Organic Thailand takes root

Down a sunbaked track, 80 kilometres (50 miles) from the Thai capital, lies an idyllic rural smallholding where, against a kaleidescope of colour, farm workers in wide-brimmed hats are harvesting organically grown produce.

The produce will be taken to a small warehouse nearby where workers carefully pack freshly picked lettuces, tomatoes and Chinese vegetables into airtight bags for delivery to health-conscious Bangkok consumers.

Rai Plook Rak Farm, in Ratchaburi province, is one of many certified organic farms that have sprung up across Thailand in recent years hoping for a slice of the burgeoning market for all things chemical-free.

Once considered a niche market for eccentrics, "organic" has exploded into an international phenomenon worth an annual 26 billion dollars. And Thai farmers are cultivating the trend. In 2005 the Thai organic market was estimated at 805 million baht (23 million dollars), up 145 percent from 2002.

In 2005, about 21,700 hectares (53,600 acres) of farmland was certified as organic, a 900 percent increase from four years earlier. "I have really noticed the increasing popularity of organic food," said farm owner Kaan Ritkhachorn, who began cultivating the plot eight years ago. "Everybody is becoming a lot more health-conscious. A decade ago people didn't really know it existed."

Ninety percent of the farm's vegetables go to supermarkets in Bangkok, with 10 percent exported, mainly to Singapore. The shift in Thai attitudes towards organic food is clear. In 2005, domestic consumption was estimated to have overtaken exports, easing concerns in the industry about fluctuations in international markets.

Thai consumers of organic food are generally urban middle-class families, with one or two children, and an average to high salary for the country. At a supermarket in downtown Bangkok on a recent afternoon, shoppers thronged the organic vegetable aisle. One customer, English teacher Krissana Tonechai, said she thought organic food was a healthier option.

"There are fewer chemicals, and it looks cleaner," she said. "I think people buy it for different reasons. Some get it for health, and some for fashion." The huge variety of grains, fruit and vegetables in the Thai diet are all represented in the organic market. The kingdom's renowned jasmine rice is the food most grown by organic producers, along with a wide array of vegetables, tropical fruit, herbal tea, tapioca and wheat.

Export markets are a much tougher nut to crack, however. While exports to the European Union have steadily increased, a tangle of red tape threatens to turn Thailand's field of organic dreams into a boggy marsh.

The EU is the world's biggest single market for organic produce, with an estimated value of 280 billion baht (8 billion dollars) in 2004. But to get permission to export to European markets, a product generally needs to be certified by a private body in each country.

"This is a serious barrier even for major exporters," said Wyn Ellis, coauthor of a report into Thailand's organic export potential. "If a company has three or four major export markets, securing and maintaining several certifications imposes a major administrative and cost burden."

And other challenges remain, said Ellis, such as inadequate research on organic production, volatile supply and ensuring quality control -- not to mention the high cost of conversion to organic agriculture.

The situation is worse still for small organic farmers, he added, as costs and certification requirements raise the already high barriers to participation, and can exclude smallholder producers from export markets.

Overall, it is early days for Thailand's organic produce. Almost 19,000 tonnes of organic rice were produced in Thailand in 2005 -- a tiny fraction of a total of five million tonnes of rice exported that year.

Source: news.sawf.org

Publication date: 4/17/2007

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