GTZ Organic Agribusiness Status Quo Report June 18 2007

Organic Agri-business:
A Status Quo Report for Thailand 2007
Supported by the
GTZ Programme for Enterprise Competitiveness
Sustainable Agriculture Foundation (Thailand)
GreenNet Foundation
Prepared by
Chanuan Ratanawaraha,
Wyn Ellis
Vitoon Panyakul
Burghard Rauschelbach
Bangkok 2007
Thai-German Programme for GreenNet Cooperative Sustainable Agriculture Foundation

Enterprise Competitiveness 17/3 Soi Ladprao 43 67/46 Soi Ekarat 5, Muang Ek
GTZ Office Bangkok Ladprao Road, A Muang, Nonthaburi
193/63 Lake Rajada Office Complex Bangkok 10300 Bangkok 12000
New Ratchadapisek Rd. Thailand Thailand
Bangkok 10112, Thailand
Tel: +66 (0) 2 661-9273; T: +66 (0) 2 277-9380 T: +66 (0) 2 533-9806
Fax: +66 (0) 2 661-9282 E: vitoon@greennetorganic.com E: chanuan@yahoo.com
E: gtz-thailand@gtz.de W: www.safthai.org
W: www.thai-german-cooperation.info
W: www.ecoefficiency.info
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TABLE OF CONTENTS

1. Introduction ...............................................................................................................5
1.1. Background to this review .......................................................................................... 5
1.2. Organic agriculture definitions ................................................................................... 5
1.3. Background to organic agriculture in Thailand ........................................................... 6
1.4. Policy context .............................................................................................................. 8
2. Production................................................................................................................10
2.1. Types of producers .................................................................................................... 10
2.2. Land area, number of farms ...................................................................................... 11
2.3. Production costs ........................................................................................................ 12
2.4. Organic fertilizers ...................................................................................................... 12
2.5. Organic seed .............................................................................................................. 13
2.6. Processing ................................................................................................................. 13
3. Technological development ....................................................................................14
3.1. Role of universities ................................................................................................... 14
3.2. Role of government ................................................................................................... 14
3.3. Role of private sector and NGOs .............................................................................. 14
4. Regulatory framework, standards, certification and accreditation ...................16
4.1. Policy / regulatory framework .................................................................................. 16
4.2. National Standard for Organic Agriculture ............................................................... 17
5.2. Certification and control systems .............................................................................. 17
5. Marketing ................................................................................................................20
5.1. The global market ..................................................................................................... 20
5.2. Domestic market ....................................................................................................... 20
5.3. Export markets .......................................................................................................... 21
5.4. Market pathways for organic produce ....................................................................... 22
5.5. Market promotion and advertising ............................................................................ 23
5.6. Where to buy organic products ................................................................................. 24
5.7. Organic premiums ..................................................................................................... 24
5.8. Consumer behaviour ................................................................................................. 25
6. Produce labelling .....................................................................................................27
6.1. Introduction ............................................................................................................... 27
7. Challenges for organic sector development ..........................................................29
7.1 Sector challenges ....................................................................................................... 29
6.2. Conversion ................................................................................................................ 29
6.3. Production technologies ............................................................................................ 30
6.4. Supply ....................................................................................................................... 30
6.5. Supply chain logistics ............................................................................................... 30
6.6. Quality ....................................................................................................................... 31
6.7. Processing ................................................................................................................. 31
6.8. Market promotion and advertising ............................................................................ 31
6.9. Inspection and certification ....................................................................................... 31
6.10. Support mechanisms: training and extension ............................................................ 32
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References .............................................................................................................................33
Appendix I: Thai-German Programme for Enterprise Competitiveness: Enhancing the
Competitiveness of SMEs by Improving Access to Business and Financial
Services and Introducing Eco-Efficiency in Industry. .........................................35
Appendix II: Thailand’s National Agenda for Organic Agriculture ...............................36
Appendix III: National Action Plan for Organic Agriculture: Summary of
Recommendations by UN-International Trade Centre - EU Technical
Assistance Study 2005-6 ..........................................................................................37
Appendix IV: Private sector actors in Thailand................................................................40
Appendix V: Grass-roots organizations .............................................................................45
FIGURES
Figure 1. Organic export supply chain ..................................................................................22

Figure 2. Market pathways for selected organic exports.......................................................23
TABLES
Table 1. Landmarks in Thailand's organic development.........................................................7

Table 2. Land under organic farming in Thailand (ha) -0.11% of total organic area (2006) 11
Table 3. Organic land area: Thailand’s ranking ....................................................................11
Table 4. Production and market value 2003 - 2005 ..............................................................12
Table 5. Overview of organic agriculture policies and programmes ....................................16
Table 6. Organic certification in Thailand ............................................................................18
Table 7. Domestic and export value 2006 (million baht) ......................................................21
Table 8. Price comparison, organic vs. conventional produce, 2001-2003 ...........................25
Table 9. Brands, logos and certification bodies in Thailand .................................................27
Table 10. Organic producer groups in the Earth Net Foundation Network ...........................45

MEASUREMENTS
1 US dollar = 35 Baht = 0.68 Euro
6.25 rai = 1 hectare

DISCLAIMER
The views expressed in this paper are the views of the individual authors and do not
necessarily reflect the views or policies of GTZ, Sustainable Agriculture Foundation
(Thailand) or GreenNet.
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ACRONYMS

AAN Alternative Agriculture Network GTZ German Technical Cooperation
National Bureau of Agricultural Hazard Analysis and Critical Control

ACFS HACCP
Commodity and Food Standards Point
Organic Agriculture Certification International Federation of Organic

ACT IFOAM
Thailand Agriculture Movements
German Federal Ministry for Economic

BMZ IMO Swiss Institute for Market Ecology
Cooperation and Development
International Organic Accreditation

CSA Community-supported Agriculture IOAS
Service
Department of Export Promotion,

DEP ITC UN International Trade Centre
Ministry of Commerce
Department for Livestock

DLD LDD Land Development Department
Development
DOA Department of Agriculture MOAC Ministry of Agriculture and Cooperatives
DOAE Department of Agricultural Extension NOSO Northern Organic Standard Organization
Programme for Enterprise

ESF EarthSafe Foundation PEC
Competitiveness
EU European Union SAF Sustainable Agriculture Foundation
Food & Agriculture Organization of Thailand Institute of Technological and

FAO TISTR
the United Nations Scientific Research
GAP Good Agricultural Practice TOTA Thai Organic Traders’ Association
GMO Genetically modified organisms WHO World Health Organization
GMP Good Manufacturing Practice
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1. Introduction
1.1. Background to this review

Thailand is one of the world’s leading exporters of food commodities, and has the capacity
and potential to develop its competitiveness to be a major source of organic foods to serve
both domestic and international markets. The rapid development of global organic markets
presents major opportunities for Thailand’s organic sector. Thailand’s consumers too,
reflecting the global heightening in consumer consciousness of health and environmental
concerns, are turning increasingly towards ‘green’ products, contributing to the rapid growth
in Thailand’s domestic organic market in recent years.
This review of the status quo of organic agribusiness in Thailand has been conducted within
the framework of the Thai-German Programme for Enterprise Competitiveness (PEC).
This partnership programme was initiated in 2004. It is implemented by the German
Technical Cooperation (GTZ) on behalf of the German Federal Ministry for Economic
Cooperation and Development. In support of the programme’s overall aim to enhance the
competitiveness of Thai SMEs, the PEC has identified the organic sector as a driver of the
long-term competitiveness of Thailand’s agro-industrial sector, and seeks to identify and
address constraints through appropriate interventions and support measures. Further details
on the programme, its goals and activities are provided in Appendix I of this report.
This review has been produced in cooperation between GTZ and two Thai-based NGO’s:
GreenNet, and the Sustainable Agriculture Foundation (Thailand).
1.2. Organic agriculture definitions

Various authorities offer a wide range of definitions for organic agriculture, including the
following:
“Organic agriculture is a farming system that relies on ecosystem management
rather than external agricultural inputs. It is a system that begins to consider
potential environmental and social impacts by eliminating the use of synthetic
inputs, such as synthetic fertilizers and pesticides, veterinary drugs,
genetically modified seeds and breeds, preservatives, additives and
irradiation. These are replaced with site-specific management practices that
maintain and increase long-term soil fertility and prevent pest and diseases.”
(FAO/WHO Codex Alimentarius Commission, 1999).
The International Federation of Organic Agriculture Movements (IFOAM) has defined

organic agriculture on the basis of four principles- the principle of health,
the principle of ecology, the principle of fairness, and the principle of care.
Principle of health
”Organic agriculture should sustain and enhance the health of soil, plant, animal,
human and planet as one and indivisible.
Principle of ecology
”Organic agriculture should be based on living ecological systems and cycles, work
with them, emulate them and help sustain them.”
Principle of fairness
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”Organic Agriculture should build on relationships that ensure fairness with regard
to the common environment and life opportunities
Principle of care
”Organic agriculture should be managed in a precautionary and responsible manner
to protect the health and well-being of current and future generations and the
environment”.
Implementation of organic agriculture initiatives worldwide often reflect a number of

misconceptions- that organic agriculture simply means doing away with synthetic pesticides
and fertilizers; that it is only the use of composted organic matter combined with hand-
weeding, or that it is a low-technology system. The above definitions are therefore helpful as
a reminder that organic agriculture represents much more than the implementation of
specific technological interventions. Organic agriculture must be viewed as a holistic
approach, with agricultural production considered from the perspective of its complex
interactions with its broader ecological and human context.
Whereas authorized organic production protocols and rules do differ in detail among the
major organic groupings and certification bodies (e.g. in terms of permitted production
inputs, agronomic practices, tolerances and conversion periods), nevertheless all organic
groupings uphold these core principles, eschewing the use of synthetic agrochemicals.
1.3. Background to organic agriculture in Thailand

In the 1980’s farmers from different parts of Thailand were introduced to the ‘Alternative
Agriculture’ movement. The movement mostly advocated doing away with the use of
synthetic chemical fertilizers and pesticides, and practiced integrated farming for
subsistence, sometimes with a small market surplus. At that time there was of course no
certification, and consumers bought their crops directly from growers on trust. Today, a
number of groups, including the Gluay-Hom and Santi Asoke organizations, operate
informal networks of ‘self-certified’ organic producers, located in various provinces across
the country.
From the late 1990’s, global demand for organic produce increased dramatically, especially
in the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom and USA)
led by the EU member states, USA and Japan. Importing countries, driven in part by food
safety scares of their own, requested exporters such as Thailand to impose much stricter
controls over pesticide residues. Importing countries also implemented stringent point-of-
entry quarantine measures. In order to maintain and extend its participation in overseas
markets, Thailand was obliged to respond to ensure compliance with these new
requirements.
In parallel with governmental regulations of importing countries and trade blocs, private
sector importers independently established their own production protocols and standards-
often more stringent than the national rules, introducing new issues of mutual recognition
and compatibility between standards. Today, growers and exporters worldwide must contend
with an increasingly stringent and complex regulatory environment, and spiralling
compliance costs.
The emerging popularity of organic agriculture in Thailand has resulted from a combination
of three major trends. The first is an increasing public awareness of healthy living.
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Consuming natural and safe foods is seen as important for both preventive and curative
health care, leading to a growing concern and demand for safe foods, especially among
urban middle classes with higher disposable incomes. Organic foods are seen as the safest
option as they are perceived as having low or zero contamination by agro-chemicals.
The second trend is the development of sustainable agriculture in response to the crisis faced
in the farm sector. Depressed farm prices and declining productivity of high-input cash-crop
monoculture systems have helped drive the establishment of many grassroots community
development organizations and NGOs to promote a more environmentally sustainable
agriculture system in Thailand. The Alternative Agricultural Network (AAN), established in
1989 with the co-operation of NGOs and farmer leaders, was from the outset a major driving
force of the organic movement. AAN’s activities focused mainly on creating a system for
transferring knowledge and experience to grassroots NGOs and farmer leaders. In 1992, a
conference on sustainable agriculture issued a declaration calling for promotion of organic
agriculture as a part of national sustainable development strategies.
The third trend is the rise of environmental awareness, starting from a concern for
environmental protection and conservation, but later transforming into a broader agenda
covering the impact of conventional agriculture on environment, ecology and biodiversity,
including land use, landscape, biodiversity, and pollution caused by use and misuse of agro-
chemicals.
The convergence of these trends contributed to the pace of development of organic

agriculture in Thailand during the early 1990s, and to its more rapid take-off from 2001 to
the present day. The key landmarks are summarized in Table 1 below.
Table 1. Landmarks in Thailand's organic development
Year Key events

1991 Chai Wiwat Agro-industry and Capital Rice Co started organic rice project in Chiang Rai
and Phayao. Production was certified by Bioagricert, Italy.
1992 Alternative Agriculture Network organized its first national conference, requesting the
government to promote sustainable agriculture and organic farming
First Fair Trade rice from Surin was exported to Fair Trade groups in Europe.
1993 Green Net established
1994 First public fair on "Chemical-Free Food for Health and Environment", Bangkok.
Capital Rice began selling organic jasmine rice in Thailand and overseas
1995 Green Net became the first full member of IFOAM from Thailand
ACT certification agency established in Thailand, and first Thai organic crop standards
were drafted for public consultation
1996 Organic rice project established in Yasothon, certified by the Swiss Institute for Market
Ecology (IMO).
IFOAM-Asia Regional Workshop on “Certification for Organic Agriculture and Alternative
Market”.
1997 ACT commenced organic farm inspection and certification.
1999 Thailand Institute of Technological and Scientific Research (TISTR) / Department of

