The Office of the Rubber Replanting Aid Fund (ORRAF) is a non-profit enterprise which is under the Ministry of Agriculture and Cooperatives. It was established according to the of Rubber Replanting Aid Fund Act, B.E. 2503 (1960) and it was revised 3 times in B.E. 2505 (1962), B.E. 2518 (1975), and B.E. 2530 (1987). Its objectives are to manage the Rubber Replanting Aid Fund and the Economic Plant Replanting Aid Fund.
The special mission assigned by the government and apart from the Rubber Replanting Aid Fund Act. The government assigns the Office of Rubber Replanting Aid Fund to support rubber farmers in organizing cooperatives and allocating the budget to build the houses for dried rubber sheets and smoked rubber sheets for farmers. For the small groups of rubber farmers which cannot organize cooperatives, the Office of Rubber Replanting Aid Fund was assigned to organize the local auction markets for farmers and traders for the standard quality and fair trade.
The Purposes of Establishment
1. To encourage farmers in replanting the good breed of rubber trees or perennial plants and to support farmers who have never planted rubber trees before by giving them the relief fund including the academic advice to get more productivity and income. 2. To develop the quality of products in using appropriate technology for being accepted by traders or markets. 3. To develop the operation system and marketing for rubber farmers to get the fair price. 4. To establish and develop the agricultural institutes to have the strong potential for development. In addition, to have the greater power in the price bargaining.
Sources of Income
Funds used in the operation of the Office of the Rubber Replanting Aid Fund derived from 3 sources.
1. Relief Fund
The relief fund (CESS), which approved by the Cabinet, charged from the international rubber exporters. This approval was issues on 1st April, 2003. The rate of relief fund can be divided into 5 levels as follows:
(1) If the price of product that is not more than 40 baht per a kilo, the exporters will be charged 90 satang per a kilo.
(2) If the price of product exceeds 40 baht but not more than 60 baht per a kilo, the exporters will be charged 1.40 baht per a kilo.
(3) If the price of product exceeds 60 baht but not more than 80 baht per a kilo, the exporters will be charged 2.00 baht per a kilo.
(4) If the price of product exceeds 80 baht but not more than 100 baht per a kilo, the exporters will be charged 3.00 baht per a kilo.
(5) If the price of product exceeds 100 baht per a kilo, the exporters will be charged 5.00 baht per a kilo.
According to the Act of Rubber Replanting Aid Fund, the relief fund (CESS) can be divided into 3 pars as follows:
(1) Not more than 5 percent is the expense in the activities of the rubber experiment which will be an advantage for farmers especially for the Department of Agriculture.
(2) Not more than 10 percent is the expense in the administration of Office of the Rubber Replanting Aid Fund. The government will set up more budgets according to the necessary, if they are not sufficient in any year.
(3) The budget which is left from other expenses will be used to support the aiding replanting planters.
2. Profit Fund
The profit of relief fund will be used in the administration of the Office of the Rubber Replanting Aid Fund and some will be contributed to the aiding plantation planters.
3. Subsidy from Government
The loan or budget which belongs to the government is for the operation of the aiding plantation planters, the Office of the Rubber Replanting Aid Fund, and other activities which assigned by the government.
The Policies of the Office of Rubber Replanting Aid Fund
The Office of the Rubber Replanting Aid Fund (ORRAF) has prescribed its policies under the State Enterprise Plan which being used for the sustainable development of farmers. There are 3 aspects of its policies.
1. The Economic Policies are as follows: 1.1 To replant rubber trees in the old areas which have the potential in the production near by the other perennial plants replanting plantations and to consider about the markets which support planting of good breed rubber trees in the Northeast; 1.2 To encourage farmers adopting modern technology which is appropriate for the natural resources in each areas to grow the reputable rubber trees which can be tapped faster. This is to get more productivity and profit; 1.3 To improve the local auction markets to be the places for trading under the free trade; 1.4 To encourage small the production according to the Sufficient Economy, New Theory Agriculture, and Agro-forestry. This is to raise more income and reduce the risk from making a living only by the rubber plantations. 2. The Social Policies are as follows: 2.1 To increase the potential of community by supporting farmers to assemble the Rubber Replanting Aid Fund Development Groups, and the cooperatives of communities to produce the reputable productions according to the market requirements. This is to have the greater bargaining power among the cooperatives of the Office of the Rubber Replanting Aid Fund, cooperatives of communities, and private sectors; 2.2 To campaign in environment conservation leading to the sustainable agriculture development by reducing the use of chemical substance and chemical fertilizer. 3. Administration and Management Policies are as follows: 3.1 To improve the administration system effectively by following the universal administration system. This is to reduce the capital in operation and to be accepted by farmers; 3.2 To restructure the revenue structure for reducing the budget, and increasing the potential of officers by training. This is to make them having the good attitude and ability for the innovation. In addition, this is to enhance more the effectiveness of the public relations; 3.3 To follow and evaluate the performance and evaluation system. This is can be used in the administration and this can follow the achievement of the operation in every projects.
Farmers Development Plan
According to the policy in sustainable farmer development, the Office of the Rubber Replanting Aid Fund has planed the projects for farmer development. These are its objectives as follows: 1. To raise the income for rubber farmers and to create the alternatives for farmers in their occupation; 2. To develop the efficiency of rubber economy and the Invisible Hand to compete with the global markets; 3. To increase the potential of farmer organizations and related organizations; 4. To restructure the production structure within 12 million plantations and the restructure the production structure of small holders. This is to reduce the risk from making a living only by rubber plantations; 5. To focus on environment conservation by emphasizing on increasing the efficiency of the resources and reducing the use of chemical substance and chemical fertilizer in the production; 6. To improve the administration system and to manage the administration to be more efficient for increasing more income.
Division of Administration
The Central office of the Office of the Rubber Replanting Aid Fund located at 67/25 Bang Khun Non Road, Bangkok Noi Distract, Bangkok. The administration can be divided in to 12 sections. There are 25 Provincial officers and 49 District officers located in the rubber replanting areas covering various regions which are the South, the East, and the Northeast.
The Strategies of the Office of Rubber Replanting Aid Fund
Shared Value and Organizational Culture
Creating the conscience in responsibility and morality for performing ones duty is the main point for every organization in this period. So, supporting the officers working with the concrete morality continuously by focusing on morality and ethic in every procedures and activities is important to create the shared value for development of the organizational culture. To create the organizational culture which can support the procedures and missions of the organization. The Office of the Rubber Replanting Aid Fund has prescribed its shared value as follows;