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Ekcharoen Rice Co. Ltd Phoukhao, Zay, Kyi & Binh Development of SME Cluster & Export Consortia, Mekong Institute, Khon Kaen, Thailand, 18 July 2011.

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Presentation on theme: "Ekcharoen Rice Co. Ltd Phoukhao, Zay, Kyi & Binh Development of SME Cluster & Export Consortia, Mekong Institute, Khon Kaen, Thailand, 18 July 2011."— Presentation transcript:

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2 Ekcharoen Rice Co. Ltd Phoukhao, Zay, Kyi & Binh Development of SME Cluster & Export Consortia, Mekong Institute, Khon Kaen, Thailand, 18 July 2011

3 Description  Establishment: 1991  Location: 345 Mo2 Makaukao, Sungroen, Nakon Rachasima,  Contact Person: Mr. Hasadin, S. Pongched, Director of Co. & Director of Rice Miller Association  Factories: 3 factories with paddy driers  Employee: 24 workers in one factory, minimum salary 200 baths/ day  Area: 7 hacters  Capacity: 500 tons/ day on one factory

4 Rice Processing Line Raw material (paddy) Drying Storage (temp. 17~25) Cleaning Polishing (Dry, Wet) Grading Colour Sorter Packaging Damage, Yellow, Dead Head Rice - 50% (total recovery) A1 Broken Rice, Small Broken (30%), Rice Brain, Husk (20%) Used: water + air 20 kg/bag (export) 1, 5, 10 kg/bag Husking

5 Products 100% Thai Hom Mali (Thai Jasmine Rice) 10%, 15% Thai Hom Mali (Head Rice) Cargo Rice, Long Grain Rice A1 Broken Rice (white) Parboiled Rice

6 Export Market: Africa: 75% Nigeria South Africa Senegal Angola Europe: 25% Export amount: 100,000 tons/ year Common price: Jasmine rice: 30baths/ kg Broken rice: 12 baths/kg

7 Raw Material Sources Workforce: 700 farmers in 3 towns (paddy) Supply raw rice (premium quality): 100,000 tons/year

8 Value chain grand chart

9 Value chain actors o Domestic consumption o Export Domestic market Farmers CollectorsRice Millers Retailers CONSUMERSCONSUMERS Export Market FarmersCollectorsRice MillersExportersBuyersRetailers CONSUMERSCONSUMERS

10 9 Strength High-tech facilities Skilled labor force Good contact persons (Africa) Leader’s experience & prestige Farmers’ trust Weakness Costly input material Lack of association management skills Limit of capital Opportunity: Well-known Thailand jasmine rice Increasing numbers of consumers (esp. Africa) Government supports Thread High competition Fair price product substitutions Cheating from buyers Global rice market information forecast for farmers SWOT ANALYSIS

11 Problems o Unfair competition among producers (internal and external of the cluster) o No new generation  business scale limit o Capital limit vs. high interest rate loans. o Limit trust contact persons in potential market countries (other countries Africa)

12 Concerns o Not activate association for export promotion o Low rice price in international market o Not enough water in local region o Limit land area for rice planting o Fluctuate price in harvest

13 Recommendations o Website (in English also) o Good seed to increase quality and quantity of rice  improve farmers’ life  poverty reduction o Improve rice miller association role o Establish regional rice production association  Control fair price in the region  Give more information to farmers

14 Lesson learnt - Advantages o Many ideas from team members  more solutions o Share ideas and information o Teamwork skill for members o ResponsibilityShare o In the group work, members can overcomes their weakness o Members develop knowledge and skills for future application

15 Disadvantages o Language barrier o Some team member do not participate as much as other o Time consuming (disagreements may delay decision) o Many ideas might be forgotten if no note taken.

16 Thank you for your attention!


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