Thai Rice strategies for five years drawn up

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Rice strategies for five years drawn up
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The Commerce Ministry and relevant state agencies, as well as stakeholders in the rice industry, yesterday finished chalking out five development strategies, and six marketing strategies for implementation from 2015-2020.

The strategies will be finalised again next week and proposed to the National Council for Peace and Order by the end of this month.

The proposals call for the setting up of a "rice board" to pursue strategies in the long run without any political involvement.

The five development strategies are:

l Develop rice farmers and rice production and the value chain.

Farmers will be educated on cost reduction and encouraged to become "smart farmers" so that they no longer need to rely on government subsidies. The government will cooperate with private enterprises to establish a community knowledge centre to encourage farmers to grow quality rice, serve the demands of niche markets, increase value-addition, and create a fair trading system.

l Involved agencies such as the Agriculture Ministry, farmers, local millers, and cooperatives will join forces to develop the rice-trading system as "modern trading" so that farmers can lower their costs. The farmers will be encouraged to adapt more mechanisation for cultivation and harvesting.

l Zoning for alternative crops will be promoted in some areas, as some land is not suitable for growing rice. The government will also develop plantation areas and improve irrigation systems, logistics, transport, and soil quality in areas that are suited to growing rice.

l Support research and development of rice seeds and growing methods. The government will cooperate with private enterprises to launch insurance for rice production in case of natural disasters, while a rice fund will be established to support research and development in the rice industry. Under this step, the Finance Ministry will collect a 1-per-cent fee from the rice traders' revenues and incomes of exporters. The fund will have a Bt2-billion annual budget.

Rice board

Charoen Laothamatus, president of the Thai Rice Exporters Association, said a "rice board" comprising all stakeholders - government agencies, farmers, millers, exporters and academics - should be set up. The board should have independent authority, and draw up a national road map for development of the rice industry.

l Develop a rice-trading system and support the market mechanism.

The Agriculture Futures Exchange of Thailand will be modernised and put under the Stock Exchange of Thailand.

In addition, the six marketing strategies include the creation of a fair trading system. More rice-polishing plants will be promoted in the next five years, to cover at least 80 per cent of the country's rice-plantation areas. Thailand will be promoted as a global centre for rice polishing.

The standard of Thai rice grains will be improved to international standards and in addition, domestic consumption of Thai rice will be increased by 5 per cent within five years.

Thailand will be promoted as a rice-trading centre. Rice-export volume and value are targeted to increase by 10 per cent in five years, while at least five new export markets will be penetrated.

Thailand will also adopt international standards of rice production and trading, such as carbon credits and waste management. The logistics system in the rice supply chain will be developed under the ministry's strategy.

To ensure farmers' incomes, Thai Rice Growers Association president Vichian Phuang-lumjiek has called for the government to set up a middle price for paddy rice in the market at Bt10,000-Bt12,000 a tonne so that farmers will be able to earn some profit.

He pointed out that production costs had climbed in the past few years to more than Bt6,000 a tonne. Rice farmers do not seek high subsidies or any pledging, but they at least need to make some profit.

Source: http://www.nationmultimedia.com/business/Rice-strategies-for-five-years-drawn-up-30239200.html


-- The Nation 2014-07-23

[ramrod711]

Give a man a fish, he will eat for a day. Teach a man to fish... I hope this new plan is given a chance to work, not dismissed out of hand when a new government is elected.

[soalbundy]

A lot of strategies. I read that Thai farmers are the poorest in Asia,poorer than in Myanmar with a real profit of only 1,500 Baht per rai. Would seem that the most sensible thing to do would be to give up rice farming altogether and go to work on the building sites.

[robblok]

A lot of strategies. I read that Thai farmers are the poorest in Asia,poorer than in Myanmar with a real profit of only 1,500 Baht per rai. Would seem that the most sensible thing to do would be to give up rice farming altogether and go to work on the building sites.

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

[worgeordie]

Send the farmers off to Vietnam or Burma,where they can learn how to grow rice

with less fertilizer and pesticides, Thai farmers need to figure out what they are

doing wrong and correct and improve their methods of growing rice ,profitably

and without Govt.help,or they are going to be left behind by both Vietnam and

Burma,as both those Countries have massive potential in the World rice market.

regards Worgeordie

[HUAHIN62]

A lot of strategies. I read that Thai farmers are the poorest in Asia,poorer than in Myanmar with a real profit of only 1,500 Baht per rai. Would seem that the most sensible thing to do would be to give up rice farming altogether and go to work on the building sites.

