Aquaculture farmer organizations and cluster management: concepts and experiences

Number of ponds owned by members of the 
Samroiyod Cooperative
6 to 10 ponds
(5%)
11 to 20 ponds
(2%)
20+ ponds
(1%)
1 to 2 ponds
(64%)
3 to 5 ponds
(28%)

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Appendix 1
SERVICES PROVIDED BY THE COOPERATIVE
3
Credit for farm inputs
The majority of cooperative members interviewed stated that access to credit was the 
main reason they joined the cooperative. Farmers used to struggle to obtain credit, 
as the majority of input suppliers expected cash up front or charged a high interest 
rate. However, the cooperative president has succeeded in negotiating with certain 
hatcheries, feed mills and chemical suppliers to provide these inputs on credit for 
a four-month period at a low interest rate. The cooperative members are then sold 
these inputs on credit (for a maximum of one pond each) and agree that the revenue 
from the produce will be paid directly to the cooperative, which will then deduct 
the cost of inputs plus 6 percent interest and pay the remainder to the farmers. The 
cooperative seems to borrow between THB 7–10 million during a four-month period. 
The government’s Bank for Agriculture and Agriculture Cooperatives (BAAC), where 
the cooperative holds an account, has also lent the cooperative THB 2.5 million over 
a five-year period (2008–2013) at an interest rate of 7.5 percent, which is being used to 
support the cooperative’s cash flow.
Provision of technical advice
The cooperative employs an extension officer who supports members in production- 
related matters and advises them on how to meet the cooperative’s regulations. The 
group leaders and Executive Committee members and cooperative president, all 
experienced shrimp farmers, also give technical advice to members.