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Sustainable Agriculture and Food Security in Thailand:

National Government Perspectives & Policies

Ladawan Kumpa

Deputy Secretary General

National Economic and Social Development Board (NESDB)

Presented at Higher Education for Sustainable Agriculture and Food Security in Thailand and Southeast Asia, School of Agriculture Resources (CUSAR), Bangkok

Presentation Outline

Agricultural Situation & Problems

Agricultural Development Plan

Importance of agricultural sector

Thailand’s development has been generally based on agricultural production

LABOR: The agricultural sector is mainly supported by smallholders , about 1/3 is presently employed in agriculture.

EXPORT: Although its GDP share has decreased substantially, it still accounts for 30% of total exports by value, and agricultural imports remain very small.

LAND: 133 million rais or 41% of total land is engaged in agricultural sector.

- 68 million rais or 50% is accounted for paddy area, - 30 million rais or 23% is accounted for other

croplands.

SAFETY NET: The agricultural sector is the unofficial social safety net which helps absorb the newly unemployed during the crisis by Share of GDP in agricultural sector has

been decreasing.

• Agricultural production accounts for only 8%

of GDP in 2014.

• However, the agricultural sector still has an important role to play in the country’s

Agriculture is highly diversified and specialised, different geography conditions

Diversification of agriculture in Thailand

• Main agriculture produce are

lychee and longan

• Plain area / low rainfall and

drought

• Main agriculture produce are

cassava and maize

• Plain area / Irrigated area • Main agriculture produce are

rice

• Good logistics and supply

chain management –

livestock and chicken

• Coastal area / high rainfall • Main agriculture produce are

palm oil, para rubber, fisheries (shrimp)

In 2013, total value of agricultural product exports was 1,268,217 mil B.

Main Agricultural Export Commodities

major agricultural products, 2012 - 2013

Share of export value by major country, 2013

Problems of internal factors in agriculture

Characteristics of Thailand’s Agriculture

LAND

LABOR

CAPITAL

INPUT

• Small average farm size

average farm holding area per household 4.07 ha

farmers in the Central plain region had the highest farm size 5.9 ha, while the Northeast 3.71 ha

• Decrease in percentage of farmers own farms

 prevent expansion in investment and returns to scale

farmers in the Central plain had the highest rented area/farm

• Extensive utilization of land but limited fertile and irrigated land

the majority of the farming population depends on the weather and other natural conditions

• Surface soil which contains nutrients were lost covering and

the damaged area has been increasing

directly hurt agriculture production as it reduced production efficiency and accelerated the use of chemicals

Problems of internal factors in agriculture

Characteristics of Thailand’s Agriculture

LAND

LABOR

CAPITAL

INPUT

LABOR

• Decrease in agricultural laborers 37% of total labor,

increase in average age of the agricultural labor

• The intensive chemical use of commercial farming damaged

farmers’ health and quality of life

increase in illnesses and casualties from pesticides (both producer and consumer)

CAPITAL / TECHNOLOGY

Source: NESDB (2013)

Sources of growth in agriculture

LAND

LABOR

CAPITAL

INPUT

OUTPUT

Natural Disasters

Low agricultural productivities and poverty in agricultural sector

Characteristics of Thailand’s Agriculture

POVERTY

• Farmers suffer net losses from their

production, especially for small farmers.

• Low product price, debt, and quality of life are main problems to the farmers

Economic crops: Rice, Cassava, Para-rubber

Rice Yield (2009 – 2013)

Para-rubber Yield (2009 – 2011) Cassava Yield (2009 – 2011)

US China Japan Korea Vietnam Indonesia Laos Thailand

India Vietnam Ivory Coast Thailand Sri Lanka Brazil India Indonesia Thailand Vietnam Ghana Brazil

Kg./rai

Kg./rai _Kg./rai

Presentation Outline

Agricultural Situation & Problems

Agricultural Development Plan

Evaluation of national plans to balance and sustainability

National Development Plans

Focused on utilizing

workforce and natural

resources

An imbalanced

economic growth

1

_{– 7}

_{Development Plans}

8

_{– 10}

_{Development Plans}

Moved Towards

Sufficiency Economy

Stressed on Human

Capital development

11

_{Development Plan}

(2012-2016)

Use Human Capital +

Technology and Innovation

Evaluation of national plans to balance and sustainability

Situation changes during 11

th

NESDP



Major global changes



Global rules and regulation



Multi-polar world economy



Aging society



Global climate change



Global security on food

and energy



Technological progress



International terrorism threat



Major internal changes



Economic and financial aspect



Social aspect



Natural resource and

environmental aspect



Spatial aspect

Objectives and Targets

Under 11

_{National Economic and Social Development Plan}



Main Objectives



To promote a peaceful society with good governance.



