7.3.1 Dividing
This is one of significant problems in baby corn trade. Factories are always strict about quality of raw materials. If they find unqualified corn ears, they will leave them out and subtract the weight of defective baby corn from the total weight of baby corn offered by middlemen for sale. If the number of defective baby corn is huge, they will lose considerable profits. However, middlemen or produce collectors usually manage to get compensation pay from farmers, claiming that some of produce they buy is low in quality and cannot be accepted by factories. In consequence, this entire burden rests on baby corn cultivators, who already suffer the low price of baby corn. Sometimes, the cultivators run out of morale in growing the plant despite high demand from markets and processing plants.
7.3.2 Delayed payment from factories
Sometimes, it takes about 2-3 months for factories to pay money to middlemen. Then, middlemen have to postpone payment to farmers when buying produce. This leads the farmers to a lack of capital for the next planting. They have to borrow money from many sources to carry on with baby corn cultivation. Therefore, they have to bear the burden of paying high interest rates.
7.4 Export Problem
7.4.1 Local competition
There is a lot of competition in terms of price cutting among local manufacturers due to a bright trend of canned baby corn import demand. It is getting higher every year. Some exporters offer prices lower than production costs so that they can seize more market shares from old exporters. Other exporters have to reduce product prices accordingly to remain competitive. Inevitably, prices, at which farmers sell their produce, weaken.
7.4.2 Competition with foreign producers
Especially Taiwan, one of Thailand’s important competitors. Even though Thailand has very low-price products, those from Taiwan can trade in even lower prices than Thailand's. This is because of higher production costs in Thailand particularly the cost of canning, and also low efficiency of production. These factors effects Thailand's market share.
7.4.3 Inadequate gross tonnage
Both canned baby corn and fresh baby corn exports always face no availability of room in airplanes. Also, the cost for transporting goods in this way is very high. This is because most airline companies do not favor transportation of fruits and vegetables even though there is high demand from foreign countries. This makes Thai exporters lose opportunities to reach more markets worldwide. Moreover, many fresh products often decay while awaiting shipping at airports. It can be said that considerable income is lost each year.
7.4.4 Failing to reach standards
Both Thai canned baby corn and fresh baby corn do not meet world standards yet. Thai baby corn exports are often found to be broken, blended with corn silk, and have no consistency in sizes. Some are too big and some too old. Besides, the packaging, especially that of fresh baby corn, does not meet standards too.
7.3.1 Dividing
This is one of significant problems in baby corn trade. Factories are always strict about quality of raw materials. If they find unqualified corn ears, they will leave them out and subtract the weight of defective baby corn from the total weight of baby corn offered by middlemen for sale. If the number of defective baby corn is huge, they will lose considerable profits. However, middlemen or produce collectors usually manage to get compensation pay from farmers, claiming that some of produce they buy is low in quality and cannot be accepted by factories. In consequence, this entire burden rests on baby corn cultivators, who already suffer the low price of baby corn. Sometimes, the cultivators run out of morale in growing the plant despite high demand from markets and processing plants.
7.3.2 Delayed payment from factories
Sometimes, it takes about 2-3 months for factories to pay money to middlemen. Then, middlemen have to postpone payment to farmers when buying produce. This leads the farmers to a lack of capital for the next planting. They have to borrow money from many sources to carry on with baby corn cultivation. Therefore, they have to bear the burden of paying high interest rates.
7.4 Export Problem
7.4.1 Local competition
There is a lot of competition in terms of price cutting among local manufacturers due to a bright trend of canned baby corn import demand. It is getting higher every year. Some exporters offer prices lower than production costs so that they can seize more market shares from old exporters. Other exporters have to reduce product prices accordingly to remain competitive. Inevitably, prices, at which farmers sell their produce, weaken.
7.4.2 Competition with foreign producers
Especially Taiwan, one of Thailand’s important competitors. Even though Thailand has very low-price products, those from Taiwan can trade in even lower prices than Thailand's. This is because of higher production costs in Thailand particularly the cost of canning, and also low efficiency of production. These factors effects Thailand's market share.
7.4.3 Inadequate gross tonnage
Both canned baby corn and fresh baby corn exports always face no availability of room in airplanes. Also, the cost for transporting goods in this way is very high. This is because most airline companies do not favor transportation of fruits and vegetables even though there is high demand from foreign countries. This makes Thai exporters lose opportunities to reach more markets worldwide. Moreover, many fresh products often decay while awaiting shipping at airports. It can be said that considerable income is lost each year.
7.4.4 Failing to reach standards
Both Thai canned baby corn and fresh baby corn do not meet world standards yet. Thai baby corn exports are often found to be broken, blended with corn silk, and have no consistency in sizes. Some are too big and some too old. Besides, the packaging, especially that of fresh baby corn, does not meet standards too.
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