Slow development presents ample future opportunities
New AG International NOV/DEC2020
As the world’s largest exporter of rubber and second largest exporter of rice, and employing 30 percent of the population, Thailand’s agricultural sector is vital to support rural populations.
Yet, the Thai agriculture sector faces numerous problems, mostly brought on by outdated farming systems that have seen rising chemical inputs and depleting natural resources. The sector has been left behind during the agricultural revolution that has seen many countries progress to less inputs and better yields.
The country has faced many environmental and socio-economic problems resulting from the unsustainability of its agricultural sector. Deforestation, inappropriate land use and that of natural resources, and pollution have had huge ecological impacts, as have the overuse of and dependency on agrochemicals by farmers.
The Thai government has started taking steps to promote sustainable agriculture as an alternative to conventional high input, intensive agriculture systems. The government sees sustainable agriculture as a way to sustain the way of life of rural people in Thailand and increase their income. Practical interventions to bring about such change is lacking, however, and a study by the Swedish International Agricultural Network Initiative found that a mutual or common understanding of the term “sustainable agriculture” must be established. Its current vague and unclear definitions mean that many people, from policymakers and government officials to scholars, have interpreted the concept in different ways, leading to misconceptions and arguments about the development of sustainable agriculture at all levels. If a clearer definition could be established of sustainable agriculture in the Thai context, clear indicators and assessment procedures would follow.
In a bid to break the country out of the middle income trap, the Thai government introduced an economic model called “Thailand 4.0” in 2016. The program aims at a seven-fold increase in average annual income of farmers from US$1,807 to $12,488 by 2037. This is, however, proving to be another vague attempt at reform since research budgets are lacking, while the small scale nature of the farms (43 percent are less than 1.6 hectares) leaves little room for investments in improvements. While agricultural production is largely mechanized, the sector lacks precision agriculture techniques and technologies that would see yields increase and inputs decrease.
Horticultural expansions Thailand is a net exporter of agricultural commodities, ranking first in natural rubber and second in rice and sugar exports globally.
Rice is a key food crop in Thailand, cultivated by 3.55 million households across 40 percent of the total agricultural area. Although rice production is relatively small compared to competing countries, the fact that nearly 50 percent of the crop is exported makes Thailand a leading global player. However, the country is losing its competitiveness as yields are lower than competing countries and the production costs higher. Rice farming in Thailand is characterized as high risk but low return because farmers are dependent on often erratic weather conditions. Yields are also decreasing further as soils deteriorate due to continuous production. Further challenges include increasing competition for water from other sectors. Yet many of these challenges can be addressed by improved irrigation systems which will reduce the water requirement while increasing yields.
The Thai silk market is experiencing a boom as the commodity is increasingly sought after by high-income households both locally and abroad. But Thai silk farmers are in decline and demand for the fibre far outstrips the supply. In 2000, silk yarn production stood at 1,230 tonnes compared to 448 tonnes in 2017. This has led to increasing prices, and between 2018 and 2019, the industry saw a 33 percent growth in value. As production moves increasingly to industrialized farms, fertilizer and irrigation requirements for mulberry orchards are rising.
Thailand’s rubber production is expected to decline going forward as government has called for a 21 percent reduction in plantations while increasing the value of rubber exports. This comes off the back of years of declining rubber prices as demand subsides amid low global car sales. The country currently produces 4.8 million tonnes per annum. Rubber sales are expected to get a boost from the demand for protective rubber gloves as a result of the COVID-19 pandemic.
Thailand is the world’s third largest producer of crude palm oil, producing two million tonnes annually. Although Thailand does not export palm oil biofuel to the European Union, that country’s ban on such imports is having a ripple effect on the global palm oil industry as governments seek to conform to climate friendlier fuel. Thailand is pushing forward with production and offers subsidies to farmers cultivating palm oil, leading to an increase in production, but not necessarily yield per hectare as critics argue that the fixed price discourages farmers from improving margins.
In a bid to capitalize on the growing demand for organic food, the Thai government is encouraging farmers to pursue these environmentally friendlier farming approaches to maintain market share, both locally and abroad. They are therefore pursuing a range of initiatives aimed at encouraging organic farming practices, which includes a reduction in the amount of new rice plantings and a shift from commercial varieties to organic strains. One aim of this program is to reduce the area of standard rice cultivation by 160,000 hectares within four years.
