Consumption and investment can stimulate Thai economy

[webfact]

Consumption and investment can stimulate Thai economy
By Digital Content

BANGKOK, Sept 23 -- Thailand's former UN Conference on Trade and Development (UNCTAD) chief Dr Supachai Panitchpakdi pointed out that the Thai economy was still unable to depend on exports this year.

He advised farmers to turn from the second rice crop to other crops that give higher returns.

Speaking on 'New Challenges for Thailand in the New Era of Global Trade and Investment' in Bangkok this morning, Dr Supachai said that exports could not support the Thai economy this year. Consumption can, he thinks, but to a limited extent.

Confidence, industries and investment could grow in the country if political situations settled and the government implemented its policies.

Dr Supachai also said it is time for Thailand to cut its second rice crop and turn to other crops which bring better prices.

Considerable quantities of water was used to produce low-quality rice, he said, advising growing cassava for ethanol production as a substitute.

Thanavath Phonvichai, director of Thai Chamber of Commerce University's Economic and Business Forecasting Centre, commented that government measures to cut farmers' production costs and taxation on the poor would not stimulate the national economy immediately. He thinks that timely government spending and investment will more quickly stimulate the national economy. (MCOT online news)


-- TNA 2014-09-23

[marcusd]

Well someone who really knows. And before we all go nuts about cassava, this is AN EXAMPLE of another crop.

Thai wages and costs of living have increased yet produce from agriculture is getting hammered in prices from poorer countries which Thailand was.

Vietnam is but ONE example

[worgeordie]

As long as other crop is not Rubber !, it would be better if

more small Thai farmers did not follow what HM The King

put forward,sustainable,multi crop farming,in reality,growing

a little bit of everything,bit rice,fruit trees,vegetables,fish,

poultry,animals,you put the animal manure on your crops,

and you will always have something to eat for your family,

selling the excess for cash to buy the things you cannot

produce yourself.

Growing a mono culture crop,is not a good idea in many

respects, a disease could wipe out whole crop,as with rice

,rubber you are at the mercy of the multi nationals and

world markets,and as it seems now , always in debit.

regards Worgeordie

[lemonjelly]

As long as other crop is not Rubber !, it would be better if

more small Thai farmers did not follow what HM The King

put forward,sustainable,multi crop farming,in reality,growing

a little bit of everything,bit rice,fruit trees,vegetables,fish,

poultry,animals,you put the animal manure on your crops,

and you will always have something to eat for your family,

selling the excess for cash to buy the things you cannot

produce yourself.

Growing a mono culture crop,is not a good idea in many

respects, a disease could wipe out whole crop,as with rice

,rubber you are at the mercy of the multi nationals and

world markets,and as it seems now , always in debit.

regards Worgeordie

A bit contradictory, no?

[Robby nz]

Those who now little or nothing about farming seem to think its easy just to change crops, not so.

Different crops need different machines, money to start up, such as for instance cassava where the cuttings have to be bought the lead in time from planting is far longer that that for rice so no income till a crop, is there a processing plant in the area ? Not here there isn't.

See what happens when there is no processing capability, a field of sugarcane left to rot because the only mill in the district was already working to capacity :

See what has happened with rubber, farmers were urged to plant rubber trees when the price was high now the production has outstripped demand and prices have fallen.

To switch crops puts the farmer in completion with those who already grow the new crop thereby lowering prices, careful planning is needed before any crop changes are made.

[Thai at Heart]

Consumption and investment can stimulate Thai economy

Cancel my copy of the Economist. That's it. it's done. it's solved. Wow.

[Orac]

Consumption and investment can stimulate Thai economy

Cancel my copy of the Economist. That's it. it's done. it's solved. Wow.

Given that the major part of GDP is consumption and investment he does seem to be stating the bleeding obvious, particularly when the other factors are exports (minus imports) and government outlays. The danger is getting into the same potential mess that China is in by overdoing the investment financed through debt.

