SUNDAY, April 21, 2024
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Farm output set to accelerate its rise next year: Office of Agricultural Economics

Farm output set to accelerate its rise next year: Office of Agricultural Economics

Thailand's gross domestic product of the agriculture industry expanded 0.8% this year over last year and will rise another 2-3 percent next year, according to the Office of Agricultural Economics.

It cited favourable weather, an increase in rain, as two major factors driving growth this year. Rising prices for crops also encouraged farmers to plant more, the office said.

It said government efforts – such as using technology to reduce production costs, improving agriculture products to meet standards and expanding offline and online marketing channels – increased production and sales of farmer goods.

Government stimulus measures helped increase consumption of agricultural products, while the easing of restrictions and subsequent economic recovery are leading to an increase of exports of Thai agricultural products, the office said.

Farm output set to accelerate its rise next year: Office of Agricultural Economics

The industry has faced some headwinds. The Office of Agricultural Economics said it was severely affected by the La Nina weather phenomenon and storms in the second half of this year, especially tropical storm "Noru" which triggered flooding in the North, Northeast and Central regions.

"Meanwhile, rising product prices, such as fuel, fertiliser, pesticide and animal feed, caused the production cost of the agricultural sector to increase," the office said.

Uncertainty over animal disease outbreaks, the Russia-Ukraine war, China's Zero-Covid policy and a global economic slowdown also affected the country's export of agricultural products.

Farm output set to accelerate its rise next year: Office of Agricultural Economics

The office expects Thailand's agriculture GDP to expand by 2-3% next year due to ample water resources, government support and economic expansion.

"However, it is necessary to follow various factors that would affect the country's agriculture sector, such as climate change, rising production cost, animal disease outbreak, economic slowdown, currency exchange volatility, geopolitical conflicts and new Covid-19 waves," the office added.

Farm output set to accelerate its rise next year: Office of Agricultural Economics

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