Let’s Consider 5 Factors Supporting 1964 Farm Equipment Market More Than 80,000M Highest Growth in 5 Years.
Date 03/15/2022 at 15:16
Kasikorn Research Center Analysis Of Thailand Agricultural Machinery Market In 64 Year Highest Growth In 5 Years, Over 83 Billion Baht Expected In 65 Year Will Continue To Expand Slower. of high demand
Kasikorn Research Center Show the results of the analysis Thailand’s agricultural machinery market shows the strongest growth in five years in 2021, which is reflected in the delivery index of agricultural diesel engines in the first 11 months of the year, which grew by 42.1 percent.[1] (YoY) from the main driving factor on the demand side that farmers have a good income
In addition, rising pent-up demand caused the value of Thailand’s agricultural exports in US dollars. and prices of agricultural products in the country performed well
In addition, the number of repatriated workers has accelerated. including the climate conducive to cultivation with favorable rainfall. All these factors supported the Thai agricultural machinery market’s demand for good expansion.
The Thailand agricultural machinery market (manufactured[6]+imported) in 2021 at about 83,269 million baht, or growth of 22.5 percent (YoY), which is the highest growth since 2016, which is used as the base year. This is an index that has not adjusted for the effects of the season (Information from the Office of Industrial Economics)
In addition, this corresponded to the volume of domestic sales of machinery and equipment in the first 11 months of the year, which grew by 20 percent (YoY) (Bank of Thailand data).[2] In the first 11 months of 2021, farm income grew by 5.3 percent (YoY) (Department of Agriculture data).[3] The figures for the first 11 months of 2021 are the value of Thailand’s agricultural exports in US dollars. grew 23.7 percent (YoY) and domestic farm prices rose 3.6 percent (YoY) (data from Department of Commerce and Bureau of Agriculture)[4] are repatriated workers affected by COVID-19
In the first nine months of 2021, the number of repatriated workers accelerated by 2.0 percent (YoY), most of them young and with some purchasing power. Therefore, when buying agricultural machinery, the investment is mainly in the form of competition. Or you have a special installment payment on a large seller loan. (National Statistical Office)[5] The average cumulative rainfall for the whole country in 2021 is 12.8% higher than in 2020 (Meteorological Department). [6] It consists of a tractor and a harvester.
Kasikorn Research Center Looking at the market value of Thai agricultural machinery in 2022, it could be 84,600-87,900 million baht, or expanded by 1.6-5.6 percent (YoY), representing a slowdown in expansion after likely to peak in 2021 exceeded what will still be an expansion on a high basis. and higher than the 5-year average of 73,256 million baht (2016-2020). The supportive factor that keeps the agricultural machinery market expanding comes from the same demand factors that have continued from last year but are slowing down will.
with details as follows:
More easing of pent-up demand This was reflected in the value of Thailand’s agricultural exports, which could rise at a slower rate of 2.0 to 5.8 percent (YoY) and the price of domestic agricultural products, which are likely to rise by 0.8 to 2. 9 percent (YoY) could slow down. ) The number of returnees is expected to be lower than in the previous year due to an economic recovery. It also depends on the purchasing power of the individual.
Some farmers may have already invested in the previous year. And it also depends on the assessment of the worthiness of investing in new equipment. Any impact on demand may slow down.
Agricultural production similar to the previous year at a high level. Due to favorable weather conditions for production and continued government support, both in the form of direct farmer support such as the Farmer Income Insurance Program. Supporting the use of agricultural machinery such as agricultural machinery loans from the Bank of Agriculture and Agricultural Cooperatives Investment promotion projects by BOI, including Thailand Machinery Industry Development Phase 1 Action Plan (Year 2022-2027), motivate farmers to have continued demand for agricultural products from the previous year .
However, one must keep an eye on the COVID-19 situation. from the mutated germ (Omicron), which is still highly uncertain. This could affect demand and lead to lower market value forecasts. Assessable floor box
Kasikorn Research Center believes that in 2022, the agricultural machinery market will continue to grow in line with demand for reasonably priced agricultural products such as rubber, cassava, fruits (durian), and sugar cane (a global trend that is friendly and cheap). should grow affordable) with more environment This will prompt sugar cane farmers to adapt by turning to replacement machinery. more work like sugar cane harvesters to reduce burning of sugar cane causing dust/air pollution)
while agricultural products, although the prices are not very high But it could improve and be important for many farmers, such as rice. It is considered an agricultural product that supports the demand for agricultural machinery in Thailand, especially tractors and rice harvesters.
Adding to this, the global trend of loving more health will help support agricultural crops such as herbs, hemp and organic rice to have a high price, coupled with the demand for high-tech agricultural machinery to mitigate the constraints of climate change, agricultural machinery such as Crops assisted in growing crops in closed systems. agricultural drone machines that guide the system
While it is expected to be an important supportive factor on the demand side driving the Thailand agricultural machinery market in 2022, one must keep an eye on the supply risk factors or the machinery manufacturers/dealers. Agriculture that can inevitably be faced
especially the price competition from agricultural machinery from China, which is cheaper than Thailand. Production costs such as oil and steel prices in the world market tend to be high. Everything affects the supply and can cautiously grow the overview of the Thailand agricultural machinery market.
Hence the adaptation guidelines of the agricultural machinery operators on the part of both the manufacturers and the dealers of agricultural machinery in Thailand
The term ahead is research and development of agricultural machinery that meets market demand and is in accordance with the appropriate use in each growing area. Along with the trend towards the use of advanced technologies. This will raise the level to modern agricultural production such as the introduction of automation/AI/IoTs/sensors. came to join the agricultural areas of Thailand, which are mostly small and owned by small farmers
Therefore, it should be a price for agricultural machinery that is easily accessible to farmers and can achieve economies of scale, such as: B. An autonomous/unmanned tractor for use in small to medium-sized rice fields. or automatic fruit harvesting robots that can be used on small areas, for example.
In addition, business partners are sought who have knowledge of technology transfer and human resources development to support the maintenance of modern and more complex machines It is also considered important.
