Constructive Thoughts for the Day

Constructive Thoughts for the Day
Permalink : http://blog.nationmultimedia.com/kriengsak

Wednesday , July 2 , 2008

Thailand’s Opportunity in the World Food Crisis

Posted by Kriengsak , Reader : 2419 , 10:17:33 | Category : Society

Picture from http://www.javno.com/slike/slike_3/r1/g2008/m04/y168704661918141.jpg Unstable weather is a further major reason for expensive world food prices, especially as natural disasters occur in many countries that are major agricultural centres, for example with flooding in Vietnam and snow storms in China and Southern Asia countries that are known as the world regional rice suppliers. These disasters have very seriously affected some countries to the point of halting rice exports in order to keep domestic consumers in supply. Some countries holding this policy are India, Bangladesh, and Pakistan, among others. Such problems have raised an emergency agenda requiring the cooperation of international organizations to find answers to the world food crisis. The Food and Agriculture Organization of the United Nations held a meeting in Rome, Italy, to discuss 1) Price controls, the non-levying of taxes, and the abolition of food policies that forbid export 2) Backing for plants that can be transformed into alternative energy 3) Support for farmers in developing countries. 4) The impact of global warming on agriculture. At the same time, Ban Ki-Moon, the United Nations Secretary-General, is also requesting international cooperation to attempt to find solutions to the crisis. From a different perspective, the world food crisis could be viewed as an opportunity for Thailand because currently Thailand is the world’s leading rice supplier, exporting 31.4% of its rice to the world market. Thus, Thailand holds a real better position comparing to other countries. Thailand can produce as much as 30 million tonnes of unmilled rice (which is around 20 million tonnes for milled rice). However, domestic requirements stand at only 10-11 million tonnes of rice. Thus, around 9 million tons of rice is Thailand’s surplus for export. On the other hand, Vietnam can export only 4 million tons of rice. Thailand must therefore use this situation as an opportunity to create more income from agriculture. Increased rice prices and world food crisis concerns should result in Thai officials going to other governments to discuss contracts for future rice sales. The government would then need to ensure certain factors. Firstly, communicating with agriculturalists and requesting quick rice production, then preparing disused land space for rice production, in particular allowing farmers to rent high potential government property to grow rice (around 9 million rai of government property is currently disused). Secondly, the government should provide low priced seed and fertilizer to agriculturalists; thirdly, supplying government bank loans to assist agriculturalists’ budgets and guarantee unmilled rice prices. Lastly, government rice stocks should be released for sale on both domestic and international markets, which would give the government sufficient cash flow to run this project. In all events, the government needs to evaluate and control the amount of rice production so as not to exceed demand, and to prevent an oversupply of rice on the market. In another way, it could be said that this world food crisis provides a good opportunity for Thailand to review its total range of policies that support and promote Thai agriculturalists, especially farmers, so that policies are sufficient, effective and suited to this changing era. Besides, Thailand’s agriculturalists are important people who enable Thailand to serve the world as a food production centre, thus they deserve to receive as much support as possible so that they earn a better quality of life. The world is facing a serious food crisis at this time. Many food products have increased in price due to a supply shortage, with oil price being the major cause of this problem. Demand therefore exists for plant production to supply alternative energy fuels; bio-diesel fuels, for example. However, this creates a huge impact on agricultural food production where agriculturalists focus less on agricultural food production in favour of plants for bio-fuels. According to the International Food Policy Research Institute, energy producing plants are the cause for a 30% rise in food prices worldwide. Commenting on this situation, Jean Ziegler, United Nations Special Reporter on the Right to Food, said “Changing agricultural areas in order to grow energy plants, and then burning them for oil is a crime against humanity.” He proposes the prohibition of commercial energy plant production for a five year period.

Picture from http://www.javno.com/slike/slike_3/r1/g2008/m04/y168704661918141.jpg

Unstable weather is a further major reason for expensive world food prices, especially as natural disasters occur in many countries that are major agricultural centres, for example with flooding in Vietnam and snow storms in China and Southern Asia countries that are known as the world regional rice suppliers. These disasters have very seriously affected some countries to the point of halting rice exports in order to keep domestic consumers in supply. Some countries holding this policy are India, Bangladesh, and Pakistan, among others.

