Isee

I opened a limited export company a few back, based in Surin, now in Korat which is still ticking over ok despite the currency situation. Have a work permit, pay tax etc.

I'm always interested in hearing what exactly constitutes an export business in Thailand. A lot will say they don't want to be specific as they don't want competition (big world imho) - but i suspect they are just running ebay auctions with locally produced stuff and sending it via airmail. Don't take that as a slur on your business, just curious if you would expand a little more on it.

Fair opinion on the ag business, it does require a bit of faith in your thai partner with you taking a behind the scenes management approach. But just another calculated risk to take into account as to whether it will work for you. I'm a bit surprised the OP just gave up so easily on his query.

insidently they do not charge for their service they have the Husts & bran as you say & this they sell,also they may take 1 or 2 kg of the finished artical

Yes quite right, paid in rice not in baht.

Thanks mali, always wanted to watch how they did it in the GF's village, but the guy was never working...but seemed to be working when I wasn't around. Maybe he was worried about me learning how its done and setup a similar mill across the soi from him??? Not a bad operation when you think about it, keep the husks for cow bedding, keep the bran for your livestock etc AND still get paid to mill the rice. His runs off its own motor.

Cheers

Thanks for the 'on the ground' info Maizefarmer which adds to the crystal ball outlook at the moment as there seems to be a swaying opinion that things are going to be difficult. Like just about everything else going on at the moment, no one really knows to what degree.

I'm wondering whether a harvesting business is immune to rice prices...I would normally say it wouldn't be as farms try to reduce their costs to offset lower prices, but I'm not so sure that will be the case in Thailand.

Any other questions?

Yep, one more. I think a few other people have made some decent points that you should consider. Would you consider them to be valid points?

hi isee,

thanks a lot for your time in posting back to me, ur info was very helpfull and i will take it on board,,,,im just sick of pattaya and the bar scene and really want to live up country but it seems by all peoples replies on here it is not easy...i am only 41 so i quess i will have to wait for my retirement...

thanks

damx

Hi dmax, I hope I haven't put you off by what I said - I personally find Yasothon these days much more interesting than I do Pattaya (I only go there now to meet friends who are in town) - village life is a totally different pace and as long as you can do without the farang convenience that Pattaya has. The only trick is (imho) is having something to do; being setup properly (ie your own transport etc); and having a reasonable extended family who don't consider you as their personal finance company (which is never paid back). Start off slowly and get the feel for the place and something will come to mind. Talk to a few guys who are out there now: pnustedt, mali1964, and fruity immediately come to mind, but there are a few others who post regularly in the farming section.

Cheers

Also, loan sharking is a good business in Isan.

Typical rates would be at least 1% per month, usually much more. It would probably be a bit hard on the health though!

Typical rates were from 3% up a month. I say "were" because most moneylenders are no longer lending due to the impending recession. Some would be borrowers who have been used to paying 5% monthly are now so desperate for cash that they are offering to pay 10% a month, and still finding no lenders.

In response to Isee's earlier post, the maximum permitted loan rate is 28% a year, which equates to approx 2.4% a month. Most (but not all) village people have no idea of this legal maximum, and when in default, have neither the will nor the money necessary to contest it. They will just forfeit their land or any other guarantee given.

Hi prakhonchai nick

Thanks for your input but I was shocked to see the permitted loan rate of 28% - which appeared to me to be very high. I'm not sure if that is a max rate for credit cards or what? Anyway, decided to track down the rate and according to section 654 of the Civil and Commercial Code it states the maximum being 15% p.a and any contract above that would be reduced to 15%. The section is under the heading of "Loan for Consumption". Could you clarify the source of your quoted 28% rate?

Thanks

Hi zoolander,

Are you based in Yasothon or just travelling through?? I'm not sure what you mean by "nightlife". The place to go at the moment is BigC which opened late last year. Can't beat MK

Cheers

Also, loan sharking is a good business in Isan.

Typical rates would be at least 1% per month, usually much more. It would probably be a bit hard on the health though!

