Thailand: Supply, Demand, And Prices For Agricultural Crops

The economy in Thailand is dependent upon agriculture. That is why the main resources of the country are employed in agriculture. Most of the foreign exchanges are sourced out from agricultural exports. Dating back in the past few years, the agricultural sector accounts for 37.39% of the GDP. Almost 82% of the labor force is seen actively working in agricultural activities. And there is about 84.37% share in the export of agricultural commodities whereas rice accounts for about 58% of the entire crop revenues.

With the NEDA’s implementations, growth in agriculture is then observed including the crop’s diversification. Apart from rice, crops like sugar, cassava, and sugar have increased the roles in the composition of crops. They also contributed to the commodities’ exportation.

Supply of Agricultural Crops

The major crops supplied by Thailand for export include corn, rubber, cassava, rice, coconuts, soybeans, and more. But for domestic consumption, the major crops can include cassava, yams, maize, rice, beans, and eggplant. Exported crops include tobacco, sugar cane, rice, coconuts, rubber, pineapples, and jute. Added to these crops are palm oil, cotton, green beans, soybeans, and maize.

The soil and climatic conditions allowed the cultivation of the crops. This is also not only with the tropical varieties but also the one originating in the temperate and semitropical zones.

It can be observed that the Thai farmers are flexible enough as evidenced in the shift from the production of rice to other crops. A lot of farmers are producing rice mainly for subsistence purposes. This is also while they expand their activities to the market-oriented crops in upland areas.

Demand for Agricultural Crops

There is a higher demand for agricultural crops, especially on rice. Secondarily, rubber is demanded by many as well. Among other crops grown for huge demands are the potatoes, cassava, maize, sugarcane, beans, yams, and different oils from seeds, fruit cotton, and many more.

Small and independent farmers are responding in the expansion of substantial output of secondary crops. There is a shift in the production of rice to other crops by many households. They continue to produce rice for subsistence. This is also while activities are expanding while growing the market upland crops. Among those crops majorly demanded to include cassava, maize, mung beans, sugarcane, sorghum, and tobacco. Other essential crops that form part of major production as they increase in demand are peanuts, pineapples, soybeans, cashew nuts, coconuts, sesame, castor beans, and kapok.

Prices for Agricultural Crops

The government in Thailand is implementing a pledging scheme for rice providing farmers with 500-dollars for every ton of paddy. This is somehow higher as compared to the world price. The country believes that it has the market power raising the price around the world. This is true by piling up the rice in stock and reducing the exports of rice.

Now for other agricultural crops, the prices of each can vary. For one, coconuts coming from the plantations are produced every year. The growers claim that the harvested coconut is sold at 2.5 baht each.

For dairy, the raw milk produced reaches about 2,800 tons every day. This is 1 million tons every year. The price of about 2500 cc milk containers is about 91 Baht. The yogurt is also now 52 Baht for every pack.

For sugar, the average price of the refined and white one is 15 to 17 baht for every kilogram. There is a decline in one baht for every kilogram basing on the previous year. For soybean, it is grown domestically and bought at 15.50 baht for every kilogram. The price of palm oil is also 21.52 baht per kilogram.

Now you have learned about the supply, demand, and prices for agricultural crops in Thailand!