Drivers and barriers to growth of the Thai rice milling industry
Creators: name: Horadal, Kanyathong
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 350704
subject: Entrepreneurship
classificationCode: 350716
subject: Small business organisation and management
classificationCode: 350903
subject: Logistics

description: This thesis involves two interrelated studies. Study 1 maps the characteristics of the Thai rice milling industry. There appears to be no studies of the characteristics of Thai rice millers and mills. Study 2 identifies the enablers and barriers to growth in the Thai rice milling industry. These two studies address two main research questions: Research Question 1: What are the principal characteristics of the Thai rice milling industry? Research Question 2: What are the drivers and barriers to growth of the Thai rice milling industry?<br><br>Study 1: Mapping the Characteristics of Thai Rice Milling Industry<br><br>The key objective of Study 1 is to examine the characteristics of the Thai rice milling industry. Participants are the population of Thai rice millers (N = 38,241), 91.1% are small business, only 3.5% are medium-sized enterprises, and 5.4% are large corporations. This study adopts a quantitative method to map the characteristics of the Thai rice milling industry. Data were obtained from the Thai Government office records, private and international institute databases, and other reliable sources.<br><br>Findings show that all regions of Thailand specialize in milling and removing husks, as expected, but surprisingly no region specializes in roasting, polishing, packaging, and processing of rice. In addition, large enterprises are more efficient in terms of employee per output, but less efficient in relation to machine capacity and level of capitalization. Finally, these findings suggest that government policies impact significantly on rice production but the extent of impact is relatively small.<br><br>Study 2: Drivers and Barriers to Growth in the Thai Rice Milling Industry<br><br>The main objective of Study 2 is to identify the enablers and barriers to growth in the Thai rice milling industry. Consistent with the constructivist approach, Study 2 employs an in-depth interviewing procedures in relation to potentially sensitive topics. The target population is the Thai rice milling sector. Participants are 33 randomly selected rice mills, classified as either small (n = 24), medium (n = 2), large (n = 7), cooperative (n = 3), non-family oriented (n = 3), or family-oriented (n = 27). Interviewees are experienced owners, senior managers or key employees. Findings demonstrate that regional location of rice mills, size of business, type of business (e.g., family business), rice mill activity (e.g., roasting), and government/institutional factors pose as formidable considerations.<br><br>Limited investment in education, technology, and modern machinery are barriers to growth. Finding suggest that interventions should focus on helping to build capabilities though training, education, technology, and innovation to enable this industry to re-gain a sustainable competitive advantage and move up the global rankings in this sector. A further imperative is the need to value add to rice production rather than focusing predominately on exporting.