Agricultural development in Thailand

Abstract

Agriculture has played an important role in Thailand from time immemorial. Although its sectoral share in the Gross Domestic Product (GDP) has gradually declined since the First National Economic and Social Development Plan (NESDP) was launched in 1961, agriculture still accounts for one third of total export revenue and workforce. Three stages of agricultural development can be recognized, viz. (i) Pre-1955 (rice monoculture/natural resources based), (ii) Between 1955-1985 (land based resources/labour-intensive method) and (iii) Post–1985 (structural shift in agricultural production). Thailands agricultural development plan and policy were clearly defined in the NESDP which will be elaborated in the present paper. Among the four major sub-sectors, crop production is by far the most important, accounting for 75% of the total revenue, followed by livestock, fishery and forestry. Problems in agricultural development in Thailand include (i) agricultural production structure, (ii) competition in world market and trade protectionism, (iii) low productivity, (iv) low quality of products, and (v) insufficient utilization of natural resources. At present, Thai agriculture is coming towards a crossroad. Its development can no longer depend on area expansion and burgeoning markets. Future development must be based on innovative technology for the production of non-staple commodities or agro-industrial products.