Agriculture
From The Report: Thailand 2014
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The agriculture sector’s contribution to GDP has fallen from an average of 32.19% during the 1960s to 23.2% in 1980 and 9% in 2000. However, by 2007 the share had risen to 10.7%, and recent estimates have suggested that the sector now accounts for some 13% of GDP. With its products renowned throughout the world, particularly its rice, Thailand has also been an important international granary at times of global food need. Today, however, the sector faces some important challenges as it seeks to develop further. Debate surrounds the role of the state in the sector’s future, particularly regarding the government’s rice support policies. Locally, raising productivity and managing the agricultural labour market are also proving challenging. Despite a reduction in the number of farmers, the sector has been able to reverse the long-term decline in its share of GDP thanks to a shift in policy towards higher-value, more specialised products, as well as increased mechanisation, diversification, and productivity.
The political framework governing agriculture, particular the rice and rubber segments, is still the source of some risk. Despite challenges, however, Thailand remains a global agricultural player. There is much to be developed, which could create major opportunities for investors in the years to come.

This chapter contains an interview with Krisda Monthienvichienchai, CEO and President, Mitr Phol.

Articles from this Chapter

Overview

A major player: As production continues to grow, challenges remain
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Showing steady and continuous growth in output and value added since the early 1960s, Thailand’s agriculture and plantations sector has been a major contributor to national income and the fight against rural poverty. With its products renowned throughout the world, particularly its rice, Thailand has also been an important international granary at times of global food need. Today, however, the sector faces some important challenges as it seeks to develop further. Debate surrounds the role of the…

Analysis

Price matters: Gauging the effects of government support schemes for key commodities
OBG
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Few issues are more controversial in Thai agriculture these days than the question of government schemes to support – or not support – prices. Indeed, this issue sent rubber farmers onto the streets in the autumn of 2013 to demand more government support, while in that year and 2014, other street protestors demanded less government aid when it came to rice. Politics plays a major role in both commodities, with the results not only distorting the markets, but perhaps also the political support…

Interview

OBG talks to Krisda Monthienvichienchai, CEO & President, Mitr Phol
OBG
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Interview:Krisda Monthienvichienchai How will the glut in the global sugar market affect producers in Thailand? KRISDA MONTHIENVICHIENCHAI: Asia has long had a production deficit in sugar, importing about 10m tonnes each year. Thailand, though, benefits from this because it is the second largest exporter of sugar in the world. This dynamic gives us a major advantage over sugar producers in other regions. Also, because we manufacture goods across the entire value chain of sugar production,…