8.2. Farmer Group/Cooperative
There is only the producer group in Wieng Kaen to be able to officially supply towards the
EU market due to phytosanitary requirements. Therefore this analysis is based mainly on this
group.
CONSTRAINTS:
• Lack of understanding for the farmer group management
There are few formalized groups of pomelo growers but they are still weak and lack
understanding and capacities on small farmer group management or cooperative
business. Improved management on group level is conditional for improved quality as
well as for GlobalGAP option 2, traceability systems and opportunities as Fairtrade or
organic group certification.
• Lack of clear production and post harvest rule and enforcement
Although the Thai GAP is available as guideline for the good practice for pomelo
production but some quality management requirements are not covered by this as such,
as quality requirements according to the order from the buyers, harvest technique and
time.
• Lack of capital and cash flow to expand their business on group level
The farmer groups do not have own capital to invest or for certification costs yet and are
depending mainly on pre-financing from buyers or on support organizations.
• Certification Cost and certification ownership
Certification costs are high and are high per unit as the groups are also still small. Global
GAP certification is paid and owned exclusively by one exporter who is not absorbing all
production. As the group does not own the certificate it can not utilize it for other market
channels. As the group is the only area qualifying towards export to the EU this creates a
bottleneck.
• Facilities at collection points and temporary local packing house are below
standard
The producer group has only temporary collecting points and post harvest facilities set up
in corporation with the exporters and covered by the GMP and quality management of
the exporters - thus limiting convenience and capacity of increasing market channels.
Although the group has actually access to a forklift the facility has no ramp to use it. By
manually loading - troughing the cartons – damages can easily occur.
While waxing quality problems occure where temporary workers are not sufficient aware
of the technique (especially proper waxing at the cutting point)
• Size and Quality Grading
The farmers are familiar to grade according to the size of the pomelo while the EU
customers require a more differentiaded grading according to size, weight and number of
fruits per box.
In the Wieng Kaen Group procurement is done through a quota system which could lead
to insufficient emphasis on grading related quality focus.
• Feeling ownership of the group business
The producer groups are still young organizations and there are people and member’s
involved with their own individual interests and with different purposes. The members
understand that it is a place where they can sell their product - still they do not fully
understand the concept of a cooperative and the member ownership principle.
OPPORTUNITIES AT PRODUCER GROUP LEVEL ARE AS FOLLOWS:
• According to DOA the area scope of phytosanitary certification can be increased
to other groups and areas
• Required and accepted Certification systems and services are available locally or
regional for GlobalGap, phytosanitary certification as well as value adding
schemes as organic or fairtrade certification, which then could also strengthen the
group in the process
• As the groups would become larger certification costs per unit would decrease in
group certification schemes.
• Training for improved quality control and management to be continued and
expected to have an impact.
• Competent service providers for training and extension can be identified in the
region. Strong support organizations.
• Services for research and development available through Chiang Mai university
and others
• Government and policy makers supportive to the project and good cooperation
among all stakeholders
• Varietal diversity and seedlings for selection of varietal strategy and unified
product are available towards product distinction strategies
• Strategies on group level to maximize A grade output and utilize or increase value
of undergrades or B grades could prove benefitial to members
• Fairtrade certification
• Development of an organic program and organic group