Ministry of Commerce promotes more Farm Outlets in provinces

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Ministry of Commerce promotes more Farm Outlets in provinces

BANGKOK, 9 May 2016 (NNT) - The Ministry of Commerce has promoted the setting up of Farm Outlets to let the farmers sell their products directly to consumers at fairer prices and gain more incomes than before.

Commerce Minister Abhiradee Tantraporn said eight Farm Outlets were recently set up to add to a total of 32 Farm Outlets in 21 provinces so far.

She said the ministry has planned to open more Farm Outlets in the provinces nationwide.

-- NNT 2016-05-09

[Srikcir]

Farm Outlets to let the farmers sell their products directly to consumers at fairer prices and gain more incomes than before.

At fairer prices than what - a wholesaler or a retail outlet like Big C, Tesco or Tops?

I think what is meant by the Farm Outlet project is that farmers can sell directly to the public at lower prices by eliminating in part or whole the wholesale and retail markups. If the farmer can sell products with a profit margin that is less than the combined wholesale and retail markups but higher than a grower's typical profit margin, the farmer can make more revenue. Albeit, the Farm Outlets would be funded by taxpayer dollars which comes in part from the wholesellers and retailers of farm products.

Of course with the Farm Outlet concept, the farmer takes all the risk for selling products, including the cost of spoilage.

If it was an issue of farmers selling at unfair (ie., less than market) prices to wholesellers or retailers, the government has authority under price control laws to force fair prices. The Farm Outlets aren't needed to resolve unfair pricing.