By Dr. Apichart Pongsrihadulchai
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1 By Dr. Apichart Pongsrihadulchai Presented at OECD-ASEAN Regional Conference on Agricultural Policies to Promote Food Security and Agro-Forestry Productivity Seoul, Republic of Korea 12 October 2015
2 Relative Importance of Thai Rice To the Thai Economy Rice is a staple food for the Thai people (national food security) Constituted about 15% of agricultural GDP Ranked 2 nd after rubber in terms of ag. export earning Shared about 15% total ag. export Paddy field occupied about 50% of agricultural land About 4 millions or 2/3 of the total farm households (6millions) grew rice Rice farming is way of life of the Thai farmers and is the original sources of the Thai culture 2
3 3 Old age 33 %> 60 years Average 56 years Small scale More Than 70% holding < 30 rai Average land holding 26 rai Average paddy field 18 rai Average 4.5 persons/household Thai Rice Farmers Low education 80% Primary school Rainfed Only 30 % irrigated Poor 42%< Poverty line: 2,500 Baht/person/Month Low yield Majar crop< 500 kg/rai Second crop < 800 kg/rai Average net family Income Non-irrigated 139,282 baht/hh/yr Average net family Income Irrigated 298,454 baht/hh/yr 86% of farmers have cell phone and 21% have computer Exchange rate : 1 US$ Baht
4 Challenges Issues Issues Productio n Effect Trade Effect External Factors Strategy Climate Change adaptation/ mitigation Natural Disaster promote crop insurance variety improvement (flood tolerant, drought tolerant) Growing World Population about 50 % consume rice as a staple food about 800 million people still undernourished Free Trade Agreements (FTA) reduce tariff measures increase non-tariff measures Changing in Consumers Behavior prefer healthy and safety food (less carbohydrate) prefer green products prefer local food prefer traceability Food Security Concerned of Importing countries to be self sufficiency/less import increase production improve productivity reduce cost of production improve quality improve quality establish traceability system look for new markets
5 Challenges Issues Issues Land Conversion, limited suitable land Production Effect Trade Effect Internal Factors Strategy intensive farming Water Shortage required both supply and demand management Labor Shortage required machineries Spread of Pests and Diseases change cropping system variety improvement (pests and diseases tolerant) Price Volatility price insurance Government Policy sustainable policy
6 National Rice Strategy Production Strategy 1. Manage the rice planted area and production appropriately to match the demand and supply 2. Improve rice production efficiency 3. Improve quality and create value of rice products 4. Strengthen rice farmers organizations
7 National Rice Strategy Marketing Strategy 1. Establish a sustainable and stable rice development plan 2. Create a fair rice trade system 3. Promote the adoption of rice standard in production and trade 4. Develop a potential in rice trade system 5. Create a value in rice consumption 6. Create innovation in rice industry 7. Improve the logistics management
8 Rice Policy of the National Rice Policy and Management Committee 1. Promote rice consumption worldwide. 2. Promote agro tourism and farmstay for Thai people and foreign tourist to observe and appreciate the hardworking of the rice farmers. 3. Encourage the young generation to be the rice farmers by organizing a study visit to the young successful rice farmers. 4. Provide a scholarship to farmers children to study agriculture and return home to be a professional farmers.
9 Rice Policy of the National Rice Policy and Management Committee (Cont.) 5. Create value and promote local rice varieties for niche market. 6. Determine the agro-economic zone for rice growing in order to improve efficiency and balancing the demand and supply of rice. 7. Restricted the transformation of suitable area for rice to other non- agricultural activities. 8. Promote and encourage farmers to adopt crop rotation practice in their paddy fields to improve the soil fertility and preventing the spread of the rice pest and diseases.
10 Rice Policy of the National Rice Policy and Management Committee (Cont.) 9. Promote and support the establishment of rice seed bank, fertilizer and chemical bank for farmers. 10. Strengthen the capability of rice research and development institutes 11. Assist the rice farmers in reducing the cost of production by promoting the use of organic fertilizer to substitute for chemical fertilizer and negotiate with the private sector to reduce the input prices and service charges.
11
12 1. Establish the rice restructuring program consistent with the rice zoning Suitable Area - Improve efficiency (Cost reduction ) - Improve Quality of rice products - Promote niche market rice Unsuitable Area - Change to other cash crops - Promote mixed farming Reduce the second rice crop area
13 2. Adopt the area-based (large field) approach in extension system - Achieve the economy of scale (increase the bargaining power of the farmers) - Improve the market access of rice farmers - Facilitate the integration of work among public agencies 3. Establishing 15 new Rice Seed Centers of RD (23 existing centers) 4. Establishing Community Rice Seed Banks (73 Units in 3 years : )
14 Rice Restructuring Plan Total Existing Rice Area Suitable Area Unsuitable Area Improve Efficiency & Quality Niche Market Rice Mixed Farming Change to other Crops
15 Million tons Target of Rice Restructuring by Type of Rice, (Paddy) Pre-restructuring Post-restructuring Demand Supply
16 Area-based Extension Economy of Scale Official Integration Small Farmers Large Field Approach Land Consolidation (Ownership Unchanged) Establishing Farmers Organization Executive Committee Field Manager Site Specific Technology (SST) Demonstration/Field day Standard Setting (GAP/Organic) Mass media/social Media Campaign Public Private Partnership (PPP) Competition and Rewards Easy access to the Market Easy access to the Technology
17 Area-based Approach in Rice Production Extension Quality Rice Grain Producers (Q-grain) ( Small Farmers, Large Field Approach) Fried Egg Model Seed distribution area 500-1,000 hectares 17 Marketing Plan Production Plan Cropping System Plan Technology Transfer Plan Supervise by Field Manager Seed distribution area farmers hectares Community Rice Center (Seed Producers) (Q-seed) 17
18 Thank you for your kind attention Sawasdee Krab 18
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