Export Promotion, Ministry of Commerce, and the Department of Agriculture (DOA),
started drafting organic crop standards.
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2000 ACT obtained IFOAM accreditation with the help of the International Organic
Accreditation Service (IOAS), and its first certified products appeared in Thai markets.
Cabinet approved US$ 15.8 million (633 million baht) budget to support a 3-year pilot
project on Sustainable Agriculture by Small-Scale Producers. The project was coordinated
by the Sustainable Agriculture Foundation and covered 3,500 farming families
2001 DOA gazetted organic crop production standards.
First IFOAM Organic Shrimp Consultation held in Thailand
2002 Department of Agriculture established the Organic Crops Institute and approved the logo of
organic produce “Organic Thailand”.
MOAC established National Office of Agricultural and Food Commodity Standards
(ACFS), responsible for implementing / enforcing national agricultural and food standards
as well as accreditation. Its role covers standard-setting, certification of agricultural
products and foods from farm level to the consumer. It also includes provision of technical
advice in trade negotiations, and the raising of quality standards for agricultural
commodities and foods, to increase Thailand’s international competitiveness. The office
was subsequently upgraded to Department-level status and renamed as the National Bureau
of Agricultural and Food Commodity Standards.
ACFS completed drafting of “Organic Agriculture: the Production, Processing, Labelling
and Marketing of Organic Agriculture”. The document includes minimum standards for
production, processing, labelling, and marketing, to comply with international standards.
They cover human foods, animal feeds derived from organic production from plants, cattle
and aquaculture.
Swiss Government recognized the competency of ACT, allowing ACT to conduct organic
inspection and certification according to the Swiss government’s organic standards.
First produce bearing “Organic Thailand” label appeared in the Thai market.
2003 First major international conference on organic agriculture held in Thailand - the 2003
International Organic Conference, co-hosted by FAO, Green Net and Earth Net Foundation.
Surin Province set up a large-scale organic project, planning to convert 16,000 households
(with 37,760 ha.) into organic jasmine rice farming, of which 2,735 households (covering
2,735 ha) would apply for organic certification from ACT.
ACT was recognized by the Swedish competent authority for organic certification
according to EU regulation 2092/91.
2004 ACFS launched a new certification process for organic agriculture. The first agency to be
granted certification was the Office of Organic Agriculture Standards.
“Sustainable Agriculture Fair” held in Bangkok, aimed at spreading knowledge about
sustainable agriculture, including the organic movement. Organized by AAN / Sustainable
Agriculture Foundation
Organic Agriculture Fair was organized by the MOAC and the Cabinet resolved that
organic agriculture would henceforth be part of the national agenda.
1.4. Policy context

Thailand’s former Cabinet endorsed its support for organic agriculture and allocated
significant budgets for a number of national-level projects. In 2000, the Department of
Agriculture (DOA) established an Institute of Plant Organic Development as a certification
body, and in 2002, the National Bureau of Food and Agricultural Commodity Standards was
established within the Ministry of Agriculture and Cooperatives (MOAC). National organic
standards were defined and a certification system established.
Then the year 2004 was declared as National Food Safety Year, focusing even more
attention on organic farming.
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In 2005, a long-term National Agenda for Organic Agriculture was promulgated, covering
the period 2006-2010. The overall goal of the Agenda was to develop the organic
agriculture sector through the combined efforts of 6 Ministries and 26 governmental
departments, as well as participating universities. The main objective was to reduce by 50%
the volume of existing imported chemical fertilizers (approximately 3.5 million metric tons
worth about 40 billion baht), mainly by encouraging 850,000 farmers to convert 17 million
rai (2.7 million ha) area of conventional to organic agriculture within five years. However,
with the change of government in late 2006, the National Organic Agenda appears to be
increasingly subsumed within the present interim government’s emphasis on the principle of
the Sufficiency Economy as a basis for economic development.
Notwithstanding this current lack of focus on the National Organic Agenda, integrated
farming and sustainable agriculture are nevertheless incorporated as part of agricultural
development policy. A broad-based National Committee on Agricultural Development for
the Sufficiency Economy was recently set up, chaired by the Deputy Prime Minister and
including experienced farmers from across the country.
A budget of 60 million baht was allocated to support the development of 40 successful

integrated farms as on-site-training centres for farmers and government officials around the
country. The initiative aims to train about 500 farmers at each centre, for a total of 200,000
well-trained farmers nationwide. However, as referred to above, this training focuses on
self-sufficiency agriculture, rather than organic farming per se.
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2. Production

2.1. Types of producers
Production of organic crops is undertaken mainly by smallholders, farmer groups or by large
agro-enterprises using organized groups of contract farmers. Grass-roots NGOs have played
a vital role in promoting the organic movement, facilitating conversion from conventional to
organic methods, organizing farmer groups, providing training and marketing support for
small farmers, and also in certification.
There are two main categories of organic producers in Thailand.
Market-oriented organic agriculture. Produce is clearly identified through certification

and labelling. This type of organic farm requires significant financial and technical resources
to achieve compliance with the requirements of international and private organic standards
as well as the additional cost of organic certification.
Subsistence-oriented organic agriculture. Many small farmers, convinced that

conventional agriculture is uneconomic and unsustainable, have developed alternative
modes of production to improve family health, household food security or simply to reduce
input costs. Produce is not necessarily sold on the market, or may be sold without a price
premium as it is not formally certified. Direct channels to deliver such ‘self-certified;
organic produce to consumers, successful in Japan and some other countries, are now
beginning to appear in Thailand.
Insert picture 1 here Insert picture 2 here
Market-oriented organic agriculture (left) and subsistence- oriented organic agriculture (right)
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2.2. Land area, number of farms
Estimates indicate that certified organic production increased from 2,147 ha in 2001 to
22,550 ha in 2006, equivalent to 0.11% of the country total agricultural land area (21 million
ha), representing an increase of over 950% over the 2001 hectarage (Error! Reference
source not found.).
Table 2. Land under organic farming in Thailand (ha) -0.11% of total organic area (2006)
Year Rice Field crops Vegetables Fruit Other TOTAL

1998 - 1,005 - - - 1,005
1999 - 882 - - - 882
2000 - 1,121 - 563 - 1,684
2001 - 1,584 - 563 - 2,147
2002 - 5,255 - 3,581 123 8,959
2003 - 7,475 - 3,562 123 11,160
2004 8,349 1,258 2,125 2,044 123 13,900
2005 7,328 1,077 2,375 799 122 21,701
2006 18,114 1,047 2,419 797 172 22,550
Source: GreenNet (pers.comm., 2007)
The number of farms also increased, with 7,564 organic farms in 2006, representing 0.15%
of the total number of farms in the country (5.1 million farms). Nevertheless, Thailand’s
organically farmed land as a percentage of total agricultural area is among the lowest in the
world, and is mid-ranked among Asian countries (see Table 3 below).
Table 3. Organic land area: Thailand’s ranking

Ranking Ranking
Production area in
(World, 85 (Asia, 21
Thailand
countries) countries)
Production area (ha) 71 12
Organic area as % of total

82 13
agricultural area
No of organic farms 42 5
Source: Willer & Yussefi (2004)
Table 4. Production and market value 2003 - 2005Table 4 shows the trends in
production volumes and values for the major categories of organic crops.
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Table 4. Production and market value 2003 - 2005
Crop 2003 2004 2005
Production Value Production Value Production Value
(tons) (m Baht) (tons) (m Baht) (tons) (m Baht)
Rice 7,827.41 313.10 18,960.38 534.75
7,007.90 210.24
Field crops 1,571.96 55.02 2,040.92 45.16
Vegetables
2,656.73 159.40 4,618.18 255.83
and herbs 2,671.28 160.28
Fruits 3,833.10 76.66 3,746.51 74.93
Others 76.88 4.61 76.88 4.61 49.11 9.69
Total 9,756.05 375.13 15,966.08 608.79 29,415.10 920.36
Source: GreenNet 2006
The above data demonstrate the predominance of rice in Thailand’s organic production, and
the substantial and consistent increase in the market value in recent years. Of particular
interest is the significant expansion in fresh vegetable production, in response to growth in
the domestic as well as export markets. Nevertheless, in relation to the total agricultural
area, organic agriculture represents but a small fraction of traded output. For example, of the
29mt of paddy produced in 2005, only 9,756 mt was organically produced. This means that
Thailand has considerable potential to increase its organic production to serve several
markets- its own domestic market, the rapidly growing markets in the southeast Asian region
and China, as well as Thailand’s established markets (mainly EU member countries, USA
and Japan).
2.3. Production costs

Production costs in organic agriculture, in general, are lower than for conventional
agriculture. A recent survey showed that 90.7% of 161 interviewed farmers agreed with this
statement, with only 4% insisting that costs were higher for organic production, as compared
with conventional systems. However, despite the reduced costs, in the early years gross
incomes from organic farms are often lower than for conventional farms due to lower yields
during the transition period.
2.4. Organic fertilizers
Thailand’s climate allows year-round growth of living organisms. This is an advantage for
organic agriculture due to the high productivity of biomass, which is used to produce
organic fertilizers. Estimates show that in the 2001-2002 season, organic matter from
economic crop residues amounted to more than 150 million tons per year, with 32 million
tons from rice straw and stubble, 20 million tons from residues of corn, sorghum, beans,
fruits and vegetables, and 53.35 million tons from the cane sugar industry. This amount is
sufficient to enrich 123 million rai of the country’s total agricultural land with at least 1 ton
per rai. Unfortunately, most farmers burn their crop residues in the field after harvest,
mainly as a means of field sanitation.
Livestock is also an important source of high-nutrient biomass for organic fertilizer

production In 2004 there were 172 million meat chickens, 41.5 million egg -laying chickens,
66.8million local-bred chickens 15.6 million ducks, 7.2 million pigs, and 6.7 and 1.77
million of cattle and buffaloes respectively (DLD, 2005). This number of livestock can
assure a continuing sufficiency of biomass for organic fertilizers to serve the organic sector.
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At present, most organic farmers attempt to produce their own organic fertilizer. Liquid bio-
fertilizers are widely used and a wide range is available commercially for various purposes
such as soil improvement, bio-pesticide, foliar fertilizer, and for cleaning produce after
harvest. Many farmers buy ready-to-use organic fertilizers at high prices, averaging around
4,000-8,000 baht per ton, depending on distance from factory to farm, and the value of the
crop. For example, tangerine and longan farmers in Chiang Mai buy biofertilizers at around
7,000-8,000 baht per ton, produced 900 kilometres away in Ratchaburi.
2.5. Organic seed

Strictly speaking, in organic farming systems only organically produced seed should be
used. Within the European Union (EU) the regulation EC2092/91 states that only
organically-produced seed can be used in organic farming systems. However, in practice, for
many species organic seed is not available, and for the moment derogations (exceptions)
allow for conventionally produced seed to be used in such circumstances.
At present, despite attempts by some Thai agro-businesses to produce organic seed on a

commercial scale, the technical hurdles have not yet been overcome, and organic seed is still
not yet available in the local market. Therefore, most organic farmers either save their seed
after harvest for sowing in the next growing season, or purchase conventional hybrid seed in
the market.
Thailand’s wide range of biodiversity is a valuable potential source of new genetic traits to
drive forward varietal improvement for organic agriculture. At the Khao Kwan Foundation
Experimental Station in Suphanburi province, hundreds of indigenous rice varieties are
selected in screen houses and in field trials for their suitability for organic agriculture. The
results of the trials so far indicate that varietal improvement by selection of indigenous rice
varieties for organic farming can increase yield up to 1-1.5 ton per rai as compared to 0.8 ton
per rai for the government-recommended variety (Siripatra, D., 2007).

2.6. Processing
Organic produce is generally processed in a similar way to conventional produce, except for
prohibition of certain practices, as defined by the organic standards. These include
prohibition of some food additives. Sun-drying of organic medicinal herbs, milling of rice,
and preservation of fruit and vegetables are commonly undertaken by local organic farmers
or cooperatives, relying mostly on indigenous local knowledge.
Progress has been made in improving post-harvest technologies, to minimize post-harvest

losses using indigenous local wisdom. However, in most cases, producers and entrepreneurs
simply use trial and error to derive practical measures to reduce post-harvest. Government
initiatives in this area are in general perceived as academic rather than addressing practical
issues. Farmer groups report a lack of consultation with producers or entrepreneurs by
researchers, which means that the outputs of research may not ultimately serve their needs.
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3. Technological development

3.1. Role of universities
Like many other developing countries around the world, most of Thailand’s agricultural
academic institutes teach students agriculture from a deterministic perspective. It is a major
challenge to elicit a change in academic perspective towards a holistic paradigm. So far,
only a few subjects relevant to organic agriculture are taught in Thai universities. For
example, Thammasat University has offered a sustainable agriculture course for almost 10
years. Sukhothai Thammatirat Open University is preparing to launch a similar sustainable
agriculture course in the 2007 academic year. Also, the government’s Community College at
Sra Keaw Province has already approved a bachelor level syllabus in organic agriculture; the
first intake of students will also enrol in the 2007 academic year. Finally, Ubon Ratchathani
University in the northeast is teaching the principles of the Sufficiency Economy, with
organic farming as the main practical focus for the course.
In this context it is surprising that Kasetsart University, the oldest and most respected
agricultural university in the country, has never taught a course in organic agriculture.
3.2. Role of government