To promote sustainable development through restructuring the economy,

society and politics, and nurturing natural resources and environment.



To prepare the people and the community to be resilient to changes



Key Targets



Thai society is more peaceful and has good governance.



All citizens are under social protection.



Total factor productivity in every sector is increased.



Shares of agricultural and service sectors in the economy are increased.



Share of creative economy is increased.



Thailand’s competitiveness ranking is improved.

Under 11

_{National Economic and Social Development Plan}

Six Development Strategies

Creation of Quality Human Capital and Society

• Promoting the just society

(Strategy 1)

• Human Development toward a sustainable lifelong learning society (Strategy 2)

Economic Restructuring

• Strengthening of agricultural sector , food & energy security

(Strategy 3)

• Restructuring the economy toward quality growth

and sustainability

(Strategy 4)

• Creation of regional connectivity for social and economic stability

(Strategy 5)

Management of Natural Resources

• Managing natural resource and environment toward

Risk Factors

Challenges affecting agricultural development

• Depletion of Natural Resources in Thailand

•

Climate change is more severe

• Almost small-scale farming are facing high production cost

•

Increase in Bioenergy Demand and Production

•

Free Trade Agreement and ASEAN Economic Community

AEC Blueprint : Agriculture and Food

o Tax free within year 2015

• Except the sensitive list (<5%),

• Except highly sensitive list (tax reduced varied in different rate )

o Quality safety and security of food

• HCCP, GAP, GAHP, GHP, GMP,

• R&D and Technology transfer

Market Trend

Challenges affecting agricultural development

Creative

Healthy

Targets

The 11

th

National Plan in Agriculture

 To empower the agricultural sector to become an efficient production base that can produce food and energy with value, quality and high standards, including using environmentally friendly methods to generate

sufficient food supplies to meet market demands with fair trade and at affordable prices, but with

consideration for food security as the first priority

An increase in the proportion of agricultural commodities and agro-industrial products to be at least 16% of GDP

Expanding sustainable agricultural areas

at least 5% per year and enhancing consumer access to safe and healthy food at fair prices

An improved employment security and

income for farmers to enhance the ability to repay debt

Agricultural households to become

self-sufficient and consume up to 50% of their own produce by 2016

An increase in ethanol and biodiesel production with the target of not less than 6.2 and 3.6

Strategy for Strengthening of agricultural sector , food & energy security (1)

The 11

th

National Plan in Agriculture

Regain and encourage good agricultural culture and norms, especially the way of life related to sustainable farming

Restore fertility of land resource, as well as develop integrated water resource management and increase efficiency of water resource use

Establish an organization and land management system to drive the process of land distribution equitably, distribute land rights to farmers

Accelerate the process of expropriating private land for agricultural land reform and enable tax mechanisms to encourage land utilization

Conserve and protect productive agricultural land and support small-scale farmers to own land for cultivation or to have the rights to arable land

1. Developing the natural resource base to strengthen

the agricultural sector

Strategy for Strengthening of agricultural sector , food & energy security (2)

The 11

th

National Plan in Agriculture

Develop and enhance knowledge, science and technology appropriate to agriculture through learning centers and local scholar networks

Encourage production supporting the biodiversity base in accordance with climate and environmental conditions and emphasize on R&D esp. technology development Control standards of imported and used of chemicals and pesticides in farming ;

encourage use of organic matters, and educate farmers to use pesticide in proper way Promote agricultural production in accordance with geography, soil productivity,

markets, infrastructure such as irrigation and logistics system

Emphasize agricultural research and development, especially flora and fauna species which are adaptive and able to respond to the impact of climate change

Strategy for Strengthening of agricultural sector , food & energy security (3)

The 11

th

National Plan in Agriculture

Promote logistic management and productivity development for the agricultural sector that can connect to the whole supply chain

Promote the private sector and local communities to play a role in agricultural product and food management by cooperating with agricultural institutions

Strengthen the central market and agricultural future exchange market by providing incentives

Develop cash aquacultures , production technology to reduce production cost, and improve and develop qualified breeds / increase the value of livestock production

Support communities to increase value in food and energy production and services in economic development on biodiversity and local wisdom to create uniqueness

3. Creating value added for agricultural products throughout

the supply chain

Strategy for Strengthening of agricultural sector , food & energy security (4)

