Introduction
Chili is an essential spice in the Thai traditional cuisine and almost all of the people from Asian countries prefer to eat chili as traditional spices in terms of fresh chili, dry chili and preserved chili. The importance of chili has been growing fast because it has been processed and come in the market in the form of sauce, paste, powder, etc. Chili business in Thailand is also related to its social dimensions. For example, Karen Chili is grown by Karen ethnic group of people near Myanmar border who migrated from Myanmar long back about 100 years ago. They grow chili on commercial basis and supply quality chili to the factories.
Therefore, production is concentrated in the South Western part of Thailand.
The studied unit of Chili sauce processing is Sun sauce limited which is located in Nong Ya Plong block of the Nong Ya Plong District of Thailand. lt was established in 1995 by a farmer who has 90 rai of Mango farm ( 1.00ha = nearly 4 rai) near by this chili sauce production factory. He started with his own money of 5 billion baht ( 1.00 USD= 40 baht) for initial investment and government also encouraged this activity to promote under the scheme of 'One Tambon One Product' (OTOP). The location of Nong Ya Plang is well connected with the roads and is about 150 km from the Bangkok city, an international market for the supply of chili products (Fig.- l).
Chili is one of the major crops in Thailand and the 300 ha of Net Sown Area was recorded under the cultivation of chili (normal as well as Karen chili) in Nong Ya Plong District where agro-processing unit is located. Chili dominates in cropping pattern in the area. It accounts for about 2.00 % of total agricultural land in the general land use pattern in the district. An annual average temperature of 28ÄŻ C to 36ÄŻ C with sufficient rain of l 500 mm and high humidity of about 80 to 95 % that retain through out the year are recorded. Thus, the climate is favourable for chili growth in the area.
Average yield of chili in the district is recorded 1140 kg/ha (2002) that is higher than the country. There are 300 households engaged in chili growing in this district. Although, Normal (Thai) Chili can be grown in many areas of Thailand along the border area of Myanmar as it has been growing in Nong Ya Plong district, Phetchaburi province of Thailand.
lt could be produced as the best quality one for Chili Sauce processing due to the favorable climate and soils. Karen Chili can be grown in hilly region and majority of growers are Karen ethnic group. If this type of chili was grown in low land areas, the quality of chili may become lower down and the products of chili sauce become low quality. Therefore, only this kind of raw from within this area is being used due to the consumer feed back on quality.
It means using good quality raw material, a good quality product can be achieved. Using this Karen Chili as win-win strategy for both consumers and growers of Chili because (a) the quality of product is good for consumers by using this Karen chili and (b) the growers of this area also have to sell this chili to this kind of factory soon after picking due to the short shelf life of its nature. The Karen Chili was introduced to use as raw for producing of spicy suki sauce by the Community Development Office's suggestion to promote employment opportunity for people of this area and new product promotion as OTOP.This kind of Karen chili can be grown only in this district because of its location on the eastern slopes of Bilauktaung hill ranges with favorable tropical climate.
Based on the concept, approaches and growth of agriculture and its contribution to economic development understanding it at multi-level agricultural development, the agro-processing of chili is taken an example to test the validity of backward and forward linkages of chili processing with the objectives as to examine the chili processing in the areas of the growing economy of the Western Thailand.
Methods and Data Collection
The observations highlighted in this study is primarily based on the field survey which was conducted as reconnaissance survey including discussion with local communities, farmers (chili growers), Karen women groups and local raw market people for getting information on backward linkages of Sun Sauce processing unit. The processing unit was visited to collect data relating to sauce production and interview was also conducted with factory laborers, production manager, and owner as well.
In order to find out the forward linkages of chili sauce production with the local as well as regional markets in the district, the national and international market at Bangkok city (only through web site), the market supply was assessed by conducting interviews with the concerned persons. While the observations of transportation facilities and communication
media were made during field trip of seven days period during the month of February 2004.
In order to get more background information, many visits were arranged to the Tambon Administrative Offices, District level departments and even provincial level offices. At the time of visits, the discussions and information about the problems and prospects of Chili sauce products were made and used in the present work.
Observations
A few important following observations are emerged from the conducted field survey:
(1) There are strong backward and forward linkages in the presently established 'Contract Chili Farming System' in the region. Chili growers get suitable prices of their products which are used as raw material in the chili sauce manufacturing. This agro processing unit produces enough sauce product to supply it to the International market at reasonable price (Fig-2). It is observed that the contract chili farmers are familiar with the agro- ecological conditions and suitability of chili growth in the region.
(2) The strong road network at local, regional and national levels and the road accessibility to Bangkok as international market centre which provides Cargo flight facilities, the profitability to the contractors and producers are major infrastructural attributes for the chili manufacturing as agro- industrial product. Government incentives also increase the rate of profitability of the chili growers in the region. The process of expansion of the manufacturing unit has started to increase the production of the unit.
(3) The basic structure of Sun sauce manufacturing is dependent on the Contract Farming System in which the land owner of about 50 ha of Thai chili grower is the owner of agro- processing unit and is also the contractor to buy raw chili from other chili growers. He plays pivotal role in decision making and he has enough knowledge of the farmers products, their investments, the demand of chili sauce in the market and the importance of his own product. The processing unit has an optimal numbers of about 40 workers with processing machines and required other ingredients as soyabean, roasted sesame, garlic, sugar, ginger, salt, etc. (Fig-3).
(4) Marketing is an essential part of forward linkages to the growth of an industry.
Location of Bangkok market closer to the processing unit minimizes the transport costs and increases supply efficiency of the product at market demand. Storages and warehouses in Bangkok city help in quick supply of the product to the international market.
(5) The processing unit running in profit and the owner of the unit tries to expand the plant by constructing new unit with modern machines for promotion of production capacity.
The climate and soil conditions of the region are suitable for soyabean crop which may be used to produce soyabean sauce simultaneously with chili sauce in the same unit.
Such
type of crop ecological sustainability concept of intensification of agro- processing industrial products would be useful for the other parts of the South and South- East Asian countries where many agricultural products are grown in abundance to process.
It can be said that non- farm multi activity agricultural production structure with its strong backward and forward linkages not only with the same farm products where it is established but also with the agricultural products available on the other farms in the region, may be developed in integrated manner to maximize the profit of the farmer and income generation in rural areas as per available environmental conditions of the farm.