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Importance Of Contract Farming In Thailand

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Contract farming in Thailand

Thai farmers have long been called the “backbone” of the nation which implies that agriculture is one of the most important sectors of the economy.( fftc.agnet) The majority of people are working in the agricultural sector making farming the main source of food and income for Thais. Because of its importance, it is believed that the government of Thailand should take care of the agriculture sector to increase the welfare of the majority and maintain the nation prosperous. However, there are intense problems in the agricultural sector in Thailand overlooked by the policy makers. This essay argues that the failure in the agricultural sector has become a serious problem in Thailand and will cause heavy damage to the country.

Since the World War II, liberalism in the agricultural sector in Asia has caused countries in the region to improve their efficiency and intensify the production. (www.fao.org) Following the trend, the Thai government also promoted “Green Revolution”, which means to create agricultural intensification by using machinery, chemicals and the high-yield monoculture [1]. 4(ibid). Contract farming are strongly advocated so that farmers could get technology transfer and high-quality factors of production [2].(ibid) After that, during the implementation of Thailand’s Sixth Economic Social Development Plan(1986-1991), contract farming was extremely successful. (T04)

Contract farming, however, has caused lots problems in Thailand.

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