Agriculture and Agricultural Products

Extensively used to optimize mass production of crops for food and industrial use, fertilizer production plays important role in facilitating Thailand’s role as one of the top agricultural exporters in the world. The three primary types of fertilizers produced are straight, mixed, and compound fertilizers, though there are various subcategories within each type.

Thailand’s fertilizer industry primarily relies on imports, with most of the raw materials used for production being brought in from abroad. The finished goods are then distributed within Thailand and abroad, particularly to neighboring countries such as Cambodia, Laos, and Myanmar. A few notable examples of fertilizer producers in Thailand include TCCC, Payanakagro, and Ajinomoto.

Conditions

• Producers of biological, organic, and nano-coated chemical fertilizers are required to register for a manufacturing and trading license from the Department of Agriculture.
• Those producing bio-pesticides must acquire a certificate from the Department of Agriculture permitting their production.
• Applicants involved in these projects and business category must use innovative techniques that are academically supported.

Breeding livestock and plants play a key role in Thailand’s agricultural industry, contributing to a number of commodities such as food, fiber, and manual labor. These products are often sought after as lucrative investments in R&D given its contribution towards greater quality products and better yields.

A few notable companies in Thailand that deal with animal and plant breeding include CP, Betagro, and Some of these products include crops that are resilient to climatic and environment changes as well as livestock that are healthier meat products.

Conditions

• Applicants participating in this business category must conduct significant R&D activities.
• Those involved with the breeding of sensitive or endangered plants must have Thai nationals holding a minimum of 51% of the registered capital as required by the Ministry of Agriculture and Cooperatives.
• THB 1.5 million must be allocated annually for R&D personnel’s salaries.
• Projects that are domiciled in a science and technology park will be eligible for an additional 50% corporate income tax reduction for 5 years following the end of its corporate tax exemption period.
• Revenue derived from these activities, other the breeding of cassava, will be regarded as generated revenue.

The allocation of forests producing plants for the development of industrial materials such as pulp, rubber, and wood also plays an important role not only in supporting several different industries in Thailand. As demand for these materials increase, the importance of sustainable forest plantations has become more prominent and is therefore promoted by the Thai government through the BOI. Some of the most prominent companies in the space include Double-A, Thai Rubber Latex Corporation, and Oji Paper Group.

Conditions

• Projects must be engaged in research and development activities
• Projects must be approved by the Ministry of Natural Resources and Environment
• Plantation areas in close proximity should be no less than 300 rai of which 50 rai should be adjacent

Animal husbandry in Thailand takes various forms, including the breeding and raising of cattle as well as the cultivation of aquaculture. These activities are likewise promoted by the Thai government through incentives given by the BOI. Corporations involved in these activities include CP Foods Group, Thai Foods Group, and Thai Union Group. The conditions mandated by the BOI will depend on the type of activities projects are engaged in. For this particular category, conditions vary between projects that are involved in breeding of livestock and aquatic animals, and livestock husbandry or aquaculture.

Conditions

• (Breeding of livestock and aquatic animals):
  • New and innovative technology must be used
  • A traceability system must be enforced
  • Hatching eggs without breeder raising processes will not be eligible for BOI promotion
• (Livestock husbandry or aquaculture):
• • A breeding process must be enforced

  • Innovative technology must be used

  • Projects must enforce a traceability system

Thailand is among the world’s leading supplier of seafood products, exporting to places such as Japan, the United States, China, and the European Union. Companies such as Thai Union Group have taken strides in becoming a major player in the global seafood industry by not only supplying raw materials, but also exporting finished goods to several markets. Because the Gulf of Thailand is comparatively unaffected by seasonal monsoons, it has become an ideal area among seafood suppliers for deep sea fishery. The Thai government incentivizes this activity by providing privileges to qualified applicants.