Edited September 23, 2014 by Orac

[Thai at Heart]

Consumption and investment can stimulate Thai economy

Cancel my copy of the Economist. That's it. it's done. it's solved. Wow.

Given that the major part of GDP is consumption and investment he does seem to be stating the bleeding obvious, particularly when the other factors are exports (minus imports) and government outlays. The danger is getting into the same potential mess that China is in by overdoing the investment financed through debt.

Well exactly. This really is the most banal headline. He's a pretty smart bloke, so I presume this is just the newspaper making a poor quality headline.

[jaltsc]

"He advised farmers to turn from the second rice crop to other crops that give higher returns."

That's right farmers. Believe a representative of the government who got you in this financial mess in the first place. Who's stupid enough to believe them a second time.

Oh, excuse me. I forgot where I am and about whom we are discussing.My apologies. Please continue business as usual.

[Commerce]

I, personally, do not give much thought to what Thai 'Drs' say, because they are mostly not Drs of asserted study, but simply bought or made up titles during a path of corruption or wantoness. Despite that, Dr. Panitchpakdi does own a lot of land in the North, so his interests are well worth investigating.

[givenall]

Just show me the MONEY!!!!!!!!!!!!!!!!!!!

[NeverSure]

Actually, it's downright dangerous financially to invest in something that takes a few years to produce and which would be hard to remove if the prices crashed. Things like rubber and palm tree plantations should be left to those who can afford the gamble.

Crop rotation is a good idea and is often good for the soil, but only certain soils and crops are a match. You can't just grow anything anywhere.

Farming is always a big gamble because when you plant you can't estimate your yield due to weather, water etc. and you can't be sure of the price when you harvest.

No government can change that as shown by the rice scheme. But I do believe in staying light on your feet by being able to change crops with the market. I strongly believe in growing at least three things every year to spread the risk and to aid crop rotation.

When I was growing up we had a wheat, alfalfa and cattle ranch and those were the crops. Alfalfa is a legume which fixed nitrogen in the soil for the next crop of wheat which is a gross nitrogen feeder. Alfalfa is also an excellent cattle feed whether baled as hay or grazed in the field. Additionally we had some steeper and rocky soil which only the cattle could happily harvest by eating the grass that grew there and turning it into beef.

I don't know if Thais know how to cooperate and help each other. I remember one year our big hay baler broke down hard just as we were starting to bale a large field. A neighbor was right over with his baler and even a couple of his hands and there wasn't a hiccup.

Monocropping isn't good for the soil, the farmer, or the country.

[noitom]

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Consumption and investment can stimulate Thai economy

Cancel my copy of the Economist. That's it. it's done. it's solved. Wow.

Excellent idea. The guy is a genius.

[traviss]

In your opinion, would it be possible, and if so, beneficial to organize and structure an Isaan village of farmers as a co-op? Rice, Rubber and Cassava are the main crops. Difficult, yes...Nearly impossible to do, yes...Would one remain sane...possibly not. But could it work?

Develop- Operate- Produce-Process-Sell to Market

[BSJ]

Like Robby nz said, there is a lot of factors involved.

Some of you city boys just don't understand.

[Utley]

Higher consumer spending = more foreign husbands and retirees.

[Lupatria]

As long as other crop is not Rubber !, it would be better if

more small Thai farmers did not follow what HM The King

put forward,sustainable,multi crop farming,in reality,growing

a little bit of everything,bit rice,fruit trees,vegetables,fish,

poultry,animals,you put the animal manure on your crops,

and you will always have something to eat for your family,

selling the excess for cash to buy the things you cannot

produce yourself.

Growing a mono culture crop,is not a good idea in many

respects, a disease could wipe out whole crop,as with rice

,rubber you are at the mercy of the multi nationals and

world markets,and as it seems now , always in debit.

regards Worgeordie

Well I agree to what you wrote in the 1^st paragraph. But does it work for those who grew up in a society where - get rich or die trying - is part of the culture? Your proposal is right. However, it lacks the only motivation of these people: to get their hands on some Easy Money.