Analysis Reveals Disparity in Production Costs for Thai Farmers
In a recent study analyzing the production costs for Thai farmers, it was found that their income in 2022 stood at 3,900 baht per rai, while the cost amounted to 5,899 baht. Consequently, each farmer suffered a loss of 1,999 baht per rai. Conversely, Indian farmers experienced a different outcome, achieving an income of 11,116 baht per rai in 2022. After deducting the production costs of 6,994 baht, they were left with 4,122 baht per rai. This stark difference becomes more evident when comparing the figures to 2012 data, where Thai farmers earned 4,678 baht per rai, incurred costs of 3,840 baht, leaving them with a mere 838 baht each. In contrast, Indian farmers experienced an income of 9,298 baht each, incurred costs of 4,412 baht, and were left with a more substantial 4,886 baht per rai.
A similar trend emerged when examining the earnings of Vietnamese and Myanmar farmers. Vietnamese farmers earned 8,321 baht each in 2022, while incurring costs of 5,098 baht, resulting in a surplus of 3,223 baht per rai. In 2012, their income was 8,252 baht each, and costs stood at 4,071 baht, leaving them with 4,181 baht per rai. Comparatively, Myanmar farmers earned 5,953 baht each in 2022, with costs amounting to 4,574 baht, leaving them with 1,379 baht per rai. In 2012, their income was 4,532 baht each, costs were 3,154 baht, and the remaining amount was 1,378 baht per rai.
One of the contributing factors to this disparity is the rice yield per rai in Thailand, which is three times lower than that of Vietnam. While Thai farmers primarily focus on price and production without considering cost reduction, Vietnamese farmers adopt a “3 less, 3 more” approach, aiming to reduce costs and increase output. Moreover, Thai farmers face significant debts and often have to sell part of their rice to repay them. The previous government’s failure to alleviate farmers’ debt, combined with limited water resources for farming, restricts Thai farmers to one or two farming cycles per year, whereas their Vietnamese counterparts manage three. Additionally, Vietnam allocates three billion baht annually to rice research, while Thailand only spends approximately 200 million baht. Notably, countries like India, China, and Japan allocate over one billion US dollars each year to rice research. Furthermore, past government market intervention policies have adversely affected Thailand’s rice competitiveness, exacerbating the decline in yield per rai and selling prices.
Despite India, Thailand, and Vietnam maintaining their positions as the world’s top rice exporters in 2022, their primary trading partners differ. India’s main partners include Bangladesh, Saudi Arabia, and Iran, while Thailand trades primarily with Iraq, the United States, South Africa, and China. Vietnam’s key rice trading partners consist of the Philippines, Ghana, and China.
Source: No Sethakit Newspaper, No. 3910, 3-5 August 2023
However, such proposals are a result ofAn analysis of production costs for Thai farmers It was found that in 2022, the income was 3,900 baht per rai, while the cost was 5,899 baht, and the farmer lost 1,999 baht per rai (as of 2012, the income was 4,678 baht per rai, the cost was 3,840 baht, and the remaining money was 838 baht each) compared toan Indian farmer In 2022, the income was 11,116 baht each, the cost was 6,994 baht, the remaining money was 4,122 baht each (as of 2012, the income was 9,298 baht each, the cost was 4,412 baht, and the money that remaining was 4,886 baht. per rai).
whilea Vietnamese farmer In 2022, the income was 8,321 baht each, the cost was 5,098 baht, the remaining money was 3,223 baht each (from the year 2012, the income was 8,252 baht each, the cost was 4,071 baht, and the money remaining was 4,181 baht each) aMyanmar farmer In 2022, the income was 5,953 baht each, the cost was 4,574 baht, the remaining money was 1,379 baht each (from the year 2012, the income was 4,532 baht each, the cost was 3,154 baht, and the money remaining was 1,378 baht each).
Currently, Thailand’s rice yield per rai is 3 times lower than Vietnam’s (Thailand’s average is 450 kg per rai, Vietnam’s is more than 1,000 kg or more than 1 ton per rai). But most of them are not professional farmers. while Vietnam is a professional farmer By the majority of Thai farmers, they only think of 2 things: price and production. You rarely think about reducing costs. But Vietnamese farmers are thinking about “3 less, 3 more”.
In addition, Thai farmers owe a lot. Part of the rice was sold to pay off the debt. and rent his own farm for further farming The previous government policy was not able to release the debt to the farmers. Although the water source for farming is insufficient. Thai farmers can farm 1-2 times a year, compared to Vietnam can farm 3 times a year, including money for rice research, in terms of increasing productivity. Inventing new varieties of rice, Thailand only spends about 200 million baht a year, compared to Vietnam’s 3 billion baht a year, while India, China and Japan spend more than 1 billion US dollars per year on rice research. And past government market intervention policies destroyed competitiveness. It doesn’t really solve the rice problem do more farming more debt higher production costs The yield per Ra has decreased, the selling price has decreased.
Although India, Thailand and Vietnam are the world’s top rice exporters in 2022, India’s main rice trading partners are Bangladesh, Saudi Arabia and Iran. Thailand’s main rice trading partners are Iraq, the United States, South Africa and China. And it by Vietnam important rice trading partners such as the Philippines, Ghana and China.
Page 9, No Sethakit Newspaper, No. 3910, 3 -5 August 2023
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