Conditions

• Net boats used for fishing must be no less than 500 gross tons
• Long line boats used for fishing must be at least 150 gross tons
• All boats must be equipped with navigation equipment, fish finders, and tracking units

While the agricultural packaging market is comparatively small relative to the industrial packaging market, projects and ventures seeking to enter the space see significant opportunities in Thailand given its large agricultural output for both international and domestic consumption. Activities in this sector include the production of bags, bottles/cans, drums, tubes, and boxes that are used to store goods with varying degrees of fragility and storage requirements. As an integral part of Thailand’s agricultural sector, the Thai government has given provisions to incentivize projects and activities venturing into this sector.

Conditions

• Innovative and modern technology must be used. This can include new materials used to optimize the freshness of produce and increase the longevity of goods, among others.
• Other technologies that can be used to fulfill this need include color sorting, vapor heat treatment, and ways of killing fruit fly eggs.

The production of oil or fat derived from animals or plants are used for both industrial and consumption purposes. Many products from Thailand include oil derived from coconuts, soybeans, cattle, and sunflower seeds. There are also various techniques used for extracting these products, namely code pressing, solvent extraction, and dry pressure extraction, among many others. The Thai government has given provisions to incentivize projects venturing into this sector.

Conditions

• The production of crude or semi-refined oil derived from plants must begin with agricultural produce.
• The production of refined oil derived from plants must begin with agricultural produce.

The Thai leather industry has grown significantly over the last few decades and has developed into a notable player in the global leather market as the 6th largest exporter in the world. Thailand is a key producer of buffalo hides and is a major exporter of dog chews, industrial gloves, leather bags, and golf gloves. It has also attracted a number of shoe manufacturers. The country’s leather industry currently hosts 2,750 enterprises that employ more than 300,000 workers. The Thai government has therefore developed incentives to attract more players in the market. 

Conditions

• Projects in this field should make sure of technology that would be beneficial to the environment.
• Tanneries must be located within industrial estates or zones.

*Does not include water, ice cream, candy, chocolate, gum, or any other finished food product. Food preservation consists of preventing the growth of fungi, bacteria, and other micro-organisms as well as the mitigation of fat oxidation to extend the shelf life of foodstuff and reduce possible hazards that may arise from consuming them. This can take the form of both physical and chemical processes, namely drying, refrigerating, freezing, or vacuum packing food. As an economy that dominates the global supply of frozen shrimp and other agricultural ingredients, Thailand’s food preservation sector plays a pivotal role in enabling the export of top-quality products that are sought after by stakeholders around the world. Therefore, the Thai government has given incentives to projects in this field through the BOI.

Conditions

• Processes that are limited to mixing and diluting will not be eligible for BOI promotion. Those that carry out fermentation must use starter cultures that have been supported or endorsed by scientific research.

As global demand for healthy food products increases, corporations are becoming increasingly focused on producing vitamins, supplements, and other medical food. In Thailand alone, dietary supplements have accounted for US$ 1.6 billion in 2016, complementing both the country’s agricultural and health sectors. Products manufactured by companies and projects in this field include dietary supplements, meal replacement drinks, tube feeds, and specialized dietary food for medical disorders. In order to incentivize projects and companies in this field, the Thai government has allocated a number of benefits through the BOI.

Conditions

• Medical food products, which must adhere to international standards, should be registered with the Food & Drug Administration as well as other relevant agencies.
• Food supplements must be registered with the Food & Drug Administration as well as other relevant agencies. There should also be an active ingredient extraction process.

Providing modern agricultural products or services involves several evolving innovations in farming and the production of goods intended for the end-user as well as different stakeholders. This can include coming up with new irrigation methods, technologies used for harvesting, or even new products based on agricultural produce such as biofuel and fibers. Given the proliferation, use, and commodification of data, projects engaging in providing services in this realm also fall within this category as a new agricultural service. Given the agriculture sector’s pivotal role in Thailand’s economy, the Thai government has incentivized projects and ventures partaking in these activities with privileges provided by the BOI. Activities in this sector are wide, but significant emphasis is placed in modern practices that will elevate the agricultural sector.

Conditions

• Systems and software must be available for resource management that is implemented and capable of collecting and analyzing data.