The government’s commitment to advancing organic technologies is fragmented, and most
of the public R&D expenditure on agriculture focuses on serving conventional agriculture.
At present, there are about 500 agricultural research and experimental stations under the
MOAC, including crops, livestock, and fisheries, covering all provinces, but none has yet
been assigned specifically to conduct research into organic agriculture.
Moreover, the level of understanding of the principles of organic agriculture among

government officials is generally very limited. Some even believe that organic agriculture
allows moderate use of chemical fertilizers, whilst many others insist that agriculture
without using agrochemicals is simply not possible.
The MOAC is organized by function and commodity. Since there is no integrated

programme budgeting, there are almost insurmountable challenges to the task of integrating
and aligning the work of many separate departments in a holistic approach consistent with
the principles of organic farming.
Nevertheless, over the past decade, the many successful examples of flourishing organic
farms around the country have been used by MOAC as learning centres for farmers. The
project has been successfully implemented with a relatively low cost of operation.
Unfortunately, the project was shelved by a change in Ministry policy. However, the current
interim government is revisiting the project, and it is hoped will lend its full support to
continuing the programme.
3.3. Role of private sector and NGOs

The private sector and NGOs have played a pivotal role in developing Thailand‘s organic
agriculture sector, with major pioneering projects initiated by both groups. Though
motivated by different objectives, these two groups have formed strong alliances in fostering
Thailand’s organic agenda. The current success and rapid growth of the sector is largely
attributable to the efforts of private sector exporters and NGOs. These two groups also play
key roles in organizing and supporting organic conversion as well as domestic and
international marketing, making major contributions to the growth of the sector. Private
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sector-NGO collaboration resulted in many new cooperative organic initiatives, training and
extension in organic practices, and the establishment of a locally-based private certification
body. Such groups have also invested in and developed local organic markets, especially in
the urban centres, through consumer education and the establishment of new distribution
networks.
The Thai Organic Traders’ Association (TOTA) was founded in November 2005. Although
TOTA’s founding members number less than ten companies, these companies are all key
players, together representing close to half of the country’s organic trade.
However, no specific organic producer organization exists at national level. Small-scale

producers are organized at local level, mainly to generate economies of scale to facilitate
organic certification, post-harvest processing, marketing and transportation. Green Net’s
producer network is the largest such network of organic producer organizations, representing
around one quarter of organic producers in the country.
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4. Regulatory framework, standards, certification and accreditation

4.1. Policy / regulatory framework
Thailand’s National Agenda on Organic Agriculture was launched in October 2005. The 5-
year programme is aimed at supporting 4.25 million farmers (0.85 million in 2006) to use
organic inputs instead of agrochemicals over an area of 13.6 million ha (2.72 million h for
2006), reducing total import of agrochemicals by 50% as well as boosting organic exports
by 100% annually. The programme aims are to be achieved through various supports and
intervention mechanisms, including seminars, training, general promotion, and setting up
organic fertilizer factories. There are 26 agencies from 6 ministries involved in the
programme, coordinated by the Land Development Department (LDD). A 1.26 billion baht
(US$ 31.5 m) budget was allocated for this programme in 2006.
Furthermore, the Cabinet has set up a national organic agriculture committee to advise the
government on organic agricultural policy development. However, the private sector is not
represented, and in practice, organic policy-making is a top-down process with relatively
few mechanisms for consultation with the wider stakeholder community. Table 5
summarizes the main policy and other public sector interventions.
Table 5. Overview of organic agriculture policies and programmes

Policy area Government policy & programmes
General awareness of merits of Publication and government websites, e.g. publications of
organic agriculture Department of Agriculture (DOA) and Department of
Agricultural Extension (DOAE).
Organic regulations, standards Voluntary national standard guideline for organic crop,
& certification aquaculture and livestock (ACFS)
Set up public certification body (Organic Crop Institute)
Export marketing Department of Export Promotion (DEP) conducts public
seminars, assists traders and exporters to participate in overseas
organic fairs (Biofach, Germany, Natural Products Organic Asia,
Singapore) and organizes buyer-seller matching events and
information services
Production At provincial level, some governors started organic projects, e.g.
Surin and Buriram organize organic rice projects.
Several local and national agencies started organic agriculture
training courses for producers. Few training programmes are
linked to certification.
Inputs (seeds, seedlings, pest No specific activities so far on seeds. DLD plans to set up several
control & fertilisers) hundred organic fertilizer factories in 2005-06.
Research Some research funding institutions offer specific funding support
for organic agriculture, e.g. Thailand Research Fund, National
Research Council of Thailand. No clear budget allocation or
research goals.
Extension service Many public agencies, esp. DOA and DOAE, conduct seminars
and 1-day courses on organic farming. These are promotional as
well as an extension activity
The organization responsible for implementing the regulatory framework for organic
agriculture is the National Bureau of Agricultural Commodity and Food Standards (ACFS).
16
ACFS consists of 5 divisions- Division of Agricultural Commodity and Food Standards
Policy, Office of the Secretary, Office of Commodity and System Standards, Information
and Technology Center, and Office of Commodity and System Standards Accreditation.
ACFS drafted National Standards for Organic Agriculture, including production, processing,
labelling, and product sale. The draft was finalized and approved by the Cabinet in 2003.
The ACFS standard is similar to CODEX and IFOAM standards, in that it sets standards for
standard-setting organizations, rather than standards for production, i.e. they are not
intended for use by certification bodies conducting inspection and certification. Organic
livestock standards were added in May 2005. At present the standards are still voluntary.
In August 2004, ACFS received the first application for organic accreditation from Organic
Agriculture Certification Thailand (ACT). Accreditation was granted in mid-2005.
Apart from its responsibility for organic agriculture, ACFS is also responsible for
accreditation in other areas, including Good Agricultural Practice (GAP), Good
Manufacturing Practice (GMP), Hazard Analysis and Critical Control Point (HACCP), and
laboratory accreditation.
4.2. National Standard for Organic Agriculture

At present, Thailand has no laws directly mandating safety standards for food and
agricultural commodities. The existing organic agriculture standards are at present used as
references and certification for manufacturing, trade, exports and imports, on a voluntary
basis.
National standards for organic produce were introduced, along with inspection and
certification systems to enhance consumer confidence in the integrity of organic food labels.
However, further improvement in accreditation and certification systems are needed to
achieve recognition for both domestic and export of organic produce.
In 2002, DOA established the “Organic Thailand” logo and established 5 pilot projects
producing 15 organic crops, managed in collaboration with farmers, individual experts, the
private sector, and consumer groups. At the end of 2004, by offering a free certification
service, there were 440 DOA-certified farms covering 1,763 ha (11,018.50 rai).
The National Bureau of Agricultural Commodity and Food Standards (ACFS) has defined
organic agriculture standards as follows:
Part 1: Production, Processing, Labelling and

Marketing of Organic Agriculture TACFS 9000-2003
Part 2: Organic Livestock TACFS 9000-2005
Part 3: Organic Fisheries Code number not available.

5.2. Certification and control systems
There are three types of certification bodies in Thailand: government bodies, Thai private
entities, and foreign entities. The Department of Agriculture offers a free certification
service. As mentioned, ACFS can accredit certification bodies, although at present, Organic
17
Agriculture Certification Thailand (ACT) is the only Thai organic certification body
accredited by ACFS and IFOAM.

Table 6. Organic certification in Thailand
Agency % of land certified
DOA (Organic Crops Institute) 13%
ACT 37%
Northern NGOs 0.3%
Foreign certification bodies 50%
Source: Green Net / Earth Net Foundation (2005)

Government certification. Since many farms in Thailand employ integrated farming
systems, a single integrated organic farm would require three separate certifications for
organic crops, organic livestock and organic fisheries from the agencies under MOAC,
namely the Department of Agriculture, Department of Livestock Development, and the
Department of Fisheries respectively. This cumbersome system so far remains unresolved.
In addition, some have voiced the opinion that the government’s role should focus on
facilitating and regulating instead of competing with private certified bodies. For example,
the Department of Agriculture (DOA) offers a free organic certifying services, in direct
competition with ACT, a private certification body, which has to charge farmers fees for the
cost of certification. This is a critical constraint, which currently obstructs growth of
Thailand’s organic certification industry sector. To resolve this, it has been proposed that
government should provide subsidies to small farmers to cover the cost of organic
certification through private certified bodies. To complicate matters, other government
organizations have also set up separate certification bodies, e.g. Surin Province certified its
organic rice in order to export from the province to overseas markets, and the National
Bureau for Commodity and Food Standards (ACFS) also offers an organic certification
service.
Private certification bodies. Previously known as Alternative Agriculture Certification

Thailand, Organic Agriculture Certification Thailand (ACT) was legally established in
1995, and became the first independent private sector certification body in the country. At
first ACT focused only on chemical-free certification with the support of IFOAM
(International Federation of Organic Agriculture Movements), but in 1998, ACT broadened
its scope to cover organic certification. ACT was the first and is still the only Thai-owned
organic certification body offering internationally-recognized organic certification services,
In 1999, the first ACT standards for organic agriculture were introduced, following the
IFOAM organic standard. ACT standards, then earned European Union Equivalency under
EEC Regulation 2092/91, and became the first Grower Group Programme IFOAM-
accredited body in Asia in 2001 and 2002. In 2003 ACT launched new standards for Organic
Aquaculture and also adopted new Social Justice Standards for all operators. ACT also
earned ISO 65 accreditation for certifying bodies by developing new organic standards for
18
Silk Thread and Restaurant Cuisine. In 2004, the Thai government, through the National
Bureau of Agricultural Commodity and Food Standards (AFCS) launched the national
organic accreditation programme, and ACT was the first certification body accredited under
this programme.
In 2001, ACT established ACT Control (ACTC) to offer a competitive inspection service to
international certification bodies working in the region. In the current situation, many
organic operators in Asia apply for certification with international certification bodies
because their exports of organic products to the EU, USA, Japan and elsewhere can be
guaranteed. Some operators also have to apply to different certification bodies for exports to
different countries. They have to be inspected and certified separately by those certification
bodies, which adds to the cost burden for the operators. ACTC, therefore, offers an
affordable inspection service for operators so that the international certification bodies can
use ACTC inspectors to inspect their operators at a lower cost instead of sending their
inspectors overseas or establishing local offices in the region. The Swiss government has
also recognized ACT, which later led to acceptance by global organizations such as
BIOSWISS (Switzerland), BLIK (Belgium), KRAV (Sweden), Die Bio-Bauern (Austria),
Ecocert (Canada), and Agriculture Biologique (France). As of June 2005, there were 1,413
farms certified by ACT, covering 4,752 ha (29,708.21 rai).
The Northern Region Organic Standard Organization was established in 2004 to serve
organic farms in the north, offering its own organic standards and certification. It is
presently, a local private certification body serving only organic farms in Chiang Mai
Province. The certification system is based on collaboration between growers and consumers
to accept organic products. So far 20 farm families are certified via this organization. (11.3
ha or 70.74 rai).
As of 2004, approximately 50% of Thailand’s certified organic farms were certified by

foreign companies. At least 8 certified bodies provide certification services to organic
producers, mainly for export. Those foreign certification bodies are listed as follows:
• Bioagricert (Italy)
• BCS Öko-Garantie GmbH (Germany)
• Soil Association (UK)
• Naturland (Germany)
• IMO (Switzerland/Germany )
• OMIC (Japan)
• Skal (Netherlands)
• Ecocert (France)
19
5. Marketing
5.1. The global market

The global demand for organic food has increased continuously and dramatically over the
past five years in all key developed markets. Exceptionally high market growth rates are
pushing global organic food & drink sales towards US $40 billion in 2006. With demand
outpacing supply, a number of regions are experiencing supply shortages.
In 2006, British consumers purchased organic produce worth €2.35 billion (121 billion
baht), whereas in Germany, the market was valued at €3.9 billion (200.7 billion baht,
representing a growth of 16 % compared to 2005. In the same year (2006) the USA market
was worth USD 14.9 billion (521 billion baht).

Fresh produce is the leading organic product category, comprising a third of global
revenues. Fruit & vegetables like apples, oranges, carrots and potatoes are typical entry
points for consumers buying organic products. Their fresh nature appeals to consumers
seeking healthy & nutritious foods. Dairy products and beverages are the next most
important organic product categories.
According to the latest survey on organic farming worldwide, almost 31 million hectares are
currently managed organically by at least 633,891 farms. This constitutes 0.7 percent of the
agricultural land of the countries covered by the survey.
Although supply of organic foods has clearly become global, however demand has not. The
disparity between producer and consumer countries is growing, with the largest increases in
organic food production shown by developing countries with only small internal markets for
organic products. For instance, the amount of organic farmland in Africa, Asia and Latin
America has reported triple-digit growth since 2000 compared to double-digit growth in
other regions. Production in these regions is highly export-geared with relatively few
certified organic products sold in the respective producer countries.
On the other hand, demand for organic products is concentrated in affluent countries where
production of organic foods is increasing at a relatively slow rate. Most sales of organic
foods are in countries where consumers have high disposable incomes. The G7 countries
account for over 80% of total sales, whereas their share of international organic farmland is
a mere 12%. This over-concentration of demand puts the global organic food industry in a
potentially precarious position. Producers in developing countries are therefore attempting to
develop internal markets for organic products to spread the business risk.
5.2. Domestic market

As with many other producing countries, the growth of Thailand’s organic sector was
initially driven overwhelmingly by the export sector. This was attributable mainly to the
high cost of certified produce, which lay mostly beyond the means of many domestic
consumers.
However, the situation is changing, and nowadays the population is increasingly conscious
of health and environmental issues. The domestic market has shown considerable growth in
the past few years, driven by increasing demand particularly from urban middle class
consumers.
20
In 2006 the Thai organic market was valued at US$ 24.3 million, up 159% from US$ 9.4m
in 2002. In value terms, the domestic market has increased relative to the export market,
and in 2006 was estimated at Baht 520.6m, or US$ 13.3 m (using the 2006 average
exchange rate of 39.00).
The supply situation has also improved due to increased availability of surpluses from the
rapidly growing export sector and the entry of large moderntrade retailers into the organic
supply chain. Today, in most supermarkets, a wide range of high quality organic, health, and
chemical-free produce is available alongside their conventional equivalents.

