Agriculture in Thailand
Agriculture in Thailand is highly competitive, diversified and specialized and its exports are very successful internationally.
Other agricultural commodities produced in significant amounts include fish and fishery products,
are on the rise.History
After the
Since the 1960s, agricultural advancements have significantly impacted employment and living standards in Thailand. Unemployment has decreased markedly, dropping from over 60 percent to under 10 percent in the early 2000s.[8] Concurrently, there has been a notable reduction in food prices and hunger rates. For instance, the number of households experiencing hunger dropped from 2.55 million in 1988 to 418,000 in 2007.[8] Additionally, child malnutrition rates declined from 17 percent in 1987 to seven percent in 2006. These improvements have been attributed to a combination of strong state involvement in investment in infrastructure, education, and access to credit, as well as successful private initiatives in the agribusiness sector.[8] This comprehensive approach has facilitated Thailand's evolution into an industrialized economy.[8]
Agriculture in transition
Agriculture expanded during the 1960s and 1970s as it had access to new land and unemployed labour.[8] Between 1962 and 1983, the agricultural sector grew by 4.1 percent a year on average and in 1980 it employed over 70 percent of the working population.[8] Yet, the state perceived developments in the agricultural sector as necessary for industrialisation and exports were taxed to keep domestic prices low and raise revenue for state investment in other areas of the economy.[8]
As other sectors developed, labourers went in search of work in other sectors of the economy and agriculture was forced to become less labour-intensive and more industrialised.[8] Aided by state laws forcing banks to provide cheap credit to the agricultural sector and by providing its own credit through the Bank for Agriculture and Agricultural Co-operatives (BAAC).[8] The state further invested in education, irrigation, and rural roads.[8] The result was that agriculture continued to grow at 2.2 percent between 1983 and 2007, but also that agriculture now only provides half of rural jobs as farmers took advantage of the investment to diversify.[8]
As agriculture declined in relative financial importance in terms of income, with rising industrialization and Westernisation of Thailand from the 1960s, it continued to provide the benefits of employment and
Thailand's military government in 2016 introduced "Thailand 4.0", an economic model designed to break Thailand out of the
The debt profile of small-scale Thai farmers is perilous. The UN estimates that Thai farmers who owned their own land declined from 44 percent in 2004 to just 15 percent in 2011.[11] Farmers have accumulated 338 billion baht in debt.[11] In 2013, the average household debt in Thailand's northeast was 78,648 baht, slightly lower than the national average of 82,572 baht, according to Thailand's Office of Agricultural Economics (OAE). But the region's average monthly household income, at 19,181 baht, was also lower than the national average, 25,194 baht, according to the National Statistics Office.[11] New technologies have also pushed up the entry cost of farming and made it harder for farmers to own their land and fund production. Many farmers have turned to loan sharks to finance their operations. In 2015, nearly 150,000 farmers borrowed 21.59 billion baht from these lenders, according to the Provincial Administration Department.[11]
Production
Thailand produced in 2018:
- 104.3 million tons of sugarcane (4th largest producer in the world, only behind Brazil, India and China);
- 32.1 million tons of rice (6th largest producer in the world);
- 31.6 million tons of cassava (2nd largest producer in the world, just behind Nigeria);
- 15.4 million tonnes of palm oil (3rd largest producer in the world, behind Indonesia and Malaysia);
- 5 million tons of maize;
- 4.7 million tons of natural rubber (largest producer in the world);
- 3.8 million tonnes of mango (including mangosteen and guava) (3rd largest producer in the world, only behind India and China);
- 2.1 million tons of pineapple (4th largest producer in the world, only behind Costa Rica, Philippines and Brazil);
- 1 million tons of banana;
- 1 million tons of vegetable;
