Assessment of the role of cooperative networks in the fruit supply chain in Thailand

Abstract

This study examined the role of cooperative networks in the fruit supply chain in Thailand using primary data from three cooperatives in the eastern and southern regions of Thailand. The results of the t-test revealed that marketing fruits through the cooperative networks yields numerous benefits to the cooperatives and its member farmers including increased bargaining power, improved fruit quality, decrease production and post-harvest costs, and better access to market information and high-value markets. The results also revealed that expertise in fruit management is essential in the fruit supply chain. Experience in fruit management can reduce the problem of business uncertainty, lack of flexibility, and difficulties in the negotiating process. Furthermore, knowledge of product quality and fruit distribution is important for the reduction of fruit waste, handling and transporting in the supply chain. Finally, the results also showed that the dyadic relationship and negotiation, and good practice of payment under the bi-cooperative create more trust which leads to a better exchange of market information, business continuation, and stability of the network than the multi-cooperative network. These results have implications for the management of the fruit supply chain in Thailand by assisting the farmers to access higher-value markets through cooperative networks.