5.3. Export markets
Thailand’s organic exports were estimated at US$ 10.96m (Baht 427m) in 2006. Rice is the
most important export crop, followed by vegetables, fruits, corn, then herbs and spices.
Thailand exports the bulk of its organic produce to EU, with the remainder destined mainly
for Japan, US and Singapore. The majority of organic products approved for export to EU
were jasmine rice, certified by Bioagricert, KRAV, ACT, BCS, The Soil Association or
Ecocert.
Table 7 below shows the value breakdown for the major produce categories.
Table 7. Domestic and export value 2006 (million baht)
Rice Field crops Vegetables Fruit Other TOTAL

Domestic 327.4 14.5 97.2 72.2 9.3 520.6
Export 221.6 28.2 175.1 2.5 - 427.4
Total 549.0 42.7 272.3 74.7 9.3 948.0
Despite its recent rapid growth, development of the export sector is constrained by many
challenges. The organic guarantee system is generally not fully understood by organizations
promoting organic agriculture. In particular, accreditation and certification are frequently not
properly differentiated, and regulations covering organic imports are not well understood
even by organic practitioners themselves. The long conversion period stipulated by EU acts
as a barrier to participation since it generates major compliance costs for farmers who have
little or no support during the transition period prior to receiving certification. Moreover,
there has been relatively little progress in agronomy and crop protection for organic systems,
with the result that organic farming systems still cannot ensure consistent production and
regular supplies of fresh produce of guaranteed quality- all essential prerequisites to meet
the stringent requirements of export markets (Ellis, W. et al., 2006).
Almost 15 years ago, rice was one of the first organic commodities to be exported to the
European Union. There are also organic rice contract farming schemes, primarily for export,
run by companies such as Capital Rice Co Ltd, Eden International Co Ltd, Advance
Agriculture Association, and GreenNet Agricultural Cooperatives.
Figure 1 provides a generalized picture of the organic supply chain for organic produce.
21
Figure 1. Organic export supply chain

Market oriented organic
agriculture Group certification Domestic markets
with
Company owned farms Internal auditing
Economic crop(s)
Follow new technology Small farmers Whole sale market

Contracted firms ,
Strictly follow standard cooperatives
Small farmers
High investment cost
Small farmers
Export markets
Self-sufficiency oriented
organic agriculture
Small farmers
Integrated farming
Learn from experience Small farmers Cooperatives, local SME
No standard concerned Whole sale market

Small farmers
Lower investment cost Group certifying with
internal auditing
Domestic markets

Source: Ratanawaraha, C. (2007)

5.4. Market pathways for organic produce
Vegetables have a major potential for both domestic and export markets. Given the growing
public concern over food safety and environmental issues, consumers are increasingly
prepared to pay a significant premium for certified organic produce, compared with
conventionally produced foods.
A survey conducted by the University of Khon Kaen found that at the Supanburi Organic
Vegetable Farmers Forum, sales of cruciferous and other native vegetables amounted to 244
metric tonnes per year. Supplies came from individual growers (54.91%), by members of
vegetable farmers groups (24.6%), and by non-members (20.49%), respectively. The main
channels for produce to reach consumers are as follows:
- Direct to consumers or to small vendors (0.36 %) - Green Net Cooperative (2.95 %)

- Community market (3.08 %) - Member of CSA (3.93)
- Specific market such as hotels, schools (4.59 %) - Supermarket/superstore (46.52%)
- Small retailer (20.33 %) - Export market (18.24%)
The survey also analysed the asparagus export market, and found that most asparagus
farmers are members of contract farming schemes. The produce is certified by the
Department of Agriculture and BCS (a Germany-based certification body). In total,
approximately 500 tons/year are exported.
22
Market channels for environmentally friendly products, especially fresh organic fruits and
vegetables, have changed over the past five years, shifting from the early movers, the green
shops, to the current dominance of supermarkets and hypermarkets. The emergence of these
new market channels has made organic produce much more widely available to consumers.
Shelf space allocated for organic produce in supermarkets and hypermarkets has increased
rapidly.
Inevitably, smaller producers are less able to comply with the demands of moderntrade
channels, and are tending to be marginalized, e.g. through inadequate awareness of the
regulations, or lack of access to capital to implement new traceability or certification
requirements. The increasing dominance of moderntrade market channels over the entire
organic supply chain transfers the burden of risk to the farmer, narrowing margins and
ultimately impacting on competitiveness.
Figure 2 shows typical pathways to market for asparagus, cruciferous and native vegetables.
Figure 2. Market pathways for selected organic exports

(asparagus, crucifers and native vegetables)
Direct consumers0.36%
Farmer’s own
produce 54.19% Retailers
20.33%
Individual Individual
farmers20.49% farmer Community
Hotels ,schools markets 3.08%
4.59%
Member farmers
25.60% Produce
collector Member markets Supermarkets
3.93% 46.52%
Green Net Coop

2.95%
E
Farmer’s X
association Local market P
n/a O
R
Export Ppoduce T
Product classified centre collectors
Product collecting centre 100% M
18.24% A
R
K
E
Exporters T
100%
Source: modified from Khon Kaen University (2006)

5.5. Market promotion and advertising
The Department of Export Promotion (DEP), Ministry of Commerce, undertakes a number
of activities aimed at facilitating exports. Apart from supporting participation of exporters at
global and regional organic events (e.g. Biofach, Germany and the Natural Products Organic
events in Singapore and Hong Kong), DEP also organizes business incubation and training
events to develop the export sector, and plans to develop an information website catering
specifically for the organic sector.
Overall, however, the level of government and private sector investment in advertising and
promotion of organic agriculture is inadequate. Entrepreneurs tend to prefer low-cost
advertising e.g. media interviews about their shops or products, or written articles on health
and organics for magazines. There are few media channels directly providing information on
organic agriculture, and few entrepreneurs who invest in paid advertisements. In general,
23
promotion of organic produce focuses on food safety considerations (freedom from pesticide
contamination), health and nutritional benefits, and quality/freshness. Promotions tend not to
emphasize the significance of the organic certification seal or brand, perhaps because
consumers have relatively little awareness of different organic standards. There is hardly any
other type of promotion.
Raising consumer awareness and understanding of the principles underlying organic farming
and in the differences between organic and ‘hygienic’ vegetables is important to stimulating
the domestic organic market. Entrepreneurs need to work together to this end, and
government also needs to invest in raising the profile of organic foods among consumers.

5.6. Where to buy organic products
Many consumers regularly buy organic produce from weekly markets in locations provided
by government organizations such the Farmer Organization’s Market, Thammasat
University Hospital, and provincial government centres. At present, there are many shops,
food stores, and supermarkets which promote health food and organic food. The major
supermarkets offering organic lines are as follows:
Carrefour, a French-owned supermarket with outlets in most provincial centres around

Thailand, has initiated the Carrefour Quality Circle. Its system for regular monitoring of the
production process helps ensure low levels of pesticide residues in produce.
Tops is one of the largest supermarket chains in Thailand, and places great emphasis on
providing healthy food, especially organic produce, to their customers. Tops provides
separate shelves for organic, hygienic, pesticide-free and even hydroponically produced
produce, including vegetables, herbs, cereals, and legumes.
Villa supermarket is a medium sized chain store located in high-income areas. Organic,
hygienic and safe food brands are available, but do not have dedicated shelf space.
Lemon Farm is a medium sized health and organic food store, established 15 years ago,
with seven branches in Bangkok, mostly located at Bangchak petrol stations, but with its
main shop at Chaengwattana Road in northern Bangkok. The main purpose was to support
both organic farmers and organic consumers. On the farmer side, organic producers are
assured of a market outlet for their produce, whereas consumers can buy guaranteed quality
produce. Lemon Farm, in its early stages, provided a six-weekend course on natural farming
and organized day trips to visit natural farms for their customers. However, due to the high
costs of logistics and infrastructure in Bangkok area, prices are higher than average.
5.7. Organic premiums

Despite increasing numbers of producers and produce volume which together exert
downward pressure on farm prices, currently the market still favours the farmer as demand
continues to exceed the available supply. Organic produce on supermarket shelves
previously attracted price premiums of more than 50 % compared with conventional
produce. Although premiums are generally on a downward trend, high variability may be
found at retailer level. A survey comparing prices of organic and conventional vegetables in
one supermarket found price differences ranging from 53% up to 410% between comparable
jasmine rice products. Since rice is a staple food, there is wide choice in packaging size,
quality, brand, and price for organic rice and rice products. Even though this study only
compared jasmine rice of similar quality and package size, price differences still ranged
24
between 13% and 130%. It is anticipated that in the next few years, when more producers
have passed through the transition period to convert their farms to organic systems, the
higher supply of organic produce will exert further downward pressure on the organic
premiums and retail prices.
Table 8. Price comparison, organic vs. conventional produce, 2001-2003

Crop / Year 2001 2002 2003 2003 2004
Conventional
40 41 39 40 40
vegetables
Organic
88 67 66 74 69
Vegetables
% difference 120 62 69 85 73
Source: Green Net Cooperative, 2001 – 2004
5.8. Consumer behaviour

As previously mentioned, increasing interest and demand for organic farm produce among
local consumers is due mainly to the fact that consumer concerns over chemical
contamination and other hazardous substances present in farm produce and foods have often
proved to be well-grounded. A flood of health foods and products entered the market to
capitalize on these concerns. There are four major non-traditional categories of vegetables
on the shelves at most supermarkets today: “hygienic” (pak anamai), “chemical-free” (pak
plod sarn), hydroponic, and organic (pak in see).
Thailand’s organic consumers may be characterized as follows:

urban and middle-class consumers, with 1-2 children and average income of
30,000- to 60,000 Baht per family per month
Principal shoppers are housewives or female members of family, who are more
health conscious compared with their male counterparts
Consumers have access to data and information beneficial to their health and also
on sources of organic food and health products, mainly from printed media, TV
and radio.
Most organic consumers buy their produce from moderntrade outlets such as TOPS, Big C,
Tesco Lotus, Carrefour, Villa and Lemon Farm, whereas a smaller number of consumers
regularly buy from weekly markets in locations provided by government organizations such
the Farmer Organization’s Market, Thammasat University Hospital, and provincial
government centres. A recent survey in Bangkok cited the main reasons given for co’sumers'
preference for organic products as (a) confidence due to certified produce (53.33%), (b)
clear labelling (46.67%), and (c) fair prices (40%). In contrast, 60% of consumers surveyed
who did not buy organic products cited unacceptably high prices, whereas a numbers of
consumers who were willing to buy could not find an organic market.
25
Local niche organic market in Chiang Mai

Organic produce display in a Bangkok

supermarket
26
6. Produce labelling

6.1. Introduction
The increasing interest and demand for organic farm produce among domestic consumers is
in large measure due to consumer concern over chemical contamination of farm produce and
foods. Reflecting this concern, consumers are faced with a range of labelling schemes
launched by both the public and private sectors. Table 9 shows the major label categories
currently available in Thailand
Table 9. Brands, logos and certification bodies in Thailand
Item Brand and logo Certification Body Name and Description

“Safety & Quality
Ministry of Agriculture Standard”- allows
1. and Cooperatives agrochemicals within GAP
(MOAC/ACFS) tolerance levels- for fresh
and processed food
“ Hygienic Fresh Fruit &
Vegetables” - allows
Department of
2. agrochemicals within
Agriculture, MOAC
tolerance limits for fresh
food
“Organic Thailand”
Department of
3. Allows non-synthetic
Agriculture, MOAC
agrochemicals, no GMOs
“Organic Standard”
Organic Agriculture Allows non- synthetic
4.
Thailand, ACT agrochemicals, no GMOs,
IFOAM accredited
Department of
“Toxic residue-free
Agricultural Extension
vegetables”
(DOAE)
“Pesticide-safe”- allows
Department of Medical
agrochemicals within
5. Science, Ministry of
permitted tolerance levels
Public Health
for fresh foods
“Carrefour Quality Line”

Allows non-synthetic
6. Carrefour
agrochemicals, no GMOs,
traceability
“Natural Farm Produce

Standard” - equivalent to
Organic Standard
Department of Informal Allows non-synthetic agro-
7. Education, Ministry of chemicals, no GMOs,
Education applied by members of
Nature Farming at Wat
Yarn Sangkawararam
Mahawiharn.
27
“Organic Standard”
Institute for a Sustainable
Allows non-synthetic
8. Agriculture Community,
agrochemicals, no GMOs,
North Net Foundation.
for northern provinces
Department of Public
9. Clean Food Good Taste Hygienic food standard
Health

The plethora of labels and logos has made it difficult for consumers to differentiate between
these various labelling schemes. Competing labels could potentially lead to distrust among
consumers on labelling integrity, especially when these labels appear to communicate
similar messages. Thus, there is a need to promote better understanding among consumers,
particularly in the significance and importance of certification.
28
7. Challenges for organic sector development