Hi manjara,

I took mackayae post as a bit tongue in cheek and not being really serious. I would discourage anyone thinking of lending money as "loan sharking" would be even more problematice for a farang than it is for a thai. Firstly, there is to my understanding a maximum percentage rate that can be charged (I forget what it is...6% p.a maybe) - so any rate above that is unenforceable at law. That therefore requires these people to ensure repayment by other means.... The local loan shark in my GF's village is generally talked about in a negative way, but also accepted as a necessary evil. I found out just recently with repayment of the bank loans due this month that the loan shark was charging 5% per DAY until the borrowers obtained their new loan from the bank (read: more debt) to pay the loan shark back. My GF suggested some time ago that I should do the same and offer a lower rate and everyone would be happy (except for the current loan shark that is). My reply was "no way on this earth" as I've got some first hand experience dealing with loan defaulters and its not a pleasant topic to deal with let alone dealing with a thai farmer that simply has no options in repaying. These people need to break the debt cycle, not have me handing out loans and having problems with repaying. I wouldn't have to stretch my imagination much for things quickly turning from being jai dee to jai dum - and then still try to live in the area.

Also on the point you made about value-added goods, I agree 100%. How do you break from subsistence farming to one of adding value to your raw product and thereby increasing your returns. I don't have the answer sorry, but the principle is a sound one when you find a market. The buffalo milk for mozzarella cheese is interesting, but I presumed it would then be exported?

Hi Mali & Samlula and mixbreed,

Thanks for the follow-up replies, not sure if I can thank you guys any more than I have already, but thanks again - very much appreciated and definitely much to consider and compare

Samlula, I'm not 100% sure as I haven't been inside any of the dealers, but I'd be surprised if they didn't as I've seen 3 tractor places while in my travels(not counting the smaller places selling the walk behind's) . To be honest, I've only started to give this some serious thought after my last trip but next time in town I will be going inside to have a better look. If they don't (or I don't get a good vibe from the place), then Amnat will be my next port of call Was thinking too that whatever machine I end up getting, a flat bed truck may be the way to go in any event with a modified tray so I can put gates on the side etc and transport cattle etc to the market or wherever. That way too if go for the Kubota's and find later I want to add a medium size harvester, than I have the transport already.

Cheers

So now she says we will have to pay a fee of 3000bht and we said FINE Just do it PLEASE. So she takes credit card details and he says thankyou . I have never felt so relieved in my life.

We wanted to call her all the names under the sun but that does not help when you know she is the last option.

There seems to be a break in your timeline...I'm just not uderstanding it. You changed your flight for 3000 baht which was fine by you, but then you want to call her all the names under the sun.....???? Did you not get the flight changed??

Hi dmax,

If I was to provide an opinion, I would suggest that you clarify with yourself exactly what you are trying to achieve. It appears to some degree that you are just looking to have something to do daily ( which is a necessity in rural areas), but how much time per day are you thinking?? Is there a need to create an income for future reliance, or could your current money cover you for your time in Thailand?? Are your funds in baht already or do you have to transfer them over - what exchange rate are you getting now, would it be better to wait for a better rate?? What type of money are you looking to invest and the next question being, could you afford to lose that much money and walk away with nothing? In saying all that, there is nothing wrong with "having a go", but a little planning is always better.

If its a daily thing you are looking for and just looking at doing one thing, forget about a harvester as you only have a window each year of work and as others have said, you won't be doing the actual work yourself as I'm sure you will eventually get yourself dobbed in by anyone who has a grudge if you do. I was talking to a decent guy in Pattaya last year who runs a motorbike hire shop with his wife. He was hiding out inside the office as he had already been warned about "working". That working consisted of talking to other farangs who came in the yard...to washing or refueling the bikes (cut throat business in Pattaya). This was even though the wife would actually sign customers up to any rental agreements, open the office and close it herself etc. Without a WP, you need to keep a low profile in any operation you are trying to earn an income from.

You say you want to build a house on your wife's land - I would think that would keep you busy enough on its own if you are keeping a daily eye on progress. How much land are you building on? Would you have room to dig a pond and grow some fish for a hobby?? Don't try to stock it at high levels and you shouldn't have too many problems. If you don't have any other people in the area growing fish, you'd probably find that what you consume and others coming around to buy will be enough. Maybe you might then try another pond if you have room. And to make the specific point again....do you want to "work" or do you want to occupy "some time"?

