Why is agriculture important to the Thai economy?
Agriculture is a major contributor to the Thai economy. It is important to the nation’s sustainability, and almost half of all Thailand’s labour workers are employed in the farming industry. Here are some interesting facts you may not have known about agriculture in Thailand.
What are the main agricultural products of Thailand?
Other major Thai agricultural products and exports. Thailand is the top exporter of durian and one of the top two global sugar exporters. Thailand is also ASEAN ’s primary producer and exporter of dairy products; the nation produces around one million tonnes of milk per year.
How much does it cost to work in agriculture in Thailand?
Forty percent of the population work in agriculture-related jobs. The farmland they work was valued at US$2,945 per rai (0.395 acre; 0.16 ha) in 2013. : 9 Most Thai farmers own fewer than eight hectares (50 rai) of land.
How important is aquaculture to Thailand’s economy?
Poultry production in Thailand is among the top ten in the Asia Pacific region. Apart from livestock farming, aquaculture has also served as a crucial part of Thai food security and contributes even more so to GDP than livestock farming, with approximately 108 billion Thai baht contribution to the GDP in recent years.
What is Thailand’s main agricultural?
Agricultural production has diversified significantly to meet domestic and world market demand. Among the crops produced for the market are cassava, corn (maize), kenaf (a jutelike fibre), longans, mangoes, pineapples, durians, cashews, vegetables, and flowers.
What are the main industries in Thailand?
Among the number of industries that Thailand has, the main ones that largely contribute to the growth of the economy are; Tourism, Agriculture, Export and Electronics. In Thailand, tourism has been the main driver of economic growth, contributing about 15% of the GDP.
What are the roles of agriculture and agriculture’s contribution to the Thai economy and society?
Thai agricultural sector became a major comparative advantage in the international trade. In addition, as being the labor-abundant country, agriculture supplied an industrial sector with cheap labors and other factors of production. The role of agriculture in growth was undeniable.
How much of Thailand’s land is used for agriculture?
Agricultural land (% of land area) in Thailand was reported at 43.28 % in 2018, according to the World Bank collection of development indicators, compiled from officially recognized sources.
What are 3 major industries in Thailand?
Key Takeaways Thailand, Southeast Asia’s second-largest economy, has grown in the past generation or two from an undeveloped country to what the World Bank calls a “middle-income” country. Its three main economic sectors are agriculture, manufacturing, and services.
What are the top 5 industries in Thailand?
Main industries of Thailandappliances.computers and parts.furniture.plastics.textiles and garments.agricultural processing.beverages.tobacco.More items…
Does Thailand depend on agriculture?
Agriculture accounts for only six percent of GDP in Thailand but the sector employs around one-third of the country’s labor force. Thailand is the world’s largest exporter of tapioca products, rubber, frozen shrimp, canned tuna, and canned pineapple.
Does Thailand rely on agriculture?
Agriculture in Thailand is highly competitive, diversified and specialized and its exports are very successful internationally. Rice is the country’s most important crop, with some 60 percent of Thailand’s 13 million farmers growing it on fully half of Thailand’s cultivated land.
How much does agriculture contribute to GDP in Thailand?
8.63 percentIn 2020, the share of agriculture in Thailand’s gross domestic product was 8.63 percent, industry contributed approximately 33.1 percent and the services sector contributed about 58.27 percent.
How many people in Thailand work in agriculture?
However, it also generates the lowest value added per worker with the slowest growth. Agriculture sector in Thailand employs around 30 percent of total labor force covering 6.4 million households.
What do we get from agriculture?
It includes the preparation of plant and animal products for people to use and their distribution to markets. Agriculture provides most of the world’s food and fabrics. Cotton, wool, and leather are all agricultural products. Agriculture also provides wood for construction and paper products.
What is Thailand’s main export?
The country mainly exports manufactured goods (86 percent of total shipments) with electronics (14 percent, vehicles (13 percent), machinery and equipment (7.5 percent) and foodstuffs (7.5 percent) being the most important. Agricultural goods, mainly rice and rubber, account for 8 percent of total shipments.
What is the most important crop in Thailand?
Agriculture in Thailand is highly competitive, diversified and specialized and its exports are very successful internationally. Rice is the country’s most important crop, with some 60 percent of Thailand’s 13 million farmers growing it on fully half of Thailand’s cultivated land.
Why did agriculture decline in Thailand in the 1960s?
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 self-sufficiency, rural social support, and cultural custody .
