1. Preparedness means the individual status related to his maturity, incentive and sufficient background experience for him to conveniently select his occupation development.

2. Market Demand

Market analysis

In this context, market means a group of people and organization that have the demand and power to purchase the goods.

Market composition

1. Has the interests in the goods and services

2. Willing to exchange the goods and services

3. Has the power to purchase.

Marketing has in itself the business system concentrating mainly on the market or the consumer’s response

Listing of consumer’s information

1. Who are the buyers?

2. What do they want to buy?

3. How do they want to buy?

4. When do they want to buy?

5. Where do they want to buy?

6. Why do they want to buy?

7. Who has the power to buy?

Factors to be considered in order to select targeted marketing strategies

1. Business resources

2. Goods similarity

3. Hierarchical order of the goods’ life cycle

4. Market similarity

5. Opponents’ marketing strategies

Market demand prediction

Identified customers’ demands for the goods and total quantities are described as follow:

1. Type of goods

2. Total quantities

3. Purchasing method

4. Customers’ group

5. Geographical area

6. Market period

7. Market environment

8. Market plan

Market demand prediction method

1. Market survey technique

1.1 Management executive’s opinion survey

1.2 Sales staff’s opinion survey

1.3 Customer’s opinion survey

2. Analyzing past sales volume

3. Analyzing sales potential

4. Analyzing the market’s inter-linkage and decline

5. Market test

3. Knowledge / Skill and Various Techniques

Knowledge denotes leaning, memorizing and realizing the idea using the real data in

order to reach the objectives in selecting the occupation.

Skill denotes the ability to carry out the various tasks proficiently which includes the decision to select the occupation.

Technique denotes the various methods supporting the process, steps and ways or

actions in order to make the process, steps, ways and actions becomes worthy and more efficient.

4. Natural Resources and Environment

Natural resources and environment mean things that exist naturally including anything surrounding us whether living or lifeless things with normal/real or abstract forms (such as culture, custom, tradition or believe). They have special inter-relation to one another. The impact caused by one type can support or destroy the others unavoidably.

Environment is the inter-related cycle of all things surrounding us, and human being can utilize or adjust it to make it useful to lives.

For the agricultural development affecting the farmers’ social and household economic condition, certain natural resources on the household are needed. These include land, investment fund, workforce and human resource or the management ability to produce agricultural goods for the consumers.

Household natural resources are related to the farming size, workforce, tenancy,

household income and expense. Smaller farm can support lesser workforce than the larger one. In such case, increasing the efficiency of the land uses and tenancy is needed by adopting crop rotation planting method.

In planning for the uses of natural resources on the household level, it is necessary that the farm owner utilizes proper natural resources which do not damage the environment. Conservation of natural resources for sustainable uses is also important.

5. Land Uses

Lands are the limited natural resource which has various characteristics depending on type and structure. And their properties are subjected to geographical condition.

Lands are one of the main factors for both agricultural and industrial process. However, lands are especially important for farming. Normally, lands have different characters for each different location. The soil fertilities in each land plot are also different. Soil properties in each type of land are different - normal level, river basin and mountainous type. Therefore, soil conditions are one of the main factors in identifying activities in the farm as follow.

1. Type of land is an important factor to specify plant and animal types to produce in the farm.

2. Type of land dominates and specifies the plantation period including the production process. For example, farming in the delta or river basin area with some humidity we can specify the planting type, period and cycle – crop rotation, variety planting technique, etc.

3. Type of soil dominates and specifies farming process. Clay mixed with loose soil

may be suitable for paddy field. Loose soil mixes with sand may be suitable for some

crop plantation. Clay or sandy clay may be suitable for crop plantation of fish

farming. But if the soil condition in the land is not suitable, it can be used for animal

farming.

4. Each land locations and levels are suitable for different farming. Delta or river basinarea may be suitable for paddy field, vegetable farm, flower garden, fruit or some tree farm. But if the land is quite low, it is could be suitable for fish farming, water lily or water minosa farm, etc. For high land, some tree planting as well as animal farm may be more suitable.

5. Other soil properties also have impact on the farming process such as acidity, alkaline, organic content, salinity, soil layer, etc.