- 885 thousand tons of coconut (9th largest producer in the world);
- 516 thousand tons of orange;
In addition to smaller productions of other agricultural products.[12]
Industries
Financials
Thailand's food exports average one trillion baht annually. Locally consumed foods earn two trillion baht annually in the domestic market. Thailand is a leading food exporter: rice is the chief export, accounting for about 17.5 percent of all food exports, followed by chicken, sugar, processed tuna, tapioca flour, and shrimp. Thailand's largest export markets are Japan, China, Vietnam, Indonesia, Myanmar, Cambodia, Malaysia, and the Philippines. Thailand's food exports accounted for 2.5 percent of the world food trade in 2019. Food imports in 2019 amounted to 401 billion baht, down slightly.[13]
Food crops
Coconuts
Thai coconut plantations occupy about one million
Coffee
Cowpea
Aphis craccivora is a pest of cowpea.[16]
Dairy
Thailand has a raw milk production capacity of 2,800 tonnes a day, or just over one million tonnes per year (2015). Forty percent of production goes to a school milk programme and the rest to the commercial dairy sector. According to the Agriculture Ministry, Thailand is the largest producer and exporter of dairy products in ASEAN.[17]
Thailand's School Milk Programme was established in 1985, in response to farmers protests in 1984 on unsold milk. "The principle [sic] objective of the National School Milk Programme is to support the Thai dairy industry, by providing an outlet for locally produced milk....providing milk to the young at an early stage, will...[develop] a taste for milk and hence a market for the future."[18]
Palm oil
Thailand is the world's third largest producer of crude
Potato
Grown year-round in the northwest highlands.[20]
Phytophthora infestans
The
Rice production in Thailand represents a significant portion of the Thai economy and labor force.[1] In 2017, the value of all Thai rice traded was 174.5 billion baht, about 12.9% of all farm production.[2] Of the 40% of Thais who work in agriculture, 16 million of them are rice farmers by one estimate.[3][4]
Soybeans
Thailand produces only 60,000 metric tons (66,000 short tons) of soybeans a year, meeting only two percent of a total demand nearing three million tonnes. Thailand imports about two million tonnes annually to meet a growing demand from the livestock and aquaculture sectors both in Thailand and neighbouring countries. Poultry farms and hog operations drive demand in the livestock sector. In aquaculture, shrimp farms are the major consumer of soybean meal. Soybean production in the country has fallen in the past several years due to high production costs largely attributed to wage hikes. Farmers also complain of lower profitability compared with maize and off-season rice.[21]
Sugar
Thailand's first sugar mill was built in 1938 in
Governmental interventions
In 2010 the Thai government initiated a program to encourage rice farmers to switch to growing sugarcane. The government's policy offered a 2,000 baht per rai subsidy for paddy fields converted to other crops.
The Industry Ministry's Office of Cane and Sugar Board has plans to increase the country's total sugarcane plantations to 16 million rai by 2026 (from 6.5 million rai in 2007–2008). The goal is to boost raw sugarcane output from 105.96 million tonnes in 2015 to 180 million tonnes by 2026, netting 20.4 million tonnes of refined sugar. The transition has not been without controversy, mainly due to undesirable environmental impacts such as air pollution and cane farmers use of between 1.5–2 liters of paraquat per rai of sugarcane,[27] and sugarcane's voracious appetite for water—2000 millimeters of rainfall during its growth cycle—around five times more than typical food crops.[29] One kilogram of cane sugar represents 145 liters of water,[30] significant, but far less than rice: 2,500 liters of water per one kilogram of rice.[31]
Field burning
Thailand in the early-21st century has suffered from increasing levels of air pollution. Field burning has been identified as a key contributor.[32][33][34] In addition to releasing CO2, sugarcane burning emits acidic fine particles, which have an adverse impact on air quality and human health.[34]
