Financial supply chain management on agricultural product trade: Simulation from Thailand to China

Abstract

This study aims to explore the application of financial supply chain management on agricultural product trade, and an example simulation case that Thai durian exports to China. After collection of variables and relationships in previous literature, a model of durian trade supply chain with material flow and cash flow has been created. As a result of the simulation, we found that cash flows of downstream participants are strongly higher than the upstream, which is partly proving that the downstream participants have more opportunities to invest upstream for intervention. Besides, we suggest government agencies, business sector, and financial institutions should strengthen communication and cooperation to maintain stability of current Thai durian trade supply chain, meanwhile, remain on high alertness to postharvest, delivery delays and durian demand to prevent the impact of supply chain disruption on cash flow.