Revolutionizing Agriculture: AgTech, DePIN, and the Future of Farming in Thailand
KEY TAKEAWAYS
The most recent phase, referred to as Agricultural 4.0, was initiated in 2016 as part of the government's Thailand 4.0 policy. This era empowered farmers to adopt new Agricultural Technology (AgTech)
The utilization of cutting-edge technology in supply chain operations has the potential to alleviate the challenges of labor shortage and production inefficiency
The seven innovative agriculture trends in Thailand encompass agricultural biotechnology, digital agriculture, modern farming practices, automated systems in agricultural machinery and robotics, agricultural business services, postharvest handling, and transportation, as well as biorefinery businesses, and agricultural product processing through biotechnology.
Agricultural technology, commonly known as AgTech, has been experiencing significant growth in recent times, transforming the global agricultural sector. With its rich agricultural legacy, Thailand has also embraced this worldwide movement. This article explores the AgTech trends and delves into a concept named DePIN, which has attracted considerable attention within the agricultural sector over the past few years.
The Overall Of Thailand’s Agricultural Sector
The Thai economy has been greatly influenced by the pivotal role of the agricultural sector. The development of Thailand's agricultural industry can be categorized into four successive stages:
In the initial phase, often referred to as Agricultural 1.0, prior to 1986, traditional farming practices were prevalent. Farmers worked with limited knowledge and unsuitable techniques when cultivating their crops.
During the second phase, denoted as Agricultural 2.0, spanning from 1986 to 1999, farmers acquired agricultural knowledge, notably in the use of chemical products. Nonetheless, the farming methods remained largely unchanged, following traditional patterns. Farmers applied these techniques to boost their yields, which in turn led to an increased demand for labor in the sector.
The third phase, denoted as Agricultural 3.0, covered the years 2000 to 2016 and represented a pivotal period of change in terms of the quality of agricultural products. During this time, consumers and producers started to recognize the repercussions of employing highly chemical-based techniques. Consumers began to face severe health issues, such as cancer, while producers, especially farmers, experienced the loss of their core assets due to the use of chemical products. Consequently, in this era, the Thai government initiated research efforts and introduced new, quality-oriented rice varieties (Poapongsakorn, 2017). Moreover, this period also witnessed the initiation of labor shortages, brought about by a workforce shift from the agricultural industry to other sectors.
The most recent phase, referred to as Agricultural 4.0, was initiated in 2016 as part of the government's Thailand 4.0 policy. This era empowered farmers to adopt new Agricultural Technology (AgTech), including tools like agricultural drones, smart technology devices, and IoT technology in the agricultural sector. AgTech has the potential to address several historical agricultural challenges. For instance, it can help alleviate labor shortages by employing agricultural drones, while smart farming systems enable farmers to efficiently plan their crop schedules and, as a result, manage their resources more effectively than in the past.
Challenges in Thailand's Smart Agriculture
Findings from a 2020 research conducted by the FFTC Agricultural Policy Platform (FFTC-AP) regarding the adoption of smart farming in Thailand indicated several obstacles to its development. These included the aging farmer population, shortages in labor, limited access to appropriate smart technology resources, insufficient financial resources, and inadequate implementation of national smart technology policies, among other factors.
The primary challenge is the shortage of labor, which significantly exacerbates the consequences for Thai agriculture due to its heavy reliance on labor. The elderly population constituted 19.22% of the total population in 2020 and is projected to rise to 27.02% of the total population by 2030, making it the second-highest in the ASEAN region (Populationpyramid, 2020). In addition to the growing proportion of the elderly population, the agricultural sector's share of the labor force has been steadily declining over the past decade, now representing only 20.44% of the total workforce.
The second primary concern revolves around the absence of effective production planning and management, which serves as the root cause of two other critical issues: increased production costs and diminished productivity in farming activities. This challenge can be illustrated through the concept of agricultural Total Factor Productivity (TFP), as cited by the International Food Policy Research Institute (IFPRI) in Harvard Dataverse (2019). TFP is a measure that captures the unexplained growth in the overall output of an industry or national economy, not accounted for by conventional inputs like labor. Thailand, among ASEAN countries, exhibited a notably high level of agricultural TFP during the years 2011-2015.
Nevertheless, the utilization of cutting-edge technology in supply chain operations has the potential to alleviate these challenges.
Seven Upcoming Innovative Agriculture Trends For Thailand
With the ambition to position itself as a global food supplier, Thailand is actively fostering innovation in its agricultural sector. These efforts are directed towards enhancing farming practices to boost the productivity and value of agricultural products, while also aiding farmers in the shift towards smart agriculture. Agriculture accounts for approximately 30% of the workforce in Thailand and stands as one of the nation's vital economic sectors. Thailand's dynamic agriculture industry, a significant contributor to its economy, is gradually embracing and adjusting to emerging technological trends.
The National Innovation Agency (Public Organization), through the Agro Business Creative Center, known as the ABC Center, has recently unveiled seven emerging innovative agricultural trends specifically tailored for Thailand.
These trends cover the entire spectrum of production, from farms to consumers, with the objective of assisting farmers in integrating traditional knowledge with cutting-edge technology and innovation. They also aim to establish novel business models and create new career opportunities in the agricultural sector. The seven trends encompass agricultural biotechnology, digital agriculture, modern farming practices, automated systems in agricultural machinery and robotics, agricultural business services, postharvest handling, and transportation, as well as biorefinery businesses, and agricultural product processing through biotechnology.
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The Role of DePIN in the Agriculture Sector
DePIN serves as the underlying infrastructure that supports and enhances AgTech solutions, making them more effective, efficient, and reliable. It forms the backbone for various AgTech applications, contributing to the modernization and optimization of the agriculture industry. DePIN can offer benefits to the agriculture sector in several ways:
Infrastructure Management: DePIN can be used to manage and monitor critical agricultural infrastructure such as irrigation systems, weather stations, storage facilities, and transportation networks. This enables more efficient and data-driven agricultural practices.
Supply Chain Traceability: DePIN can provide transparent and immutable records of the entire supply chain, from farm to table. This traceability enhances food safety, quality control, and consumer trust.
Resource Efficiency: DePIN can help in optimizing resource utilization, such as water and energy, in agriculture. By integrating IoT sensors and smart devices, it becomes possible to monitor and control resource usage more effectively.
Smart Farming: DePIN can support precision agriculture, where data from various sensors and devices are used to make real-time decisions on crop management, pest control, and more.