Case%Studies%of%the%Use%of%ICT%in%Enhancing% …lirneasia.net/wp-content/uploads/2012/04/Nikomborirak_KBE-BKK2Apr2012.pdf1. The Thai Agricultural Sector (1)! • Agriculture(sector(contributes(to(rising(GDP(share(during(the(lastdecade(due(to(rise(in(global(commodity

Towards a Knowledge-‐based Economy: Case Studies of the Use of ICT in Enhancing

Agricultural Value Chain in Thailand

Deunden Nikomborirak Nathapol Pongsukchareonkul

Thailand Development Research Ins5tute

Outline of the Presenta@on

1.  The Thai Agricultural Sector in a Nutshell 2.  Case Studies 3.  Findings 4.  Recommenda@ons


1. The Thai Agricultural

Sector


1. The Thai Agricultural Sector (1)

•  Agriculture sector contributes to rising GDP share during the last decade due to rise in global commodity prices.


9.1 9.4

10.4 10.3 10.3 10.8 10.7

11.6 11.5

5.8 6 6.5

6 5.8 6.1 6 5.9 5.9

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006 2007 2008 2009p

% of GDP

Agriculture food and beverage industry


Produc@vity has been stagnant, however.

This can be aTributed to (1) inadequate water supply (2) excessive use of ferClizer

and (3) subopCmal farm size and (4) lack of proper culCvaCon

technology and knowledge




Percentage of irrigated land outside the central area is very limited

Most farms are small: 1.6 – 6.4 hectares.



Most farmers only complete elementary level of educa@on

33.2 35.5 36.3 36.9

39.2 42 43.4

15.6 19.7 21.3 22.3 23.3 23.6 25.2

21.4 21.2 23.4 24.8

29 32.8

35.1

7.2 8 10.2 11.4 13.4 14.5 16.5

0 5 10 15 20 25 30 35 40 45 50

2004 2005 2006 2007 2008 2009 2010

Computer in Municipal Area

Computer User in Provincial Area

Internet User in Municipal Area

Internet User in Provincial Area

Computer and internet usage in the provincial area is s@ll very much limited. But mobile penetra@on in the province is higher (57%).

2. Case Studies


1. ICT for traceability: rice/tangerine

2. ICT for dissemina@on of informa@on: Longan

3. ICT to facilitate the use of customized fer@lizer

4. ICT to facilitate efficient distribu@on of irrigated water

2.1 Traceability

Problem: EU requires traceability of all imported agricultural produce. Sourcing from “pooled” supply from small farms became a problem for manufacturers/exporters

Solu@on: Establishment of systema@c data recording and informa@on sharing among par@cipants of the rice supply chain with following steps:

(1) idenCficaCon of the working procedures and acCons of each parCcipant (2) Farmers record and store informaCon on culCvaCon (seeding soucce,

ferClizer usage, harvesCng method, packaging technique, etc. (3) Middlemen record slot of rice purchased from each supplier with unique

electronic product code (EPC) (4) Customers can access traceability on-‐line at www.thairicetrace.com


2.1 Traceability

Use of ICT: •  On-‐line entries of traceability informa@on that can be shared among various par@cipants along the supply chain.

•  Farmers without access to computer can ask “central bar code issuer” to send bar codes and approach “e-‐marketplace: to help with on-‐line marke@ng

Result: The website (maintained by the Department of Science of Khun Kaen University) was not very informa@ve and is now discon@nued.


2.2 Off-‐season Longan Problem: In-‐season longan fetches extremely low price.

Off-‐season longan can fetch higher price but requires more complex cul@va@on technique that will provide high and @mely yields.

Solu@on: Use of ICT to provide on-‐line access to (1) compile individual farmers produc@on data record in order to synthesize op@mal cul@va@on technique based on sta@s@cs.

(2) Disseminate cul@va@on techniques: type of fer@lizer and applica@on techniques (@ming and loca@on) as well as pruning, harves@ng and packaging techniques.

