24 April 2008 – Mr Dhanin Chearavanont, chairman and CEO of Thailand's largest agricultural group, called on the government to radically change Thailand's approach to agriculture in a bid to take advantage of rising food and oil prices.
It is high time the country shed its low-yield farming practices in favour of a vertically integrated approach to agricultural production, a direction which Charoen Pokphand (CP) took some 30 years ago, Mr Dhanin told his audience at the Office of the National Economic and Social Development Board.
He presented a new agricultural model for Thailand which could see the country’s agricultural income rise 2.5 times to 2.1 trillion baht ($67 billion). Possible measures could include better arable land management, more efficient irrigation, better equipment and an increased use of GMOs.
CP Group Chairman & CEO Dhanin Chearavanont |
Thailand should also take advantage of soaring global demand for food and biofuel by improving productivity and production of one of its main cash crops, palm, the prices of which are rising along with demand. Sugar, corn and tapioca all present similar opportunities, he added.
Rice also offers good returns thanks to rising demand for the staple, particularly from China, the CP Group chairman said. Thailand, the world’s top exporter of rice, should strike an OPEC-like alliance with other major rice producers, such as China, Vietnam and India, in order to keep prices at an advantageous level. “Today Vietnam has halted their export of rice for fear of domestic shortage. China alone doesn’t have excess rice for export, while India may have some rice surplus for exports in the coming years. So why don’t we join hands with those three countries to improve prices?” said Mr. Dhanin.
Mr Dhanin strongly advised the government to refrain from controlling commodity prices, adding that if they were allowed to rise freely, farmers would have more money to spend back into the economy.