The 11

th

National Plan in Agriculture

Promote Thailand as a centre of food processing in ASEAN by improving efficiency in import procedures for material inputs; strengthen small-scale farmers

Develop agricultural institutes, cooperatives, and small and micro community enterprises as mechanisms to enhance self reliance and sustainability for farmers Improve farmers’ social welfare / Attract youths, young farmers and skilled labor to engage in farming

Promote the fairness of the contract farming system to assure guaranteed incomes and secure raw materials supplied

Develop an income / crop insurance system covering all farmers in order to continue to restructure to attain sustainable production with increasing productivity

Strategy for Strengthening of agricultural sector , food & energy security (5)

The 11

th

National Plan in Agriculture

Develop an infrastructure or mechanism to systematically enhance food security in the community by supporting the role of locals to manage infrastructure services

Promote the application of zero waste principles in agricultural activities in order to utilize farm residuals and by-products to produce bio-energy

Link local production and consumption networks which can establish direct relationship between consumers and producers

Promote the sustainable agriculture following the Philosophy, such as organic farming integrated farming and new theory agriculture, especially for small-scale farmers

Promote farmers to plant trees as well as community forests

5. Establishing food security and the development in bio-energy

at household and community levels

Strategy for Strengthening of agricultural sector , food & energy security (6)

The 11

th

National Plan in Agriculture

Raise awareness of efficiency of bio-energy utilization

Provide mechanisms to monitor bio-energy prices resulting in price stabilization and fairness to consumers and producers without affecting the nation’s food production Enhance the efficiency of bio-energy production and utilization in both

the manufacturing and service sectors

Establish the management system for agricultural product for food and energy by focusing on food security

Promote research and development, and technology application to increase energy crop productivity as well as research on other non-food crops

6. Securing bio-energy production to support the country’s development

and strengthen the agricultural sector

Presentation Outline

Agricultural Situation & Problems

Agricultural Development Plan

Of Sustainable Agricultural Development from

FAO

Definition: Sustainable Agriculture

“The management and conservation

of the natural resource base, and

the orientation of technological and

institutional change in such a manner

as to ensure the attainment and

continued satisfaction of human needs

for present and future generations.

Such development... conserves land,

water, plant and animal genetic

resources, is

environmentally

non-degrading, technically appropriate,

economically viable and socially

By FAO

Sustainable Agricultural Practices

Agricultural systems, in both developed and developing countries, need to

use new approaches to increase food supplies while protecting the

resources on which they depend.

• fully exploit natural processes such as recycling nutrients, using plants that fix their own nitrogen and achieving a balance between pests and predators; • reduce the reliance on inputs such as mineral fertilizers and chemical

pesticides;

• diversify farming systems, making greater use of the biological and genetic potential of plant and animal species;

• improve the management of natural resources;

• rotate crops or develop agroforestry systems that help maintain soil fertility.

The ultimate objective should be the optimum mix of agricultural practices,

both old and new, in order to maximize sustainable output within the

5 Types of sustainable agriculture practices

Classification of Sustainable Agriculture in Thailand

Farming system that has at least two different agricultural activities in the same field, for example, paddy and fish raising, or pig farming, fish raising and vegetable plantation.

• Practicing various agricultural activities at the same time helps reduce costs, that is, the economy of scale is working. For instance, manure and other farm residues can be used as fertilizer when planting crops.

• This system is suitable for a small-scale farmer, letting him make best use of limited field area.

• In practice, the system is widely used in the central area of Thailand, where there are a plenty of water resources.

Farming system that uses only organic fertilizer and herb-based insect-control compound.

• The reasons of practicing organic farming are a higher demand for organic food and demand for improving soil quality and underground water quality. • Until recently, organic rice and vegetables had been sold only in Bangkok

5 Types of sustainable agriculture practices

Classification of Sustainable Agriculture in Thailand

Natural farming's concept is no tillage, no application of fertilizer, herbicide and insecticide.

• For the ecological preservation aspect, natural farming is ultimate sustainable agriculture practice.

• At the present, there is nowhere perfectly practicing the natural farming system in Thailand. Yet, a few natural farming cases can be seen in the Northeastern.

Agroforestry is an idea to put agriculture and afforestation together, that is, to plant cash crops or raise livestock while planting trees in the same area.

• Its objectives are not only to increase farmers' income, but also to decrease deforestation induced by agricultural area expansion. Besides, it also helps improve the soil quality and biodiversity.

• Agroforestry is conducted in the Northern and Southern areas.

