Development of Agribusiness Enterprises - Asian Productivity ...

and prepare for global climate change, the Ministry of Agriculture and Cooperatives has
adjusted its action plan for the final period of the eighth NESDP to include:
(a) restructuring of the agriculture sector;
(b) an increase in production efficiency and a reduction of production costs;
(c) the improvement of product quality and processing;
(d) the restructuring of the Ministry of Agriculture and Cooperatives;
(e) the promotion of rural savings;
(f) management of chemical fertilizers and agro-chemicals;
(g) management of forests, soil, water resources, coastal areas and biological resources;
(h) preparations for global climate change; and
(i) preparations for meeting the demands of the 21st century.
In adjusting the roles and functions of the Ministry of Agriculture and Cooperatives,
the Department of Agricultural Extension has drawn up the following operational guidelines:
C Increase agricultural production efficiency and improve quality.
C Promote and support the crop diversification program.
C Provide production inputs and agricultural technology transfers.
C Promote agro-industries.
C Promote the raising of farm household income levels.
C Develop the farmers’ quality of life.
In accordance with the above-mentioned policy and guidelines, a plan to promote raw
material supplies is being introduced for regional implementation. The case of asparagus in
Nakhon Pathom province in the western region is one example of successful agribusiness
promotion in Thailand. The conditions in the area were typical, with prices of farm produce
generally at low levels and fluctuating because most farmers were small-scale producers. The
farmers had no facilities for post-harvest storage. Therefore, they were forced to sell their
produce at unfavorable prices at the beginning of the harvest season. Prices were determined
by middlemen, dependent on the time of year.
Then, after Thai- and Japanese-owned private export companies outlined their
requirements for asparagus production to the Department of Agricultural Extension, several
meetings were arranged between the private companies and the officials concerned. The
meetings discussed the means of cultivation, the suitability of land conditions, availability
of water resources, farmers’ skills and background, guaranteed prices and farmers’ benefits.
Finally, the Department of Agricultural Extension approved in principal the proposal by the
companies and assigned the officials concerned to inform the asparagus farmers of the
proposed plan.
The private companies required both green and white asparagus. After selecting the
area for the project and establishing a factory, the companies and the extension service agent
arranged meetings with farmers in local villages. At the meetings, the new plan for
cultivating the asparagus crop, the benefits and returns, and what the companies would
provide in the way of support and prices were explained to the farmers.
Interested farmers were asked to register their requirements in terms of planting and
credit support for production inputs. A production agreement was mutually considered and
drafted by the private companies, the farmers and the extension service officials. Since the
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