Thailand and Asean look to organic agriculture production

 

 

Thailand and Asean must accelerate development of their agricultural systems towards organic production to boost incomes in the region, according to a senior Thai government official.

 

Commerce Minister Porntiva Nakasai said Thailand has great potential to become one of the world's major suppliers of organic-farm processed products, and exports of organic products should grow by at least 10% a year.

 

There has been a significant increase in demand for organic products in the past few years due to rising concern over health and sanitary issues, she said.

 

Andre Leu, vice president of the International Federation of Organic Agriculture Movements, said Asean has the ability to meet the world's rising demand for organic products.

 

Consumers of organic foods are in the middle and upper classes. With one of the world's fastest-growing economies, Asians are expected to demand more organic products in the near future. Asean countries should develop organic farms not only to serve the health-conscious market, but also to help protect the environment, he said.

 

The organic market has continued to expand despite the global economic downturn last year. One of the fastest-growing markets for organic products is China, which now ranks third in the world for organic-products consumption after the EU and the US.

 

Japan is the world's fourth-largest market. The global market for organic products is worth US$100 billion a year, with nearly half of the products going to North America.

 

Thailand and Asean have high potential to increase exports of organic products to Australia under the Asean-Australian free trade agreement.

 

The organic market in Australia is worth US$600 million, of which 60% comes from imports. Australia has high demand for many Thai organic products such as rice, seafood, tapioca and sugar, Leu said.

 

Ong Kung Wai, chairman of Organic Alliance Malaysia, said agricultural land under organic management had increased considerably in the past decades, reflecting higher demand for organic products.

 

A total of 138 countries manufacture organic products, covering 30.4 million hectares. More than 80% of organic farms are in developing countries, in particular Africa and Asia.

 

Thailand's organic market is worth about THB6 billion (US$181 million), half of which are exported.

 

Le Thanh Hoa, from Vietnam's Agriculture and Rural Development Ministry, said his government, companies and non-governmental organisations had focused on helping Vietnam farmers to go organic since the mid-1990s.

 

The development of organic plantations has not only helped increase farm incomes, but also living standards, as chemical exposure has been reduced. The major market for Vietnamese organic products is the EU, as the domestic market is still limited.

 

Phaydy Phiaxaysarakham, deputy director-general of Laos' Agriculture Department, said his government has had a policy to encourage sustainable agriculture and organic farming since the late 1990s.

 

In the mid-2000s, market linkage was introduced, as opportunities for organic agriculture for poverty eradication became apparent, he said. Organic products from Laos showing potential are tea, coffee, rice, vegetables, soy and herbs.