Market Trends of Thailand Crop Protection Chemicals Industry
An Increase in Cash Crops with a Higher Application Rate
Cash crops, such as rubber, coffee, and sugarcane, are primarily grown on large holdings in Thailand owned by agribusinesses that have emerged in recent years. Thailand is the world's largest producer and exporter of natural rubber, accounting for roughly one-third of the world's production. As farmers have gradually switched from low-value-added to high-value-added crop production, the overall consumption of crop protection chemicals has naturally increased. To raise yield, farmers have intensified insecticides and pesticide use in the production of all crops.
Rubber production in Thailand has received more attention from growers than other cash crops. According to the Department of Agriculture Thailand, production has been increasing gradually in the past few years, and the total production totaled 1.25 million metric tons in 2021, with a rise of 11% compared to 2020. Outputs have tended to climb due to increased crop area, improved climatic conditions, and the motivating effect of high prices on growers. The Rubber Authority of Thailand estimated higher exports in 2022 due to rising international demand for rubber from Thailand, with China being the key market.
More cash crops, a reduction in the prices of agrochemicals, awareness about increasing crop yield by mitigating risks posed by pests and diseases, and the government's promotion of agrochemical use are some of the factors that relate to this rapid rise in the use of herbicides, pesticides and insecticides application in Thailand. Further, the volume of agrochemicals imported into Thailand has increased remarkably, owing to higher demand and application.
Increasing Production and Exports of Fruits and Vegetables
The Thai horticultural sector plays a very crucial role in the herbicide, insecticide, and fungicide markets.
Fresh and processed tropical fruits are important contributors to the booming Thai agriculture sector, complementing the crop protection industry. Thai farmers currently cultivate 57 different types of tropical fruits on around 1.2 million hectares of land. Thailand also produced approximately 11 million metric tons of tropical fruits. Thailand's tropical fruit business is well-known due to variables such as geography and tropical environment. Thailand's topography conditions vary by location, allowing for the development of a wide range of tropical fruits. The tropical fruit business in Thailand has expanded, as seen by the rising output index in recent months due to the increasing use of agrochemicals for steady production. Durian, young coconut, longan, and pomelo are Thailand's most valuable exported fruits, complemented by the consumption of crop protection chemicals. According to ITC Trademap Statistics, the value of durian exports from Thailand rose by more than 500% in 2021 compared to 2017.
A research study undertaken by the Biodiversity Sustainable Agriculture Food Sovereignty Action Thailand (Biothai) found that the highest levels of pesticide residues were present in fruits and vegetables. Also, around 62.0% of such fruits and vegetables included more than one pesticide as residue. However, the intensity of pesticide use in Thailand is still lower than that of Vietnam but also higher than in Laos and Cambodia. The application of pesticides in fruits and vegetables has been the highest over the past several years, and this trend is likely to continue.
