Ministry plans boost for rubber planting in the North 2010/04/26

Published: 20/04/2010 at 12:00 AM

ผ่านทางMinistry plans boost for rubber planting in the North.

The Agriculture Ministry plans to expand para rubber plantations in the North to make the product a new cash crop for the region.

The ministry’s Office of the Rubber Replanting Aid Fund aims to double its promoted plantations to 600,000 rai over the next few years by offering low-interest loans to small planters, said Uthai Sonluksub, honorary president of the Natural Rubber Council of Thailand. Planters with between two and 15 rai can apply for these incentives from the office, which also provides rubber saplings and financial assistance.

“Many provinces in the North have an appropriate climate and conditions to grow rubber, especially Phayao and Chiang Rai provinces, which don’t have many cash crops,” said Mr Uthai, also chairman of the Federation of Rubber Farmers Associations of Thailand.

“However, we would like to encourage planters to use wild and uninhabited areas to grow rubber.”

The farmers’ federation and the office staged an annual para rubber day in Phayao last week to update planters on the industry, its markets and necessary know-how such as rubber tapping skills.

The North is Thailand’s most recent site for planting rubber, which has expanded from the South, driven by strong demand from Japan and China.

The North’s 600,000 rai of rubber plantation account for only 3.6% of the 16.7 million rai of rubber in Thailand, of which 9.5 million are in the South. But the ministry expects plantations in the North to soon cover almost 1 million rai.

Thailand earned about 300 billion baht last year from about 3 million tonnes of rubber exports, 2.5 million tonnes of which were primary products.

BAAC backs B80bn plan 2010/04/26

Published: 1/04/2010 at 12:00 AM

ผ่านทางBAAC backs B80bn plan.

A government proposal to restructure up to 80 billion baht of farm debt is an opportunity for the state-owned Bank for Agriculture and Agricultural Co-operatives to clean up its loan book, says bank president Luck Vajananawat.

The debt moratorium programme would tentatively halve the debt burden for farmers with problem loans of up to 2.5 million baht. Accrued interest would be waived and the remainder of the obligations rescheduled over 15 years.

The plan, spearheaded by Deputy Prime Minister Sanan Kachornprasart, will be presented to the cabinet for approval next month.

Mr Luck said the proposal would help the bank deal with its current non-performing loans.

“If these [non-performing] loans are not addressed in some fashion, eventually they will go completely bad, forcing us to set aside 100% provisions,” he said.

The BAAC has about 51,000 customers with combined debts of 12 billion baht as distressed assets under rehabilitation through the Farmers’ Reconstruction and Development Fund.

The proposal would cover farmers that were members of the fund as of the end of last year. But participants must agree to enroll in BAAC training programmes on financial management.

Farmers who fail to meet their rescheduled payment obligations would become liable for the full amount of the loan. Participating creditors, including the BAAC, would also have to agree not to enforce their collateral rights to any outstanding debt.

Mr Luck said the BAAC, as well as other private banks, would likely seek compensation from the government to help offset the costs of the programme.

About the author

Writer: Wichit Chantanusornsiri

Position: Business Reporter

Global pace of deforestation slows: FAO 2010/04/26

Published: 25/03/2010 at 07:56 PM

ผ่านทางGlobal pace of deforestation slows: FAO.

The worldwide pace of deforestation has slowed down for the first time on record, the UN Food and Agriculture Organization (FAO) said on Thursday.

A Madagascan logger walks through a recently cut down forrest in Madagascar. The UN Food and Agriculture Organization has said the global pace of deforestation has slowed down for the first time on record.

On a total forest area of four billion hectares, the world lost 13 million hectares of forests per year between 2000 and 2010 — down from around 16 million in the 1990-2000 period, it said in a report.

“For the first time, we are able to show that the rate of deforestation has decreased globally as a result of concerted efforts taken both at local and international level,” said Eduardo Rojas, assistant director general of FAO’s forestry department, in a statement.

“New forests are being created. Either through the expansion of forests or more rapidly through the planting of trees” said Mette Loyche Wilkie, the Coordinator of the Assessment, at a press conference,

Planted forests now account for about 7.0 percent of global forests, said Wilkie.

Over the 10-year period, Asia which “registered a net gain of some 2.2 million hectares annually in the last decade, mainly because of large-scale afforestation programmes in China, India and Vietnam,” Rojas said.

But Rojas warned: “The rate of deforestation is still very high in many countries and the area of primary forest — forests undisturbed by human activity — continues to decrease”.

The highest annual losses were registered in South America, which lost four million hectares, and Africa, which lost 3.4 million hectares.

Forest area remained stable in North and Central America, while in Europe it continued to expand, although at a slower rate than in the past.