How much coconut is grown in Thailand?
Thai coconut plantations occupy about one million rai of land and produce 800 million coconuts per year. But Thailand consumes more coconuts than it produces. To redress the shortfall, the Commerce Ministry approves coconut imports, which have since glutted the market. As of 2018#N#[update]#N#coconuts are sold for five to six baht per fruit. Thai growers claim that, given harvest and delivery fees of 2.5 baht each, their profit is about one baht per fruit, or 5,000 baht per rai per year, lower than the minimum wage. In 2017, Thailand imported 416,124 tonnes of coconuts worth 4.62 billion baht: 384,102 tonnes from Indonesia; 15,613 tonnes from Vietnam; 2,864 tonnes from Myanmar; and 13,524 tonnes from Malaysia.
What is Thailand’s biggest export?
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.
How much sugar is produced in Thailand?
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);
What is Thailand 4.0?
Thailand’s military government in 2016 introduced “Thailand 4.0”, an economic model designed to break Thailand out of the middle income trap. For agriculture, Thailand 4.0 aims at a seven-fold increase in average annual income of farmers from 56,450 baht to 390,000 baht by 2037.
How much land does Thailand have?
Most Thai farmers own fewer than eight hectares (50 rai) of land. Other agricultural commodities produced in significant amounts include fish and fishery products, tapioca, rubber, grain, and sugar. Exports of industrially processed foods such as canned tuna, pineapples, and frozen shrimp are on the rise.
How has agriculture improved Thailand?
Agriculture improved the lives of many Thai people. Thailand’s farming industry has played a big role in improving the lives of Thai people over the last few decades. Developments in farming led to a decrease in national hunger levels and undernourishment in children.
What are some interesting facts about agriculture in Thailand?
Agriculture is a major contributor to the Thai economy. It is important to the nation’s sustainability, and almost half of all Thailand’s labour workers are employed in the farming industry.
What is the most important commodity in Thailand?
Rubber is a sought-after commodity. Thailand is one of the world’s biggest producers and exporters of rubber. The country supplies around 40% of all the natural rubber in the world. Thai rubber is mainly used to produce tyres for aeroplanes and motor vehicles.
Why do Thai farmers use machinery?
For some farmers, this is because of insufficient means to purchase or rent mechanical equipment, whereas for others, it is either a reluctance to change or a desire to retain, or return to, more traditional (and cheaper) methods.
What is the main crop of Thailand?
Rice is one of Thailand’s major crops, with almost 60% of all Thai farmers producing the grain. Half of Thailand’s cultivated land is dedicated to rice growing and the nation is one of the largest rice exporters in the world. Rice is also one of Thailand’s staple foods, with each person eating, on average, almost 115 kilograms (about 253 pounds) per year.
Where is the Thai farm located?
Locations of Thai farms. Much of Thailand’s agricultural land can be found in Central and Northeast Thailand. Indeed, Central Thailand is often referred to as Thailand’s “rice bowl” or “bread basket”, with the relatively flat and wet lands ideal for growing various items. Most of Northeast Thailand is arable land too.
Where is coffee grown in Thailand?
Most of Thailand’s coffee is grown in the mountains in the north, mostly in Chiang Rai. Southern Thailand has made huge developments in the farming sector too.
What is the importance of forestry in Thailand?
The importance of forestry subsector in Thailand. Last but not least, the forestry in Thailand also makes a major contribution to the Thai economy. Thailand is one of the most geographically fertile countries in Southeast Asia, Thailand’s forest area accounted for around one third of the total land area.
What are the major crops in Thailand?
Apart from rice cultivation, crop plantation in the country has also extended to rubber, sugarcane, cassava and other major crops including shallots, potatoes, garlic and onions. In recent years, the production volume of sugarcane in Thailand was the highest among other major crops. The contribution of livestock and aquaculture subsector to …
How much does aquaculture contribute to Thailand’s GDP?
Apart from livestock farming, aquaculture has also served as a crucial part of Thai food security and contributes even more so to GDP than livestock farming, with approximately 108 billion Thai baht contribution to the GDP in recent years. The importance of forestry subsector in Thailand.
How many acres of land does Thailand have?
Major crops in Thailand. With approximately 127 million acres of land, around 52 percent is suitable for agriculture. Although crop cultivation in Thailand is very diverse, rice has always been the breath of the Thai agricultural society and has played a major role in the country’s tradition. The country’s rice production is among …
Why are cattle and buffalo important?
