled rice but continuing to rely primarily on intermediaries; and Professional Entrepreneurs Group (17.02 per cent) demonstrating highest marketing capabilities with diverse distribution formats, premium pricing above conventional rice levels, branding utilization and employment of various distribution channels both offline and online (Table 4).
These findings demonstrate farmers’ vulnerability in the marketing chain and align with existing research on smallholder farmer challenges. The limited bargaining power supports
Moustier et al., (2010), who found farmers using traditional marketing systems without group formation typically receive lower profit shares due to limited bargaining power and market information access. The substantial percentage (74.47 per cent) lacking product branding represents significant missed opportunities, as
Meas et al., (2015) found attractive brands and packaging can increase organic rice prices by up to 30.00 per cent, while
Ngokkuen and Grote, (2012) demonstrated how geographical indications significantly increased Thai jasmine rice export prices. The limited online channel usage (19.15 per cent) indicates adaptation lag compared to
Cao and Li, (2015);
Verhoef et al., (2015), who found omni-channel strategies positively impact sales growth and pricing. However, the professional entrepreneurs group’s ability to set premium prices aligns with
Umberger et al., 2009, confirming consumer willingness to pay higher prices for certified organic rice with trustworthy brands. The necessity for farmer group development supports research by
Sorrentino et al., (2018); Jadav et al., (2011), who found producer organizations increase bargaining power for better price negotiations, while studies by
Methamontri et al., (2022); Courtois and Subervie, (2015) confirm collective marketing and information systems enhance bargaining power and market participation, leading to improved prices and stable income, demonstrating the critical need for developing information systems and group formation to address market information gaps and smallholder farmer vulnerability.
SWOT analysis of organic rice distribution systems in sathing phra peninsula
The study reveals complexity in market development factors affecting the area. Strengths include a robust production base with 95.74 per cent of farmers producing under comprehensive organic standards and diverse distribution formats for paddy and milled rice. The self-reliance system shows most farmers (63.46 per cent) as exclusive producers, with groups operating production-distribution functions (23.08 per cent) maintaining role flexibility. Professional entrepreneur groups (17.02 per cent) demonstrate outstanding marketing capabilities, diverse distribution channels and ability to set prices 25.53 per cent higher than conventional rice.
Weaknesses primarily involve lack of value addition, with paddy rice distribution dominating (51.06 per cent) and operators lacking processing technology and marketing knowledge. Low market bargaining power affects most farmers (72.34 per cent) who sell to intermediaries at conventional rice prices (74.47 per cent). Product identity creation remains problematic, with 74.47 per cent lacking product names or brands, preventing market differentiation. Supply chain structure remains incomplete without specialized processing or distribution operators.
Opportunities include growing online markets, with only 19.15 per cent using online channels, indicating expansion potential amid changing consumer behavior. Professional entrepreneur groups can serve as development models for upgrading traditional groups, while new marketer groups (31.91 per cent) show transition trends. Increasing organic rice demand from health consciousness provides important market driving force.
Threats comprise price competition forcing organic rice sales at conventional prices, impacting production incentives high intermediary dependence preventing independent pricing. Structural constraints include lack of processing equipment, packaging systems new market access capabilities. Farmer vulnerability persists with high traditional channel dependence (65.96 per cent) and inability to transform production potential into value addition. Inadequate supportive marketing systems prevent farmers from accessing fair returns and adapting to rapidly changing consumer behavior.
Strategic framework for organic rice distribution in sathing phra peninsula
Based on SWOT analysis results, four main strategies for organic rice distribution development can be formulated:
Strategy 1: Value addition and brand development (SO Strategy) leverages the robust production base (95.74 per cent producing according to standards) combined with professional entrepreneur group expertise to develop high-quality milled rice products. This strategy utilizes professional entrepreneur groups (17.02 per cent) to expand online distribution channels from the current 19.15 per cent and employs local operator flexibility in role adjustment to respond to increasing organic rice demand.
Strategy 2: Capacity development and weakness reduction (WO Strategy) uses professional entrepreneur groups as models for teaching paddy rice processing (51.06 per cent) transformation into higher-value milled rice. It utilizes online channels to create brands and identity for 74.47 per cent of farmers currently lacking product names or brands and leverages increasing organic rice demand to create direct consumer markets, reducing intermediary dependence (72.34 per cent).
Strategy 3: Defense and leveraging strengths against threats (ST Strategy) focuses on utilizing professional entrepreneur group expertise in setting prices higher than conventional rice (25.53 per cent) to address price competition problems. It employs standardized production quality (95.74 per cent) to create supportive marketing systems through quality certification and uses local operator flexibility to reduce farmer vulnerability in marketing chains.
Strategy 4: Weakness reduction and threat avoidance (WT Strategy) develops complete supply chain structure by creating operator cooperation with clearly separated roles and responsibilities to reduce structural constraints. It establishes operator groups to increase market bargaining power and reduce price competition, addressing the problem of 72.34 per cent of farmers selling to intermediaries, while developing value addition through processing to create supportive marketing systems.
These strategies align with existing research findings. The complexity of farmer problems supports
Malak-Rawlikowska et al., (2019), who found farmers with high bargaining power typically have large cultivation areas and can negotiate prices, while most study area farmers lack bargaining power and rely on intermediaries. The WT strategy’s emphasis on group formation is supported by
Rahmadi et al., (2025), who found farmer groups help stabilize prices and increase profitability through resource pooling and marketing coordination. Value addition and brand development strategy aligns with
Park and Suzuki, (2021), who emphasized product identity creation’s importance for successful new product development. The complete supply chain structure emphasis reflects
Prasertwattanakul and Ongkunaruk, (2018) findings that organic rice companies with direct farmer group contact better control quality and quantity, consistent with
FAO, (2013) research stating farmer groups play important roles in delivering organic rice to exporters and markets. This comparative analysis demonstrates the necessity for holistic development encompassing farmer capacity building, supply chain structure development fair marketing system creation, enabling sustainable transformation of production potential into economic value addition.