




































American International Journal of Agricultural Studies  

Vol. 2, No. 1; 2019 

ISSN 2641-4155   E-ISSN 2641-418X 

Published by American Center of Science and Education, USA 

 

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Problems and Holistic Solutions for Agricultural Businesses in 

Chiang Mai 
 

 

Pakorn Udomthanasarnsakul 

Lecturer, Faculty of Business Administration 

Maejo University, Chiang Mai, Thailand 
E-mail: pakorn35@hotmail.com 

 

Tidarat Cholprasertsuk 

PhD,Faculty of Business Administration 

Maejo University, Chiang Mai, Thailand 

E-mail: tc_ple@hotmail.com 

 

Panomporn Chalermwan 

PhD,Faculty of Business Administration 

Maejo University, Chiang Mai, Thailand 

E-mail: panomporn1219@hotmail.com 
 

 

 

Abstract     

This research aims to study the problems and find solutions of major agro-industries in Chiang Mai, Thailand. The 

sample was divided into two parts: The supply side was the government agency, educational institutions and civil 

society. Demand side was Agro-Industry entrepreneurs. The methodology was focus on meeting the stakeholder 

debate, and group workshop, the first step of the research was selected the potential agro-industry group to study 

then in the operating phase, the survey was conducted to analyze and synthesize the problems of agro-industry and 

find solutions by group meetings in order to present a holistic problem-solving model. This process will provide 

opportunity for stakeholders and related agencies to collaborate and propose appropriate guidelines for action. The 

results show that, within demand side, the three most important issues are labor issues, marketing and production 
problems respectively. While the supply side, the top three issues are the integration problems, lacking of language 

skills / expertise, and lacking of database. Based on the analysis of both demand and supply side, there is a lack of 

concrete cooperation from relevant agencies, especially in policy cooperation. Therefore, a policy that responds to 

the problems of agro-industry is essential for all agencies to focus on and implement concrete measures to address 

sustainable issues. 

 

Keywords: Agricultural Industry, Agricultural Business, Holistic Solutions. 

 

1. Introduction 
Agricultural industry is one the essential industry to enhance Thai economy by creating values to agricultural 

products. The industry has created jobs for the workforce and in return, those workforces can make a living by 
working in the industry. This is considered to be the source of income for farmer family and community in the 

remote area. The agricultural industry has the potential in exporting products and has brought income to Thailand 

approximately 1.4 trillion baht (20.5% of the total export in 2016). Among this amount, 12.9% is from primary 

agricultural product and 7.6% is secondary/ food-processed products). Based on evaluating the industry problem, it 

is found that agricultural-product exporting structure has not been changed from the past. However, the production 

is facing with some difficulties, that is, lack of raw material both in terms of quantity and quality, the readiness of 

SMEs’, lack of labors and managerial and supporting problems accompanied with global warming issues. On the 

demand side, consumers’ behavior has been changed which has affected raw material production and production 

structure of the industry. In the future, trend in trading near the boarders and the increasing investment will affect to 

industry directly especially to those near the border of Thailand. There will be the expansion of agricultural 

industry-which would be the results of direct investment. As per to limitation of farming area in Thailand, the 

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production of certain agri-product such as rice, rubber, sugar cane, potato and livestock including the production of 

papers may be relocated to neighbor countries. This is caused by the competitive advantage in terms of resources 

and farming land. Such changes will led to the change in supporting industry and continuing industry. Thailand must 

be changed itself from ‘low-cost production’ to ‘technology transfer’ to neighbor countries (Integrated Industrial 

Development Plan based on Fiscal Year of 2017, The Office of Industrial Economy). 

The study of problems and entrepreneurs’ requirement from agricultural industry has become necessary in order to 
facilitate both private and public make efficient production planning or setting policy including setting roles for 

themselves in supporting and developing the industry to the same direction. Apart from this increasing investment to 

boost the potential of agricultural business exporter as the goal of sustainable development of Thailand hoping that it 

would be suitable to changing environment, beneficial as the new form of cooperation. 