Sugarcane is harvested either manually or mechanically using a sugarcane harvester. Before hand harvesting the sugarcane field is burned. Mechanical harvesting does not require field burning. The residue left in the field by the combine can serve as mulch for the next planting, although some farmers persist in burning it.[35] Mechanical harvesting requires substantial capital outlays for machinery, thus much of Thailand's sugarcane is hand harvested. Government policy continues to allow sugar mills to purchase burnt sugarcane, gradually reducing its proportion until phaseout in 2022. The government's sugarcane plan makes no mention of agricultural burning as the primary producer of air pollution. Instead, the government cites "outdoor burning of refuse" as a culprit. A ban on the acceptance of burnt cane, coupled with measures to regulate sugarcane cultivation and milling would solve the problem.[35]
Climate impact
Models crafted by researchers at Kasetsart University project that, due to changes in climate and diversion of land to non-agricultural uses, future sugarcane yield, harvested area, and production are projected to decrease by 24–33%, 1–2%, and 25–35% respectively in the period 2046–2055 from the baseline years 1989–2016.[36]
Tapioca
According to the Thai Confederation of Tapioca Farmers, the average household makes about 53 baht (US$1.70) per
Fruits and vegetables
Thailand is a leading producer and exporter of tropical fruits such as
Durian
Thailand is ranked the world's number one exporter of durians, producing around 700,000 tonnes of durian per year, 400,000 tonnes of which are exported to China and Hong Kong.[45]
Tomatoes
In 2017, Thailand produced 122,593 tonnes of tomatoes. The northeast produces 55 percent; the north, 32 percent; and the central region, 13 percent. The highest yielding provinces are Chiang Mai, Sakon Nakhon, Nakhon Phanom, and Nong Khai. Growing tomatoes in prime areas can generate profits of up to 40,000 baht per rai. The northeast's contribution is in jeopardy due to the construction of upstream dams on the
Non-food crops
Hemp
As of 2020[update] it is legal to produce, import, and export hemp in Thailand. The plant was removed from the government's list of narcotics in 2019. According to the Thai Food and Drug Administration (FDA) the plant can be used as a key ingredient in many food and cosmetic products.[47]
Rubber
Thailand ranks as the world's largest rubber producer and exporter, producing around 4.3 to 5[48] million tonnes per year,[49][50] It consumes only 519,000 tons per year.[5] It provides about 40 percent of the world's natural rubber, mostly used in aircraft and automobile tires.[51] But the rubber industry has faced a series of challenges. Alongside drought in 2015–2016, Thailand was hit hard by an oversupply in international rubber markets. Following a record harvest in 2011, Thailand increased rubber acreage by 45 percent. Other top producers in the region followed suit. Concomitantly, China's demand for rubber decreased by 10 percent. China is the world's largest natural rubber consumer, using 4,150,000 tons in 2013. At one point the price of the world's benchmark smoked rubber sheet dropped as low as US$1.27 per kilogram, or 80 percent below the record high of US$6.40 per kg in February 2011.[49] Similarly, rubber futures in Shanghai have dropped by 22 percent and the export price of Thai rubber by 23 percent.[5] Then, as prices began to rebound, the southern provinces of Thailand, where two-thirds of the Thai rubber plantations are located, were hit by torrential rains and flooding at the peak of the rubber-tapping season. The Rubber Authority of Thailand forecasts that output will drop 7.6 percent in 2017. Farmers, unable to harvest rubber sap due to high water, are unable to take advantage of the highest rubber prices in four years. Largely due to the flooding, prices for unsmoked USS3 rubber sheets[52] in Nakhon Si Thammarat have increased steadily and reached 84.32 baht (US$2.38) per kilogram in January 2017 and will likely go higher.[51] Rubber growers face an even greater danger: rubber trees die after 20 days when inundated by flood waters.[53]
Farmers face an on-going disaster in 2018: rubber production costs amount to 63 baht per kilogram, but rubber can be sold for only 40 baht per kilogram. At the industry high point in 2011, farmers earned 713 billion baht from rubber sales, now down 72 percent in 2018 to 274 billion baht. The number of households farming rubber trees has declined to 1.4 million in 2018, compared with 1.6 million in 2014, yet the area devoted to rubber plantations continues to rise, to 20.6 million