Such problems have raised an emergency agenda requiring the cooperation of international organizations to find answers to the world food crisis. The Food and Agriculture Organization of the United Nations held a meeting in Rome, Italy, to discuss 1) Price controls, the non-levying of taxes, and the abolition of food policies that forbid export 2) Backing for plants that can be transformed into alternative energy 3) Support for farmers in developing countries. 4) The impact of global warming on agriculture. At the same time, Ban Ki-Moon, the United Nations Secretary-General, is also requesting international cooperation to attempt to find solutions to the crisis.

From a different perspective, the world food crisis could be viewed as an opportunity for Thailand because currently Thailand is the world’s leading rice supplier, exporting 31.4% of its rice to the world market. Thus, Thailand holds a real better position comparing to other countries. Thailand can produce as much as 30 million tonnes of unmilled rice (which is around 20 million tonnes for milled rice). However, domestic requirements stand at only 10-11 million tonnes of rice. Thus, around 9 million tons of rice is Thailand’s surplus for export. On the other hand, Vietnam can export only 4 million tons of rice.

Thailand must therefore use this situation as an opportunity to create more income from agriculture. Increased rice prices and world food crisis concerns should result in Thai officials going to other governments to discuss contracts for future rice sales. The government would then need to ensure certain factors. Firstly, communicating with agriculturalists and requesting quick rice production, then preparing disused land space for rice production, in particular allowing farmers to rent high potential government property to grow rice (around 9 million rai of government property is currently disused). Secondly, the government should provide low priced seed and fertilizer to agriculturalists; thirdly, supplying government bank loans to assist agriculturalists’ budgets and guarantee unmilled rice prices. Lastly, government rice stocks should be released for sale on both domestic and international markets, which would give the government sufficient cash flow to run this project. In all events, the government needs to evaluate and control the amount of rice production so as not to exceed demand, and to prevent an oversupply of rice on the market.

In another way, it could be said that this world food crisis provides a good opportunity for Thailand to review its total range of policies that support and promote Thai agriculturalists, especially farmers, so that policies are sufficient, effective and suited to this changing era. Besides, Thailand’s agriculturalists are important people who enable Thailand to serve the world as a food production centre, thus they deserve to receive as much support as possible so that they earn a better quality of life.

The world is facing a serious food crisis at this time. Many food products have increased in price due to a supply shortage, with oil price being the major cause of this problem. Demand therefore exists for plant production to supply alternative energy fuels; bio-diesel fuels, for example. However, this creates a huge impact on agricultural food production where agriculturalists focus less on agricultural food production in favour of plants for bio-fuels. According to the International Food Policy Research Institute, energy producing plants are the cause for a 30% rise in food prices worldwide. Commenting on this situation, Jean Ziegler, United Nations Special Reporter on the Right to Food, said “Changing agricultural areas in order to grow energy plants, and then burning them for oil is a crime against humanity.” He proposes the prohibition of commercial energy plant production for a five year period.

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comment 4
Kriengsak date : 07/07/2008 time : 00.51
http://blog.nationmultimedia.com/kriengsak

Thank you for all good comments.

comment 3
Tawan date : 05/07/2008 time : 00.50
http://blog.nationmultimedia.com/tawan3

Another point is the United Nations is concerned with increasing productivity in farming that Thailand has fallen behind on since the 1990's.

comment 2
Ian date : 02/07/2008 time : 17.08
http://blog.nationmultimedia.com/anterian36

One problem, particularly in Asia is the monoculture and over dependance on rice. I have watched many Thais at meals, no matter what they eat they are never really happy unless they have a large helping of rice with it.
We constantly see massive culls of chickens when bird flu is detected, imagine that happening with rice. It would make the Irish potato famine look like a minor incident in comprison.
Rice eating could almost be seen as a cultural thing.

comment 1
GGrass date : 02/07/2008 time : 11.39
http://blog.nationmultimedia.com/GGrass

Money, money, money...

And he could be our next mayor... how depressing.

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