Farmers who sign up for the scheme are assisted through financial support which will assist them in buying organic seeds, reducing their dependence on pesticides, and building barriers to prevent contamination from neighbouring farmland. The government hopes that up to 400,000 farmers will take part in the scheme over the next four years, and that another 96,000 hectares of other organic crops will be cultivated. Hectares under organic cultivation totaled 95,000 in 2018, up from 34,000 hectares in 2013.
The strategy, however, is hampered by the current lack of organic alternatives to chemical inputs. Furthermore, few research projects have been undertaken to improve the availability of products and techniques that would prove successful on Thai farms.
Quantity and quality lacking in bio-inputs The bio-inputs sector is still in its infancy in Thailand, inhibited mostly by a lack of quantity, availability of products, and research proving their efficacy.
Farmers have for years been over-reliant on quick fixes offered by synthetic chemicals which has made the switch to a more biological way of farming difficult. Natural predators have been eliminated over time and soil quality has deteriorated.
Studies into overcoming overuse of synthetic chemicals, especially in rice crops, found that farmers needed to be guided on moving away from the “treadmill” approach of continuous pesticide use. Education is also needed to disavow farmers of the belief that pesticide use necessarily increases yield. Promoting the combination of cultural measures and biocontrol use, especially for seed treatment and against early stages of pest insects, is needed. This should be coupled with dissemination of more widespread information on the actual relevance of pests, weeds, diseases and rodents, getting farmers to take appropriate measures only when necessary.
The Thai government is playing its part to vastly reduce chemical usage on farms, albeit mostly from a chemical banning perspective, rather than a greater focus on offering alternatives. In a bid to increase exports and cement the country as a world food basket of sorts, the government banned the use of chlorpyrifos and paraquat from June 2020. Glyphosate is still allowed, but only on certain crops. While this will greatly aid in steering farmers towards using bio-inputs, such quality products are in short supply.
Several countries within the Association of South East Asia Nations (ASEAN), including Thailand, have developed biocontrol agent production systems that includes farmers in the production process. It is believed this will ensure greater buy-in from the agricultural community. A commercial approach through the private sector will still be developed alongside the farmers to guarantee the quality and quantities required for the market.
Some biological control authorities have emphasized that more education is needed on bio-inputs, cautioning that such an industry cannot be developed too closely along a pesticide-like paradigm. Since biological control encompasses much more than just pesticidal agents, given the whole range of natural enemies and antagonists in the agro-ecosystem, farmers would need to be trained in the practical use of the various facets of biocontrol, and in the broader context of agro-ecological engineering.
Active ingredients are still few and far between but include products containing Bacillus thuringiensis (Bt), which is by far the most important to date in Thailand. Entomopathogenic fungi (EPF) in the genera Metarhizium and Beauveria have been developed and used on a localized basis for various pests including insects in the Hemiptera, Coleoptera and Diptera groups. The antagonistic fungi Trichoderma spp. is used for management of soilborne diseases.
Complicating uptake further is a regulatory process that is tailored to chemicals, creating a complicated playing field. Since efficacy of semiochemicals can’t be compared to chemical pesticides, applicants need to be cautious in declaring crop protection claims. Since testing protocols are further complicated by claims of pest population and crop damage reduction, and yield improvement, applicants are advised to solely focus on trapping efficacy as the main objective for field testing.
With the Thai government’s drive to boost organic production, use of synthetic fertilizers is decreasing while organic inputs are increasing. Be that as it may, the latter still has a long way to go to catch up. Consumption of synthetic fertilizers stood at 3.34 million tonnes in 2019, with the organic counterpart only reaching 580,000 tonnes, the latter of which was all domestically produced.
Despite the move towards organic production, challenges in increasing the uptake of bio-inputs, which includes organic fertilizers, prevail. As with the rest of the bio-input sphere, this includes lack of availability and farmer education. With the growing competition among fertilizer vendors, the market is expected to consolidate, resulting in less competition and a reduced variety of options for farmers.
Going forward, much opportunity exists for bio-inputs that can be consistently delivered, in the right quantities, as the Thai government continues to push for greener farming practices. An increasing awareness of the negative impact of chemical fertilizers on health and environment, and the growing demand for organic food, bodes well for the sector.
Greenhouse production research needed Thailand is no stranger to greenhouse crop production but has yet to undergo the technological revolution that would see a mass uptake of this type of farming. Greenhouses have traditionally been made from bamboo and plastic sheets or shade netting, resulting in simple U-frame structures that do not include mechanized irrigation and fertigation systems.
