Thai Govt Slammed Over Pro-Consumer Policy

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CHAROEN POKPHAND

Govt slammed over pro-consumer policy

Kwanchai Rungfapaisarn

The Nation

Chachoengsao

Crop prices should be floated to raise incomes for farmers, Dhanin says

Charoen Pokphand chairman Dhanin Chearavanont has slammed government policy to favour consumers over farmers, suggesting that the prices of agricultural products should be floated to increase farmers' incomes.

Dhanin said yesterday that Thai farmers still lacked investment capital, technological knowledge and marketing skills to make their farms successful and grow in a sustainable way.

"The Ministry of Commerce as well as politicians lack good understanding about farmers, who have taken all the risks in running their farming businesses. The prices of their products, such as pork, have been forced down by the government, aimed at helping consumers," Dhanin said.

He said the prices of such products should be floated in line with market mechanisms.

"The government's priority [should be] to allow poor people, especially in urban areas, and farmers to get higher incomes and live better. They will also enjoy better spending power and the country's overall economy, including the business sector and the government itself, will benefit," Dhanin said.

He said that in many developed countries, such as Japan, farmers had been seriously protected.

Dhanin said the government should also support small business enterprises, which had been neglected for more than 10 years after the closure of financial institutes as result of the financial crisis in 1997.

He said the prices of agricultural products should be increased significantly along with the increase of oil prices in the world market, but prices have yet to reflect the reality as they are being pushed down by powerful countries.

"In my point of view, oil prices will increase further until they have been replaced effectively by alternative energies such as solar power. At the same time, the price of ethanol, which is made from agricultural goods such as sugar cane and cassava, should be raised along with the increase in the oil price.

"All farmers will benefit as they convert their land into sugar and cassava plantations for better incomes. Then the planting areas for rice and their output will be reduced and the price of rice will increase significantly in the market."

Dhanin yesterday gave a speech to farmers and villagers at Ban Nong Wa in Chachoengsao province on the occasion of the 35th anniversary of its agricultural projects based on His Majesty King Bhumibol Adulyadej's sufficiency economy and land reform.

He said Ban Nong Wa was a good model to follow. When Charoen Pokphand Group came in and developed pig farming and other agricultural projects 35 years ago, about 50 farmer households, who had no land or investment funds, participated in the project. Under the project, average household incomes increased significantly from Bt2,000 a month 35 years ago to about Bt80,000 today.

The project can be further applied in other potential districts throughout the Kingdom, he said.

-- The Nation 2012-01-21

[Nisa]

You know it is a good policy when both the sellers and buyers feel like they are getting ripped off.

[mijan24]

If you really read this article it makes you wonder what will the place be like in another 35 years?

For example:

He said the prices of agricultural products should be increased significantly along with the increase of oil prices in the world market, but prices have yet to reflect the reality as they are being pushed down by powerful countries.

Oil Prices?? and what about the consumer who has to pay the higher prices - where will the extra baht come from?? this is certainly a good example of "catch 22".

[David48]

Charoen Pokphand chairman Dhanin Chearavanont ... suggesting that the prices of agricultural products should be floated to increase farmers' incomes.

The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its largest subsidiary is Charoen Pokphand Foods, which achieved 116.5 billion baht in revenue in 2005, earning a profit of 6.747 billion baht. Apart from agribusiness, the family-owned conglomerate's interests range from retailing, as the franchisee of Thailand's 7-Eleven stores, to telecommunications, as the owner of True Corporation, a mobile telephone service provider, Internet service provider, and cable television company. Source :- http://www.ovguide.com/charoen-pokphand-9202a8c04000641f800000000063fe2d

I always worry when a company promotes a certain policy, because, naturally the only reason they would promote it (the policy) is because it materially benefits the company.

However ... the more government food quotas and price structures are in the place the closer we are to a North Korea style policy ... and that can't be a good thing.

If the statement

When Charoen Pokphand Group came in and developed pig farming and other agricultural projects 35 years ago, about 50 farmer households, who had no land or investment funds, participated in the project. Under the project, average household incomes increased significantly from Bt2,000 a month 35 years ago to about Bt80,000 today.

is a statement of fact ... that's quite impressive because it represents a compounded annual growth rate of roughly 10.5%.

If it's a statement by the company it can dismissed as advertising because a company will only (naturally) mention it's success stories.

[moe666]

I rode the Mae Hong Son loop a while back and took highway 1263 this road runs thru hill tribe country. The people all seemed to be doing very well, new pickup trucks every where, hillsides clear cut for planting crops and trucks filled with produce going to market.

I realize one area cannot represent the entire country but these people seem to have figured it out.

[TackyToo]

If you really read this article it makes you wonder what will the place be like in another 35 years?

For example:

He said the prices of agricultural products should be increased significantly along with the increase of oil prices in the world market, but prices have yet to reflect the reality as they are being pushed down by powerful countries.

Oil Prices?? and what about the consumer who has to pay the higher prices - where will the extra baht come from?? this is certainly a good example of "catch 22".

Isn't a catch 22 situation not already given in the relation between Thai politicians and their subjects?

[Pib]

I expect rice farmers and other agricultural sectors which receive price subsidies/price guarantees will disagree with floating prices. I expect the only companies/farmers to agree are those you know the current world market price is higher...and those companies/farmers raising products with depressed market prices will continue to fully support govt subsidies/price guarantees.