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

Go and plant a rai of rice and then comeback and make the comment that farming is not hard work. The reasons they are not leaving farming is that some have other income sources, some dont have the education to leave farming and go to the cities, some are too old and some just love farming.

[chotthee]

Super. Eventually all Thai farmers can now stop depending of Thksin vicious hand out, and all can enrich themselves now. Thanks Prayuth.

[Thai at Heart]

They have been at this now for generations.

When the production costs in thailand are so much more than other countries because of input costs and yields are so poor, why wouldn't the conclusion be that the very people on these committees have been very busy shafting the farmers?

[givenall]

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Give a man a fish, he will eat for a day. Teach a man to fish... I hope this new plan is given a chance to work, not dismissed out of hand when a new government is elected.

This is not the point. all the rich take turn to get richer so it must be some other to take on the treasury

[gchurch259]

Am I to understand that Thailand has not university such as Texas A&M to teach better agricultural methods ? If not work out and exchange program to send Thai students to US or wherever and bring Instructors to Thailand.

One other problem is you can not mechinize the farming process because of the cost of machinery. They should do like the Wheat Farmers in US Mid West and form Co-Ops to buy and use the machinery jointly.

Another big issue that my friends in Issan tell me is the flooding, they lose too many crops.

[belg]

thailand, hub of smart farmers

5555555

[chotthee]

Thai farmers should be given tablet to plan for their farming, harvesting, and investment, and hedging strategy.

[robblok]

A lot of strategies. I read that Thai farmers are the poorest in Asia,poorer than in Myanmar with a real profit of only 1,500 Baht per rai. Would seem that the most sensible thing to do would be to give up rice farming altogether and go to work on the building sites.

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

Go and plant a rai of rice and then comeback and make the comment that farming is not hard work. The reasons they are not leaving farming is that some have other income sources, some dont have the education to leave farming and go to the cities, some are too old and some just love farming.

Some don't even have the ability to use quote system well.

Planting a rai of rice is hard work but you don't plant a rai of rice all the time. I think there is a lot of free time in witch they do other stuff that pays for things. So they are NOT farming full-time.

Its probably a real free life style and they love it then why ask for others to pay for that lifestyle. They could also do other unschooled work. If there are less farmers the price of rice will go up.

[HUAHIN62]

A lot of strategies. I read that Thai farmers are the poorest in Asia,poorer than in Myanmar with a real profit of only 1,500 Baht per rai. Would seem that the most sensible thing to do would be to give up rice farming altogether and go to work on the building sites.

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

Go and plant a rai of rice and then comeback and make the comment that farming is not hard work. The reasons they are not leaving farming is that some have other income sources, some dont have the education to leave farming and go to the cities, some are too old and some just love farming.

Some don't even have the ability to use quote system well.

Planting a rai of rice is hard work but you don't plant a rai of rice all the time. I think there is a lot of free time in witch they do other stuff that pays for things. So they are NOT farming full-time.

Its probably a real free life style and they love it then why ask for others to pay for that lifestyle. They could also do other unschooled work. If there are less farmers the price of rice will go up.

The number of rice farmers will not influence the price. If a rice farmer sells his/her farm the buyer of the farm just becomes a bigger rice farmer. The other factor is that countries like Vietnam is expanding production. If Thailand decrease production their market share will just decrease, but the market price will not be changed by Thailands decreased market share.

[robblok]

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

Go and plant a rai of rice and then comeback and make the comment that farming is not hard work. The reasons they are not leaving farming is that some have other income sources, some dont have the education to leave farming and go to the cities, some are too old and some just love farming.

Some don't even have the ability to use quote system well.

Planting a rai of rice is hard work but you don't plant a rai of rice all the time. I think there is a lot of free time in witch they do other stuff that pays for things. So they are NOT farming full-time.

Its probably a real free life style and they love it then why ask for others to pay for that lifestyle. They could also do other unschooled work. If there are less farmers the price of rice will go up.

