Influence of Supply Chain Integration on the Sustainable Performance of Dairy Farms in Pak Chong District, Nakhon Ratchasima

Abstract

Background and Objectives: Dairy farms in Thailand are facing a downward trend in their number of dairy cows and in raw milk production each year, which affects the sustainability of the dairy business. Therefore, sustainability operations are crucial to help dairy farms align with sustainable development goals in terms of the economy, society, and the environment. Supply chain integration in dairy farms is an important factor that will help farms remain competitive and operate efficiently. The objectives of this study are to examine the levels of supply chain integration and sustainable performance and to assess the influence supply chain integration has on the sustainable performance of dairy farms in Pak Chong District, Nakhon Ratchasima. Methodology: This quantitative study examined the impact of supply chain integration on the sustainable performance of dairy farms in Pak Chong District, Nakhon Ratchasima. Data were collected through a structured questionnaire. The target population comprised 152 dairy farm operators registered with the Pak Chong Dairy Cooperative, Nakhon Ratchasima. Main Results: The level of supply chain integration revealed that customer integration had the highest mean score of 4.58, followed by internal integration with a mean score of 4.15 and supplier integration with a mean score of 4.10. The level of sustainable performance revealed that the environmental aspect had the highest mean score of 4.41, followed by the social aspect with a mean score of 3.93 and the economic aspect with a mean score of 3.90. These results indicate that supplier and internal integration have a positive impact on both sustainable economic and social performance. However, customer integration has no significant impact on any aspects of sustainable performance. None of the integration types influence sustainable environmental performance. These statistical findings provide an understanding of the effectiveness of supply chain integration in supporting sustainable performance and offer insights for improving the competitiveness and sustainability of dairy farms. Discussions: Supply chain integration and the sustainable performance of entrepreneurs are scored at a high level, particularly in terms of integration with suppliers, internal organizational integration, and integration with customers. Similarly, the average level of sustainable performance is also high. Entrepreneurs prioritize information exchange with suppliers and effective communication within the organization and with customers, which facilitates market demand planning and forecasting. This integration positively impacts economic and social sustainability but does not significantly affect environmental sustainability. Conclusions: Dairy farm operators should prioritize supply chain integration, particularly with internal suppliers and customers, to enhance operational efficiency and foster long-term sustainable relationships. Strengthening supply chain integration will contribute to continuous growth and sustainability across economic, social, and environmental dimensions. Furthermore, optimizing operational processes and promoting both internal and external collaboration can improve environmental performance and enhance overall efficiency through more effective coordination.