Cattle and buffalo were mainly used to assist in rice cultivation in the past and was increasingly farmed after 1985 as a response to food trends. Poultry production in Thailand is among the top ten in the Asia Pacific region.
What are some examples of Thailand’s natural advantages?
For example, rubber tree timber and plantation teak were one of the wood products that had the highest production volume. This text provides general information.
Is agriculture a subsector in Thailand?
Agriculture in Thailand – Statistics & Facts. Agriculture is a very competitive and diverse subsector in Thailand. Since agriculture has been a major part in Thailand’s development, the sector has presented many job opportunities for the Thai population, along with the services sector. In terms of the sector‘s impact on Thailand’s economic growth, …
What is the main crop of Thailand?
Agriculture, forestry, and fishing. Rice is not only the main staple crop of the country but also the primary agricultural export. Thailand has for decades been one of the world’s largest rice exporters.
What is the role of the Bank of Thailand?
The Bank of Thailand, established in 1942, issues the baht, acts as central banker to the government and to the commercial banks, and serves as the country’s financial agent in dealing with international financial markets, international monetary organizations, and other central banks. Together with the Ministry of Finance, it is at the pinnacle of the government’s economic technocracy and plays the key role in managing the economy. Three other government financial agencies are also important: the Board of Investment, which offers financial incentives to domestic and foreign entrepreneurs; the National Economic and Social Development Board, which formulates the government’s five-year plans; and the Budget Bureau, which compiles the annual national budget. These government bodies focus primarily on creating the proper financial conditions for business to grow and prosper, leaving business decisions themselves to the private sector.
What is the BIBF in Thailand?
Originally envisioned as a means to establish Bangkok as a major financial centre rivaling Hong Kong and Singapore and serving all of Southeast Asia, the BIBF in fact became a channel by which foreign funds (primarily in the form of short-term loans) could enter Thailand’s domestic economy. Load Next Page.
What is the main source of protein in Thai diet?
Fish and other aquatic life have been the major source of protein in the Thai diet since ancient times. As deforestation and pollution of streams and rivers led to a decline in freshwater wild fish, there has been a marked increase in the raising of fish in ponds, especially in northeastern Thailand. Since the 1970s, Thailand has been one of the …
What happened to Thai commercial banks?
A restructuring of Thai commercial banking took place as a result of the economic crisis of the late 1990s; foreign holdings significantly increased , while the number of family-controlled banks dropped sharply. Some of the original family interests and leadership, however, persisted despite foreign ownership.
Why did cattle production increase in the Northeast?
However, cattle production in the northeast increased because of a significant rise in demand for beef in urban areas. The northeast is also a major producer of pigs, to meet a growing demand for pork.
Where is rice grown in Thailand?
The main commercial rice-producing areas of Thailand are the Chao Phraya basin and the Khorat Plateau.
What is Thailand’s role in the world?
Thailand is set to continue to play an important role as a global food exporter, particularly in the key commodities of rice, sugar, rubber and produce. As the effects of El Nino dissipate, production across the board should also continue to rebound and output should expand significantly over the next few years, barring any unforeseen major weather event. Ongoing regulatory and subsidisation reforms should also help with reducing market distortions and inefficiencies going forward, although their effectiveness will ultimately depend on the willingness of policymakers to implement genuine reforms in the agricultural sector, rather than just rearranging subsidisation in addition to other assistance schemes.
What is rice production in Thailand?
Rice production and consumption has long been a driving factor in Thailand, with the success or failure of the primary food staple often inextricably linked to the social, economic and even political fortunes of the country. Fertile rice paddies stretching across large swaths of the country employ millions of Thais, providing them with a generally stable, although not generally lucrative, income source. This block of the population is also large enough to garner the attention of competing political parties, with politicians often implementing policies designed to curry favour (and ultimately votes) with farmers. While these policies can make for strong political support, the larger macroeconomic effects can sometimes prove counterproductive to both the agricultural sector and the economic development of the country as a whole.
What is the most lucrative agro-manufactured product?
Manufactured rubber products are the most lucrative agro-manufactured products. In 2016, $3.9bn worth of rubber products were exported, followed by $2.6bn of canned, prepared or preserved fish, $2.37bn of sugar and $2.2bn of canned, prepared or preserved poultry along with significant amounts of crustaceans, fruits, vegetables, cereals, beverages, …
Why is working the fields important?