7.1 Sector challenges
In recent years many new organic projects have been initiated by the government, private
sector and the NGO community, to help producers convert to organic production. The Thai
organic sector is showing signs of approaching the “take-off” stage as many organizations
have announced their support for organic agriculture or announced plans for organic
projects. This endorsement by the private sector as well as by the government itself could set
the stage for a major expansion of organic production in the country over the next few years,
in tandem with the rapid growth in international organic markets.
Nevertheless, many organic initiatives would not qualify as meeting internationally-

recognized organic standards. Organic agriculture is often seen as a simple substitution of
agrochemicals with organic inputs, or the replacement of chemical fertilizers with organic
materials. The basic concept of organic farming - as a positive farm management system,
with its broader philosophy of attempting to conserve and rehabilitate the agro-ecosystem -
is often overlooked, even by practitioners. Most organic projects in Thailand today are based
simply on application of liquid organic fertilizers and the use of micro-organisms for making
compost.
Also, the organic guarantee system is generally not fully understood by organizations
promoting organic agriculture. In particular, accreditation and certification are frequently not
properly differentiated, and regulations covering organic imports are not well understood
even among practitioners. The knowledge gap can be an important constraint to the
continuing growth of Thailand’s organic sector in the short- and medium-term.
In common with many developing countries, Thailand considers that internationally set
organic standards, including EU organic standards, are unnecessarily stringent, and there is
insufficient promotion/education of the process and benefits to farmers. Small farmers in
particular have insufficient capital, knowledge and resources to risk converting to organic
farming if they must carry the current high compliance costs. Current policy goals place
insufficient emphasis on the production process, and focus primarily on standard setting and
certification, and on establishing national standards, even though these standards do not help
attain recognition by Thailand’s key trading partners.
The following discussion summarizes some specific issues and challenges facing Thailand’s
organic sector.
6.2. Conversion
Perhaps the most important challenge facing organic producers is farm management during
the transition period from conventional to organic production, and before farmers can obtain
their organic certification. This conversion period can take 1-3 years, depending on the
standards employed. In case of EU, the conversion period is 24 months for annual crops and
36 months for perennial crops.
Farmers during the conversion period typically face problems with yield losses and
economic hardship. They must therefore plan and manage the farm carefully in order to
achieve and sustain compliance. Farmers need to understand the appropriate technologies
applicable to their crops, the ecosystem and specific market needs. Thus during this
transition period it is especially important to provide farmers with ongoing support,
29
otherwise there is a real possibility that farmers will change their minds and abandon their
efforts.
A further challenge encountered during the transition period is that produce cannot be
labelled or sold as organic, and so cannot attract the organic premium in the marketplace.
During this transition period farmers must comply with organic certification requirements
without commensurate returns in the short term. Financial support from the government is
therefore important to motivate farmers in this situation. Alternatively, traders and organic
promotion projects themselves could provide financial support to assist farmers in transition
to lower their conversion costs.
6.3. Production technologies

Although maintenance of soil fertility is fundamental to successful organic agriculture, there
have been relatively few advances in soil improvement technologies in recent years.
Researchers and extensionists tend to focus on more visible technologies such as liquid
fertilizers using micro-organisms, or pelleted organic fertilizers. In reality, such technologies
contribute relatively little to soil improvement in the longer term, and their main benefit is
convenience in use.
Similarly, crop protection technologies suitable for organic production have seen little
progress in recent years. The main focus has been to replace chemicals with organic
substitutes. This approach ignores the key principle underpinning organic agriculture, which
is the need to create and maintain a balance between the production system and the
environment. Pest problems signify an imbalance. Attempting to find an organic pesticide
that is effective, to replace a chemical product, does not address the basic imbalance in the
agro-ecosystem, i.e. a holistic approach is called for.

6.4. Supply
Existing organic farming systems often cannot adequately address the fundamental problem
of ensuring consistent production and regular supply of fresh produce of guaranteed quality.
Because organic farming activities tend to be concentrated in certain areas, the supply chain
is vulnerable to supply fluctuations caused by extremes of weather or biotic factors (e.g.
pests or diseases). With such unpredictable changes in weather or other growing conditions,
organic farmers face a great deal of difficulty in maintaining a steady, reliable supply of
specific crops regularly to markets. Fruit and vegetable production in particular is most
sensitive to weather conditions, and producers have met with limited success in diversifying
the range of available produce on the market. Furthermore, there are shortages of quality
seed for planting. Oversupply can also be a problem, where unexpectedly bountiful harvests
flood the market which has only a limited number of outlets, whilst the produce has a short
shelf life.
6.5. Supply chain logistics

An increasingly long supply chain and longer distances from farm to shelf or outlet impose
additional burdens on administration and management, ranging from harvesting, collecting
and transport, etc., all of which add to costs at retail level. The situation is exacerbated by
inefficiencies in the management of the business operation. Inevitably, this also has a direct
impact on the quality of organic crops and produce, when finally delivered to buyer or
outlets.
30
6.6. Quality
Produce quality is of course crucial, particularly for the export market, and has already been
referred to elsewhere in this report. In general, potential buyers of organic agricultural
produce or products are highly discriminating consumers from middle-income brackets.
Whilst prepared to pay a premium for organic produce, they demand high standards of
quality and consistency. However, in the market there is concern over the generally low
quality of organic products, as well as the lack of consistency in quality, even from within
the same harvest or batch.
To address the issue of inconsistent quality, it is imperative that appropriate and efficient
quality control systems be adopted, starting from planting or production process, post-
harvest management, processing and transport or delivery.
6.7. Processing
Processing methods are usually rather unsophisticated, conducted by local organic farmers
or co-operatives, and relying mostly on basic local knowledge. Often processing is managed
and operated at community level (community-based enterprises).
There has been relatively little progress in identifying appropriate post-harvest technologies,
storage and processing methods to minimize post-harvest losses without using proscribed
chemicals. Often, producers and entrepreneurs arrive at practical measures to reduce post
harvest losses simply through trial and error. Government initiatives are perceived as
academic rather than address practical issues. Farmer groups report a lack of consultation
with producers or entrepreneurs by researchers, which means that the research may not
ultimately match their needs.
6.8. Market promotion and advertising

Overall, the level of government and private sector investment in advertising and promotion
is inadequate. Entrepreneurs tend to prefer low-cost advertising e.g. media interviews about
their shops or products, or written articles on health and organics for magazines. There are
few media channels directly providing information on organic agriculture, and few
entrepreneurs who invest in paid advertisements. In general, promotion of organic produce
focuses on food safety considerations (freedom from pesticide contamination), health and
nutritional benefits, and quality/freshness. Promotions tend not to emphasize the significance
of the organic certification seal or brand, perhaps because consumers have relatively little
awareness of different organic standards. There is hardly any other type of promotion.
Raising of awareness and understanding among consumers in the differences between

organic and ‘hygienic’ vegetables is an important factor in stimulating the organic market in
Thailand. Entrepreneurs need to work together to achieve this as a common goal, and
government also needs to invest in raising the profile of organic foods among consumers.
6.9. Inspection and certification

It seems probable that Thai organic products will continue to be imported into the EU
through the “application for authorization for marketing” channel (Article 11), at least for
the next 3-5 years. Pending Thailand’s inclusion in the Third Country List, internationally-
recognized private certification agencies in Thailand will continue to play a key role in
facilitating this channel. However, there is no government support or stimulus to develop
31
this sector, making it difficult for Thai-owned companies to compete with foreign
certification agencies.
Organic standards and certification assist in raising consumer confidence, and differentiate
organic produce at point of sale. In order to ensure the credibility of certification standards,
transparency and independence are key criteria. In Thailand certification is managed by both
private and public sector agencies, which introduces inefficiencies into the system and
constrains growth and viability of the private sector certification business.
Within the public sector agencies, overlapping responsibilities between different functions
create further inefficiencies and even conflicts of interest. Supervision of control bodies and
producers and (legal) sanctioning are two functions which have to be fulfilled by a
Competent Authority. On the other hand, auditing and accreditation should be clearly
separated from supervision and legal sanction in order to ensure transparency and public
trust.
Many countries have resolved these issues by allocating the role of inspection and
certification to the private sector- the government’s role is then to strengthen and accredit
and monitor those private sector agencies, and in enforcing all relevant standards.
Finally, in common with many other countries, the government’s focus is on standard-
setting, rather than to support production and strengthen the commercial viability of the
sector. Whilst the organic sector is at an early stage of development, over-regulation to
control production can present an excessive burden, especially for small farmers. An over-
complex regulatory and standards environment will thus constrain rather than facilitate
organic agriculture development and can be a big obstacle for developing the sector in the
long run.
6.10. Support mechanisms: training and extension

Many organic producers do not fully understand the holistic principles or standards
applicable to organic agriculture. Farmers need direct and practical support, especially
during the conversion process as well as to improve post-harvest quality management.
However, training and extension support mechanisms for production have been weak.
Classroom training, which has been amply proven to be ineffective in enhancing farmer
understanding, or even in increasing levels of on-farm adoption, continues to be the main
methodology used by organic extension agencies.
Overall, there is insufficient education and competency development to enhance capacity at

producer, processor, and exporter levels to better manage their organic production and
certification in compliance with EU requirements. Thailand has yet to develop a national
training curriculum and programme for growers which focuses specifically on EU
requirements and market conditions.
Nonetheless, participatory training and extension models developed by community-based

organizations have emerged as a popular alternative to conventional methods of training and
extension. However, adopting this extension methodology would require substantial
restructuring and retooling within the government extension system, in order to create a pool
of resource persons and build competency. Nevertheless, participatory methods are gaining
an increasing following, emphasizing as they do the need to shift from crop management to
farm management, and reflecting specific local conditions and culture.
32
References
1. Chaivimol, S. (2003). Marketing green and organic agricultural produce in Thailand.
Paper presented at The Conference of Green Food, China
2. Department of Agriculture (2003). Statistical Information on Imported Agricultural
Chemicals, Agricultural Regulatory Division, Department of Agriculture.
3. Department of Livestock Development (2005). Livestock Statistics of Thailand.
Section IX , Table 86. Ministry of Agriculture and Cooperatives, Thailand.
4. Ellis, W., Panyakul, V., and Kasterine, A. (2006). Strengthening The Export Capacity
of Thailand’s Organic Agriculture Sector. Final Report, August 2006, An EU-
International Trade Centre Asia Trust Fund Technical Assistance Project.
5. FAO/WHO (2001). Guidelines for the Production, Processing, Labelling and
Marketing of Organically Produced Foods; GL 32-1999, Rev.1-2001. Joint FAO/WHO
Food Standards Programme, Rome, 2001.
6. FAO (2003). Proceedings of 2003 International Organic Conferences, Bangkok,
Thailand.
7. FAO (2004). Food and agriculture indicators: Thailand. FAO Statistics Division.
Available online from: www.fao.org/countryprofiles [Accessed: 14.09.2005]
8. Green Net / Earth Net Foundation (2005). Organic Agriculture Situation in Thailand
2005 (Thai language), mimeograph, Earth Net Foundation, Bangkok.
9. Infomining Consulting Co.Ltd. (2007). The Organic Agriculture Survey Study (in
preparation).
10. Khon Kaen University (2006). Study on Thai Organic Agricultural Marketing.
Supported by Department of Agricultural Extension, Ministry of Agriculture &
Cooperatives.
11. Land Development Department, (1997) Soil Organic Improvement Hand Book for
Official,165 pp.
12. Ministry of Agriculture and Cooperatives (1992). Agriculture in Thailand, A
Commemoration Edition on The Occasion of the Centennial Anniversary, 1 April 1992
176 pp.
13. National Office of Agricultural Commodity and Food Standards, Ministry of
Agriculture and Cooperatives (2003). Organic Agriculture, Part 1: The Production,
Processing, Labelling and Marketing of Organic Produce. ACFS, Bangkok.
14. Office of Agricultural Research and Development, Region 5 (2001). Bio-extract and
Dried Bio-Compost, Technical Document, DANCED and DOA project.
15. Organic Monitor (2006). The Global Market For Organic Food & Drink - Business
Opportunities & Future Outlook (November 2006).
16. Panyakul, V. and Sukajirattikal, J. (2003). Situation of Organic Agriculture in Thailand
and the World, Earth Net Foundation, Bangkok.
17. Panyakul, V. and Sukajirattikal, J. (2003). Markets of Organic Products, Earth Net
Foundation, Bangkok.
18. Panyakul, V. (2004). Organic Agriculture: How to Get Certification, Earth Net
Foundation, Bangkok.
33
19. Panyakul, V. (2002). Organic Jasmine Rice Production-Management Handbook, Earth
Net Foundation, Bangkok.
20. Ratanawaraha, Chanuan. (2007), Pers. comm.
21. Siripatra, D. (2007). Khao Kwan Foundation’s Experiment Station. Supanburi (pers.
comm.)
22. Wangkanai Group of Companies. www.wangkanai.co.th/new/home.php?Lang=en
23. Willer, Helga and Yussefi, Minou (2004). The World of Organic Agriculture: Statistics
and Emerging Trends 2004 (eds.), International Federation of Organic Agriculture
Movements, Bonn.
24. Worthington V, (2001). Nutritional Quality of Organic Versus Conventional Fruits,
Vegetables, and Grains, J. Alternative and Complementary Medicine, Vol. 7, No. 2,
(pp. 161-173), available at: www.foodisyourbestmedicine.com/organic.pdf.
34
Appendix I: Thai-German Programme for Enterprise Competitiveness: Enhancing the
Competitiveness of SMEs by Improving Access to Business and Financial Services and
Introducing Eco-Efficiency in Industry.
Programme description
The Thai-German development partnership has a long track record of successful cooperation.
Recognizing Thailand's stage of economic development, the Royal Thai Government and the Federal
German Government have agreed to refocus its portfolio of cooperative activities on initiatives aimed
at strengthening the competitiveness of Thailand’s small and medium-sized enterprises (SMEs),
particularly those in the agro-industry sector.
GTZ (German Technical Cooperation), as a government-owned company for sustainable

development, was commissioned by the German Federal Ministry for Economic Cooperation and
Development (BMZ) to implement the Thai-German Programme for Enterprise Competitiveness
(PEC) from 2004 to 2012.
The programme involves two major components: Business and Financial Services, and Introducing
Eco-Efficiency in Industry. Both components interact with a wide range of intermediaries, facilitators
and service providers to enhance SME access to business, financial and eco-efficiency services, and
to improve the institutional and human capacity for the business enabling environment.
The programme’s first phase (2004-2008) focuses on agro-industry, and has already implemented
several projects in various agro-industrial sub-sectors, including palm oil, shrimp, tapioca, tangerine,
longan, and Saa paper, as well as projects involving cross-cutting issues such as resource
management practices, energy efficiency, financial services, chemicals risk management,
management information systems, and certification.
Approach
The programme approach strives to:

• create the right market conditions for more and better services to be provided to SMEs in
selected sectors in a sustainable manner
• enhance institutional and entrepreneurial competency for eco-efficient, good governance in
selected sectors
• cooperate with government organisations, chambers, associations and private enterprises.
Further information is available at
www.thai-german-cooperation.info
www.ecoefficiency.info/programme.html.

