The farm economy contracted 4.2% year-on-year in the first half of 2015 as drought hit crops, but the livestock and fishery sectors still expanded, the Office of Agricultural Economics (OAE) reported on Thursday.
OAE secretary-general Lersak Riewtrakulpaibul said the farm sector had shrunk by 7.3% in the first half due to the decrease in production of second-crop rice in the Chao Phraya and Mae Khlong basins ahead of the drought. Pineapple, rubber, palm oil and fruits also saw lower production.
However, the main rice crop in the South, along with tapioca, sugarcane and maize, was bigger due to expanded cultivation areas.
Livestock production grew 2.1% in the period with increased production of chicken, pork, eggs and raw milk.
Fisheries also expanded 2.2% in the first half of 2015 from the recovery of the shrimp industry after it was hit by the early mortality syndrome (EMS) disease.
The farm service sector dropped by 6.6% in the period as demand for workers for field preparation and harvesting had fallen in line with the shrinking cultivation area.
The forestry sector expanded 3.5% from increases in rubber and eucalyptus trees.
Mr Lersak predicted the farm economy for 2015 would show a contraction of 3.3-4.3%. The office would closely monitor the impact of the drought on the sector, he said.