New strategy aims to add value to exports

       The Agriculture Ministry expects the new strategy for exports to enable Thailand to ship more of its farm products as finished and higher-value goods rather than raw commodities.
       The plan, to be implemented from 2010 through 2012, aims at streamlining the working process among related governmental agencies with a clearer analysis of problems obstructing certain export markets for farm goods, said Apichart Jongskul, secretary-general of the Office of Agricultural Economics,the Agriculture Ministry's think-tank.The plan also contains approaches to dealing with new forms of non-tariff barriers imposed by buying countries.
       The strategic plan would also aim to enlarge global market shares for key products while maintaining the country's position as a market leader.
       "For example, Thailand is the world's fifth-largest chicken exporter but we have only a 5% share in the total market.We're looking at ways to increase the market share," he said.
       Thailand is also the world's secondlargest sugar exporter, controlling 10%of the market. The country also ranks top in exports of several other farm products such as shrimp, canned tuna,rice, rubber, tapioca and pineapple.
       Mr Apichart has pinned his hopes on the strategic plans, which he says would promote the export growth of farm products by at least 10% a year from 1.34 trillion baht in 2008.
       The OAE yesterday organised a brainstorming session among various agencies, farmers, exporters and economists to gather ideas before finalising the draft plans.
       Chulalongkorn University economist Somphop Manarangsan suggested that the agency consider factors that could have significant effects on world farm products, especially speculation in commodity and futures markets.
       Other factors that would affect global farm trade are what he terms the "8 Fs": food security, food safety; food health, food taste, food readiness, food beauty, food eco-friendliness and food social consciousness.
       "The increasing social consciousness has forced Thai manufacturers to take precaution to make sure their products,meat for instance, meet international requirements of animal welfare and no child labour is used.
       "These conditions are becoming necessary requirements for future world trade," Dr Somphop added.
       Nikorn Jamnong, an adviser to the Agriculture Minister, said that the draft would also prepare Thai farmers to tackle unavoidable barriers including market liberalisation under several trade pacts.
       Starting next year, the country is bound to open its farm market to Asean members under the Asean Free Trade Area (Afta) agreement. Twenty-three products are likely to be affected by the market opening.
       "The import duty on rice will be zero and we have to lessen the impacts on local farmers. For rice, scrapping the rice-pledging programme is one crucial step," he said.
       He added that the ministry planned to use part of the 150-million-baht FTA fund to strengthen Thai farmers as well.