Thai's BOI Introduces New Measures Aimed at Modernizing Agricultural Sector, Enhancing Thailand Competitiveness

Thai government believes in the country's potential to be the world's major food supplier and help alleviate possible future food supply shortage from rapidly growing world population. To take this role, the country sees the importance in modernizing the farming sector through advanced technology and to have clear roadmap for agricultural sector development.
a year ago

BANGKOK, Nov. 17, 2017 /PRNewswire

Agriculture has long been the backbone of Thai economy and remains so today. Looking ahead while the country is transforming itself into an advanced economy, the Thai government is modernizing the country's agricultural sector through various investment promotional schemes and development policies to increase agricultural sector's efficiency and competitiveness.

Thanks to the country's rich resources, agriculture has been a major activity that feeds the countries for centuries. Thailand has been famous for crops like rice and rubber for a long time.  For decades, the agricultural sector has contributed slightly over 10 per cent of the country's GDP, according to the National Economic and Social Development Board. However, most farms continue to use traditional ways of farming, resulting in low productivity and income but having high cost.  If this issue is well addressed, the sector's potential will be improved.

Given that the country already has a strong agricultural sector base, the Thai government believes in the country's potential to be the world's major food supplier and help alleviate possible future food supply shortage from rapidly growing world population. To take this role, the country sees the importance in modernizing the farming sector through advanced technology and to have clear roadmap for agricultural sector development.

According to Ms. Duangjai Asawachintachit, Secretary General of the Board of Investment (BOI), agricultural sector had been one of the target industries eligible for promotional privileges for decades. However, to address the need for advanced technology deployment to enhance the sector's productivity and competitiveness under Thailand 4.0 policy, BOI in September 2017 approved the addition of a new category for promotional privileges, Production or Service Providers for Modern Agriculture. Under this new category, projects providing services on advanced technology and automatic control system to operate farms are eligible for five-year corporate tax exemption.

Meanwhile, BOI introduced measures to promote improvement in production efficiency of existing agricultural investors through implementation of technology and machinery upgrade to meet with such international standards and certifications as Good Agricultural Practices (GAP) and ISO22000 Food Safety management. Under this measure, corporate tax holiday is offered within a 50 per cent cap of the total investment for the upgrade and improvement of machinery application is accepted until 2020.

In addition to the new investment promotion measures, the Ministry of Agriculture and Cooperatives has introduced other measures in parallel.

Agri Map

Designated agricultural zoning in all provinces are identified based on each area's geographical and climatic conditions. The "Agri Map" will be adopted to suggest farmers to grow crops suitable for their respective farmland. This will allow the country to have more focused agricultural activities with full consideration on the availability of local resources and area-specific condition and environment.

Large-scale farming

The Thai government also suggested that farmers adopt a large scale farming model where they share a plot of land within their own group and grow their own crops, which helps collectively reduce production costs and increase their competitiveness. Around 600 large scale farming land plots were launched in 2016, with another 400 plots to be added in 2017 to make a total of 1,000 plots by end of the year.

Countrywide learning centers for farmers

To help farmers make the right decision and grow the right crops that suit local geographical conditions and knowledge to improve farm efficiency, learning centers are established to provide them with sufficient information to make an informed decision and thus increase efficiency of agricultural production.

Under this scheme, each district nationwide will have one learning center of this kind. This will enable each district to build a strong body of knowledge and share it with farmers in their area. Through learning and experience sharing, farming improvement will soon take shape to support Thailand 4.0 vision.

In addition, the grouping of farmers and farmland will be promoted for greater efficiency, which will enhance cooperation between farmers and the public and private sectors, in the form of "Public-Private-People Partnership."

GIS for Agriculture

Modern geographic information system (GIS) technology can substantially improve agricultural production and sustainability. The Geo-Informatics & Space Technology Development Agency (GISDA), Ministry of Science and Technology, has applied geo-informatics technology for agriculture development to be used for agricultural management and monitoring of crops, quality control management for agricultural products, and planning of cultivation.

"All the measures and schemes mentioned above are the supply side of the market," said Ms. Duangjai. "Under the Thailand 4.0 model, Thailand is taking a new approach. We are addressing the demand-side of the market.