Agricultural system proposed by His Majesty the King Bhumiphol Adulyadej in 1993. Its basic concept is self-sufficiency.

• Crop selling is a next step after attaining self-sufficiency.

New Theory Farming System in Thailand

Divide the field into 4 parts in the approximate ratio of

30:30:30:10

30% Pond

•Water saving for all

year round

•Fish Aquaculture to

increase more income

•At the edge of the

pond - growing vetiver grass to protect soil erosion

30% Paddy Field

•One crop /year

30% Trees/ crops

•Fruits trees •Perennial trees •Annual tress •Herb and spice

•Multi-purpose trees •Field crops 10% Residential •Other activities: vegetable, herb, ECONOMY

Concept and Determinant Factors of Each Pillar

Focus on increasing productivity, food security and sustainable development

National Agricultural Plans

- To increase productivity continuously in order to respond to export markets especially cash crops (rice, corn, cassava rubber)

- To develop the irrigation system - To provide soft loan for farmers

1

_{– 3}

_Plan

4

_{– 7}

_Plan

8

_{– 10}

_Plan

- To increase productivity continuously - To restructure agricultural production

- To develop farmers’ skill to increase ability at making decision on marketing instead of supporting production inputs

- To develop farmers’ skill to increase ability at making decision on marketing instead of supporting production inputs

- To develop quality and standard for Thai products in order to respond to the non-tariff barriers

Sustainable Agriculture Promotion in 8th _Plan

Aim to revive the rural community using sustainable farming by reaching 25 mil rai for sustainable agriculture

Agricultural Development Plan

Increasing efficiency and productivity in agriculture

Food Security

1

Plant Genetic Improvement

• Increase yield, quality and nutrition

• New plant varieties that are well-suited to particular geographical locations

• Plants that are suitable for harvesting and production technologies

• Plants that are tolerant of local pests and diseases

Case: Maize breeding for drought tolerance

2

Pest Management

Case: Water chestnut sweeping net

Case: Area-wide integrated control of fruit flies

• Integrated pest management (IPM system) = area-wide

pest management: key strategy

Value Creation for agricultural products

Food Security

Dried Som Tum “Thai Smile”– vacuumed and dried

food – keeps the freshness of vegetables for Som Tum. Cooked in microwave oven for a few minutes, you can enjoy the authentic Thai Som Tum in terms of taste, sweetness, as well as preserved nutrition

‘Kessara Bakery Shop’ has an idea to bring PlaShaon, local fish in Singburi, as an important ingredient for cake and ice cream

‘Proud’ is the Thai sweet brand name.

Its selling point is to package Thai traditional sweets and dried fruits in nice-looking forms. It is suited for gifts in every occasion.

Development of aquaculture

Food Security

Development of the

Resource Exploration

Standardization

Value Added Product Development

Organic Fishery

Aquatic Species

Development

Consumer

Confidence

Building

Development of livestock/ poultry production

Food Security

3

1

Cattle production : Thai-French Natural Beef

Case: Pon Yang Kham’s Traceablity system links animals to final products _{• Various techniques to improve}

livestock production • Breeding

• Standard production procedures

• Animal epidemic control • Animal fee

4

2

Poultry Product Safety

• Broiler Farm Standard (2002) • Chicken Breeder Farm

Standard (2003)

• Poultry Hatchery Standard (2003)

• Layer Farm Standard (2003) • Duck Breeder and Duck Farm

1. Organic Agriculture Development

Good cooperation and networking between

entrepreneur and farmer

4

1

The organic export of Thailand valued US$ 100 mil. in 2010

_{(rice, fruit, vegetable)  growing market for OA}

Thailand has broad variety of indigenous plants

suitable environment

2

Thailand has intensive local wisdom and knowledge in agriculture:

OA involved with self-sufficiency and local content

3

OA – less environmental impact

Under the National Organic Agricultural Development Committee

National Organic Agriculture Plan

Objective: Aim to..



Upgrade the quality of life of

both farmers and consumers



Bring about food security



Increase competitiveness



Reduce poverty



Sustainable development

Focus on..