In 2019, south Thailand rubber growers were hit by the fungal disease Pestalotiopsis. More than 330,000 rai of rubber trees in Narathiwat, Yala, Pattani, and Trang Provinces have been damaged by Pestalotiopsis leaf fall disease since it was detected in September 2019. The disease makes the rubber tree leaves fall and production drops up to 50 percent. Rubber output has dropped by 40,000 tonnes as of November. The disease, spread by wind, has already damaged 2.3 million rai of rubber trees in Indonesia and 16,000 rai in Malaysia.[55]
The Thai government periodically steps in to aid rubber farmers. To help the Thai rubber industry in 2016, the government spent US$471 million to aid small-scale rubber farmers cultivating up to 15
Livestock
Pigs
Neonatal
Insect ranching
Edible insects, whole or in chili paste and as ingredients in fortified products, are commonly consumed in Thailand. The UN Food and Agriculture Organization (FAO) estimates that there are about 20,000 cricket farms alone in 53 of Thailand's 76 provinces.[61]
In 2018, cricket powder retails for 800-1,500 baht per kilogram, three to five times more expensive than beef. This, in spite of crickets requiring 12 times less feed, 2,000 times less water, and much less space than traditional livestock. It turns out that most Thai insect farmers are mom-and-pop outfits too small to achieve economies of scale. The market remains minuscule: The global market for beef tops US$2 trillion (66.6 trillion baht), while the market for edible insects is projected to reach only US$250 million in 2018.[61]
Sericulture
Thailand's silkworm farmers cultivate both types of the domesticated silkworms that produce commercial silk: Samia ricini, commonly known as the "eri silkworm", and Bombyx mori, the "mulberry silkworm".[39] The latter, used for most Thai silk, is by far the larger silk producer of the two.[62] The Queen Sirikit Department of Sericulture estimates that in 2013, 71,630 small landholders raised mulberry silkworms on 39,570 rai, producing 287,771 kg of silk cocoons. Another 2,552 farmers grew mulberry silkworms on an industrial scale, producing 145,072 kg of silk on 15,520 rai of land. Eri silk, on the other hand, produces only a fraction of these quantities, grown by a small network of 600 families scattered throughout 28 provinces in north, northeast, and central Thailand.[39]
In Thailand, the Center for Excellence in Silk at
Weather
Rainmaking
The Thai
Effect of climate change
It is projected that temperatures will continue to rise at a steady rate in every region of Thailand within a range of 1.2–2°Celsius. Annual rainfall is projected to decrease in the central area, but increase in the northern and northeastern regions. Volume of rainfall is projected to be around 1,400 mm per annum over the next five years.[64]
Shaobing Peng of Huazhong Agriculture University in China believes climate change is now affecting the seasonal weather in Thailand. "Global mean surface air temperature has increased by 0.5 degree Celsius in the twentieth century and will continue to increase by 1.5 to 4.5 degrees Celsius this century," he said.[3]
Climate change will have varying effects on Thai crops. Heavy rain may damage the roots of cassava plants in the north, while a decrease in rain might damage cane sugar and rice in the central region. Temperature and quality changes of water might lead to a reduction in the viability of livestock due to heat stress, survival rates of newborn animals, and immune system impacts.[64] Climate change has and will continue to harm rice yields. A study by Okayama University in Japan found that grain yield declines when the average daily temperature exceeds 29 °C (84 °F), and grain quality continues to decline linearly as temperatures rise.[65] Another study found that each degree-Celsius increase in global mean temperature would, on average, reduce yields of rice by 3.2 percent and maize by 7.4 percent. Both are important Thai crops.[66]
Already, due to the drought of 2015-2016, rice production declined 16 percent from 19.8 million tons to 16.5 million.[5] Overall, Thailand lost 6.1 million tonnes of agricultural products worth 15.5 billion baht between January 2015 and April 2016.[67]
To adapt to
