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Centro de Recursos sobre la Agricultura de Contrato

Growers’ Participation in Maize Seed Production Contracts in Thailand

Organization Australian Agricultural and Resource Economics Society 2019 Conference
Year 2019

As the second largest seed exporter in Asia (after China) with maize seed exports valued at USD 43.8 million, Thailand can realise its vision of becoming the region’s ‘’Seed Hub’’. Seed firm size in Thailand vary—from small and medium-sized firms who rely on public provision of germplasm, to small, national and local firms, who mainly propagate hybrid and parent seeds and to large, multinational companies (MNCs), who can invest research and development toward the multiplication, processing, marketing and sales of high quality seeds. By reviewing seed sponsor and grower contracts coupled with a multi-stage stratified sampling method and a multinomial logit model, the study addresses the various contract models operated by such firms and analyses the factors within which contribute to the participation of growers in maize seed production contracts. Study findings indicate small, national firms though less stringent on seed requirements may not be preferred by seed growers due to low price and payment delays. In contrast to large MNCs, seed growers prefer MNCs due to the written agreements on price, payment terms and advanced input credit. Continuous research and development investment in seed technology and breeding techniques is one way to promote the ‘’Seed Hub” policy of Thailand.