The government has announced a food and agro-industry project to support farmers and businesses, creating a Northern Thailand food valley to help make crop prices more stable and boost rural incomes.
The Industry Ministry met with locals and businesses in northern provinces including Chiang Rai, Nan, Phrae and Phayao to discuss innovative technologies, upgrading agriculture products and increasing high value-added products to make farmers more competitive.
Industry Minister Uttama Savanayana said the government is focusing on helping small and medium-sized enterprises (SMEs) in this area grow tea leaves and coffee for sale domestically and internationally.
"The government aims to promote Thai food and agriculture products where Thailand has opportunity and expertise," he said. "The government believes it can help farmers and businesses in the long term."
The government established the Industry Transformation Centre (ITC) in the region to help support local SMEs, and it will also set up 64 smaller centres to serve a small provinces like Nan, Phrae and Phayao.
The ITC will help SMEs improve efficiency and adopt new technologies. Recently, the government committed to open 13 new IFC's to cover all 77 provinces in Thailand this year.
The strategy aspires to emulate the Netherlands' food valley model that integrates all levels of the local food industry.
The Industry Ministry will implement the programme first in Chiang Mai, Nakhon Ratchasima and Prachuap Khiri Khan, where SMEs will receive support for R&D to improve agricultural products. The project began in 2012.
Industry in the upper Northern provinces totalled 11 billion baht and had GDP of 192 billion baht. GDP per person is 80,000-100,000 baht per year.
Northern provinces have 2,785 known businesses that focus on food, food processing and eco-tourism.
The province ranks third in Asean for tea production. The area produces around 48,000 tonnes of tea leaves per year from 50,000 rai of plantations out of the 120,000 tonnes produced in Thailand this year.
Thailand ranked 11th globally for production of coffee beans, especially Arabica coffee, amounting to 60,000 tonnes per year. Northern provinces grow around 6,000 tonnes of coffee per year on 45,000 rai of land, and plant 1,200 species of herbs with capacity of 200,000 tonnes per year.
Mr Uttama said the private sector in the North asked the government for a budget of 866 million baht to design and develop products, 260 million for tea and coffee, 26 million for garment and textiles, 30 million for Thai herbs and 40 million for bamboo.
The ministry will propose a project to help local businesses to the cabinet soon, but some projects the ministry can approve independently, he said. The ministry asked private businesses to provide more details for the development plan.