FAO also highlighted the fact the slowdown is helping to bring down carbon emissions.

“A lower deforestation rate and the establishment of new forests have helped bring down the high level of carbon emissions from forests caused by deforestation and forest degradation,” said Wilkie.

About the author

Writer: AFP News agency

Position: Agence France-Presse

BAAC raises scheme goal 2010/04/26

Published: 23/03/2010 at 12:00 AM

ผ่านทางBAAC raises scheme goal.

The Bank for Agriculture and Agricultural Co-operatives expects to offer a price guarantee for the second-crop rice planting to 600,000 farmers by the end of May, provided that farms have enough water for plantings.

The projection tops an original target of 480,000, as farmers have gained greater confidence in the price-guarantee programme, said BAAC president Luck Vajananawat.

The BAAC has sped up the loan approval process by preparing contracts even while farming certificates are under process. The bank has also set aside a budget of 8.7 billion baht for the price guarantee of the second crop.

The price guarantee has so far attracted 4.56 million farmers, with 4 million signing guarantee contracts. Some 3.6 million farmers have now received compensation worth a total of 34 billion baht.

The beneficiaries are 3 million rice farmers, who received 27 billion baht; 370,000 corn growers, who were given 5.4 billion baht; and 240,000 tapioca growers, who were paid 1.63 billion baht.

A BAAC survey found that 72% of farmers are satisfied with the price guarantee and 17% would prefer the rice-pledging scheme.

Mr Luck said some farmers misunderstood the details of the programme, resulting in delays in compensation payments. For instance, changes in crops may violate the guarantee and require a fresh assessment by authorities.

“For example, the government set a benchmark price of 9,000 baht on Dec 1, resulting in compensation of 1,000 baht per tonne. But if a farmer entered the programme on Dec 16, when the benchmark price was 8,000 baht per tonne, then he would have received compensation of 2,000 baht,” he said.

About the author

Writer: PARISTA YUTHAMANOP

Agricultural forum 2010/04/26

Published: 18/03/2010 at 12:00 AM

ผ่านทางAgricultural forum.

What does “sustainable agriculture” really mean? How will it solve the food and energy shortage, global warming as well as the economic depression? And what should the city people be more aware of?

On March 22 and 23, a group of farmers, academics and consumers will participate in the annual Sustainable Agriculture Forum, to be held at Sukhothai Thammathiraj Open University’s Pittayapat Building.

The programme will open with a keynote speech by economist Chatthip Nartsupha on the evolution of the Thai economy, with a focus on the strength of community culture, a concept he coined back in the ’80s. Next will be a panel discussion on sustainable agriculture and the present crises. Invited speakers are Chalardchai Ramittanont, Witoon Lianchamroon, Khomsant Hutaphaet, Sarinee Achawanantakul and Vitoon Panyakul.

The programme will also feature group discussions on a variety of topics: the middle class and farming, the role of conscientious consumers and fair trade, organic methods in improving the soil, seed conservation and the new generations of farmers.

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For more information, call 02-591-1195/6.

Time to put a stop to the burning of our forest cover 2010/04/26

Published: 17/03/2010 at 12:00 AM

ผ่านทางTime to put a stop to the burning of our forest cover.

One does not hear much about shifting cultivation any more. This is due perhaps to the success of the policies to find permanent settlements for various hilltribes who used to practice that form of agriculture. For those who might have forgotten, such agriculture is based on burning down a thick patch of forest to clear the area for crops.

Large tracts of forest land in the country are being cleared by unscrupulous slash-and-burn cultivation.

After a few years of cultivation, the soil becomes unproductive as it runs out of natural fertilisers. The cultivators abandon the land and find another patch of forest to clear and the process starts all over again.

The abandoned land never regains its forest cover; what tends to grow there is the tough Cogon grass.

In the old days, hilltribes of northern Thailand often cleared forests to grow rice, corn and opium poppy – rice to feed themselves, corn to feed their animals and opium poppy to earn cash income.

While the hilltribes no longer practice that form of destructive agriculture, creating the impression that it is no longer an issue; if one looks closely, however, one will find that the whole of Thailand’s development process is, in fact, a de facto shifting cultivation and thus is not sustainable.

We know that forests have been continuously cut down over the past 50 years after Thailand initiated accelerated development policies. The cleared land is used largely to grow rice, maize, sugarcane, tapioca, fruit trees and vegetables. Even as this article is being written, fires are raging in many areas of the North, especially on forested land adjacent to national parks and forest reserves. Those who burn down the forest are no longer the hilltribes but employees of people with money and influence.