Professor Witsanu Attavanich of Kasetsart University projects that the negative aggregate financial impact of climate change on Thailand's agriculture during the period 2040–2049 will range from US$24–94 billion. Impacts will be unevenly felt: the western region, upper part of the central region, and the left part of the northern region are projected to be better off, while the southern, eastern regions, lower part of central, and the right part of northern regions are projected to be worse off. In provincial terms, this means that Surat Thani, Chiang Mai, Chumphon, Rayong, Chachoengsao, Songkhla, Chanthaburi, Nakhon Si Thammarat, Trang, and Suphanburi Provinces are the ten provinces most adversely affected by climate change. Kamphaeng Phet, Udon Thani, Chaiyaphum, Phetchabun, Nakhon Ratchasima, Nong Bua Lamphu, Buriram, Bangkok, Khon Kaen, and Sukhothai Provinces are the ten provinces that most benefit agriculturally from climate change.[68]
Agricultural chemicals
According to the Thai government's The Eleventh National Economic and Social Development Plan (2012–2016), Thailand is number one in the world in the application of chemicals in agriculture. The report stated that, "The use of chemicals in the agricultural and industrial sectors is growing while control mechanisms are ineffective making Thailand rank first in the world in the use of registered chemicals in agriculture."[69]: 111
In 2018 Thai researchers and the
In February 2019, three members of a panel charged with toxic chemical control resigned from the panel due to interference by farm chemical producers.[74]
On 22 October 2019, the 26-member
The next day, 28 November, public health authorities insisted that the NHSC neither lifted nor eased a ban on the three toxic farm chemicals, as Industry Minister Suriya Juangroongruangkit had claimed. Physicians who attended the NHSC's 27 November meeting said that "...no one at Wednesday's meeting ... raised a hand to revoke the Oct 22 resolution."[79]
On 1 June 2020, the ban on chlorpyrifos and paraquat took effect. They are now illegal chemicals. Farmers have 90 days to return their supplies on hand to manufacturers, who must destroy them within 270 days of the ban. The agriculture ministry estimates that 21,000 tonnes of the chemicals are stockpiled in Thailand. Glyphosate remains in use, evidently due to US pressure.[80][81]
Organic farming
Farmland certified as organic in Thailand amounts to 0.3–0.5 percent of all agricultural land compared with one percent worldwide.[1][82] From 2010 to 2014, Thai sales of organic food grew at a seven percent annual rate, compared with five percent for conventional foods. Nevertheless, Thailand's consumption of organic food remains low, with retail sales of just US$0.24 per capita in 2014, compared with US$10 in Japan and US$294 in Switzerland, the world leader. Thailand's leading organic crops are coffee beans, mulberry leaf tea, fresh vegetables and fruit, grown by less than 0.2 percent of Thailand's farmers. Fifty-eight percent of the organic food sold at retail in Thailand is imported.[1]
Due to a program started over forty years ago by a local monk,
In July 2012 consumer action groups demanded that four unlisted toxic pesticides (banned in developed countries) found on common vegetables at levels 100 times EU guidelines be banned. Chemical companies demanded they be added to the Thai
Governmental price supports
In November 2016, Prime Minister
In 2016 rice subsidies were approved for hom mali, white paddy, Pathum Thani fragrant paddy, and glutinous rice. The government will pay up to 13,000 baht per tonne to growers who store their rice until overall rice prices gradually recover.[87]
See also
- Coffee production in Thailand
- Coconut production in Thailand
- Ministry of Agriculture and Cooperatives (Thailand)
- 1970s peasant revolts in Thailand
- Rice production in Thailand
- Tapioca industry of Thailand
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Further reading
- Attavanich, Witsanu (21 November 2018). "How is Climate Change Affecting Thailand's Agriculture? A Literature Review with Policy Update". FFTC Agricultural Policy Platform (FFTC-AP). Retrieved 22 November 2018.
- ISBN 974-553-816-7.
- Also available in the Thai language as karn kaset thai, and full text of both languages are available at[1]
External links
- ^ Archived copy Archived 14 February 2009 at the Wayback Machine