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The Role of Mineral Fertilizers in Transforming Agriculture in

ThailandWannarut Chutibut

Department of Agricultural

Thailand

September 25-27, 2013ReSAKSS Asia- Cambodia

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Location

Source : http://maps.google.co.th

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Economy and Population

2008 2009 2010 2011

Population(M persons)1 63.39 63.53 63.88 64.08

GDP real growth rate (%) 2 2.5 -2.3 7.8 0.1

Share of agriculture in total employment (%)3 45.56 45.05 44.83p 45.23e

Source : 1Department of Provincial Administration 2The Fiscal Policy Office 3Office of Agricultural Economics (OAE)

Remark : p = preliminary e = estimate

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Trends of chemical fertilizer use in Thailand 1970 – 2010

September 25-27, 2013ReSAKSS Asia- Cambodia

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Total fertilizer ('000 Mt) Total nutrient ('000 Mt)

Source: 1.Office of Agricultural Economics (OAE) 2. Chatakom, 2003

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History of Rice Production, Area Harvested and Fertilizer Consumption

- 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00

Rice production (0'000 t) Fertilizer consumption ('000 Mt)Linear (Fertilizer consumption ('000 Mt)) Area harvested (0'000 ha.)

Source: Office of Agricultural Economics (OAE)

September 25-27, 2013ReSAKSS Asia- Cambodia

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Fertilizer used by crop in 2010

Share of crops in fertilizer used

Fertilizer use ratio (kg/ha)

Rice46%

Maize6%

Cassava3%

Sugar cane7%

Para Rubber23%

Oil Palm8%

Others7%

Rice

Maize

Cassava

Sugarcane

Para Rubber

Oil Palm

221

297

167

36

713

829

fertilizer use (kg/ha)

Source: Office of Agricultural Economics (OAE)

September 25-27, 2013ReSAKSS Asia- Cambodia

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Case Study

Department of Rice conducted experiment to compare the rice yields between several methods of fertilizer input on the field in Phisanulok Province and used Phisanulok2 varieties.

In conclusion, the recommended method, input fertilizer follow soil test data, by using fertilizer rate 6-2-5 (N-P2O5-K2O) reduced the costs about 31% and increased yields about 2.8% when compared with the farmer method by applying fertilizer rate 16.25-0-1.25 (N-P2O5-K2O).

September 25-27, 2013ReSAKSS Asia- Cambodia

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Ratios of paddy price/fertilizer price

2537/38 2540/41 2543/44 2546/47 2551/520

2

4

6

8

10

12

14

16Ratio of rice price/fertilizer ...

September 25-27, 2013ReSAKSS Asia- Cambodia

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Key Factors Affecting Fertilizer Use

OAE Case Study : year 1967-1990

Major rice : Rice prices encouraged fertilizer use by 1.09 %

Second rice : Harvested areas encouraged fertilizer use by 1.07 %

Upland field crop : Harvested area encouraged fertilizer use by 3.24 %

Fruit tree and perennial crop : Harvested area encouraged fertilizer use by 15.64 % and fertilizer prices decreased fertilizer use by 1.60 %

Vegetable and ornamental plant : Fertilizer prices decreased fertilizer use by 1.26 %

Harvested area

Fertilizer price Product priceOAE Case Study : year 1984 -2006 Harvested areas:

encouraged fertilizer use by16.41 %

Fertilizer prices: decreased fertilizer use by 1.05 %

September 25-27, 2013ReSAKSS Asia- Cambodia

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Share by country of origin Share by product

CIS16%

Saudi Arabia15%

China13%

Korea9%

Qatar7%

Canada6%

Norway4%

Others29%

46-0-037%

0-0-6014%

16-20-010%

18-46-07%

16-16-167%

15-15-157%

21-0-05%

Others13%

Fertilizer Importations in 2011

Total Import 5.64 Million Mt. fertilizerTotal Import 2.59 Million Mt. Nutrient

Source: Office of Agricultural Regulation, Department of Agriculture

September 25-27, 2013ReSAKSS Asia- Cambodia

Fertilizer Production

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• 540,000 Mt for Ammonium Sulfate plant as by product

• 1.2 million Mt for the largest granulation plant

Installed Capacity and production by products and raw materials

• Private

Thai Ownership

• Granulation• Bulk Blending• A few plants of AS

Nature of production

September 25-27, 2013ReSAKSS Asia- Cambodia

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Fertilizer Price

Price by Product in 2011 (THB/Mt)

Price of Urea ; 2000-2011 (THB/Mt)

46-0-0 16-20-0 16-16-8 15-15-150

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000 Retail priceWholesale priceCIF

20002001

20022003

20052006

20072008

20092010

2011 -

5,000

10,000

15,000

20,000

25,000 Retail priceWholesale priceCIF

Source: Office of Agricultural Regulation, Department of Agriculture

September 25-27, 2013ReSAKSS Asia- Cambodia

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Quality Control of fertilizer

Fertilizer Act B.E. 2518 and Fertilizer Act B.E. 2518 Amended by Fertilizer Act (No.2) B.E. 2550

Controlled by Office of Agricultural Regulation, Department of Agriculture (DOA)

DOA inspectors inspect fertilizer from retailer, wholesaler and manufacturer and send to DOA laboratory for nutrients analysis.

Quality problems are mostly from the bulk blending fertilizer because of its homogeneity. The size different, density, hardness and feature make fertilizer aggregated between transportation

September 25-27, 2013ReSAKSS Asia- Cambodia

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Trade and tariffsNo taxes for Import

No tariff

No Subsidies

September 25-27, 2013ReSAKSS Asia- Cambodia

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The way forward

Demand-Supply

Increasing of harvested area from year 2003 (%)

September 25-27, 2013ReSAKSS Asia- Cambodia

19811985

19891993

19972001

20052009

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Use Import

-20

0

20

40

60

80

100

120

140

Para Rubber

Oil Palm

Rice

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Kob Khun Ka

September 25-27, 2013ReSAKSS Asia- Cambodia