Diversification and value creation of agriculture in Thailand sugarcane: a case study 3ES

Thailand is a major exporter of agricultural commodities like rice and sugar. Thailand's agriculture-based economy with an area of 21 million hectares contributing to the GDP and generating employment to majority of the population (approx. 5.8 million households; OAE 2006). Through government policies and investment in research and development there has been a major emphasis on the increased productivity and value creation in major crops in Thailand. Though increased use of farm chemicals are consequences for increased agricultural growth, steps to move towards use of biocontrol agents. IPM [integrated pest management] and mechanization to reduce the use of chemicals have made the agriculture sustainable and environment friendly. The depletion of fossil fuel and rising cost of imported fuel necessitated the utilization of alternative sources of energy with agricultural-based bio-energy as the ideal choice. Thailand has been the major player in this sector. Though the controversy of food crops against the energy crops came into light, sugarcane, cassava and oil palm and sugar industry is a fore runner in meeting the demands of the 3Es economy, environment and energy. Sugarcane and sugar industry has been a great growth through a number factors viz, technological advances and diversification in situ. Thai sugar industry (46 sugar mills) with core business is sugar, where capacity expansion to high productions, improvement in cane area and cane productivity was brought about by initiation of research and development for 'sustenance' and 'development'. Diversification of core business of sugar into various by products has paid dividends to the Thai economy. With major players like Mitr Phol group where the diversification has been into particle boards(utilization of fiber, bagasse) which can replace wood for furniture, cogeneration (the use of bagasse or fiber to generate electricity) supplying electricity to the government, and ethanol (using molasses through fermentation). The ethanol is the green energy for a clean world. The environment impacts are clearly seen in the particle board and ethanol plants by reducing felling of trees and reduced carbon dioxide and greenhouse gases. The future contribution of sugarcane to the economy of the country is envisaged through value creation by diversification into functional foods and nutritional food. In a nut shell, sugarcane plays an important role in Thailand agriculture in sustenance and development of the economy through sugar and bio-energy in a safer environment.