April 12, 2011

Thailand reports 4.2% growth in agriculture

The Office of Agricultural Economics reported that for the first quarter of 2011, GDP for Thai agriculture saw a 4.2% increase compared to same the period last year.

Production, trading and prices for agricultural products have improved, according to Apichart Chongsakul, secretary general of the Office of Agricultural Economics.

There was higher output for main economic crops including rice, para rubber and cassava. Driven by higher consumption and soaring average prices, farmers were motivated to plant more of these crops.

During the first quarter, some areas had drought but the overall impact was not significant. Meanwhile, production in livestock saw more expansion, motivated by better meat prices. 

The aquaculture sector suffered a decline in production, especially after a major flood in Southern Thailand on March 23, damaging around 750 ponds or 10% of total shrimp farms in the region. Surach Thani is the most ruined province at 600 ponds damaged, Nakorn si Thammarat 100 ponds, and Chumphon 50 ponds.

Output in the aquaculture sector decreased by 4.5% compared to the same period last year. Aquatic animals have decreased by 13.71% due primarily to variation in climate and the extended drought in mid 2010.  

Meanwhile, pressures of increasing oil prices have weighed on production costs for aquaculture operations.

Production and prices for broiler, pork and egg showed increase. Output was generally consistent, with the exception that in January, eggs were in shortage.

There were no disease outbreaks during first quarter as most livestock operations were based on the closed farm system. In the first quarter, livestock sectors contributed to an overall growth of 3.1%.

The overall economic outlook for Thai agricultural is generally positive. However, risk factors with regards to weather need to be kept in mind, and these include drought in the North-east region and flooding in the Southern region.