(2) Provide monthly market supply and demand forecast (based on data of each individual farms na@onwide)


2.2 Off-‐season Longan

Use of ICT: On-‐line data entries and informa@on dissemina@on. Farmers without computers may approach Subdistrict Administra@ve Organiza@on (SAO) help desk and informa@on (fer@lizer applica@on and price data) can be provided via SMS.

Result: Approximately 70 farms joined the program with the incen@ve of obtaining price and supply forecasts as well as cul@va@on techniques in exchange for submission of own cul@va@on data (farm size and loca@on, type of fer@lizer used and method of applica@on, etc.) The website is s@ll available with updated informa@on.


2.3 Customized Fer@lizer Problem: Most farmers use chemical fer@lizer excessively,

leading to deteriora@on of soil quality. Solu@on: Allow farmers to design own fer@lizer mix

according to soil type and chemical composi@on according to the “soil test toolkit”.

ICT Use : Farmers may enter soil informa@on on-‐line or via SMS in order to obtain informa@on about soil and type and then, op@mal fer@lizer mix (N-‐P-‐K).

Result: The pilot project has become very popular as cost saving has been remarkable. The “soil test kit” is now commercially sold. In March 2011 the government has provided 3.5 billion baht funding to expand and extend this project.


2.4 Water Management Problem: Uncoordinated water request and dispense system

lead to excessive electricity cost for pumping water and inefficient supply of water.

Solu@on: Centralized the water dispensing in order to beTer coordinate the request for water supply of farms. Requested volume and @me of water of each farm is aggregated into “groups” of users and is then recorded at the each pumping sta@on and fed into the centralized system.

A “Decision Support System” was created to facilitate integrated water management operated jointly by Sub-‐district Administra@on and users. The system consists of 1)water management system 2) informa@on management system and 3) repor@ng sustem.


2.4 Water Management

ICT use: On-‐line data and informa@on about request for water alloca@on, the actual dispense of pumped water and the cost of electricity associated therewith promoted a transparent communal water management system.

Results: The pilot project proved successful such that it is being implemented in numerous subdistricts. It allows the community to manage their own water resources, including mobilizing supplementary funding for the development of canals network built in the electricity charges.


3. Findings


How did the ICT help with KBE ?

Empowerment of Farmers

Facilitate coordina@on /coopera@on

among fragmented

farm opera@ons

Facilitate beTer

informa@on flow along the supply chain

Disseminate market and cul@va@on informa@on


What are the “enabling factors”?

Informa@on flows

• Willingness and ability to collect, compile and share data

• Well designed and user-‐friendly communica@on system

Informa@on Dissemina@on

• Availability of back-‐up access for those without internet access

•  Incen@ves for farmers to share informa@on

Coordina@on Coopera@on

• Communal par@cipa@on

•  Incen@ve to establish management of communal resources


4. Recommendations

Farmers •  need to bind together in order to ini@ate a KBE at the community level

•  establish links with academics and local administra@on to implement schemes

•  learn how to make “informed decisions” by nurturing the culture of data and sta@s@cs.

•  par@cipants along the supply chain need to appreciate the “non-‐zero sum” game in informa@on sharing.


4. Recommendations (2) The State •  Provide limited funding for pilot projects ini@ated by academics with coopera@on from farmers and local administra@on.

•  Facilitate maximum par@cipa@on from targeted beneficiaries by various means (technology, training “leaders” etc.)

•  Assess the prac@cal results •  Expand project that proved successful with greater financial contribu@on from beneficiaries (farmers)


Documents

Case%Studies%of%the%Use%of%ICT%in%Enhancing% …lirneasia.net/wp-content/uploads/2012/04/Nikomborirak_KBE-BKK2Apr2012.pdf1. The Thai Agricultural Sector (1)! • Agriculture(sector(contributes(to(rising(GDP(share(during(the(lastdecade(due(to(rise(in(global(commodity