Thai agricultural sector grows above expectations in Q2/22

The Office of Agricultural Economics (NESDB) published an analysis of the agricultural economy in the second quarter of 2022, which expanded by 5.7% compared to the same period last year. In the first quarter, the agricultural economy still grew 4.1% due to more favorable weather conditions. In addition, prices for many agricultural products are at a good level, which encourages farmers to expand their cultivation.

Other factors include the implementation of strategies and measures to improve production efficiency. These include quality controls to meet market demand by expanding marketing channels, including promoting the use of biofertilizers and organic fertilizers, as well as the proper use of chemical fertilizers to reduce the burden of higher production costs and allow farmers to maintain continuous production.

The agricultural economy is expected to grow by 2.4-3.4% year-on-year in 2022, with all production sectors tending to grow due to continued rainfall. The amount of water in reservoirs and natural waters is higher than last year.

In addition, activities in the industrial, trade, tourism and transport sectors have become more flexible following the relaxation of Covid-19 measures, resulting in increased demand for agricultural products and commodities both domestically and internationally.

However, there are still risk factors. These include the rainy season in some areas, higher production costs due to the rising trend of production factors, including oil prices, and central bank policies that are causing economic problems for many countries and may lead to a slowdown in the global economy.

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