People-centered approach



Sufficiency Economy philosophy:

advocated by

His Majesty the King

4 Main Strategies

National Organic Agriculture Plan

 Support R&D/ Innovation  Initiative public awareness campaigns to stimulate demand and promote consumption  Establish national organic information  Support local networks strength  Extend local markets  Develop marketing knowledge  Support supply chain networking  Develop OA standard  New OA export markets  Form effective OA development mechanism

2. Thailand: Kitchen of the World

1) Halal Food

High economic value

Thailand’s Food Export Value

World leading exporter of agricultural and food commodities

Export value of World’s food products Export value of potential food product USD billion

Export value of potential food product to Thai Halal

Export value of potential food product to Thai Halal for OIC market Export value of potential food product to World Halal

Thailand’s export value for OIC market

 In 2012, export value of agricultural commodities was 1.35 trillion Baht, including food products (source: OAE)

the potential food products that can level up to the Halal standard was valued at USD 1.01 trillion

 In 2012, the potential food products that can level up to the Halal standard for OIC export market was valued at USD 6,534 trillion.

1) Halal Food

Strategic Plans

 Encouraging entrepreneurs to Halal standard production

 Developing Halal industry trough supply chains, linking to other sector such as tourism & services

 Expanding domestic and international markets widely by the collaboration with Thai embassy, Agricultural Ambassador and Commercial Ambassador

To develop Halal

Accreditation

To strengthen

Halal business &

production

 Developing the system of Halal Accreditation internationally and improving related law and regulations according with current changes

 Developing HR to be Halal Expert or Halal Specialist

 More financing to support enterprise in Halal production

 Creating Thailand’s Halal product image by the collaboration with religious org. ,gov. agency and public media

 Expanding domestic and international markets widely by the collaboration with Thai embassy, Agricultural Ambassador and

Public relation &

market expansion

2) Organic Food

The world’s organic market value tends

to expands continuously. In 2011 the

value was estimated at

63,000

USD billion

.

The largest organic market is USA and

then Germany and France.

(source: Organic Monitor)

Thailand’s organic market value also

expands continuously. In 2010 the

production of organic food was

47,547

tons, valued at 1,752 million baht. The

organic farm area now is 215,548 rai.

World ‘s organic food market World ‘s organic food market

Strategic Plans

Develop

knowledge

and

innovation

• Promote R&D and technology transfer

• Support the research related to food substance derived from organic produce

Develop

organic

supply chain

• Develop an infrastructure for organic farming

• Strengthen the networking of organic production and market

• Create public awareness of the consumption pattern to change to organic food

Create

organic

standard for

Thai product

• Develop organic standard to create customer acceptance for both domestic and international market

• Establish the strict accreditation for organic produce

Public

relation &

market

• Promote Thailand as the center of organic food production in SE Asia • Expand domestic consumption and international market through the AEC

collaboration

• Raise the public awareness of consumption and production pattern to

Food Development Plan for Export

Level up the standard

accreditation image and Thailand’s Promote Thai food World Kitchen

Promote R&D for value creation through the supply

chain

Develop Human resource and international

collaboration

• Food export increases by 10% a year

• Food enterprises having the standard increases by 5% a year • Thai Food image are good taste high quality and healthy • Create One Stop Service for food industry development

1

2

3

₄

• Promote food safety awareness

• Strict to import process • Promote networking of

safety consumption

• Create brand and image through public relation • Open new market channel • Promote the road show of

Thai food

• Create value of raw material

• Create the collaboration of R&D

• Promote food safety through supply chain • Develop food processing

machine

• Increase food quality • Promote Thailand to be

the World’s kitchen • Improve law and

legislation on food • Develop HR for food

industry development • Create the international

networking of academic

Targets

Food development for export

Master of

Science Program

in Sustainable Agriculture in Thailand

Higher Education for Sustainable Agriculture

Objectives:

To build up the research capacity

and research skill by integrative approach

that can be applied to enhance

the sustainability of agriculture and

environment at the international level

Academic Institutions:

• Faculty of Agriculture, Kasetsart University

• Faculty of Science and Technology,

Thammasat University

• Faculty of Agriculture, Khon Kaen

University (Systems Agriculture)

• Nakhon Pathom Rajabhat Univesity

Training Program

in Sustainable Agriculture in Thailand

Higher Education for Sustainable Agriculture

• Prince of Songkla University

- Organic Agricultural Strategies

in Thai Style to Food Safety

• Khon Kaen University

- International Training in

Sustainable Crop Production

• Maejo University

- Organic Agriculture

Highlight issues on sustainable agricultural education

Higher Education for Sustainable Agriculture

Sustainable Agricultural Education

1

2

3

4

5

6

Sustainable Agriculture and Food Security in Thailand:

National Government Perspectives & Policies

Ladawan Kumpa

Deputy Secretary General

National Economic and Social Development Board (NESDB)

Presented at Higher Education for Sustainable Agriculture and Food Security in Thailand and Southeast Asia, School of Agriculture Resources (CUSAR), Bangkok