Working The Fields. Apart from just the tangible economic benefits derived from the large amounts of foreign currency being brought in through agricultural exports and supplying the domestic market with food, the sector also plays an important role as the country’s single-most prolific employer.
Is Thailand changing its sugar policy?
The government, private farmers and agri-businesses are also moving forward with plans to revamp Thailand’s sugar policy in a similar manner to ongoing changes in the rice segment. Regulations governing the important export commodity are long overdue for an overhaul, and stakeholders have hammered out a draft for a new policy which is expected to diverge from the previous plans in numerous significant areas.
Is agriculture a major economic activity?
Agriculture, the rice subsector in particular, is still the dominant economic activity in many of the rural regions of the country, in places where other modernisation and economic development efforts have not yet made a significant impact.
What are the problems of farming in Thailand?
The many problems that afflict the sector include: Poverty: Some 40 percent of farming households earned an annual income below Thailand’s poverty line of 32,000 baht. Debt: 30 percent of farming households have debt levels above the average annual farming income per person and 10 percent have than three times higher debt.
How does small plantation affect productivity?
Small plantation areas partly affect productivity of the sector, with 50 percent of total farming households having productivity levels below the mean. Limited farming portfolio: Two third of households still grow one crop a year, especially for key economic crops. Although the irrigation systems in the Central region allow for all year round …
What percentage of farm households do not own land?
Land ownership and access to water resource: According to farmer registration 2017, some 40 percent of farm households do not have land ownership and only 42 percent of them have access to water resource, creating a large inequality in access to land and water resources.
What is the most important component of Thailand’s economy?
Small or Medium-Sized Enterprises. One of the most important components of Thailand’s economy is its large sector of small or medium-sized enterprises (SMEs). SMEs are one of the biggest contributors to Thailand’s GDP.
What is the services sector in Thailand?
The sector can be divided into a number of specialized industries, including finance, health, tourism and hospitality, retail, communications, and banking.
Why are SMEs important in Thailand?
SMEs in Thailand are responsible for importing more goods than exports. Economists attribute this to the fact that the manufacturing industry has declined over the last few years, which means fewer goods are being produced for export. Slightly more than one-third of the employment provided by SMEs in Thailand occurs in the trade, service, …
How many cars does Thailand produce?
On average, Thailand produces roughly two million vehicles every year, making it the largest automotive industry in Southeast Asia. The majority of cars and trucks manufactured in Thailand are international brands, like Ford, Volkswagen, Mercedes, and BMW. In addition to cars and trucks, Thailand also produces and exports automotive parts.
What is the electronics industry in Thailand?
The electronics manufacturing industry in Thailand produces the largest percentage of exported goods, and accounts for 15% of total exports leaving the country. These exports are worth approximately $55 billion. Additionally, this specialized industry provides 12.2% of manufacturing jobs in Thailand.
What is the GDP of Thailand?
Thailand is a nation located in Southeast Asia, and is the second largest economy in the region. The country has a gross domestic product (GDP) of $404.824 billion, which has a purchasing power equivalent of $1.108 trillion.
What are the two most widely exported goods?
Within this category, computers and integrated circuits are the two most widely exported goods. Computers make up 7.9% of all exports, at a value of $18.3 billion, while integrated circuits make up 4.2% of all exports, at a value of $9.8 billion. Thailand is also the world’s second largest producer of hard disk drives.
Overview
Industries
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 …
History
Following the Neolithic Revolution, society in the area evolved from hunting and gathering, through phases of agro-cities, and into state-religious empires.
From about 1000 CE, Tai wet glutinous rice culture determined administrative structures in a pragmatic society that regularly produced a saleable surplus. Continuing today, these systems consolidate the importance of rice agriculture to national security and economic well-being.
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);
Weather
The Thai Royal Rainmaking Project was initiated in 1995 by King Bhumibol Adulyadej. As Thai farmers faced recurring drought, he proposed a solution to the water shortage, cloud seeding.
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,…
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.”
Organic farming
Farmland certified as organic in Thailand amounts to 0.3-0.5 percent of all agricultural land compared with one percent worldwide. From 2010-2014, 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 le…
Governmental price supports
In November 2016, Prime Minister Prayut Chan-o-cha pledged to improve the well-being of farmers over the following five years. He did so in the face of declining rice prices, the lowest in ten years. He said the improvements would result from “smart farmer projects” initiated by the government, part of its 20-year national strategy. Following up on Prayut’s remarks, Agriculture and Cooperatives Minister General Chatchai said that the government’s strategy would increase farm…