6.1 Shift of production
In the past two decades, production in the north of the country increased annually by an average of 22.9%, followed by the northeast with an average annual growth rate of 18.8% (Table 4). People in these regions prefer to consume freshwater fish and have less purchasing power. Therefore, increased output for these areas benefits local consumers by providing them with easy access to fish, and reducing transaction costs. At present, however, the major areas of production of freshwater fish are still in the west and the central plain, which have been posting average rates of growth of about 15% over the past two decades. Fish farmers in the west and the central plain benefit by being located close to big consumer centres; consumers' purchasing power is high, especially in the greater Bangkok area. Moreover, assembly markets have been established to facilitate the sale of higher volumes of fish. Fish enter the market at competitive prices, benefiting consumers in those regions. However, consumers throughout the country would be served better, if the shift in production were distributed evenly across the regions that experience shortages in the supply of fish, and if these regions were supported by an effective and efficient marketing system.
6.2 Effects of intensified production on fish prices
Generally, the price of fish is determined by demand and supply. It is apparent that the average annual increase in the price of a cultured species is large (and increasing rapidly) but less than that of a species whose output from culture is smaller and increasing only gradually. Table 6 illustrates production and prices of selected main species during 1977-1997. Average annual rate of growth in production of Nile tilapia and price was 20.3% and 3.8%, respectively. Average increase of walking catfish production per annum and its price was 17.5% and 3.5%, respectively. For sepat siam, average yearly rate of growth in production was only 2.2%, and its price rose 10.4% per annum.
6.3 Increasing industrialization of production
Small-scale farming is the predominant system of freshwater fish-culture in Thailand. Shifts toward large-scale industrial operations with good management at every stage need capital investments and technical know-how, both of which are constraints for small-scale fish farmers. Increased industrialization of production should be cost-effective, if productivity is to increase and cost per unit produced to fall. In such a case, species cultured will compete with the same species produced by small-scale farmers. However, data exist confirming that production costs are lower than those of traditional methods. It may be true that proper technology will produce fish that grow fast and also prevent undesirable features such as muddy smell, which is inherent to cultured freshwater fish. Advanced culture-techniques may induce a higher demand for particular species of fish among certain groups of consumers. In such a case, fishes of the same species, but with different attributes, should be priced according to the product's distinctive features. Consumers have to be informed about a product's particular characteristics, which define its quality, so that they are willing to pay a higher price. Consumers, who cannot afford to pay more will choose the traditional product.
Large-scale industrial farming is increasingly practised for selected species in the central part and the west of Thailand. Species raised by this method are walking catfish and striped snakehead. The fish are fast-growing and in high demand by certain groups of customers, i.e. restaurants and exporters. Small-scale fish farmers take their fish to different markets.
