Webpage on Business Opportunities in Thailand May 2008 Vol.3 No.5

Government launching organic food action plan

The cabinet yesterday approved an action plan for organic farming with a budget of 4.8 billion baht to be spent from 2008-11. The plan developed by the National Economic and Social Development Board aims to lift the quality of life of farmers and secure food supply. It also hopes to alleviate poverty, strengthen the competitiveness of organic agriculture and develop Thailand as a supply source of organic goods in the region, said Natthawut Saikua, a deputy government spokesman.

The cabinet has set aside 1.1 billion baht for this fiscal year to finance the plan.

Chemical-free crops have become increasingly popular in the past decade among consumers who are concerned about healthy eating and the effects of chemicals on foods and the environment. World market demand for organic produce has been rising by 20% a year, especially in rich countries in Europe, North America and Japan. The major organic exporters are Argentina, Mexico, Brazil, India and China.

Mr. Natthawut said Thailand's organic exports had good potential, particularly in the European Union, but exporters still face challenges meeting EU food safety and certification regulations.

Organic plantations in Thailand currently cover 140,963 rai, of which 80% are for rice, vegetables, fruit, and herbs.

The small area puts Thailand in 71st place out of 85 countries that grow organic produce, which earned the country only about one billion baht in export revenue, he said. The figure represents less than 0.1% of the total value of organic products around the world, estimated at 1.3 trillion baht in 2006.

Bangkok Post, 07.05.2008

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