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Food & Silk Clusters

• Gunchiengjemam (Korat Foods Cluster)Established in 2008 with 50 members- With the support from the Department of Industrial Promotion-Region 6Aims to upgrade the product quality and promote

their accessiblity to global market.

• Silk ClusterEstablished in 2008 with 20- Failed to have the financial support from government

Aims to be famous for hand woven Thai silk

Management strategyFood & Silk Cluster

IntroductionFood & Silk Clusters

Failed to compete with Food Cluster to have support from government.Finally, have only 200.000 bath for Silk Association to promote the cluster and only in one year

Silk Cluster

Have 1 million Bath from the government for their initiation.

Korat Food Cluster

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The first meeting was held with the participation of 80 members.But after 3 months only 50 members left.And now is 25

2They started with only 20 members but increase to 69 members in 2008. And 120 now

2

Have had 2 presidents. The current one is Ms.Artitthaya Sirimucchadakul 3

Have had 3 presidents. The current president is from one of the biggest company (from 2008 til now)

3

How They Start

Korat Food Cluster

tThe financial support from government was 500.000 bath in 2nd year and 300.000 bath in 3rd year.

After 3 years, they needed to show their success for the government.

They also have their own fund form by members of the cluster ( each member needs to pay 5000 bath to join the cluster)

Phase II

1

Phase I

tBuilding trust among the members by taking time to sit down to talk.

Getting close with each other, sharing knowledge and market by talking and discussing

The most important factor of this cluster is the sacrifice of time to meet and share information

Set priority for the common goal which make benefit for every company

Phase III

Have support from Ministry of Industry with the definition of cluster and encourage companies to be together

Received 1 mil Bath from government and have support from Coordinator Development Agent (CDA)

They have many trainings:- Production Control- Planning- Hazard Analysis

Government will arrange the training bases on their needs

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-Make the participants feel comfortable by only asking 100bath for joining the cluster-Form the committee by 15 members of different districts. And the farthest one is only 100Km away-They will design the training base on the needs of cluster ( They will all share the cost of the courses)

-Open the application for group as well as individual in the districts-Try to raise the fund, give members the opportunities to buy good materials with better price.-After succeeded to form a large group and strengthen the capacity in the group, they can attract more investors-Willing to learn from the government as much as they can even the same topics again and again.

-Develop the products as well as the quality, choose the right target bases on capacity.-They also have a lot of benefits after forming the cluster -> they have a full map of value chain -> to have better understading of the function of cluster- Exchange knowledge about production, also the customers’ needs and behaviors. Better study of market (where to buy, where to sell)

How they startSilk Cluster

Phase III

Phase II

Phase I

1. Trust is the most important factor to be built. They treat each other as a friend or even as members in a big family.

2. Spend time to share knowledge and also the market.

3. Using the fund for the right purposes (holding events, discussions, buying materials)

Management Factors

Time

FundTrust

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