Structure and Conduct of the Purple Rice Market in Northern Thailand

Abstract

In recent years, health issues are a major concern for consumers. Northern Thai farmers are seeking alternative crops with high nutri-tional value and market potential. Recent studies show that purple rice (or Thai black rice) is rich in nutrients, such as gamma-oryzanol and natural antioxidants, and therefore, could be potential crop. The main purpose of this study is to inves-tigate market structure and market conduct of purple rice in northern Thailand. Porter’s five forces analysis was used to evaluate the competitiveness and relative attractiveness of growing purple rice. The surveying method was used to study market conduct. The result from the estimated Concentration Ratio indicated that market structure of purple rice differ in all three provinces. It was also found that the five competitive forces influence the collectors the most and the farmers the least. Even though the competitive forces aren’t very high, survey data indicates that the purple rice market hasn’t been found attractive by farmers, collectors or retailers.This study concludes that despite purple rice being a high-nutrient prod-uct, its market is still very small in northern Thailand. However, purple rice as a serious commercial crop is still not that at-tractive to the farmers.