Chatrudee Theparat
Pidthong Langphra Foundation and partners launch contract farming program for maize growing.
Pidthong Langphra Foundation, state agencies and the private sector have joined together to launch a contract farming program to help farmers to grow maize.
Pidthong Langphra Foundation, which is under the Royal Initiative Discovery Foundation, has worked together with state agencies and private companies to launch a contract farming agreement with farmers to help reduce risk to grow maize and preserve environment at the same time.
Mr.Grisada Boonrach, Chairman of Royal Initiative Discovery Institute
Grisada Boonrach, Chairman of Royal Initiative Discovery Institute, said Thailand is facing maize shortage, caused by the Russia-Ukraine war. Clearly, the two countries are major suppliers of the global maize market, leading to push up the price of livestock feed.
Thailand needs to import maize for animal feed because the country can produce maize only four million tons per year, but its annual demand is at least eight million.
He said the foundation has initiated the project this year to promote maize growing after rice crop as an alternative earning for farmers. Water supply for maize growing is two times less than rice growing. This helps farmers save water during dry season.
The foundation led by Mr Grisada visited Kalsin, Khon Kaen, and Udon Thani between this November 15 and 16 to promote to plant maize. He said the foundation is in cooperation with both state agencies in central and local areas and Charoen Pokphand Produce Co as the first private company to join the project.
Under the project, it requires companies to provide budget to farmers without charging interest, which will be spent on seed, fertilizer and pesticide.
“Before growing, the company, officials from each district and the foundation will inspect a quality of soil and water, as well as giving advice on growing and right method for harvesting. For its private part, the company guarantees to purchase maize with the benchmark price of 8.50 baht per kilogram with moisture not exceeding than 27%. If the market price is less than 8.50 baht per kg, the company will purchase at 8.50 baht per kg following the company’s agreement.
The company will directly purchase maize at the farms if farmers can combine the plantation of more than 100 rai, it is better to help save transportation cost from selling in other provinces or avoiding unfair price from the middle man.
“In case of natural disasters, the foundation, the corporations and agencies will be required to inspect the damage. If farmers follow the plantation guidance following the agreement, they will not bear financial burden in investment, loaned by creditors.
He said among the major conditions in the project participation, they are required to show their land document right or document guaranteed by the authority related on the Land Department to make sure that they do not invade the public land or preservation forest. For environmental reasons, they are prohibited to burn their farmland, especially after harvesting.
Currently, there are 2,296 farmers from three provinces to participate in the project and expected at least 2,000 families to join. The start of growing season is planned this November or December. Maize crop takes four months or 120 days to grow and that means its harvest period will be in April 2023.
“Without disasters, farmers are expected to get profit about 3,500-4,000 baht per rai, higher than 800-1,000 baht per rai from growing rice.”
Mr Grisada said if it is successful, the foundation will expand the project to other provinces in May as rainy season or June 2023 with other crops. The foundation will carry out a study on demand and price first in order to look for appropriate crops to grow in each area such as bean, banana, coffee, vegetables, and coconut.
25 November 2022
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