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Published on April 17, 2008

Rising prices of farm products and public spending have both been beneficial to farmers and related businesses.

Both the market via earning from selling farm products, and the government via public spending and state-owned bank loans, have now channelled money into the farm sector. This is good news for farmers and for those who are looking for investment opportunities.

Deputy Prime Minister and Finance Minister Surapong Suebwonglee said that about Bt20 billion in government handouts will start to reach villagers this month. Each village is expected to get between Bt200,000 to Bt350,000 depending on the size.

Surapong said that the long Songkran holiday offered an opportunity for people to meet and discuss potential investment projects in their villages.   

Those who have roots in rural areas but are currently working in big cities can share ideas about investment projects. And some may make a permanent return to the villages as the farm sector looks promising due to high prices of such products as rice, tapioca, maize, palm oil and rubber. Potential investment projects include fertiliser, energy and water supplies.

Kanit Wattanavichien, an engineer teaching at Chulalongkorn University, suggested villagers could spend money on farming raw material for bio-fuel or bio-gas producers.

A small project for making bio-fuel from used cooking oil is also possible. Technical assistance can be asked from government agencies and non-government organisations such as the Appropriate Technology Association based in Nakhon Ratchasima province.    

Bank for Agriculture and Agricultural Cooperatives (BAAC) president Thiraphong Tangthirasunan said the bank plans to support farmers to dig ponds and wells in order to store water.

Organic fertiliser manufacturing is also attractive due to the high price of chemical fertiliser. Farmers can cut their production costs on chemical fertiliser.  Running an organic farm may also offer better returns due to consumer awareness of safe products.

Money may also be spent to create networks of niche markets between farmers and consumers in big cities.

One good example is the Banana Family Park's business model. It offers a range of services including vegetarian foods and products from organic farms. Its mini shop provides herbal products and semi-cooked food. It serves the needs of white-collar workers and the farming community.  Banana Family Park is located on Paholyothin Road, close to the headquarters of Export-Import Bank of Thailand.  

In Japan, farmers often form strong cooperatives and run their own restaurants and food shops supplied with high quality fresh fruit and other products from their farms. This is the way that Japanese farmers have competed successfully with cheaper imported food from China and other countries.

A new breed of Thai farmers must know about production costs, financial planning, marketing and networking.   

Wichit Chaitrong

The Nation