Performance financial analysis of rubber cooperatives in Trat province, Thailand
Article Sidebar
Main Article Content
Abstract
The financial performance of rubber cooperatives in Trat Province, Thailand was studied. The results revealed that characteristics of rubber cooperatives were divided into primary and secondary businesses. Four rubber cooperatives obtained the highest revenue from gathering rubber products as primary business, accounting for 50 percent of all rubber cooperatives, covering 22.53 million (THB.) per year. Regarding secondary business, two rubber cooperatives generated the highest revenue by supplying and selling fertilizer and agricultural chemicals, and processing rubber products accounting for 4 million (THB) per year. Seven cooperatives (87.5%) had acceptable financial performance ratios. This finding implied that these cooperatives were successful in terms of operation. The ability of rubber cooperatives to meet current obligations and the use of resources were effective. In contrast, only one cooperative investing in rubber processing gained an unacceptable financial performance ratio which was below than 2. The Acid-test (-0.17) demonstrated rubber cooperative dependency upon inventory. Additionally, the inventory turnover ratio was excessively high. There was much invested in rubber processing, machinery, and equipment. Cooperative management should consider financial ratios as an important tool to investigate the performance of rubber cooperatives.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Badiru, I. O. (2010). Review of small farmer access to agricultural credit in Nigeria. Policy Note 25.
Bijman, J., and Hu, D. (2011). The rise of new farmer cooperatives in China; Evidence from Hubei Province. Journal of rural cooperation. 39: 99-113.
Cooperative Promotion Department (2016). The annual report year 2012 of Cooperative Promotion Department. Retrieved 23 August 2018. from http://www.cpd.go.th/.
Department of Agricultural Extension (2017). Information technology and communication center: Department of Agricultural Extension. Retrieved 22 September 2018. from http://www.agriinfo.doae.go.th/year60/plant/rortor/perennial/rubber.pdf.
Henehan, B. M. (2002). The Decision to Merge: A Case Study of US Dairy Cooperatives: Department of Applied Economics and Management, Cornell University.
Holloway, G., Nicholson, C., Delgado, C., Staal, S. and Ehui, S. (2000). Agroindustrialization through institutional innovation Transaction costs, cooperatives and milk market development in the east African highlands. Agricultural economics. 23:279-288.
Jessup, E., Casavant, K., Monson, J. and Duft, K. (2011). Business Decisions In A Cooperative Environment. Journal of Business & Economics Research. 2:71-76.
Kwapong, N., Lubega, P. and Ilukor, J. (2013). Why a few agricultural cooperativies survived the crises in the cooperative movement in Uganda while many others collapsed? International Journal of Arts and Commerce. 2:53-64.
Lwanda, M. (2013). Analysis of business performance of agricultural cooperatives: a case study of ngolowindo, msangu and chitsanzo cooperatives in the central region of Malawi. the Third RUFORUM Biennial Meeting, Entebbe, Uganda.
Mohammed, N. and Lee, B. W. (2015). Role of cooperatives in rural development, the case of south nations nationalities and people region, Ethiopia. Science Journal of Business and Management. 3:102-108.
Mukhjang, R. (2015). A Comparison of Agricultural Cooperatives in Thailand and China. Paper presented at the Proceedings of International Academic Conferences. No. 2805353.
Office of the National Economic and Social Development Board (2017). Cooperative annual report 2016. Retrieved 27 August 2018. from http://www.nesdb.go.th/nesdb_en/main.php?filename=index.
Ortmann, G. F. and King, R. P. (2007). Agricultural cooperatives I: History, theory and problems. Agrekon. 46:18-46.
Parliament, C. and Taitt, J. (1989). Mergers, consolidations, acquisitions: effect on performance of agricultural cooperatives: University of Minnesota, Department of Applied Economics.
Pongpanich, R. and Peng, K. C. (2016). Assessing the Operational Efficiency of Agricultural Cooperative in Thailand by Using Super-SBM DEA Approach. International Journal of Scientific and Research Publications. 6:247-253.
Rabirou, K., Olusayo, A. A. and Okparaocha, C. (2013). Analysis of Cooperative Financial Performance in Ibadan Metropolis, Oyo State, Nigeria. International Journal of Cooperative Studies. 2:10-15.
Ramanauskas, J. and Stašys, R. (2011). Cooperative performance assessment based on the sustainable development aspect. Proceedings: Rural Development. 4:190-194.
Ritthirong, S., and Singsuwan, K. (2008). Factors affecting the performance of rubber plantation farmers in Nakhon Si Thammarat, Province. Khon Kean University Research Journal. 1:27-35.
Rubber Authority of Thailand. (2017). Number of cooperatives in Thailand. Retrieved 1 September 2018. from http://office.cpd.go.th/itc/index.php/79-2017-04-11-04-36-20/534-number-of-cooperatives. pp.31-60.
Schrader, L. F., Babb, E. M., Boynton, R. D., and Lang, M. G. (1985). Cooperative and proprietary agribusinesses: comparison of performance. Purdue Agricultural Experiment Station, Purdue University, West Lafayette. pp. 33.
Shamsuddin, Z., Ismail, A. G., Mahmood, S., and Abdullah, M. F. (2017). Determinants of agricultural cooperative performance using financial ratio. International Journal of Business and Technopreneurship. 7:358-396.
Thuvachote, S. (2011). Cooperatives and Poverty reduction in Thailand. the 2011 2nd International Conference on Economics, Business and Management. pp.1-6.
Trat Provincial Cooperative Office (2016). Cooperative annual report 2016. Retrieved 22 August 2018 from http://web.cpd.go.th/trat/.
Uchenna, O. C. and Olabisi, A. T. (2012). The performance of agricultural cooperative societies under the National Programme on Food Security in Enugu State, Nigeria. Review of Public Administration and Management. 1:61-88.
Verhofstadt, E., and Maertens, M. (2014). Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter? Agricultural economics. 45:39-52.
Williamson, L. (1987). The Farmers' Cooperative Yardstick: Cooperative Mergers, Acquisitions and Other Forms of Restructuring: University of Kentucky, College of Agriculture, Cooperative Extension Service.
