The Channels view on the future of the Thai Agriculture market

Over the past few years, the Department of Agriculture Thailand has made many attempts to advance the agricultural industry in almost all aspects. In order to understand the development, Kleffmann Group conducted a survey among 50 Retailers in Thailand on how they see farming in the future and what they expect from the industry.

Amid the rising of technologies all over the world in recent years, advances and innovations in mechanization for Thailand are thusly inevitable. For now, tractors, planters, and sprayer-tractors are mostly used by Thai growers and as forecasted, incidence for owning tractors and its attachments also tends to be higher in the next ten years, namely the proportion of owners who own those basic machines will be higher by 10-30 % on average.

Regarding drones and harvesters, the incidence of using those machines in farming in the next ten years may also moderately increase by 10-30 % on average, though the proportion of owners is expected to be not much higher. Generally, technologies for upcoming advances in agriculture would be one of the most considerable topics for Thailand along with strategies for economic and industrial development.

Figure 1: The use of drones is expected to increase moderately over the next ten years.

Respectively, several top key actions for success in this emerging market are suggested as well. From the channel’s point of view, price, promotions, and quality of the products are the most relevant key actions for success. 82 % of the respondents see that lowering the price would help to reduce the cost of production, which could easily get more success in the Thai market. Secondly, for creating more interest as well as more incentives for farmers to buy the products, offering promotions is considered as one of the most appropriate key actions.

Furthermore, almost half of respondents assume that more sale representatives and more coverage would support growers’ knowledge about products. Creating more advertisement and holding farmer meetings or seminars as well as keeping up with brand standard and primarily product quality are respected as effective ways to get achievement in this emerging market in Southeast Asia.

In conclusion, the entire Thai agriculture is forecasted with not much dramatically changing in the next ten years. However, the majority (88 % of the respondents) thinks that it will change mainly on a higher level or mechanization in farming due to technological developments. Particularly, it is also indicated in the forecast that biological crop protection products would likely be applied instead of chemicals. Finally, understanding the status quo and forecast about changes of Thai agriculture is important to determine which crop markets and sectors are to be targeted and respectively following the right strategy will ensure having successful market access to the Thai farmers.

Author:

Diep-Anh Pham, AgriGlobe® Team