35
Appendix II: Thailand’s National Agenda for Organic Agriculture

In 2005, National Organic Agriculture Agenda was declared after Cabinet approval. The
agenda’s time frame cover 2006-2010 with the main strategies was to develop organic
agriculture by integrated afford of 26 governmental departments and universities from 6
ministries. The goals were to reduce volume of existing imported chemical fertilizers
(approximately 3.5 million metric tons worth about 40 billion baht)) down to 50 percent by
encouraging 850,000 farmers to convert 17 million rai (2.7 million ha) area of conventional
to organic agriculture in five years. One of the most expensive activities was to build 2,500
bio-fertilizer producing factories. A total budget of about 25,000 million baht was approved
for implement of the agenda. However, the budget was not the additional top-up but it had to
be readjusted from the existing allocated budget of each participated organizations. This is a
problem among many others things which affected the readiness of cooperation from the
concerned sectors.
There were many criticisms over the preparation of the agenda. For example, -
• Its preparation was extremely rushed for such an important national agenda which
should need more properly planning, not in 5 months time (22 June – 30 November)
as it was done.
• The work plan was not integrated manner but it was a compiled work plans from
different participated sectors. It was a top-down rather the properly bottom-up and
top-down planning methodology.
• Building bio-fertilizers with insufficient information back-up for the feasibility may
cause failure and the lost of a big amount of national budget.
• The coordinating organization should be the Office of the Permanent Secretary
instead of the Department of Land Development as assigned.
• There was no representation of the non-government sector, particularly experienced
and successful organic farmers.
36
Appendix III: National Action Plan for Organic Agriculture: Summary of
Recommendations by UN-International Trade Centre - EU Technical Assistance Study
2005-6

(Extract from Final Report of the ITC‐EU‐NIA Technical Assistance Project, Aug 30, 2006)

This Action Plan addresses the ITC‐EU Technical Assistance Project’s objective to strengthen
Thailand’s organic export sector and facilitate access to markets in EU member countries.
The recommendations represent the outcome of a series of group and individual
consultations between stakeholders in government, the private sector, academia, grower
groups, and concerned NGOs, as well as national and international experts.

The Action Plan offers national‐level strategies which can be implemented by the Royal
Thai Government in order to address the constraints and challenges identified by
stakeholders over the past 12 months of the study, and enhance the competitiveness of
the organic export sector.

The recommendations themselves cover production systems and supply chain, certification
and control systems, research, training and extension, domestic and export markets.

Seven overall strategies are proposed to strengthen the overall sector, with particular
reference to the export market. In support of these policy recommendations, specific
actions are described which address challenges and constraints identified during the
stakeholder consultation process. Wherever appropriate, such activities will be most
effective in generating long term sustainability if they are implemented at the community
level (i.e. bottom‐up).

The strategies and proposed specific actions are summarized below:

Strategy 1: Broaden the production base for organic agriculture

Action 1.1 Implement additional support measures to facilitate conversion to organic
systems
Action 1.2 Support the establishment of organic production clusters in the private
sector
Action 1.3 Support contract farming in organic agriculture as an effective vehicle for
poverty alleviation
Action 1.4 Invest in technologies and processing facilities to enhance value‐added and
exploit new market opportunities
Action 1.5 Support the organization of growers in regard to joint distribution, storage
and transport infrastructure
Action 1.6 Strengthen the ongoing bio‐fertilizer initiative spearheaded by the Ministry
of Agriculture and Cooperatives

37
Strategy 2: Enhance capacity and streamline the existing regulatory structure
Action 2.1 Review the public sector certification system and improve access by
smallholders
Action 2.2 Review and strengthen the voluntary National Organic Standards to
improve understanding and enhance their value to farmers

Strategy 3: Prioritize research into organic agriculture
Action 3.1 Identify and address the role and potential contribution of organic
agriculture to national goals for sustainable development
Action 3.2 Establish a national organic research and development centre and national
organic information database
Action 3.3 Earmark additional funding for multidisciplinary research in order to
address key challenges
Action 3.4 Encourage researchers to examine and evaluate traditional knowledge
about pest control treatments, working in close collaboration with farmers
and local communities.

Strategy 4: Enhance and upgrade training and extension services for organic
farmers
Action 4.1 Promote organic agriculture through a participatory community‐level

approach
Action 4.2 Initiate and support training programs for farmer groups to help them set
up internal control systems as further options to reduce compliance costs
for smallholders.

Strategy 5: Develop the domestic market for organic goods
Action 5.1 Conduct market research in order to understand consumer preferences
and behaviour
Action 5.2 Private sector stakeholders should strengthen their representation through
greater participation and support for the Thai Organic Traders’ Association

Action 5.3 Introduce a pro‐organic public procurement policy by public agencies
Action 5.4 Establish an effective market information system for organic produce
Action 5.5 Initiate public awareness campaigns to stimulate demand and promote
consumption.

38
Strategy 6: Expand the export market for organic goods

Action 6.1 Extend additional support for exporters through global marketing outreach
initiatives, liaison and export facilitation processes
Action 6.2 Review and maximize potential of innovative marketing channels for
organic produce
Action 6.3 Provide an effective global market information service for organic
exporters.

Strategy 7: Establish Thailand as a leader and centre of excellence at regional
level

Action 7.1 Lead initiatives to foster cooperation between governments in Asia on
harmonization of national regulatory regimes and sharing of experiences
on key issues
Action 7.2 Foster regional collaboration among private‐sector certification bodies
Action 7.3 Develop training courses for organic conversion schemes at regional level
Action 7.4 Establish a regional organic trade association.

The Action Plan underlines the need for greater coordination between key stakeholders in
fostering greater awareness and adoption of organic practices, and in strengthening the
supply base to ensure stable, consistent supplies of a wide range of quality organic produce
to serve EU markets.

Reports, presentations and supporting documents available at:
www.intracen.org/organics/project-thailand.htm
EU Press Release 30 August 2006:
www.deltha.cec.eu.int/en/news_2006/Organic%20exports_EN.htm
39
Appendix IV: Private sector actors in Thailand
The following is a non-exhaustive list of key private sector actors in Thailand’s organic
agriculture sector, derived mainly from the Final Report of the ITC-EU-NIA Technical Assistance
Project, Aug 30, 2006).
1. Thai Organic Trade Association (TOTA)
Address: 126/106 Thai Sri Tower, Banglampoo-Lang, Klong Sarn, Bangkok 10600
Telephone: 02 439 4848 ext 2741 contact Ms Walnisa
Fax: 02 860 9020
Email: info@thaiorganictrade.com
Website: www.thaiorganictrade.com.
The Thai Organic Trade Association (TOTA) was founded in October 2005 with the goal of fostering
the organic movement in Thailand; in particular, understanding on organic products of Thai
consumers and market expansion. TOTA’s membership comprises private companies involved with
certified organic production and trade.
TOTA’s specific organizational objectives are to promote organic trade for both export and domestic
markets, promote consumer awareness of organic products, promote business networking among its
members, and facilitate information sharing regarding organic farming and trade.
TOTA members’ organic produce is sold both domestically and overseas. The range of products
includes vegetables, baby corn, Thai Jasmine Rice, honey, tapioca starch, sugar, and coconut milk.
2. Top Organic Products and Supplies Company Limited

Products: White rice, jasmine brown rice, raw coffee, instant coconut milk, organic shrimps.
Address: CM Tower Building 126/104 Krung Thonburi Road, Klongsarn, Bangkok 10600
Telephone: 02 439 4848, 02 439 7373
Fax: 02 439 4883-4
Organic area: 6,659 rai
Certification: BioAgricert
In 1991, Nakorn Luang Kha Khao Company Limited, Siam Chaiwiwat Company Limited, and
Reiseria Monferrato S.R.L. of Italy joined with the Department of Agriculture to establish an organic
jasmine rice project. The project now has 138 growers, planting crops on a 4,509-rai area in a district
between Chiang Rai and Phayao in northern Thailand. Their purpose was to produce organic jasmine
rice which was certified by Bioagricert. This is generally acknowledged as the first major organic
agricultural project in Thailand. Its produce is exported mainly to Europe, Scandinavia, New Zealand,
and Singapore, and is also distributed domestically.
Later, in order to expand its production and export of organic products, and also to broaden the
available range beyond products from jasmine rice, the company co-invested with Reiseria
Monferrato S.R.L. of Italy to establish the Top Organic Company in 2002. The new enterprise
distributed and exported organic produce, mainly to the European Union countries, USA, Australia,
New Zealand, Hong Kong, Singapore, and Japan.
Top Organic Products has also collaborated with the Fisheries Department in developing organic
production methods for shrimps, mainly in Chachoengsao, Chonburi, Chantaburi, and Trad provinces.
Moreover, the company has developed over 2,000 rai of coconut groves in Chantaburi- the area
received organic certification in 2002. The company cooperated with Merit Food and NB Value Link
40
to develop instant coconut milk and organic coconut milk products which are exported to Europe,
USA, Australia, and New Zealand.
In 2000, the company established an organic coffee project on an area of over 150 rai on Doi Luang
Mountain in Chiang Rai. The company received organic certification of the farms and production in
2002. Most of its exports are destined for European Union countries. Top Organic Products is
registered by Capital Rice Co to manage its organic business.
3. River Kwae International Food Industry Company Limited
Products: Baby corn, green roselle, asparagus, and Thai herbs

Address: Thaniya Plaza Building 21st floor, 52 Silom Road, Bangkok
Telephone: 02 231 2934 – 43
Fax : 02 231 2944
Organic agricultural area: 679 rai
Certification: Soil Association
River Kwae International Food Industry Company Limited was founded in 1986 to produce canned
fruits and vegetables for export. It operates a vegetable processing factory in Kanchanaburi. Today, it
produces vacuum-packed corn, sweet corn beverages, fresh vegetables and fruits, as well as ready-to-
eat vegetables, including organic vegetables. However, its major produce is canned supersweet corn
products for export. The company exports to over 50 different countries in South America, Europe,
the Middle-East, Asia, and the Pacific.
The company foresees increasing demand for organic produce in the international market and is
expanding its production. Its current organic area in Kanchanaburi is 679 rai (Baan Kao Farm, 600
rai, Lard Thong farm, 79 rai). Residues from the canned sweet corn manufacturing are used as organic
fertilizer in the company’s farm, which has been registered and certified by the Soil Association of
England and by OMIC (Japan). The main exported products are baby corn, asparagus, roselle, and
Thai herbs. They are mostly exported to the EU and Japan.
4. Rai Plook Rak Farm (Thai Organic Farm)

Products: Almost 50 kinds of vegetables
Address: 130 Moo 1, Petchkasem Rd, Tambol Wong-yen, Bang Pea District, Ratchaburi
Email: ganesh_neo@yahoo.com
Web: www.thaiorganicfood.com
Organic area: 60 rai
Certification: Office of Organic Agricultural Standards, ACT.
Rai Plook Rak Farm started operations in 2000 with a cultivated area of approximately 60 rai in
Ratchaburi Province. Certification was granted by the Office of Organic Agricultural Standards for
the past 2 years. The farm produces almost 50 different types of vegetables, mostly salad and leaf
vegetables, but also some tomato, chilli, cucumber, pumpkin, and gourds.
Being one of the country's largest internationally-certified organic farms, Plook Rak Farm daily
supplies approximately 1,000-1,500 packages of organic produce from its Ratchaburi farm to
Bangkok's supermarkets, including The Mall Department Store, Villa, Emporium, and Lemon Farm.
Plook Rak Farm also has a vegetarian restaurant (“Anotai”) in Bangkok, which sources its products
from the farm for cooking, including herbal and flower teas.
Although Rai Plook Rak currently only serves the domestic market, it has plans to start exporting soon.
Recognizing that Europe is the largest organic market, the company has participated in the BioFach
Organic Trade Fairs at Nurnburg, Germany, for the last 2 years. In future, the company intends to export
fresh vegetables, herbal teas and fish sauce, mainly to Southeast Asian markets. All organic products are
certified by the IFOAM-accredited Organic Agriculture Certification Thailand (ACT).
41
5. Rangsit Farm

