Rice Planting Costs

[HeijoshinCool]

So, forgive my ignorance, but if land and labor and other costs are equal, what is the compelling reason to plant rice that will sell retail at 18 baht per kilo (for my dogs) as opposed to jasmine rice that will sell at 50 baht per kilo?

The cost of the seedlings?

[loong]

Most Jasmine rice sells retail at less than 50 Bt/Kilo.

Farmers will get nowhere near that

[IsaanAussie]

OP, Much has to do with location and water. Hom Mali 105, often known as Thai Fragrant or Jasmine Rice has been developed to grow under certain conditions. In short, rain fed and poor soils. It is a tall plant and has a long growing season by comparison and is usually only grown in areas like Isaan where a single crop per year is the norm. I have grown Mali for many years and personally like its flavour and texture. Both unique to this region.

There is a difference in cost, the seed price.

In terms of outcome for the farmer, he gets a better price for Mali because it takes longer. Return per year per rai. If I farmed in central Thailand with access to irrigation then it would definitely not be Mali. It would be the shortest season rice I could get. By your numbers, 18 x 3 times is 54 baht.

In terms of rice commercial returns, Thai exports are subject to the world prices, roughly last good numbers I saw were USD 400 for white rice (get it anywhere) and USD 1,000 for Mali (only from Thailand) per tonne. But do not dream about those numbers, that is a very small, very well protected club of beneficiaries.

I once tried it out. I had a more than a tonne of my rice milled and bagged in 50kg sacks (20) which I took in my truck to Bangkok. I should also mention this was rice freshly harvested. First stop Big C to check the retail prices. I then drove around small restaurants in the northern suburbs and sold the lot for the same price inside two days. That was quite a few years ago but the difference was. If I sold locally 12 baht for paddy. Mill it I lose 30% of the weight, therefore roughly I needed to get 18 baht plus transport to break even, I got 22 baht. At the time the cost for the return trip totalled about 2,000 baht. Net result 2,000 baht for my time, wear and tear on the transport, food and accommodation.

Have a go any time you like. Bound to make a fortune. (Muffled fart) The game is fixed, listen to what the locals are teaching you!

Edited September 2, 2013 by IsaanAussie

[Mosha]

Is that edible or souvenir rice?

[TPI]

Here in Phrae we only get 1 crop a year, we only grow Hom Mali for our use. Trying to make a quid in the local market is a fools errand, everyone knows that farangs can't grow rice! Sit back on your pension (if you have one) and smell the flowers!!

[HeijoshinCool]

So all else isn't equal, the length of time to harvest is a factor, making the once-a-year rice more pricey.

That's the answer. Thanks.

[IsaanAussie]

So all else isn't equal, the length of time to harvest is a factor, making the once-a-year rice more pricey.

That's the answer. Thanks.

It would probably be more accurate to say because it has a strong local and export market and is in relatively limited supply.