"In this regards, the government encourages farmers to produce crops in response to the market demand. This means, instead of looking at their expertise and preference, farmers are encouraged to study more on what the market demand really is. Through adoption of advanced technology, they can then upgrade their products to international standards and produce the products that the market needs. Therefore currently we places more emphasis on promoting the improvement of agricultural product standard and quality with the help of new technologies, which will make Thai agriculture sector become more competitive in the world market and so as to Thailand," said Ms. Duangjai.

Source: Thailand Board of Investment (BOI)

Illustration Photo: Scaling Up Adoption and Use of Agricultural Technologies in Thailand (credits: Richard Nyberg, USAID / Flickr Creative Commons Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0))

Comments

No comments to display.

Related posts

EU Call for Proposals: Multi-use of the marine space, offshore and near-shore: pilot demonstrators

Activities shall develop pilots by involving industrial actors and by integrating the available knowledge, technologies and facilities, in particular capitalising on the results of EU and national projects for the development of multi-use platforms or co-location of different activities in a marine space, and relevant support offshore vessels and autonomous vehicles.
Application Deadline in 2 days
16 hours ago

EU Call for Proposals: The Future of Seas and Oceans Flagship Initiative

Proposals shall address one of the following sub-topics: blue cloud services, or ocean observations and forecasting, or technologies for observations (in 2020). Actions shall demonstrate integration, capacity and (scientific, economic etc) potential.
Application Deadline in 2 days
17 hours ago

EU's Call for Proposals: Modelling international trade in agri-food products

Trade modelling has a long-standing tradition but some issues are notoriously difficult to assess and include in the existing simulation models.
Application Deadline in 2 days

EU Call for Proposals: Circular bio-based business models for rural communities

Based on an established agro-food system, proposals shall consider a variety of additional bio-based processes and end products that could be integrated into the system, and that are viable on a small scale (farm to rural community level).
Application Deadline in 2 days
17 hours ago

The Infant Formula Testing Market is expected grow at a CAGR of 6.9% to reach revenue of $20.26billion by 2023.

Infant formula is one of the emerging markets in food and beverage industry. It is basically used for the infants whose age is below 12 months (preferably).

UNICEF Innovation Fund's Call for Applications: Data science, machine learning, artificial intelligence or similar technology solutions

The UNICEF Innovation Fund is looking to make up to 100K equity-free investments to provide early stage (seed) finance to for-profit technology start-ups that have the potential to benefit humanity. If you’ve got a start-up registered in one of UNICEF’s programme countries and have a working, open source prototype (or you are willing to make it open-source) showing promising results, the UNICEF Innovation Fund is looking for you.
Application Deadline in a month

Etisalat Digital accelerates adoption of Artificial Intelligence and Blockchain in the United Arab Emirates

Etisalat Digital selects four disruptive companies to join Future Now scaleup programme after Dubai Future Accelerators collaboration.

European Venture Investment Reaches All-Time High

Europe's venture capital investment eclipsed €20 billion for the first time ever, according to PitchBook's 4Q 2018 European Venture Report. Despite the 25.9% drop in deal volume year-over-year (YoY), swelling deal sizes and increased interest from nontraditional investors helped drive deal value to the high-water mark.

The African Union Ten Years Aquaculture Action Plan for Africa 2016 - 2025

The prospects for Africa’s aquaculture are enormous. They are defned by the continent’s vast aquatic resources, land mass and climate that are suitable for the production of an array fsh species and essential inputs such as ingredients for feed. Of added advantage, is the fact that most of the world’s important tropical and sub-tropical aquaculture species are native to Africa.

Singapore-based SEEDS Capital appoints seven partners to co-invest in agrifood tech startups

SEEDS Capital, the investment arm of Enterprise Singapore, has appointed seven co-investment partners under Startup SG Equity. This will catalyse more than S$90 million worth of investments to develop Singapore-based startups in the Agrifood tech sector. This was announced by Senior Minister of State for Trade and Industry, Dr Koh Poh Koon, at the opening of Indoor Ag-Con Asia.