Products: Fresh vegetables
Address: 15 Moo 1, Bueng Kham Proy, Lam Look Ka District, Pathum Thani 12150
Telephone: 02 577 2682
Fax: 02 577-2782
Organic area: 145 rai
Certification: Department of Agriculture
Rangsit Farm started in 1996 as an organic agricultural project on previously fallow garden land.
Prior to this, the company had experimented with natural agriculture without using chemicals for
more than 10 years at its Malee Land Rangsit fruit plantation project. The company was also attentive
to the development of organic agricultural production systems in other countries.
Today, Rangsit Farm produces and distributes organic vegetables and fruits, and is certified by the
Organic Crops Institute of the Department of Agriculture. The company uses the brand name
“Organic Siam” for both domestic and overseas markets.
Rangsit Farm’s organic agricultural area is divided into 2 zones: Thung Rangsit on a 45-rai area
located at Klong 7, Bueng Kham Proy Sub-District, Lam Look Ka District, Pathum Thani, and Khao
Yai on a 100-rai area, at Baan Suan Hom, Wang Nam Kheaw Sub-District, Wang Nam Kheaw
District, Nakorn Ratchasima.
Apart from producing and distributing organic produce, Rangsit Farm also acts as host for field
experiments and research on organic agriculture. This is an ongoing cooperation between the
company, the government and private sectors, both in Thailand and overseas. Examples of such
projects are research projects from USA, Switzerland, Japan, New Zealand (collaborating with the
Thailand Institute of Scientific and Technological Research), a research project on aquatics in organic
agricultural plots (cooperating with the Asian Institute of Technology), and beekeeping in organic
agricultural plots (cooperating with the agricultural technology department of Thammasat
University’s Rangsit Campus).
6. Sampran Food Company Limited
Products: Fifth month wild honey, apple-cider vinegar, sesame seed, sesame butter
Address: 18/4 Moo 2, Orm Yai, Sampran, Nakorn Pathom 73160
Fax: 02 420 3194
Website: www.healthmate.com
Certification: Office of Organic Agricultural Standards.
Starting as a consumer concerned over healthy food, Chantima Tiyawatcharapong founded the
company initially to import organic apple-cider vinegar. Because the apple-cider vinegar is usually
mixed with honey, Sampran embarked on a long search for good quality honey in foreign countries,
but realized that Thai fifth month wild honey was superior to any imported honey. Sampran therefore
collects fifth month honey from royal honeycombs in the forests of Nan Province, and focuses on
producing and distributing organic honey, mainly for export.
Today, the company employs farmers who collect wild honey from an area of approximately 30-50
rai in the highlands of Nan Province. The company’s wild honey products are certified as organic by
the Office of Organic Agricultural Standards.
In 2003 the company built an organic products processing facility in Kanchanaburi. This was the first
dedicated facility of its kind in Thailand. At the same time, the company invested in planting organic
crops to supply the factory. The primary focus is on garden vegetables- chilli, garlic, galingale, and
lemon grass, etc. However, there are plans to produce processed products from sesame, pickled giant
garlic, chilli sauce, plum and honey sauce, chilli paste, and salad dressings.
42
7. Swift Co Ltd
Products: Asparagus, baby corn, mangoes, mangosteen, ginger, galangal, lemon

grass, legumes
Address: 65/2 Moo 6 Tambon Donkhoi, Kampaengsaen, Nakhon Pathom
Telephone: 034 351025-6
Fax: 034 352 576
Email: exotic@thaifreshproduce.com
Web: www.thaifreshproduce.com
Certification: BCS, JAS, Department of Agriculture
Swift was established 1988 as a fresh produce trading company. In 1990, Swift partnered with Exotic
Farm Produce (UK) in a joint venture to create an export arm - Exotic Farm Produce (Thailand) Co.
Ltd.
Swift has its headquarters in Kampaengsaen. Its 470 sales, production and administrative support staff
oversee all produce procurement, transportation and sales efforts. Swift currently owns and operates
two processing facilities (pack houses) in Kampaengsaen and Petchabun which were specifically
designed and structured to conform to HACCP principles. Its main areas of operation can be
summarized below:
• Organic farms at Kanchanaburi (baby corn) and Sra Kaew (asparagus)
• Selected legume production at Petchabun
• Added-value prepared fruits and vegetables
• Novel cuts and presentations for the food service and retail sectors
• Microwaveable vegetarian food.
Swift is one of Southeast Asia’s leading fresh produce exporters within the niche market of quality
Asian and Southeast Asian organic, chemical free, as well as EUREPGAP-compliant, conventionally
farmed vegetables and fruits. Its core product line includes asparagus, baby corn, mangoes,
mangosteen, ginger, galangal and lemon grass. Products are either exported fresh or processed / heat-
treated and packed for sale to retail and foodservice markets. Swift works in partnership with local
producer groups on a contract-farming basis, and offers assistance to its growers in converting from
traditional farming practices to GAP and organic farming practices, by providing technical advice and
interest-free financial assistance.
The company first exported to EU (Germany) 2 years ago. The crop was asparagus, destined for a UK
distributor serving the UK retail market. The company’s principal export destinations now include the
United Kingdom, the Middle East, as well as Japan and Australia.
Swift is also actively involved in helping local communities, temples and schools throughout
Thailand. Swift generates a direct income of over 200 million baht (over US$5 million) for the local
community per year. Pilot farms in different universities have been set up by a joint venture between
Swift and the Ministry of Agriculture and Cooperatives to actively promote EUREPGAP farming in
Thailand. The Ministry has recognized Swift as an outstanding company in supporting and
developing farm communities.
Swift currently has certification from BCS, JAS and the Thai Department of Agriculture.
43

8. Urmatt Co Ltd
Products: Jasmine rice

Address: 9th Fl. PB Tower, 30/1000 Sukhumvit 71, Klongtan, Bangkok 10110
Telephone : 02 713 0239 to 42
Fax : 02 713 0243
Email: customerservice@urmatt.com
Certification: Ecocert Germany
Urmatt has been producing and marketing organic jasmine rice for many years. Its organic farm is
located in Chiang Rai, northern Thailand. Currently, Urmatt jasmine rice is sold at local discount
chain-stores in Bangkok and to Carrefour under the ‘Quality Line’ brand, and is also exported
worldwide. Urmatt’s organic rice is certified by Ecocert Germany for EU and US markets. Urmatt
produces its own seed and has in-house processing facilities to guarantee quality.
9. Southeast Asia Organic Co. Ltd

Products: Cassava starch, sugar
Address: 89/170 Moo 3, Chatamard Bldg, Viphavadee-Rangsit, Bangkhen,
Bangkok 10210
Telephone : 02-5512058-60
Fax : 02-5527222
E-mail : marketing@sea-organic.com
Certification: Bioagricert Co Ltd
Established in 2003, Southeast Asia Organic Co. Ltd. (SEA-O) specializes in organic cassava starch
and sugar. SEA-O is active in export markets, and only recently started to market its products
domestically.
The company has a long history with conventional production and trade on tapioca starch, and saw
opportunities arising from organic markets. However, their conventional trading partners were not so
interested in this emerging market, and so the company explored the market themselves by sending a
delegation to the Biofach organic fairs since 2002. By following up with contacts at Biofach, SEA-O
was able to start its exporting in 2004.
Currently, SEA-O exports to EU and US markets. SEA-O has 2 exported organic products (cassava
starch and sugar), and has exported these products to EU since 2004. SEA-O is in the process of
developing several new products for export markets, including tapioca pearl and a sweetener derived
from tapioca starch.
All organic products have EU and US organic certification via Bioagricert, an Italian organic
certification body.
44
Appendix V: Grass-roots organizations
The following is a non-exhaustive list of key non-government groups and cooperatives

involved in developing Thailand’s organic agriculture sector, derived mainly from the Final
Report of the ITC-EU-NIA Technical Assistance Project, Aug 30, 2006).
1. Earth Net (Sai Yai Pan Din) Foundation

Address: 6 Soi Piboonupatam-Wattana Nivej 7, Suthisarn Road, Huay-Kwang,
Bangkok 10310
Telephone: 02 277 9380 - 1
Fax: 02 277 9654
E-mail: info@GreenNetorganic.com
Website: www.GreenNetorganic.com
Organization: Non-government organization
Founded in September, 1993 at the same time as Green Net, and registered as a foundation on
October 12, 2000. Earth Net’s main goals are to promote and support production, management,
marketing, and consumption of organic agricultural products, and healthy and environment-friendly
products. The foundation has a village leader, Wiboon Khemchalerm (leader of sustainable
agriculture) as its president and Rewadee Prasertcharoensook (secretary of the NGO’s coordinating
committee) as its vice-president.
After working on promoting organic agriculture to rice farmers in the Northeast for several years, in
2000 the Earth Net Foundation initiated a project to extend to new crops and to expand its
membership of organic farmers. Working with local NGOs and other agricultural organizations, the
Foundation’s projects encourage and assist farmers to change to organic systems. In 2003 the number
of certified agriculturists was more than 1,000 families, representing 25% of the certified organic
agricultural area in Thailand.
In 2004, the Earth Net Foundation cooperated with 12 producer groups in several provinces. Some
groups were certified, some were in the process of applying for certification, and others had not yet
intended to apply for certification. Members mostly produce jasmine rice and also other products
(fruits and vegetables, baby corn, soybean, pineapple, longan, ‘Tom Yam’ soup herb set, sesame,
herbal medicines, egg, coffee, tiger prawns, silkworm, and textiles.
Table 10. Organic producer groups in the Earth Net Foundation Network
Name of Participating Organization Province Main Crop Organic
Certification
Nature Care Club of Kut Chum Farmer Yasothon Jasmine Rice Certified organic
Organization
Bak Rua Farmer Organization Yasothon Jasmine Rice Certified organic
Leng Nok Ta Farmer Organization Yasothon Jasmine Rice Certified organic
Rice Fund Organic Cooperative Surin Surin Jasmine Rice Certified organic
Isan Mulberry Silk Network Khon Kaen Mulberry green Certified organic
tea and silk
Agriculture Development Cooperative Chiang Mai Soybeans Certified organic
Mae Ta Sustainable Agriculture Chiang Mai Baby corn and Certified organic
Cooperative Longan
Organic Agriculture Group Sanam Chachoengsao Rice Certified organic
Chaikhet
Forest Network of the East Chachoengsao Diverse crops No certification
policy
Organic Agriculture Society, Suphanburi Suphanburi Fruit and Certified organic
vegetables
Dong Bang Herbal Group ( with the Chao Prachinburi Herbs Certified organic
45
Name of Participating Organization Province Main Crop Organic
Certification
Phraya Apaipubej Hospital Foundation)
Organic Agriculture Development Group Prachuab Coconuts Certified organic
Bang Saphan Kirikhan
2. Green Net Cooperative Limited
Products: Jasmine rice, baby corn, fresh vegetables, fruits, herbs

Address: 6 Soi Piboonupatam-Wattana Nivej 7, Suthisarn Road, Bangkok 10310
Telephone: 02 277 9380 - 1
Fax: 02 277 9654
Website: www.greennetorganic.com
Certification: Organic Agriculture Certification Thailand (ACT)
Green Net is a non-government organization, founded in October 1993 as a cooperative by a group

interested in organic agriculture and concerned over pesticide residues in food. Recognizing that
marketing is a major stumbling block in the development of the organic movement, Green Net aims
to raise both production and consumption levels of organic foods through the establishment of direct
producer-consumer links in the market place.
Green Net’s main objective is to promote organic agriculture through developing indigenous
knowledge and participatory technology development. Its activities include seminars, training and
farmer field schools. Currently, the Green Net Organic Agriculture Programme works in 13 provinces
in Thailand.
Green Net’s main goals are as follows:
1. To offer market outlets for farmers practicing organic farming as an additional incentive for
farmers to continue farming organically
2. To mobilize local funds, through organic food sales, to support activities and initiatives of
relevant NGOs
3. To raise consumer awareness in urban areas over the impact of their consumption on the
environment and on the livelihood of small farmers.
Green Net distributes organic agricultural products, environment-friendly fabric goods, and other
natural products of high standard and high quality. Green Net Cooperative embraces a Fair Trade
policy in its domestic and export businesses. The Green Net is certified by the Organic Agriculture
Certification Thailand (ACT) for handling and processing
Today, the cooperative sources from 12 groups of producers in Thailand, and distributes almost 100
different items of organic agricultural and natural products, e.g. vegetables, fruits, jasmine rice,
cereal, dried foods, teas and herbal beverages, naturally dyed local fabrics, and herbal products. It also
provides support to the organic movement and local community businesses.
Green Net’s fair-trade rice export programme started around 1988, and has since grown fast. It
exports local rice products and organic rice to Europe through the fair trade network of the European
Fair Trade Association (EFTA). Today Green Net is among the largest exporters of food products to
the EFTA, and is the official partner of Claro, a Swiss-based fair trade organization, which supplies
rice to other EFTA members.

