Thailand: Agriculture Outlook and Response during Covid 19
Keywords:
Agriculture, Covid 19, Digital innovation, Disaster, ThailandAbstract
Covid 19 is unprecedented and has had profound impact on the agriculture sector globally. According to the United Nations Thailand Economic Focus, Covid 19 led to contraction in the manufacturing sector in the first quarter of 2020. The three key sectors that faced economic losses during the first quarter of 2020 include agriculture (-5.7%) followed by industry (-1.9%) and services (-1.1%). Reduction in tourists had negative impact on the accommodation and food service activities (-24.1%) on YoY basis. The National Economic and Social Development Council (NESDC) indicated that droughts coupled with pandemic, which act as double disasters, affected a total of 6 million farmers in 2020 impacting their employment or adversely affecting their involvement in agricultural activities. Digital technologies have provided immense support during the period. Microsoft cloud platform has been utilized by the Bank of Agriculture and Agricultural Cooperatives (BAAC) to support Thai farmers. Innovative technology applications have also been used by the private product and service providers. The research methodology includes literature review, interaction and discussion with food industry officials and rice experts to analyze the pandemic influence on agriculture. Apart from the challenges farming households faced during Covid 19 in terms of reduced incomes and increased debts, Covid 19 accelerated the use of digital technologies in the agriculture sector through online platforms, digital payments and digital advisory applications. Covid 19 also poses a great opportunity for Thailand to leverage on technology, innovation and logistics to take the food industry to the next level.
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