sustainable agriculture and food security in thailand: national government perspectives &...

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

20 March 2015

Presentation Outline

2

Agricultural Situation & Problems

Agricultural Development Plan

Sustainable Agriculture and Food Security

Importance of agricultural sector

GDP by Sectors

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

providing job opportunities in farmland

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 production structure.

Agriculture is highly diversified and specialised, different geography conditions

4

North-eastern Region

Central Region

Northern Region

Southern

Region

Diversification of agriculture in Thailand

• Mountainous area

• Main agriculture produce are

lychee and longan

• Plain area / low rainfall and

drought


cassava and maize

• Plain area / Irrigated area


rice

• Good logistics and supply

chain management –

livestock and chicken

• Coastal area / high rainfall


palm oil, para rubber,

fisheries (shrimp)

http://1.bp.blogspot.com/-Xf-Ixw6ypJw/TVs7-DMEopI/AAAAAAAAAWc/Hp6of2vNbBU/s1600/114097.jpg

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

5

Main Agricultural Export Commodities

Source: OAE

Export value of

major agricultural products, 2012 - 2013

Share of export value

by major country, 2013

Problems of internal factors in agriculture

6

Characteristics of Thailand’s Agriculture

LAND

LABOR

CAPITAL

INPUT LAND

•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

7


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

•Low level of application of modern technology / R&D

• Inefficient and high cost of agricultural logistics mechanism

8

Source: NESDB (2013)

Sources of growth in agriculture

LAND

LABOR

CAPITAL

INPUT OUTPUT

Natural Disasters

Instability of Market Price

Low agricultural productivities and poverty in agricultural sector


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

9 Source: Office of Agricultural Economics, MOAC

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

Low Agricultural Productivities


10




Evaluation of national plans to balance and sustainability

National Development Plans

Focused on utilizing workforce and natural

resources

An imbalanced economic growth

1st – 7th Development Plans

8th – 10th Development Plans

Moved Towards Sufficiency Economy

Stressed on Human Capital development

11th Development Plan (2012-2016)

Use Human Capital + Technology and Innovation

+ Reconciliation

11

Evaluation of national plans to balance and sustainability

Situation changes during 11th NESDP

12

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

National security aspect

Objectives and Targets

13

Under 11th 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.

Natural resources and environmental quality are improved.

Under 11th 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

sustainability (Strategy 6)

14

Risk Factors

Challenges affecting agricultural development

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• 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

• Networking of Coop and SMEs

Market Trend

16

Challenges affecting agricultural development

Creative

Convenient Healthy

Less

environmental

impact

Kimono produced from Thai silk Organic Cotton

Targets

The 11th National Plan in Agriculture

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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 million liters per day, respectively

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


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

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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

2. Increasing agricultural productivity

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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

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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

4. Establishing agricultural careers and income security

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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

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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

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Of Sustainable Agricultural Development from FAO

Definition: Sustainable Agriculture

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“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

acceptable”

By FAO

Sustainable Agricultural Practices

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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

limits of available resources.

5 Types of sustainable agriculture practices

Classification of Sustainable Agriculture in Thailand

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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

and other major cities. Yet, the market of organic food is now increasingly

expanding.

5 Types of sustainable agriculture practices

Classification of Sustainable Agriculture in Thailand

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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.

• The concept is most appropriate to the farmers that have limited small field and lack water.

New Theory Farming System in Thailand

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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 •Storage for year round consumption

30% Trees/ crops

•Fruits trees

•Perennial trees

•Annual tress

•Herb and spice

•Multi-purpose trees

•Field crops

10% Residential

•Other activities: vegetable, herb, mushroom, livestock

ECONOMY

SOCIETY ENVIRONMENT

Concept and Determinant Factors of Each Pillar

30

Definition: Food Security

Source: FAO

Focus on increasing productivity, food security and sustainable development

National Agricultural Plans

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- 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

1st – 3rd Plan

4th – 7th Plan

8th – 10th 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 and 20 percent of national arable land targeting 8 mil farmers.

Agricultural Development Plan By Ministry of Agriculture and Cooperatives (MOAC)

32

Increasing efficiency and productivity in agriculture

Food Security

33

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

34

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

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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

36

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

Standard (2003)

1. Organic Agriculture Development

37

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

Consistent with climate change concern and healthy/safety food 5

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

Public participation

4 Main Strategies

National Organic Agriculture Plan

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Support R&D/ Innovation

Initiative public awareness campaigns to stimulate demand and promote consumption

Establish national organic information database

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

39

2. Thailand: Kitchen of the World

40

International Agriculture Strategies for 2012 - 2016

41

1) Halal Food

High economic value : In 2012, the world food market reached a value of USD 1.26 trillion, and the potential food products that can level up to the Halal standard was valued at USD 1.01 trillion (Evaluated from Global Trade Atlas’s data by Thailand’s National Food Institute)

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 to Halal

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.

Source : Thailand’s National Food Institute Source : Thailand’s National Food Institute

USD Billion

42

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 Commercial Ambassador

Public relation & market expansion

43

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)

Source : Earth Net Foundation, 2012

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

Source : Earth Net Foundation, 2012

Tons Million baht

44

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 expansion

• 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

change to organic practice

2) Organic Food

45

Food Development Plan for Export

Level up the standard accreditation

Promote Thai food image and Thailand’s

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 collaboration

Targets

Food development for export

Source : Thailand’s National Food Institute

3) Food for Export

Master of Science Program in Sustainable Agriculture in Thailand

Higher Education for Sustainable Agriculture

46

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

(Sustainable Agriculture System)

Training Program in Sustainable Agriculture in Thailand


47

• 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

Standard

Highlight issues on sustainable agricultural education


48

Sustainable

Agricultural

Education

1 Change to

more integrated approach 2

Develop new knowledge

and innovation

3 Support R&D application

into practices

4 Skill

development in chemical

use

5 Enhance

post-harvest processing to higher value

added

6 Generate entrepre-

neurial skills

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

20 March 2015