46
5. Sustainable Agriculture Foundation Thailand
Address: 912 Soi Ngamwongwan 31 (Sub-soi 7), Amphoe Muang, Nonthaburi 11000
Fax: 02 580 2035
Email: sathai@sathai.org
Website: www.sathai.org
The foundation was established in 1998, primarily to lead the implementation of the National Pilot
Project for Small Farmer Sustainable Agriculture Development over the period 1998 -2004. The
project was designed to serve as a prototype for national sustainable agricultural policy development,
and received Baht 600 million in financial support from the government.
The foundation’s objectives are as follows:
1. To support technical and policy research and development related to sustainable agriculture
2. To promote and extend activities related to sustainable agriculture development
3. To enhance the relationship between farmers and consumers
4. To promote networking among organizations involved in sustainable agriculture, including
farmers’ organizations, non-governmental organizations, researchers, and government
agencies, donors and the international community
5. Develop and strengthen institutional capability in sustainable agriculture in Thailand.
Professor Rapee Sakarik is the first and present President.
6. Earth Safe Foundation
Address: 18 Bld, No.45 Assadadhon Rd, Paton Muang Chiang Mai 10310
Telephone: +66-5323-1616
Mobile : +66 81-796-2625
Earth Safe Foundation was originally founded as the Rak-Din Rak-Nam Project to sustain local
communities and help farmers practising alternative agriculture following the principles of sustainable
development. This original project developed into a foundation, which was established by Khun
Sanhajutha Chirathivat. The foundation is involved in many aspects of the organic supply chain,
from production through to international commodity trading and the creation of branded products.
Earth Safe Foundation’s goal is to support organic farmers and increase consumer awareness and
confidence. In order to succeed in its efforts, ESF, in cooperation with Maejo University, established
the following organizational objective:
• Follow the leadership and guidance of Her Majesty Queen Sirikit in terms of protecting the
environment.
• Help local communities learn the principles of self-sustainability, including protecting
watersheds, ensuring social well-being and protecting the local environment
• Promote community participation in efforts to raise awareness of sustainable development.
• Encourage farmers to practice alternative and organic agriculture
• Supply the market demand for organic produce and protect the integrity of genuine organic
farmers
• Deliver a smooth, transparent and well-managed managed supply chain from primary
production to end-use, assuring quality, fairness traceability.
• Encourage eco-tourism as well as organic farming among local communities.
47
5. Bak Ruea Farmer Group Network

Address: 118 Moo 4, Bak Ruea Sub-District, Maha-chanachai District, Yasothon 35180
Organic area: 6,207.25 rai
The Bak Ruea farmer group was established in 1972 by Mr. Thawatchai Tositrakul. In 1996 he
organized a “community development of toxin-free rice project” with funding from the then Ministry
of Science, Technology, and Environment’s Environment Foundation. The project encouraged
farmers to have mixed agricultural production. The group produced and sold its produce (paddy) and
operated a rice mill enterprise, including growing organic jasmine rice. Subsequently, farmers began
to join hands with other farmer groups from other sub-districts of Yasothon. Their shared experiences
in creating and operating a cooperative community business finally resulted in the establishment of
the Bak Ruea Farmers’ Group as a Yasothon farmer group’s network.
Group members started to apply for organic agricultural standards certification for the first time in
2000. Later, when the membership expanded, they established an organic agricultural promotion
project and also arranged an internal control system. The work area covered the Kham-Khuean-Kaew,
Maha-Chanachai, and Khorwang District in Yasothon. Furthermore, this farmer group has a rice mill
of 7-ton production capacity per day, which is certified by the Institute of Organic Agricultural
Standards.
Bak Ruea farmer group’s network is supported by Earth Net Foundation in promoting organic
agricultural systems, and in the development of effective internal control systems. Organic rice from
the project is distributed through Green Net Cooperatives for both domestic sale and export.
6. Rak Thammachart Club

Address: 57 Moo 2, Naso Sub-District, Gudchum District, Yasothon 35140
Organic agricultural area: 5,669.25 rai
In 1990, Mr. Masanobu Fukuoka, a Japanese farmer and author of the book “Revolutionize the Era
with a Piece of Straw,” visited Thailand. He visited the Rak Thammachart Club and gave a speech on
the topic of natural agriculture. Most of Soke Khoom Poon’s village leaders attended the speech, and
were inspired to start a natural farm. In the following years, more and more natural farms sprung up.
At the end of 1990, the Rak Thammachart Club’s rice mill was established. This was considered the
first mill owned by farmers, and aimed to purchase produce that benefitted growers, consumers, and
the environment, and also to prevent exploitation by middlemen. Also, it created employment in the
community by building a second mill in February of the following year. Later, they cooperated with
the Naso farmer group of Gudchum District, Yasothon, which earned the group a supporting budget
from the government for a bay building and a scale purchase.
In 1995, the Rak Thammachart Club’s rice mill arranged activities for organic rice farming promotion
and today, the Rak Thammachart Club’s rice mills process paddy from over 900 community
members, destined for both domestic and overseas markets.

48
7. Surin Farmer Support (SFS)
Address: 88 Moo 7, Baan Thanong, Gae Yai Sub-District, Muang District, Surin
The project was founded in 1989 to educate and strengthen a village organization originally funded by
the Surin Local Development Fund. The project’s working area covers 3 districts in Surin: Muang,
Prasart, and Garb Cherng districts. SFS aims to promote natural agriculture, processing, marketing,
community organization development, and promote the role of women.
The project initiated the Surin Natural Agricultural Group in 1990, with 87 founding members. Its
targets are to promote chemical-free agriculture, to reduce production costs, and to strengthen
community organizations. The group’s products are sold mainly through overseas fairtrade market
channels through Green Net Cooperatives.
In 1998, the project cooperated with Green Net Cooperatives in organizing an organic agricultural
promotion project. It started off with members of the Natural Agricultural Group and steadily grew in
size over the years. Since 2000, the project and the governor of Surin organized a project “Surin’s
way of organic agriculture” which today trains agriculturists and manages an internal control system
which undertakes organic standards inspection.
8. Rice Fund Organic Cooperative, Surin
Products: Jasmine rice, light yellow rice, red jasmine rice, groundnut
Address: 88 Moo 7, Baan Thanong, Gae Yai Sub-District, Muang District,
Surin
Organic agricultural area: 4,422.50 rai
A concern for natural agriculture which underlines the relationship between farmers and the
environment prompted the establishment of the Surin agriculturists’ efficiency promotion project in
1990. The project promotes natural agriculture that reduces use of synthetic chemicals.
In 1992, the Surin Natural Agricultural Group founded a rice foundation in order to manage
marketing. The foundation purchases rice from the members, mills it, then distributes it in domestic
and overseas markets. Initially, there were only 87 family members, but the number increased
steadily. Until 2001, the rice foundation offered agriculturists in other allied organizations within the
sustainable agriculture network of Surin to hold its shares and join as members. Such alliances
include Tha Toom natural agricultural group, the brown rice ladies group of Lamduan District; the
agricultural revival group of Si Khora Poom, and the Nhong Yor community forest group. Today, the
rice foundation has 423 families in its membership, and manages a community business of organic
paddy processing for distribution in both domestic and overseas markets.
49
9. Mae-Tha Sustainable Agricultural Cooperative
Production: Baby corn, vegetables and fruits, spicy soup set, herbal tea
Address: 162 Moo 5, Baan Pa Nod, Tambon Mae Tha, Mae-On Sub-District, Chiang Mai
Organic area: 368.27 rai
Mae Tha community is located around Huay Pong Ga basin in the upper Mae Tha river area which is
close to Mae Ta Krai and Khun Tarn National Parks. The villagers’ way of life centres on agriculture
and collecting wild products. The community’s main cash crop is baby corn, which the people have
been encouraged to grow since 1981. However, agrochemical usage has caused the farmers many
problems, including deteriorating soil conditions, high production costs, health problems, and debt.
The community organization development project has promoted sustainable agriculture in the Mae-
Tha community since 1986. Many agriculturists have turned to farming mixed agriculture. Later, the
farmers jointly founded the Mae-Tha Sustainable Agricultural Cooperatives Limited in 2001. They
also started an organic agricultural project to promote the organic methods to its members.
Members mainly produce local leafy vegetables, for sale in the Mae-Tha community and once a week
at the Im Boon weekend market.
10. Alternative Agricultural Network
Address: 912 Soi Ngamwongwan 31, Ngamwongwan Road, Muang District,

Nonthaburi 11000
Telephone: 0-2591 1195-6
E-mail: annet@ksc.th.com
The Alternative Agricultural Network is a national network of producer organization, NGOs, and
academics from the North, Center, Northeast, and South of Thailand. AAN’s goals are to develop an
alternative agricultural system which is in harmony with the local ecosystem and the community’s
way of life, and to help small-group farmers to achieve economic self-sufficiency.
By 1996, the network had extended its role to the policy arena. The network participated in planning
the Eighth National Economic and Social Development Plan and identified sustainable agriculture as
the agricultural system to be implemented and supported by government. It also played an active role
in encouraging the Ministry of Agriculture and Cooperatives to adjust its plan to comply with the
Eighth National Economic and Social Development Plan and to allocate a budget to develop
sustainable agriculture for small groups of agriculturists. This sustainable agriculture pilot project is
administered by the villagers’ organization to create a model agricultural system that is suitable for
the local ecosystem.
11. Institute of Sustainable Agricultural Community, Community’s Potential

Development Foundation
Address: 363 Moo 4, Chiang Mai-Mae Jo Rd, Nhong Jom, Sun Sai District,
Chiang Mai 50210
Telephone: 053 354053-4
Fax: 053 354053-4
Founded in 1993, the Foundation’s goal is to initiate development and extension of sustainable
agriculture, and to research and develop sustainable agricultural technologies and policies. The
Institute also provides training to farmers and farmer groups, and supports many groups of farmers in
Chiang Mai to change to sustainable agriculture methods and systems.
50
12. Lemon Farm Cooperative
Address: 210 Sukhumvit 64, Phrakanong, Bangkok 10260

Telephone: 02 335-4999
Fax: 02 335-4009
Email: prd_pr@bangchak.co.th
Website: www.lemonfarm.com
The Lemon Farm Cooperative was set up in 1999 to provide marketing outlets for selected products
from rural communities. Using the Lemon Green mini-mart type of supermarket attached to petrol
stations owned by Bangchak Petroleum Plc as a model, several mini-marts were established. The
programme was successful, and Lemon Farm shops are now established at over 120 Bangchak petrol
stations nationwide. The shops sell natural agricultural products from rural community organizations,
providing health benefits to consumers as well as the producers themeselves. The subsequent
establishment of Lemon Farm Pattana Cooperatives, Ltd provided a mechanism for Thais to help each
other establish enterprises and provide benefits to society.
Lemon Farm Coops are also engaged in several social welfare activities, including the provision of
training and promotion of naturally produced or chemical/toxic-free vegetables, fragrant rice, cane
sugar, pork, fish, and other products.
Since its inception, the Lemon Farm Coops now has 23,000 members/shareholders distributed all
over the country. Its Lemon Farm mini-marts serve as direct market outlets for products from some
4,000 families from 300 rural communities in 50 provinces.
13. Santi Asoke
Santi Asoke is a splinter Buddhist Theravada sect set up in 1975. It is socially engaged, and focuses
on self-sufficiency through organic gardening and agriculture as well as recycling. Santi Asoke has 5
main centres for agricultural production, each ranging from 50 to 100 rai in size. The centres are
based in Sisaket, Nakhon Ratchasima, Nakhon Pathom, Nakhon Sawan and Ubon Ratchathani
provinces. The produce from these centres allows Santi Asoke to be completely self-sufficient in
vegetables and rice. The surplus is sold through small shops near their rural centres as well as in
vegetarian restaurants around the country.
Although Santi Asoke grows organic farm produce for sale in their own vegetarian restaurants and
shops (the income from these activities is used to fund Santi Asoke's charitable and spiritual
activities), the farmers of Santi Asoke are primarily concerned with practicing a form of agriculture
which is in harmony with their belief in Buddhist and Santi Asoke philosophy i.e. no killing, no
industrial inputs and working to enhance and protect the farmงs natural ecosystem. Given that
practicing a farming system in line with Buddhist beliefs is their main goal this system can be said to
have a low degree of market orientation.
Santi Asoke’s produce does not fall under any organic certification scheme.
51

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Organic Agri-business:

A Status Quo Report for Thailand 2007

GTZ Programme for Enterprise Competitiveness

Sustainable Agriculture Foundation (Thailand)

Thai-German Programme for GreenNet Cooperative Sustainable Agriculture Foundation

Figure 1. Organic export supply chain ..................................................................................22

Table 1. Landmarks in Thailand's organic development.........................................................7

1 US dollar = 35 Baht = 0.68 Euro

6.25 rai = 1 hectare

National Bureau of Agricultural Hazard Analysis and Critical Control

Organic Agriculture Certification International Federation of Organic

German Federal Ministry for Economic

International Organic Accreditation

Department of Export Promotion,

Department for Livestock

DOA Department of Agriculture MOAC Ministry of Agriculture and Cooperatives

DOAE Department of Agricultural Extension NOSO Northern Organic Standard Organization

Programme for Enterprise

EU European Union SAF Sustainable Agriculture Foundation

Food & Agriculture Organization of Thailand Institute of Technological and

GAP Good Agricultural Practice TOTA Thai Organic Traders’ Association

GMO Genetically modified organisms WHO World Health Organization

GMP Good Manufacturing Practice

1.1. Background to this review

1.2. Organic agriculture definitions

The International Federation of Organic Agriculture Movements (IFOAM) has defined

Implementation of organic agriculture initiatives worldwide often reflect a number of

1.3. Background to organic agriculture in Thailand

The convergence of these trends contributed to the pace of development of organic

Table 1. Landmarks in Thailand's organic development

Year Key events

1999  Thailand Institute of Technological and Scientific Research (TISTR) / Department of

1.4. Policy context

A budget of 60 million baht was allocated to support the development of 40 successful

There are two main categories of organic producers in Thailand.

Market-oriented organic agriculture. Produce is clearly identified through certification

Subsistence-oriented organic agriculture. Many small farmers, convinced that

Insert picture 1 here Insert picture 2 here

Year Rice Field crops Vegetables Fruit Other TOTAL

Source: GreenNet (pers.comm., 2007)

Table 3. Organic land area: Thailand’s ranking

Production area (ha) 71 12

Organic area as % of total

Source: GreenNet 2006

2.3. Production costs

Livestock is also an important source of high-nutrient biomass for organic fertilizer

2.5. Organic seed

At present, despite attempts by some Thai agro-businesses to produce organic seed on a

Progress has been made in improving post-harvest technologies, to minimize post-harvest

3.2. Role of government

Moreover, the level of understanding of the principles of organic agriculture among

The MOAC is organized by function and commodity. Since there is no integrated

3.3. Role of private sector and NGOs

However, no specific organic producer organization exists at national level. Small-scale

Table 5. Overview of organic agriculture policies and programmes

4.2. National Standard for Organic Agriculture

Part 1: Production, Processing, Labelling and

Part 2: Organic Livestock TACFS 9000-2005

Part 3: Organic Fisheries Code number not available.

Agency % of land certified

DOA (Organic Crops Institute) 13%

Northern NGOs 0.3%

Foreign certification bodies 50%

Source: Green Net / Earth Net Foundation (2005)

1999 Thailand Institute of Technological and Scientific Research (TISTR) / Department of