However we should not only consider the type of soil and its chemical composition, but we should also check the water content, humidity, fertility, organic content and existing growing plants and small living organics appeared in the soil. Those are the important factors for selecting the farming type. It would all depend on the farm owner’s ability to utilize the land for his best benefit. But for economic gain, the return from the land is only the rental.

The average farm land size in Thailand is 25.94 rai, and each region has different farm land utilization and problems as follow.

Central region has a rather completed irrigation system. The annual growth of

agricultural industry production is 7%. But there are problem related to land ownership, soil acidity in the flat land level and salinity in the coastal area leading to less utilization efficiency. The average yield in this region is lower than that of the Northern region. But there is a good potential to increase paddy farm yield/rai because of good irrigation and soil improvement technique.

Northern region has the highest yield/rai because of high quality soil. There are various types of farming and crop rotation is popular. But the size of land ownership is the smallest. There are problem of deforestation for mobile plantation. However, there is a good potential for crop rotation, planting cold weather fruit, flower, tea coffee and daily cattle farming.

North East region has the largest agricultural land in the country – about 41% of the total land. But the gross yield of such product in this region is only 26% of the total national product. Therefore, this region has the lowest agricultural growth rate. The soil quality is low and cannot absorb rain water well. There is also a large area with salty soil. In this region, only 1.6 million rai out of 60 million rai of land receive suitable irrigation system. This region has to rely on natural rain water for farming. However, there is a good potential to farm other plants such as tapioca, sugar cane, vegetable oil, cotton and animal farming, etc.

Southern region has only 2 main agricultural products – rubber and paddy. This is quite a small base for the agricultural industry even though the chance to plant crop rotation in the rubber farm and other trees is high. This also include good potential to set animal farms on the unused mineral mines land by growing animal feeding plants in such area.

6. Investment

Investment means money, agricultural machinery, building, facility for production and storage including seeds/grain, animal, fertilizer, chemical product, etc.

Investment is vital for production process and has a direct relation with labor – more investment means less labor. Modern agricultural industry needs good investment. Such investment may come from the existing properties, revenue from completing the operation and saving. Investment may also be in the form of financial loan from financial institution or from neighbor as personal loan. To use the investment efficiently there are many points to consider as follow:

1. In case the investment funds are from bank financing system, there are 2 types of investment.

1.1 Preparation and initial investment which might be drawn within a long

period of time such as investment fund for farm land modification, building bunds, step land contour, reservoirs, buildings, canal system, water supply, tools, machinery, reliable farming machines and land. It can also include maintenance and repair expenses.

1.2 Operating investment fund during production period or recurrent money.

This part of investment mainly covers initial crops, animal, fertilizer, chemical products, animal feed, fuel oil, temporary farming devices for seasonal production uses such as rope, plastic bag, labor cost, etc.

2. As for the investment size for each part or for the whole farm, it is to be noted that larger investment fund can lead to more future expansion compared to smaller one.

2.1 Size of investment is related to the type of activity. The majority of larger

investment is normally for animal farming, fish farming, planting fruit related trees or

sophisticated and delicate farming such as flower, vegetable or high technology farming.

2.2 Size of investment is also related to period of investment or financial system.

It is known that larger investment is for a long-term activity such as fruit farming, tree plantation and animal farming with buildings. This type of investment normally takes more than 3 years to pay back the invested money. For smaller investment, the payback period is less than 1 year, and is suitable for paddy farming, tree plantation, vegetable farming, some type of animal farming, etc.

3. The uses of investment fund, investment period and returns from the investment.

Considering the investment period, the timing involved plays an important role in choosing activities. If the available investment fund is small but large activity is selected then the investment period could be relatively longer leading to investment opportunity loss. And if the investment fund is from a loan from neighboring friends or financial institution, the interest rate could be relatively high and it would be difficult to pay back the loan finally. There are several examples of such situation in agricultural, industrial and business activities. If the farming size is small, less investment should be adopted and shorter period of payback should be selected.

Moreover, the amount of returns is important when selecting suitable activities. If the return amount is worth to invest, no matter whether it involves a short or long investment period, then the investment is sound and the production can then start. As a result, the investment period and the return amount play a big role in choosing the investment funds.

