Development of Agribusiness Enterprises - Asian Productivity ...

Table 4. Exports of Principal Agricultural Products by Thailand, 1997
(Unit: B/ million*)
Commodity Export Value
Rice 65,088
Para rubber 57,457
Seafood 49,309
Chilled shrimp 47,185
Prawn and lobster 18,388
Cassava products 14,154
Refined sugar 11,258
Fresh chilled and frozen fowl 6,352
Prepared and canned fruit and vegetables 5,915
Canned pineapple 5,902
Note: * Value based on an exchange rate of US$1 = B/ 40.
Employment
The workforce in the agriculture sector of Thailand has steadily declined from 80
percent earlier in the past century to only 40 percent at present. Farm labor undergoes
changes on a seasonal basis because agriculture still depends mainly on rainfed cultivation.
Thus, the number of those employed in farming activities declines during the dry season and
gradually increases during the monsoon season.
AGRIBUSINESS
Agribusiness originated with the use of manmade inputs to take control of the growth
of plants and animals, and humans began to consume food and fiber produced by other
humans. Subsequently, the chain of industries directly and indirectly involved in the
production and marketing of agricultural products became more and more diversified and
complex as society developed.
Agribusiness is considered to be an important component of the agricultural system in
rural and regional development. It increases market demand for farm products and
contributes to employment generation. Therefore, the development of agribusiness has
widened the opportunity to increase farm and non-farm labor earnings of farmers and rural
residents through the utilization of resources in rural areas.
During the past three decades, national development has steadily grown, particularly
in the cases of industries, services and agriculture. Natural resources have been greatly
utilized, both directly and indirectly, in production in each sector. Agricultural inputs (i.e.,
fertilizers and chemical pesticides) have been brought into use. The impact of such
development has included deforestation, soil fertility loss, drought, flooding, serious
outbreaks of plant pests, and atmospheric pollution, resulting in low production, low prices
and high production costs.
In more recent years, agricultural development policy has placed emphasis on
increasing production mainly through reliance on natural resources, the transfer of technology
and the support of certain production inputs. Such development can achieve the goals of
increased production that is sufficient to meet domestic consumption demands, import
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