Cassava Production, Prices and Related Policy in Thailand
Nongnooch Poramacom, Am-on Ungsuratana, Prasert Ungsuratana, Pornchai Supavititpattana
The objectives of this study were to compare farmer’s perception regarding different schemes, calculate breakeven price of cassava production, analyze supply respond of cassava production and analyze co-integration on cassava prices. This study applied monthly data covered the period 2007-2011 for co-integration analysis. The paper found that farmers preferred income guarantee scheme to pledging scheme. Since 2003, farm prices had increased above breakeven price. Supply response of cassava mainly depended on price received in the previous year. This price related to government policy in two different schemes: income guarantee scheme and pledging scheme. In addition cassava has been used as alternative energy. This study applied co-integration analysis for farm price with wholesale price and F.O.B. price for cassava. Farm price was affected positively by wholesale price and F.O.B. price. The estimated coefficients associated with explanatory variable agreed with a priori expectations, and were statistically significant. Signs of all estimated coefficients agreed with expectations and were statistically significant.
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