In relation to a small store, you need to think about that some more. My GF suggested doing the same and I ruled it out for 3 reasons. Firstly, the margins are very small as others have said; secondly it requires you to stay there all day; thirdly in the GF moo baan they have 2 of these "stores" already - why would you want to open a third???.

About pig farming...why? I read into this "buying loads of pigs" to suggest a commercial scale, do you have experience with pigs? Steep learning curve I would of thought to setup a commercial piggery. Keeping a couple of pigs (or cows for that matter) for the purpose of raising them for sale or own use is a much more manageable learning curve where mistakes are not compounded (or created) 100 times or whatever number of pigs you keep.

You really do need to have a good look around and see what others are doing, or what problems they are having, or what they aren't doing but need to buy. You may think that I haven't answered your question, but I would suggest I have. What works in another area may not work where you are. There are more learned people on this forum that could advise you to try this or to try that in the KK area - but its all going to come down to the initial question I put back to you....what are you trying to achieve. Having a hobby is easy enough, having a business is work, having a successful business is hard work.

Finally, have a look in the farming forum, you might get some other ideas in there as well as discussion on most of the areas you raised in your initial question.

Hope the above assists you, cheers

I read yesterday that the price of rice is going to crash in Thailand for 2009. If that helps ? I'm not a business man, and I've no wish to be, but rice fed rats are in short supply. Vietnam and Cambodia being big importers of them.

Can you provide a link for that rice crash story.

Was it this one??

http://www.thaivisa.com/forum/Thailand-s-R...amp;pid=2511836

Its a bit dubious, the story is over 6 months old and newer news stories are probably a bit more reliable. This is the proper link that the above post tried to refer to.

http://www.earthtimes.org/articles/show/22...ry-in-2009.html

Here is a recent story along similar lines - but not so much doom and gloom:

http://www.bangkokpost.com/business/econom...-to-miss-target

There are quite a few stories going on at the moment.....Vietnam just did a big deal to sell to the Philliphines at good prices, another story saying Thailand wants to enter into a Joint Venture with Vietnam, another story saying the Thai Govt wants to reduce its stockpiles quicky as its holding twice the amount that was previously disclosed etc etc...

This site should be of value at looking at what type of forage, the site loads a little slow but worthwhile to put up with.

http://www.tropicalforages.info/index.htm

I don't know how you guys do it, I've tried a number of times with various banks and they all told me with no work permit or some specific type of visa, I couldn't open one. I even told them I needed one to purchase a condo and could show them the contract, but just the usual shrug the shoulders couldn't care less attitude. I just got the GF to open another account and use that myself with Siam Bank - sure there are risks but I don't keep considerable sums in there and I hold the card and book. OK, I've read enough that guys can open accounts at "some" branches.....but pot luck on the branch and the person you talk to on the day. Isn't it just stupid that you have to show the funds coming from overseas to purchase a condo, but can't open an account to hold those funds....nor then to pay the ongoing costs such as juristic fees, elec, water, sat tv etc etc.....TiT as they say

To the OP....search through all the forums where this topic has been discussed and try to find guys stating the specific branch they were successful at and try your luck.

Hi mixedbreed,

Thanks for adding your own experiences, much appreciated. I'm intrigued to find out a bit more about your statement "Actually, the family is inclined to see about purchasing another KPH 16, the customers prefer it, but compared to the DC 60 it is very unreliable". Just curious why thais are attracted to the KPH harvester over the DC60 and then secondly, why you would purchase another one if you've had constant reliability issues with them? I'm thinking there must be a strong reason to put up with such issues. Do you feel that if two different guys rocked up with each machine, the one with the KPH would get most of the work?

One other question if you don't mind, how would you compare the costs/profit of each machine after your last harvest? Actually one more, what setup have you got running your baler?? Bugger, one more again, who are you employing, members from the extended family??

Thanks again

Cheers

Hi Samlula,

I have to say first off, thank you very much for joining the forum to reply to my post.

