The Thai family agriculture is characterized by a large number of small and
fragmented farms, especially rice farms and other upland crops except sugarcane. Not being
colonized by western countries during the mid-nineteenth century, Thai farmers have been
saved from a plantation enclave. This explains why strong collective action among Thai
farmers is hardly thriving due to very high transaction costs and a free-rider problem (see
Olson, 1965). Moreover, weak farmer associations in the forms of co-operatives prevailed;
the main task of there collective groups is to act as input-buying and output-selling agents for
the purpose of increasing farmers’ bargaining power with middlemen. Manufacturers’
associations become inclined to seek protection and subsidies from the state and most are
successful at lobbying for their interests.