  

2. Literature Review 
Taemlertboonchai (2016) has studied trend in the development of Thailand Industry, changes affecting industry in 

the world economy, favorable characteristics of industry in the future and efficient policy in making tranformation to 

creative and knowledgable industry. The importance of agricultural industry, supporting SMEs, the reduction of 

logistic cost, power management and efficient environment management are unavoidable. Those requires the 

development of technology and man power as the drivers to the goals.However, such goals will be achieved unless 

strategy and related policy are not clearly set up. Policy setting and strategic practices are required in the past few 
years; namely, determining plans, project and result of research study on industry development. This is the high time 

to realize the importance of 114 industrial policies and put it to use immediately. 

Maikansarn and Munkhum (2011) studies the adaptation of agricultural industry to the new world context. The 

changes has happended so fast resulting in the adaptation of agricultural sector. Many developing countries has 

studies and expected the trend so that they can better adjust to the new world environment. Apart from that, they aim 

to grow sustainable and increase their competitive advantage in the world market. 

                        

3. Purpose of the Research 
 To search for vital information for analyzing purpose to solve the right problems for agricultural industry. 

 To let stakeholders taking part in developmental plan policy. 

 To utilize result of the study to analyze and find solutions for agricultural industry. 
  

4. Expected Results 
 To understand agricultural entrepreneurs‘problems in chiang Mai 

 To understand methods in solving such problems from organizations involed in agricultural industry 

 To utilize the results of the study and solve the related problems 

 

5. Research Methodology 

5.1 Scope of the Study 
This study contains the scope in two perspectives which are 

5.1.1 Demand Perspective would concentrate on agricultural industry problems in Chiang Mai 

5.1.2 Supply perspective would concentrate on solving process and integrating process from other governmental 

departments- relating to develop and supporting, academic institutions, community in Chiang Mai 

5.2 Population 
5.2.1 On demand side, population are agricultural entrepreneurs in Chiang Mai and civil society which are Chiang 

Mai Chamber of Commerce and Federation of Industry 

5.2.2 On supply side, Government organizations set up at the goal of developing and supporting agri industry such 

as Labor Office, Industry Office, Commercial Office etc and academic institutions both private and public. 

Primary Data 
This data was acquired from workshop by inviting all parties from demand and supply mentioned to reflex real 

problems, needs including ways in working together, by brainstorming utilizing Zopp card and by summarizing 

through focus group. 

 

 

5.3 Data Collection 
Data collection was done by workshop conference with meta approach, plenary and group discussion, unconstructed 

interview on opinions regarding overall problems, internal organization problem and ways to solve such problems. 



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5.4 Data Analysis 
Supply analysis was conducted on analyzing what is going on in the present which hopefully would lead to the 

needs in the future and then the strategic plan and policy would be set up. 

 Demand analysis was conducted on evaluating the future demand so that priorities should be properly set 

up for each party, including knowledge and skills required and technological requirements in the future. 

 Gap analysis can be done by comparing supply and demand so that the shortage from both sides can be 
understood; namely, scarcity or the inability to supply what is demanded and 2.oversupply identification. 

This comprehension would reduce the gap between supply and demand side. 

 

6. Result of the Study 
6.1 Demand (9 entrepreneurs) 

It is found that 

6.1.1 Problems of Agricultural Industry in Chiang Mai 
  

Dimension Problems 

Production 

  

- lack of operational workforce and knowledgeable workfoce 

-lack of machine and technology which lead to inefficient production 

-Unconstant output as it is the nature of agricultural production 

-small output per Rai (high cost of production) 

-lack of support in connecting between agricultural sectors and industry 
-decreasing food production which has led to lack of raw material in food 

processing industry 

-no development in production to add value 

-lack of expertise in adding value to the product 

-losing quality and quantity during the production process 

-natural disaster and plants and animal plaque 

Workforce 

  

  

-lack of workforce in certain season such as reaping season or producing 

seasons 

-lack of skillful labor during high demand production 

-lack of basic labor (grade 9-12) 

-lack of semi-skillful and unskillful labor as they prefer to continue their 

education 
-no new workforce as the existing labor are elderly in the community 

-no labor who is proficient in English, computer skills 

-labor lacks of experience which is difficult to apply theory to the real world 

-labor lacks of communication skills 

-labor tends to follow instruction which cause the lack of creativity 

-labor with bachelor degree tends to ask for higher wage 

-Increasing value in continuing labors’ education. 

