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Potential income gains for rural households in North Eastern Thailand through trade with organic products

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Author Info
Morawetz, Ulrich B.
Wongprawmas, Rungsaran
Haas, Rainer
Abstract

The study groups households in North Eastern Thailand according their income and grade of specialisation in crop production to derive representative household types. For these household types a linear optimization model is run to calculate net incomes under four scenarios. These are certified organic farming, organic farming in the initial and transitional phase and a self-sufficient farming. Simulations for the different management scenarios show that per ha cash profits are about double under certification while they can only be increased by 30 percent under self-sufficient farming, even under favourable assumptions. But transition costs to organic farming are high due to reduced yields at the beginning. According to the figures and model used, only under certified organic production it pays to hire non household workers. Labour hence is a major limiting factor.

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File URL: http://purl.umn.edu/7895
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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7895.

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Date of creation: 2007
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Handle: RePEc:ags:eaa105:7895

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Related research
Keywords: organic agriculture; Thailand; household income; Consumer/Household Economics; International Relations/Trade;

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  1. Ahmad, Alia & Isvilanonda, Somporn, 2003. "Rural Poverty and Agricultural Diversification in Thailand," Working Papers 2003:19, Lund University, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-11.


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