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A Study of Risk Components of Agricultural Cooperatives in Thailand |
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| รหัสดีโอไอ | |
| Creator | Korakot Sukkhee |
| Title | A Study of Risk Components of Agricultural Cooperatives in Thailand |
| Publisher | Southern College of Technology |
| Publication Year | 2553 |
| Journal Title | Journal of Southern Technology |
| Journal Vol. | 3 |
| Journal No. | 1 |
| Page no. | 1-23 |
| Keyword | Agricultural cooperative, Market risk, Liquidity risk, Credit risk, Operational risk |
| ISSN | 1906-0870 |
| Abstract | Agricultural cooperatives have been established in Thailand for more than 30 years. The five main areas of service are loans; savings and deposits; sale of consumer farm supplies, and agricultural products; joint marketing; and agricultural extension and services. The existence of agricultural cooperatives in Thailand does not only meet with financial needs of all rural people but also helps farmers improve the quality of their lives. Recently, many agricultural cooperatives in Thailand had to stop their business operations because they had low operational successes and severe repeated losses from their operations, thereby affecting the survival of the farmers who are the members of the cooperatives. The study indicates that there are only four main types of risk which have significant impact on profitability and even threaten solvency of Thai agricultural cooperatives, namely: credit risk, liquidity risk, operational risk, and market risk. Risks bear significance on the cost of funds, costs for operations, provision loss and "other costs"; consequently influencing the total cost of agricultural cooperatives. Increase in total cost, in turn, exerts pressure on the profitability of agricultural cooperatives. Different types of risks affect different classes of agricultural cooperatives in Thailand in varying degrees. It is evident from the study that the total cost of agricultural cooperatives in Class 1 and Class 2 are affected in descending degrees by market risk, operational risk, liquidity risk, and credit risk respectively. On the contrary, the total cost of agricultural cooperatives in Class 3 and Class 4 are impacted by market risk, credit risk, operational risk, and liquidity risk in decreasing order respectively. |