Excellent information and you've addressed (among other things) one of my main concerns about operating in flooded clay paddies. I have to admit that I'm now confused a bit as to what the most suitable harvester is? After Mali's informative posts about his harvester, I was left contemplating everything since reading your post (hence the delay in replying). I think I'm leaning to agree with you about the benefits of bagging as I see there being similar problems in getting access to a lot of places to offload an auger. However, the attraction of a one operator machine would I suspect, decrease labour problems. I also agree from my own observations that the manoverability has to be a major + as I said in my OP, the bigger machines were making a mess of the fields and hence more work for the farmer to restore as well as time to make tight turns. It seems (doing a very rough calculation) that in consideration of capital outlay vs returns (less operating costs), you are probably pulling a comparable return for each machine that mali stated. I have to say each machine has its pros and cons - difficult to make a committed decision at the moment - but I'm waiting in any event until the forex gets better. Just out of curiosity, how are you transporting your harvesters? Are you returning the harvesters home each night?? (I think I've misread where you talked about refueling and greasing before the workers go home for the night).

Next time I'm in Yasothon wouldn't mind popping around to have a yarn if you are around (looks like you are about an hour's drive NE of where the extended family stays which is about 20 minutes drive SSW of Yasothon proper)

Also, had a look for the DC-68G, but came up empty on a google search

Anyway cheers again for taking the time and effort to reply.

It must take a lot of will power to point the finger of corruption at one individual without it straying...

Hi fruity,

Where have you sited your frog operation, I'm presuming close by the house to keep an eye on them so they don't disappear in the night, but the little buggers must make a bit of a racket at night which can't be good for you or your neighbours....

Cheers

Have a few more of the whole delivery, its a laugh when its coming down the ramps & it hits the pivot point, everyone gasped thinking it was going to crash to the ground.

The noise? i can't say i noticed a buzzer sound unless I've become immune to what comes out the misses gob

The concrete marks badly & a few small cracks but nothing we worry about we feel its safer there, so we sleep well at night

Yeah, was going to use the word funny and a "How many does it take" joke, but being a new toy I can understand the interest of everyone. Yep, understand the sleeping easy point - could just imagine some bright spark planning a "quick getaway" on it

Another Tractor Video i found lost on the camcorder lol.

http://www.youtube.com/watch?v=_KeeiFzLHNs

Thanks for taking the time to upload, was interesting watching that...what the $%^& is that annoying buzzer that went off a couple of times?? Hows your concrete going with such tight turns with the tracks?

Cheers

Thanks for putting that up on youtube, makes it easier to guage their size a bit better than the pics from the website. They are smaller than the ones I saw being used in Yasothon last harvest, so might be the better way to go notwithstanding the higher capital outlay. Whats with the blue pvc? I take it no problems so far? What size truck did you get 8t? and if you don't mind me asking, why were the mods necessary?

Cheers again

Report it to the ACCC, but make sure you can provide evidence of Thai airways conduct as well as correspondence. If they can't help you, they should direct you to a body that can. ACCC will want to know how you tried to resolve it at the start, but I would expect they would be very interested in what you say is correct. One way to argue it to the ACCC is that the Thai are misleading the public in believing that the surcharges are paid to the Government. If Thai are doing the wrong thin gand the ACCC get their teeth into them, I bet Thai wished they had quietly credited you the difference.

Just curious how a CBR150 is over long distances. Touring Thailand type things. A few hundred KMs at a time with rests here and there. What speed can it cruise at. Recommended for touring or not?

Just my experience, for any distance riding (ie not city riding) the bigger the bike, the easier it is to ride and the more times you do it, the more reasons for having a bigger cc bike. For example, I would look at buying a 2nd hand 400 or something instead of a new 150.

A.I.S. don't have a 3G network so you don't have anything to worry about.

Maybe you should ring up AIS and confirm that. To save you the trouble, I was speaking to them 2 weeks ago and they were offering 3G - the problem is that in BKK its coverage was only in the Siam (BTS) area - so no use to me.

Are they selling sim cards or for data only ?

Just curious...

errrrr not sure. I've got prepaid and wanted to work out why inbetween trips (6 weeks) I lost edge. While chatting I asked about 3G and they said they had it but then told me the limited coverage so I said edge was fine.