Seashores and islands are not exempt from the process. Large swathes of mangroves have been cleared for shrimp farming. Seashores and islands have been turned into resorts and second or third homes of the rich. The eastern side of the Gulf of Thailand began at Bang Saen and when it was no longer in favour, the process moved to Pattaya, then Jomtien and on to Chang and Kood islands. On the west of the Gulf, it started at Hua Hin, then Cha-am and Pran Buri, then Samui and Phangan islands.

On the Andaman side, it started with Phuket, then various islands of Trang and the seashore of Phang-nga province. Now, very little mangrove areas are left and much of the sea around those developed areas is badly polluted.

What prompts me to write this is a couple of recent visits to the Wang Nam Khiew area of Korat. I heard about the area from various people who had gone to seminars and reunions there. They told me of its cool weather rivalling the areas of northern Thailand. People from other parts of Thailand need not travel to the North to enjoy that kind of weather any more. During my visits, I found the weather cool as they had described. But I also found what they did not tell me: the utter destruction of the forest until all the hills stand denuded, with resorts and homes popping up helter-skelter. Few birds were to be found. The scenery reminded me of three books and documentaries: Silent Spring by Rachel Carson, An Inconvenient Truth by Al Gore, and Collapse by Jared Diamond.

Carson studied the effects of chemicals such as DDT on the environment, especially on the bird population. Her findings led to the banning of DDT, but it was too late to save her own life: she died of cancer at a relatively young age, which many believed was caused by chemicals about which she literally devoted her life to find their effects on the environment and have them banned.

Gore and Diamond both present the stories and pictures of the Island of Hispaniola, on which the Dominican Republic and Haiti are located. If one looks at the aerial picture of the island, one will find a stark contrast between the eastern part that is occupied by Dominican Republic, and the western part that is Haiti: while the east is largely green, the west is almost completely brown. Haiti has burned down practically all of its forests. As a result, it has become a failed state.

If one looks at the aerial picture of Thailand and focuses on the areas around Wang Nam Khiew, one will find a similar contrast between the green hue of Khao Yai National Forest, surrounded by a lot of brown areas including Wang Nam Khiew.

Does this foretell anything? To me, it rings an alarm bell: Thailand must stop burning down its forests and start reversing the process by reforestation in earnest – or risk becoming another Haiti.

Sawai Boonma has worked for more than two decades as a development economist. He can be reached at .

Relate Search: Wang Nam Khiew, Silent Spring, An Inconvenient Truth, Collapse

The water shortage: crisis of opportunity? 2010/04/26

Published: 15/03/2010 at 12:00 AM

ผ่านทางThe water shortage: crisis of opportunity?.

The El Nino weather pattern is expected to create drought conditions in Thailand and throughout Asia this year, with higher temperatures and rains forecast to arrive around two months later than usual in some areas. The Agriculture Ministry predicts that 60 of Thailand’s 76 provinces will suffer hotter temperatures and lower rainfall, and since the country’s reservoirs were already below capacity at the end of last year’s rainy season, this will inevitably lead to water shortages. This threat is already hitting Thailand’s economy, with farmers being urged not to plant a second rice crop in order to reduce stress on water supplies.

Fortunately, the problems we are facing are expected to be temporary, due to the transient nature of El Nino. However, they are an indicator of an underlying trend, as water shortages throughout the region become chronic and more serious. According to a 2009 report, Charting Our Water Future, co-authored by the McKinsey Group, by 2050 there will be a global water shortage of 4,200 billion cubic metres, representing 40% of total demand.

Left unsolved, this would mean a global crisis of unprecedented proportions. The good news is that this problem can be solved through good management on both the demand and supply side along with co-operation between the public and private sectors.

Assuming that governments take the necessary steps to better manage water supplies, business impacts will include higher commodity prices, higher costs of water, stricter water-use compliance standards and water rationing. As local sources of agricultural supplies will dry up in some instances, some businesses (e.g. in the food processing industry) will have to close or relocate their operations.

Agriculture accounts for 70% of all water consumption worldwide and around 75% of water consumption in Thailand. Rice, a staple product of Thailand, is extremely water-dependent, as are other basic commodities such as milk, wheat and corn. In a drought cycle, many farmers may lose their crops.

Water shortages will also push up prices, which will encourage farmers to intensify their cropping, placing yet more pressure on water supplies. We are already seeing this in Thailand with the El Nino effect – despite warnings of insufficient water supplies, many farmers have ignored requests to limit rice crops as they seek to maximise the benefits of higher prices. The Thai government may therefore be forced to adopt measures such as increasing the price of water or applying strict rationing.

Given the importance of agriculture to Thailand, production efficiency needs to be a priority. In order to increase the “crop per drop”, Thailand needs to modernise irrigation systems, enhance crop yields, improve the efficiency of water application and drainage systems, develop more drought-resistant seed varieties and encourage crop stress management systems.

