Author(s): Isriya N. Bunyasiri, Akkanee Chatanavin
Key objective of this paper is to identify the contract farming business model, which enhances the integration of smallholder farmers into Thailand’s banana value chain, by analysis of business model canvas. This analysis was based on a survey of small-scale banana growers, as well as in-depth interviews with key informants. The paper revealed that the business model, where private company contracts farmer group, was the most effective, in terms of average net income received by small-scale farmers. A farmer group plays a key role in linking an agribusiness company to small-scale farmers. With the company’s key resource of having production expertise and marketing networks, it provides technical knowledge, assistance, and advice to strengthen farmer group’s capability. Farmer group’s commitment on high-quality banana production and willingness to learn enables the farmer group to successfully manage its purchasing from members and post-harvesting activities.