As for the investment efficiency and returns rate, if the investment is in the form of

money the factor affecting the returns should then be the interest. But if it is in the form of machinery, tools and agricultural equipment, the factor affecting the returns may be machinery rental, fertilizer and planting seeds costs, etc.

7. The Use of Labor

Labor or worker is an important factor in production process. In this context, it includes the physical and mental conditions. The physical condition is related to health and sanitation as well as strength to work. The mental condition is related to attitude, ideology, eagerness and responsibility to the job. There are 3 types of labor or worker as follow.

1. Human labor

2. Animal labor

3. Agricultural machinery

The uses of each type of labor depend on the objectives, working steps, expenses and time allowed. However, each type can be combined depending on the activity and production process. For a small farm, it is important to know how to use the labor efficiently. Human labor may be categorized according to current situation – family member worker, hired worker and exchange worker (help from friends). For farmers, it is recommended to use the family member workers as much as possible, and to avoid unemployment situation. Items to be considered for labor uses are as follow.

1. The uses of labor should be suitable for the type of tasks such as for plantation or animal farming.

2. Labor uses and distribution should be suitable by setting up a good system

serving various tasks to be carried out concurrently or simultaneously. For example, the tasks for tree planting, animal farming and crop rotation.

3. Labor uses should be suitable for modern technology and local tradition. For example, the method of preparing farming ground, planting crops, setting fertilizer, getting rid of pests and harvesting. Sometimes the modern technology can be complex, and the farmer might not be able to set the work steps and timing correctly.

4. Labor uses according to gender and age should be suitable for the steps and type of tasks. For example, male workers should be used for farming ground preparation while planting can be carried out by both male and female. And harvesting and local handicraft work may be suitable for female and elderly persons. Young worker and children may be more suitable for fish and animal feeding activity.

5. In using combination of labor and machinery or labor substitution method, it is

important to aim at saving production cost and time.

Labor or worker management is very necessary. Especially for family member

workers, they should be well distributed for every month leading to the increase of income,reduce unnecessary labor cost and save the production cost. The income for the workers is the hiring money.

8. Management

In this context, management means arranging or processing the resources of production (land, investment and labor) in order to meet the objectives and targets of the farm manager. Therefore, the manager’s tasks in each and different farms might not be the same. The manager has to decide what activity to be carried out and how it can be achieved under limited resources, risks, production uncertainty and market condition. However, the consideration points in general can be summarized as follow.

1. What to produce?

2. Where to produce?

3. When to produce?

4. What is the production volume and how to produce?

5. Who are the customers?

In addition to the above-mentioned points, the manager plays an important role to

consider other information in details as follow.

1. What should be the type of plant or animal to produce, namely, paddy, fruit, plant,

vegetable, animal and fish farming? For fruit farm type of fruits should be selected, namely, mango, pummel, tamarind, durian, rambutan, logan, lychee, etc.

2. Whether the volume and production factors are suitable for the family labor. If not, how many additional workers would be needed, where to recruit the workers and for how long?

3. What are the production method, technology and how to manage the farm? What

would be the starting point? How to inspect and improve the production process. Lastly, is there any relation with other activities in the farm?

4. How necessary and suitable are the buildings and other structures in the farm in

order to conveniently support the management?

5. How the planning, budgeting for the farm, recording and accounting would be made in order to identify the working direction and achievement specially the returns, costs and benefit as well as problems? All of these can be used for improvement and future planning.

6. Where to purchase raw materials for production? Where and how to sell the

products? To whom the products shall be sold, i.e. local merchant, middle man, farmers or agriculture cooperatives?

Beside above, the management efficiency and suitability would depend on various

factors such as knowledge, ability, proficiency, skill, experience in labor management, the understanding on the production process and market, mobility, eagerness to acquire new Knowledge, diligence, carefulness, accountability, etc.

Once the fundamental and important production factors and management are

identified, detailed data collection for further analysis leading to planning and budgeting for the best profit should be made.

Learners Summary

Prominent points of the information

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Week points of the information and suggestion to improve (how & why)

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Conclusions (whether or not deciding to select the occupation)

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