Import Demand for Thai Rice and Factors Determining Its Price in Modern Trade Market of China (In Thai)
Akarapong Untong, Danaitun Pongpatcharatorntep, and Mingsarn Kaosa-ard
This paper presents an analysis of China’s import demand for Thai rice during 1995-2008. A multiple regression method based on a direct demand theory is used for the analysis. The relationship between Thai rice price and quality in the modern trade markets of China is also analyzed using hedonic price model. The survey-based data of 102 samples of packed rice from the modern trade markets in Shenzhen and Guangzhou are used. The results show that the import demand of Thai rice in China is price elastic and classified as a normal goods when compared to other imported goods. Thai jasmine rice has a good image in the Chinese markets. In the modern trade markets, Chinese consumers expressed preference for rice that is packaged, of high quality, has a brand, and is fragrant. In the short term, private firms or brand owners should establish new markets and try to generate consumer confidence. In support of this, the government should strictly control quality. Maintaining the image of premium jasmine rice is an important long term strategy. This should be done through occasional trade promotion and marketing activities for high quality brands.
Keywords: import demand, jasmine rice, hedonic price model, rice market
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