Marketing -on few markets for agricultural products 

-No clear price determination (no regulations in setting price) 

-little involvement of governmental organization 

-There is obstacles in entering international market as per to trade barriers 

- trades has been conducted to middlemand 
-price fluctuation 

-there are many competitors both from domestic and international 

-there is no marketing strategy and strategic plan 

-there is no public relations on branding 

-farmers lacks of marketing knowledge 

-high cost of transportation 

-there is no concrete conglomerate which lead to lack of bargaining power 



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Investing 

  

-lack of funds/ lack of liquidity 

-high cost of factors of production 

-instability of politics 

-objection of factory building 

-lack of governmental support 

-higher cost of transportation 

Knowledge and Technology 

  

-lack of knowledge and understanding in technology 

-production doesn’t utilize technology 

-farmers sticks to old producing method 

-lack of knowledge from research on technology, and machinery to apply to 
production in Thailand context 

Policy 

  

-farmers and entrepreneurs have been confused with inconsistent policy 

-Government organization does not support constantly in the industry 

-the instability in politics has caused the insecurity of entrepreneurs which 

lead to decreasing investments 

-Government policy is not in accordance with region requirement 

-Delay in policy enactment. 

  
  6.1.2 Prioritizing Problems 

  

Problems Score The order 

 Labor 8 1 

 marketing 7 2 

 production 5 3 

 policy 3 4 

 Knowledge and technology 1 5 

  

  6.1.3 Causes and Solution 
  

1.Labor 

Cause Solution 

1. lack of labor/ inconsistent working Setting labor market 

2.unskillful labor/ no expertise Setting training to increase knowledge and skill 

3. high wage, unskillful labor Government should take part in to solve the problem 

  

2.Marketing 

Cause Solution 

1. few market Supporting of agricultural product processing 

2. few export Value adding 

Finding more connection arbor 

  

3. Production 

Cause Solution 

1. High cost of raw material Find the way to reduce cost 

2. High cost gasoline Supporting the use of bio-fertilizer 
Finding renewable energy 

3. High wage Government should assist in wage and support new 

technology 

  

Based on problems and weakness of agricultural industry, it has shown problems in production, labor, marketing, 

funding, knowledge and technology including policy setting. Stakeholders has shown their opinion differently which 

can be concluded that the major problems are funding and technological knowledge with few perspective while 

problems on production and marketing seems to have several facets 



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6.2 Supply 

6.2.1 Problems from the Industry Group, Academic Institution and Civil Society 
  

Dimension Problems 

1.Language and Expertise 

  

1. Lack of communication skill 

2. Lack of certain skills such as production, marketing, innovating to 

add value for the product 

3. Lack of English language skill 
4. Lack of third language skill 

2. Policy 1. Central policy is not serious in solving the labor, marketing 

problems 

2. Top-down command has led to real participation of community 

3. Community was misled 

4. Management lacks of pedagogical management 

3.Value 1. Attitude, and collaborating with supporting organization 

2. Value of rotating jobs an don’t want to participate in the industry 

3. Students choose what is popularity not from what is worth for 

agricultural production 

4. Students lack of discipline 

5. New graduate aims to high compensation but accumulating of 

experience 
6. Value of continuing their education 

7. Society value, social problems affecting quality of student and labor 

8. Attitude of the trainees in required curriculum 

4.Budget 1. Lack of operational lab 

2. Lack of budget 

3. Lack of support in developing human resource 

4. Number of project cannot be fully supported 

5. Curriculum 1. Curriculum has not aimed to build expertise in agricultural    

production 

2. Few text books 

3. Curriculum is not in accordance with strategic plan 

6.Entrepreneur 1. Few job availabilities 

2. Few job availabilities after the training 

3. Few certified labors 

4. Lack of entrepreneur’s awareness to collaborate in developing 
labors’ skill 

5. Inconsistency between job and wage 

6. Job required experience worker 

7. Lack of developing workers’ plan 

7.Integrative collaboration 1. Lack of Competency Base Curriculum between entrepreneur and 