The number of rice farmers will not influence the price. If a rice farmer sells his/her farm the buyer of the farm just becomes a bigger rice farmer. The other factor is that countries like Vietnam is expanding production. If Thailand decrease production their market share will just decrease, but the market price will not be changed by Thailands decreased market share.

Then there is no reason for them to go on as they wont get a better price better to call it quits then.

I know a bit about farming and that is why I know that harvesting and planting are only small periods of hard work. Not full time like some people like to make us believe.

I hail from a Dutch farming area, and when young I worked in tulips (taking of the heads of tulips is as back breaking as working in rice paddies same bend over position). I worked harvesting sugar beets, worked in the roses in the heat of a greenhouse. So I am no stranger to farm work. I was smart enough not to keep doing it though the farmers I knew were all quite wealthy and of course forever complaining (we have a saying that if a farmer isn't complaining then there is a real problem)

So if its that bad then they should get out hiring themselves as unskilled labour or such. You cant expect taxpayers forever to pay for something that is never going to get better. That is crazy, helping them to implement measures so it gets better, that is an other thing and not crazy.

[danbradster]

The number of rice farmers will not influence the price. If a rice farmer sells his/her farm the buyer of the farm just becomes a bigger rice farmer. The other factor is that countries like Vietnam is expanding production. If Thailand decrease production their market share will just decrease, but the market price will not be changed by Thailands decreased market share.

By this logic, if the Thai farmers continue at the same pace while Vietnam increases, the price of rice will fall (assuming stable demand) and then some Thai farmers will become unprofitale (since Vietnam produces for cheaper), the Thai farming will inevitably decrease, and the market will move back into equilibrium.

The alternative being:Thai farmers manage to reduce their production cost, so they dont get driven out of business by their more efficient and expanding competitors.

[HUAHIN62]

The number of rice farmers will not influence the price. If a rice farmer sells his/her farm the buyer of the farm just becomes a bigger rice farmer. The other factor is that countries like Vietnam is expanding production. If Thailand decrease production their market share will just decrease, but the market price will not be changed by Thailands decreased market share.

By this logic, if the Thai farmers continue at the same pace while Vietnam increases, the price of rice will fall (assuming stable demand) and then some Thai farmers will become unprofitale (since Vietnam produces for cheaper), the Thai farming will inevitably decrease, and the market will move back into equilibrium.

The alternative being:Thai farmers manage to reduce their production cost, so they dont get driven out of business by their more efficient and expanding competitors.

You are 100% correct. What the government should do is to assist small farmers to diversify production, if they cant do that farmers must be assisted in exiting farming. Only when Thailands farm size increase will their production cost per rai decrease. As farm size increase economics of scale kick in. To subsidize production is just the flip side of subsidizing the price of the rice. If you look at countries at the same development level as Thailand there are only 10% to 15% of the population involved in agriculture, in Thailand its more that 40%.

[HUAHIN62]

That is what I think.. i mean if farming does not pay the bills then go do some other work.

But maybe farming is not that hard work and they are already doing other work extra.

If i was in a job that did not pay good id switch to something i can do to and pays better. Rice prices will go up if the supply is lower.

Go and plant a rai of rice and then comeback and make the comment that farming is not hard work. The reasons they are not leaving farming is that some have other income sources, some dont have the education to leave farming and go to the cities, some are too old and some just love farming.

Some don't even have the ability to use quote system well.

Planting a rai of rice is hard work but you don't plant a rai of rice all the time. I think there is a lot of free time in witch they do other stuff that pays for things. So they are NOT farming full-time.

Its probably a real free life style and they love it then why ask for others to pay for that lifestyle. They could also do other unschooled work. If there are less farmers the price of rice will go up.

The number of rice farmers will not influence the price. If a rice farmer sells his/her farm the buyer of the farm just becomes a bigger rice farmer. The other factor is that countries like Vietnam is expanding production. If Thailand decrease production their market share will just decrease, but the market price will not be changed by Thailands decreased market share.

Then there is no reason for them to go on as they wont get a better price better to call it quits then.

I know a bit about farming and that is why I know that harvesting and planting are only small periods of hard work. Not full time like some people like to make us believe.

