Shaping the future of smallholder farmers in Thailand

AFC is supporting the Department of Agricultural Extension to develop an extension concept and to unlock the potential of smallholder farmers groups.

Thailand’s agriculture is mostly driven by small-scale farmers individually cultivating crops. Since 2016, the government encourages farmers to establish cluster farms (see box next page), which consist of a group of more than 30 farmers cultivating the same main crop. To take the cluster farm approach to the next level, AFC developed a specific extension concept together with the Thai Department of Agricultural Extension (DOAE). Upgrading of the cluster farm management and cooperation of the members towards an agribusiness, introducing SMARTfarming technology as well as improving agricultural practices are the three pillars of the concept. In addition, common marketing and optimised logistics and higher bargaining power shall stimulate higher revenues.

Together with different divisions of the DOAE, AFC accompanies several pilot cluster farms using participatory methods to develop their own specific short and mid-term strategy and a related action plan as basis for further support and training on business-oriented management. The project team initiated a cooperation between the German Association of Machinery Rings with the DOAE in order to modernise the mechanisation through machine sharing. At the Agritechnica Asia and Horti Asia Regional Summit, AFC together with the DOAE and DLG-Thai invited for a “Cluster Farm Future Conference”. It was the first event of its kind in Thailand. Governmental actors, cluster farmers, as well as local and international experts exchanged about the needs for sustainable development. New approaches for management, internal cooperation and agricultural production were presented and discussed. The conference took place as a hybrid event with 100 participants joining on site and 169 online.

In 2022, AFC will follow up with the cluster farms on managing their strategic action plans. This will be accompanied by group counselling for the cluster-farm managers, meetings with the supply-chain stakeholders and setting-up of clusterfarm networks. A machine-sharing network and a digital farm management application will be established for the pilots to better organise the cluster and provide a platform for exchange between cluster farmers all over Thailand. Furthermore, test plots for agricultural trials will be set up integrating the concerned divisions of the DOAE at national level and the stakeholders at local level.

Organisation and concept of Cluster Farms in Thailand

In Thai language, the Cluster Farms are named “large plots”, describing the intention of the initiators of the approach of combining adjacent small plots from different holders to larger plots. The cluster farms produce a common main crop using modern technology and thus reducing production costs while increasing productivity and income of the members.

In the beginning, government extension officers support the management of the cluster farms. After two years, the members take over the management and elect a manager and a board. The success of the group depends on the formulation of a common goal of the members, a tangible benefit for each of them and the leadership of the manager ensuring an evenly distribution of the latter.

The registration and requirements had been kept simple to encourage cooperation at a lower entry level as cooperatives demand. To participate at the 2020/ 2021 Governmental enhancement project, a registration as a juristic person had been mandatory to receive the related subsidies. Until the end of 2021, 8,188 cluster farms were registered. The new organisational form is for many farmers uncharted territory and a challenge to their organisational capabilities for the moment.

1.

Problem identification

5.

Evaluation Cluster farm

Management Planning/Implementation

4. Implementation

Members

2.

Needs assessment

3.

Solution modelling

For further information, please contact:

Karsten Ziebell Team Leader karsten.ziebell@afci.de