academic institution 

2. Lack of coordination between entrepreneurs and government 

organization 

3. Lack of coordination between academic institution and entrepreneur 

4. Students are unaware of economic status before entering to 

workplace 

5. Lack of coordination between stakeholders 
6. Lack of support from government 

7. Lack of coordination to improve labors’ skill 

8. Lack of coordination from other related organizations 

9. Lack of proper skills from relevant organizations 

8. Database 1. Lack of Database of developing labor to match with requirements 

from entrepreneurs 

2. Lack of database of requirement 



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3. Lack of research based on agricultural industry-related problems 

4. Lack of information on labors 

5. Lack of information on developing business 

6. Lack of information on job position which led to unability to set up 

long-term plan 

7. Unstable of Demand for Labor Proportion 

      

6.2.2 Prioritized Problems 
  

Problems Score The order 

 Integrative Collaboration 13 1 

 Language and Expertise 8 2 

 Database 5 3 

 Value 3 4 

 Policy 1 5 

 Entrepreneur 1 5 

 Curriculum 1 5 

Budget 0 6 

  

6.2.3 Cause of Problems and Solution 

  

1. Integrative collaboration 

Causes Solution 

Government 
1. Change of Bureaucratized System has not been 

effective because of top-down policy, application of 

data, lack of evaluation and follow-up plan, 

executive’s vision 

  

  

  

  

1.Decision making should be changed from individual 

to committee of agricultural industry-related 

department 

2.Agri-cultural government department should utilize 

the same database which is updated and easy to apply 

3.Government should review and listen to comments 

from stakeholders seriously so that the 

recommendations can put to use efficiently 

Private 
 1.Lack of coordination among private, public and 

academic institutions 

2.Lack of research to support integrative collaboration 

3.Lack of information to assist in making decision 

 1.Develop work pattern of agricultural industry by 
letting private sector be part in setting up policy so 

policy can be enacted 

2.Private sector should participate in budgeting of 

research project 

Academic Institution 
1.Academic service has not reflected real problems the 

industry 

2.Lack of coordination between academic private and 

public sector 

3.Key person cannot integrate knowledge and practices 

together 

  

 1. Academic institutions should set up policy that 

involving agri-industry. Academic can set up policy 

partly so policy can be put to use and match with 

industry problems 

2.Academic institution should be parted in project 

budgeting 

3.Academic institution should take part and support 

personnel who be knowledgeable in agricultural 
industry 

  

2. Language and Expertise 

Cause Problem 

1. Lack of continuous improvement 1.Create awareness of importance of required skills 

before entering to industry 

2. Lack of confidence in communication 2.Set up curriculum to support giver and taker 

3.Lack of opportunity in working 3.Set up contest activity such as innovation of 

agricultural product contest 



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4.Lack of efficiency in real practice before students are 

graduated 

  

4.Adjust academic system in accordance with demand 

  

  

3. Database 

Cause Solution 

1.Lack of information exchange between 

organizations; entrepreneurs, academic institutions, 

labor, private and public institutions 

1.All parties should have M.O.U. in exchanging and 

updating information 

  

2.Lack of major coordinating center and updated 

information 

2.Setting up the coordinating center by selecting 

delegating staff from all parties 

3. Lack of IT personnel’s which lead to inability to 

search for agricultural industry demands 

3. Setting training course for entrepreneurs on IT 

skills, such as searching 

  
Based on the analysis of strength and weakness of agricultural industry, it is found that there are several facets of 

problems which are language skills and expertise, policy, value, budget, curriculum, entrepreneurs, integrative 

collaboration and database. Stakeholders has confirmed the mentioned problems. Major weakness are integrative 

collaborations, language and expertise, and lack of updated database. 

 

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