I hail from a Dutch farming area, and when young I worked in tulips (taking of the heads of tulips is as back breaking as working in rice paddies same bend over position). I worked harvesting sugar beets, worked in the roses in the heat of a greenhouse. So I am no stranger to farm work. I was smart enough not to keep doing it though the farmers I knew were all quite wealthy and of course forever complaining (we have a saying that if a farmer isn't complaining then there is a real problem)

So if its that bad then they should get out hiring themselves as unskilled labour or such. You cant expect taxpayers forever to pay for something that is never going to get better. That is crazy, helping them to implement measures so it gets better, that is an other thing and not crazy.

Yes Dutch farmers are in general rich because of the amount of subsidies they get as well as protection against imported products. The Dutch and EU taxpayers have been paying for the EU farmers for decades.

Yes the government should implement policies to rectify these problems but it wont be able to change everything in a year. My view is that that farm size needs to increase to obtain economics of scale and that government should facilitate farmers exiting farming. More R&D is needed to breed higher yielding variaties, deversification into other crops, education to increase management skills, better irrigation systems and better marketing. At present rice marketing is mismanaged, there was no reason for rice stocks to rot. If an effective system was inplace older stocks should have been sold first. But like most things managed by government officials its done in an inefficient way.

[robblok]

Yes Dutch farmers are in general rich because of the amount of subsidies they get as well as protection against imported products. The Dutch and EU taxpayers have been paying for the EU farmers for decades.

Yes the government should implement policies to rectify these problems but it wont be able to change everything in a year. My view is that that farm size needs to increase to obtain economics of scale and that government should facilitate farmers exiting farming. More R&D is needed to breed higher yielding variaties, deversification into other crops, education to increase management skills, better irrigation systems and better marketing. At present rice marketing is mismanaged, there was no reason for rice stocks to rot. If an effective system was inplace older stocks should have been sold first. But like most things managed by government officials its done in an inefficient way.

Seems we agree.. i am only against permanent subsidies not for money to help them change. I too think its about scale and quality of the product.

yes the EU agricultural subsidies make me a bit sad as its taxpayers money. But fat chance that that will change when powerful countries like France who get a lot more then they pay have a vote in it.

[iphad]

I am not an expert on the cultivation of rice as some of the TV posters appear to be here.

but one thing I have noticed about growing rice...is as farming as in many northern western countries that farming is not an everyday job.

The northern western countries have 4 seasons & something called winter usually stops much of farming activities.

Thailand has two seasons....rainy season & dry season.

So during the rainy season they are busy planting rice...some if they have access to water start rice seedlings at the end of the dry season in preparation of the rainy season.

Once the rice is planted..the workload has decreased then they go to find work elsewhere to bring in money.

After 3-4 months they cut the rice ( depending on the variety) so they are busy again but with machinery today this process is done quickly then the processing of the rice & drying takes a couple days under the sun.

Probably for most small farmers most of the rice is used for their own family needs.

Obviously bigger farms sell more.

Then the farm basically sits idle until the next rainy season..some can plant fruit & vegetables depending on access to water.

The big problem with farming in Thailand isn't that Thai are lazy..or they aren't intelligent as westerners.

It's the lack of water during the dry season....& it also gets very hot so plants would need more water..that is usually not available.

If Thai are not working the farm..they are working somewhere else to bring in money when they can.

[naboo]

Some real ignorance on this thread of what farmers do.

Most farmers are self sufficient, they eat what they grow, they sell what they don't eat to pay for the costs of production - machinary, seed, fertiliser, pesticide, labour - and to cover non-food costs - household utilities, repairs and maintanence, a new truck every 30 years, kids schooling etc.

Now, despite what the t-shirts say on Khoa San Road, Thais don't just eat rice. They also eat veg, fruit and protein in some form. The protein is often fish, so fishing is a daily routine. The fruit and veg are grown seasonally, work needed all year round. Fruit and veg for food is picked daily.

During the growing period, crops are tended daily, weeds removed, irrigation controlled, fertilisers and pesticides applied.

The work is endless. And its labour in the heat. I once helped out with the Lamyai harvest, disappeared quietly after an hour, won't be doing that again. Tough work I bet any poster on this thread would turn down even if it paid them their current salary.

[northernjohn]

Give a man a fish, he will eat for a day. Teach a man to fish... I hope this new plan is given a chance to work, not dismissed out of hand when a new government is elected.

Well I certainly hope it works out.

But it takes two to dance and no matter what you show them or try to tell them they still burn the fields off.