Thailand is the second biggest economy in Southeast Asia. It has a GDP of about 506 billion dollars. It indeed continues to remain as a powerful agricultural competitor. This is also because it is the leading exporter of frozen shrimp, natural rubber, canned pineapples, canned tuna, and more. It also focuses on exporting rice and sugar.
According to the board for economic and social development, the economy of Thailand is foreseen to grow between three-point five to four-point five percent last year. And it is already felt that the economy will grow in 2019. This is due to the increase in government spending like in the expansion of the global economy, infrastructure projects, and improvement in private investments. Plus, the expansion of the tourism sector continues further fueling economic growth.
The best thing about Thailand is that it has its trade arrangements preferred with the ASEAN countries. Its consumer market is also becoming more relatively mature. It is expected to have its high potential for growth in the future. This is attributed to the growing middle class, on-going urbanization, and economic growth. Even their disposable incomes also rise. The expenditures of the Thai on food & beverages reached 69 billion dollars. Their stable Thai diet includes eggs, meats, rice, fish, seafood, and vegetables.
Robust Agricultural Base
The fertile and natural land around the river basin of Chao Phraya in Thailand is impressive. It comes with developed infrastructure pushing for a strong foundation. That is why Thailand is believed to have a strong agricultural base. These are the advantages that pushed small farmers and big agriculture companies in Thailand at the forefront of agri-business. The country, as mentioned, is among the world’s leaders in the distribution of agricultural products such as sugar and rice.
Thailand has become successful in the leveraging of the industrial and natural resource sectors. This is to pursue its mission of creating a strong agriculture industry. The country is continuing to face a series of growth obstacles. But, so far, they are manageable especially with government control of the goods.
The output of Thailand is significantly boosted. Low yields are also relatively produced and increased. The competitiveness of Thailand is being raised with regional and global peers. The private and government sector is also increasing more of their efforts. That way, domestic agricultural production is boosted. This is also since issues of inefficiencies with small-plot farming are addressed and tackled. Modern technology is also best initiated. Knowledge of modernized farming techniques is also enhanced. Government policies are re-structured to stimulate competition.
Cultivation of Grain as the Main Staple
Thailand is mentioned to rank as an agriculture distributor. It also consistently competes and aims for top exporting spots around the world. But, it heavily relies on the farmers cultivating the grain and using it as a main food staple in the diet.
Issues on subsidies are handled following a market-oriented approach. The agricultural sector is also best restructured while the substantial stockpile is divested. Prices of agricultural products are moved in complementary with the market mechanism. The farmers are also best strengthened in this case.
Indeed, Thailand is becoming known as a supplier for agriculture product!