Growth in this sector is being spurred on by local demand for leafy green vegetables and orchid production. As the world’s largest producer and exporter of orchids, Thailand is capitalizing on the rising demand for this ornamental flower, investing in better greenhouse technologies that will increase yields. Internet of Things (IoT) is starting to be deployed in greenhouse production but is still in an early phase and the high cost presents a barrier to entry.
Greenhouse production is also aiding the country in meeting demand for organic food since chemical applications can be reduced in tunnels. Soilless farming in hydroponic systems is being promoted as a means to cultivate crops free from many of the challenges Thai farmers face. It is especially a viable alternative for small scale farmers, many of whom struggle with inadequate soils that are either sandy, saline or acidic.
Hydroponic farmers are able to grow temperate lettuce all year round, across the country, since the climate within the tunnels can be controlled. This allows farmers to supply the ever-growing health conscious consumers with the fresh produce they require.
While big opportunities lie in hydroponic farming for Thai farmers, the high cost of infrastructure has prevented many from entering this sector. Producing low-cost equipment locally has been touted as a possible solution but this has yet to materialize on a large scale. Uncertainty over the optimal greenhouse design prevails and a shortage of data on best practices pose more challenges. Furthermore, education on the intricacies of hydroponic farming is needed to ensure farmers are successful. At the same time, farmers have lamented the lack of government policies and budget allocation to support long-term research and development projects that would provide the data needed and boost what could be a very lucrative industry.
Waning water supply requires better management Key to enhancing Thailand’s agricultural output is the stabilizing of water supply to crops throughout the year. The fact that nearly 80 percent of the agricultural land in Thailand is rainfed poses two problems. The first is that crops struggle in the drier season, and secondly the crops are inundated with rain in the wet season. The latter causes leaching of the soil and has led to low soil fertility. Yields are also inconsistent from one year to the next as the rainfall varies.
This has led to a strong call from government to increase hectares under irrigation and manage water more constructively, especially since demand for water is increasing across all sectors.
As of 2018, the irrigated area in Thailand stood at 49,600 km², out of the total 265,200 km² of agricultural land. Rice production by far consumes the largest volume of water in Thailand compared to other crops and other sectors, which has become a major issue since water scarcity is increasing. As nearly half of the rice crop is exported, meaning that most of this limited natural resource is used to produce food for export, Thailand, along with India, constitute the largest net virtual water exporters in the world. This has raised questions over whether Thailand should continue to produce rice on the scale that it has, or at the very least, change irrigation practices.
Drip irrigated rice production is showing promising results and irrigation company Netafim has started expanding its footprint in Thailand. The 5,000-year-old assumption that rice grows best anaerobically is now being challenged, and Netafim claims that rice grown with drip irrigation not only outproduces conventional paddy rice but also uses 70 percent less water.
Research conducted in India found that drip irrigated rice production increased yields by up to 50 percent, making it a far more profitable option than conventional methods. Such irrigation systems do come at a high initial investment cost which many Thai farmers do not have access to. Calls have been made for government subsidies and irrigation projects that would aid farmers in making this crucial conversion.
Fruit production has seen a greater uptake of modern irrigation practices since the industry has become increasingly export focused. Micro-irrigation scheduling based on plant stress avoidance is being used to optimize water use efficiency and profitability of irrigation under changing climatic conditions. While traditional irrigation through the use of water hoses is still a common management practice in northern Thailand, farmers lament that this method is inefficient, labour intensive and relatively inflexible. As irrigation has improved, so too has the marketable fruit yield, especially during drought years. This has further motivated farmers in investing in proper irrigation schemes.
Despite the many challenges the country’s farmers face, Thailand has maintained its high-ranking position as a net exporter of food. With ample room for new technologies and improving efficiencies through modern equipment and inputs, Thailand presents a worthwhile market for agricultural investments that is ripe for the picking.
REFERENCES:
https://li01.tci-thaijo.org/index.php/thaiagriculturalresearch/article/download/219306/166389
https://ap.fftc.org.tw/article/1393
https://knoema.com/FAOPRDSC2020/production-statistics-crops-crops-processed?country=1001940-thailand
https://www.worldometers.info/world-population/thailand-population/
https://www.statista.com/statistics/331893/share-of-economic-sectors-in-the-gdp-in-thailand/#:~:text=In%202019%2C%20the%20share%20of,sector%20contributed%20about%2058.59%20percent.
https://www.actahort.org/books/1186/1186_1.htm#:~:text=Thailand%20is%20one%20of%20the%20largest%20fruit%20producers%20and%20exporters.&text=The%20area%20planted%20to%20durian,about%2041.23%20baht%20kg%2D1.