Another point to consider is the type of crops grown, as there is a big difference in water consumption for different kinds of crops. For example, approximately 200 litres of water are required to produce one glass of milk or one slice of bread. This compares with 2,800 litres of water to produce one kilogramme of chicken, 6,000 litres to produce one kilogramme of pork and a whopping 15,000 litres to produce one kilogramme of beef.

Industry is the second biggest user of water globally after agriculture and so this sector needs to introduce systems for conservation, recycle waste water and increase water-use efficiency by moderating their use of water. Those companies that adopt these practices early on will not only be in a more secure situation in the event of water scarcity in the future but they will benefit from the productivity gains that this entails.

A third major user of water in Thailand is the tourism industry. Already we have seen water shortages in drought years, especially at our popular beach islands. Hotels therefore need to adopt efficient water-management practices, recycling and monitoring water use to eliminate wasteful practices.

Thailand is in the fortunate position of having relatively good supplies of water compared with many other countries. According to a 2008 report by JP Morgan, Thailand had 6,526 cubic metres of water per capita in 2005 compared with 199 for Singapore, 1,891 for India and 2,206 for China. However, Thailand was slightly below the average for developing countries and well below Malaysia (26,105) and Indonesia (13,381).

Given that Thailand has relatively good supplies of ground water, the key to ensuring the sustainability of our industry and agriculture is capture and retention, such as in the dams and mini-dam projects supported by His Majesty the King. By increasing the supply of water we will significantly increase the productivity of our agricultural sector and be able to take advantage of rising commodity prices.

As always, in any period of major change some enterprises will be able to benefit from this “crisis” and turn it into opportunity. Winners may include private-sector operators involved in the building of water-supply facilities, private developers of waste-water management systems and private sector partners working on water distribution maintenance and conservation projects.

Efficient water-management distribution and supply is a major component of the Thai Khem Khaeng infrastructure investment project so we are certain to hear a lot more about this subject over the next few months. Those businesses that investigate this issue and understand the opportunities and threats they face will therefore be in a strong position to face the challenges of the future.

Piya Sosothikul, is an executive vice-president, Bangkok Bank. Meeting the Challenges appears every two weeks. Questions, comments or suggestions can be sent to asiafocus@bangkokpost.co.th

BAAC plans to broaden insurance for all key crops 2010/04/26

Published: 9/03/2010 at 12:00 AM

ผ่านทางBAAC plans to broaden insurance for all key crops.

Drought conditions increase concerns

The Bank for Agriculture and Agricultural Co-operatives is planning to expand coverage of its crop insurance programme for all of Thailand’s key farm commodities, says bank president Luck Vajananawat.

Visitors choose free plants at a fair the BAAC’s head office in Nang Loeng, Bangkok, yesterday. The fair aimed at promoting the bank’s social and community work, with the focus this year on helping farmers reduce their debt. PATTARACHAI PEECHAPANICH

The BAAC’s pilot project, initiated in 2008, offers insurance coverage to corn farmers in five provinces, where farmers qualify for compensation for lost crops if rainfall falls below set benchmarks.

Finance Minister Korn Chatikavanij wants the state-owned BAAC to expand the programme to cover corn farmers nationwide.

Drought conditions have been declared in more than 60 provinces nationwide, and the Agriculture Ministry has already warned farmers that water reserves cannot cover a second rice crop this year.

Mr Luck said the ministry and the bank would also consider the cost of expanding the weather insurance programme to other key crops, including tapioca, rice and sugarcane.

He noted that in some countries, the premium costs for insurance are paid by both the government and farmers.

Japan also has a government-run fund that will offer insurance if private insurers decline to extend coverage.

“In many countries, such systems are considered a form of social subsidy, to help ensure the security of the agricultural sector,” Mr Luck said.

To help keep premiums at affordable levels, some countries implement “stop-loss” policies, where insurers accept losses up to a set limit with any additional costs accounted for by the government.

Only 756 corn farmers to date have purchased weather insurance this year, paying total premiums of 1.3 million baht. Damage claims settled to date total about 900,000 baht.

The General Insurance Association has designated Siam Commercial Samaggi Insurance as its co-ordinating agent with the BAAC for the programme.

For their part, corn farmers want the government to increase coverage under the programme from a maximum of 800 baht per rai to 1,800 to 2,000 baht per rai to help cover expenses. Officials have previously indicated that raising insurance coverage would require doubling the current premium of 100 baht per rai, a fee that farmers want the government to accept instead.

Thailand has 6 million rai of land under plantation for corn. Annual subsidies for corn range from 3 to 4 billion baht per year.

The BAAC meanwhile has announced a special programme offering farmers affected by local drought low-interest loans of up to 30,000 baht each with a six-month grace period on repayments.