Variables for the external environment

There were 15 variables included in the prepared questionnaire categorised into two broad categories: micro-environment (i.e. buyers, other fruit farmers and input suppliers) and macro-environment comprising five sub-categories: political (i.e.

financial support, production support, and marketing support); economic (i.e. fruit prices and market growth); social (i.e. urbanisation and food safety); technological (i.e.

production technology, information technology, and logistics technology); and environmental (i.e. crop disease and weather). The respondents commented on these variables with supporting reasons:

x Political factorsthe respondents confirmed that political factors were of significant importance because support from the government assisted fruit farmers to improve fruit quality that could serve high-value markets. An official explained: "In order to improve the fruit quality to sell to export markets, farmers need training in good agricultural practices together with market information. To achieve this, financial support, production support and

marketing support from the government are essential to the fruit farming sector

in Chanthaburi." In addition, a respondent commented: "The consistency of government support is important, but it depends on political stability". Another factor is that market access depended on good road infrastructure. One farmer commented: "I really want to sell to the cooperative or any other buyer that offer higher prices, but the road condition is bad especially in the rainy season, so I have to sell my fruit to local collectors who come to buy fruit at the farm".

x Economic factorsmany economic factors influenced the fruit farm business and farmers' SMDs. It is known that market growth in high quality fruit has been increasing in Chanthaburi province. This factor has subsequently and positively influenced fruit prices. One farmer commented on market growth and fruit price: "We are growing durian and mangosteen to serve export markets because both of them have high quality demands and now the price is also higher" The respondents further commented that interest rates and labour

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fruit farm business in order to serve the export market, but we have limited money. Low interest loan rates for fruit farming would be very advantageous".

x Social factorsrespondents confirmed that social factors, in regards to

urbanisation and the requirements for food safety, had changed market structure and farmers' SMDs. One respondent explained: "In terms of domestic market, quality fruit from Chanthaburi has been increasingly serving modern retail markets in Bangkok and other large cities. These markets usually require food safety standards including Q-GAP". Another respondent further commented on the increasing demands for high quality fruit because, "consumers are more health conscious, and they would like to consume more fruit".

x Technological factorsadvance technologies, i.e. production, logistics, and

information technologies, improve productivity and the quality of fruit. The respondents agreed that technologies brought about an increase in the quality of fruit served to HMs. One of respondents explained "Technologies help us to improve fruit crop varieties, post-harvest activities, storage and transportation as well as communication between farmers and markets"

x Environmental factorsfruit farmers are usually confronted by variations of

weather and crop diseases, which affect their strategic decisions in running their farm businesses. "Variations of weather and mangosteen diseases affect both quality and quantity of output. Too much rain in some years destroys the output, and it cannot meet the specification of export markets", stated a respondent commenting on environmental factors.

Apart from macro-environment variables, respondents also confirmed micro- environment variables with additional variables. They are:

x Buyersinfluenced farmers' SMDs because many of them provided marketing services, specified fruit quality and offered output prices. A farmer stated: "I sell my produce to local collectors because they provide harvesting services that save time and labour for me." Another farmer replied: "I prefer buyers who offer higher prices" This means that buyers' strategies influence farmers' market decisions.

x Other fruit farmersfruit supplies from other regions affect fruit prices. "Fruit production from other provinces affects fruit prices in Chanthaburi, especially

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during the peak of harvesting season. Many farmers try to early harvest in order to sell to buyers that offer high prices in the early season", a respondent explained.

x Farmer networksparticipants pointed out that farmer networks provided knowledge and information sharing among farmers that influenced decision making. A farmer commented: "The farmer network in my village is very helpful for me because we are sharing production techniques and market information. We also have learning centres for groups of fruit farmers working for continuous quality improvement"

x Agricultural cooperativessince agricultural cooperatives in Chanthaburi province played an important role in integrating farmers to high-value markets and their success was an essential element. "Apart from providing agricultural loans, agricultural cooperatives buy fruit from farmers and sell to exporters and hypermarkets", a respondent replied.

x Input suppliersare one of the important stakeholders who often meet fruit farmers and share information about fruit production and market situation. "Input suppliers usually consult me on how to use fertilisers and agro- chemicals. When I go to buy things in their stores, we often talk about fruit production and markets", a farmers replied.