Thailand's agriculture and agricultural products industries not only generate several billion baht a year in economic value, but also are an important part of the Thai way of life and that is why the BOI Thailand law continues to promote and offer incentives to people willing to invest in this industry.
Since the Thai food industry is a key contributor to the national economy and because of its wide diversity of agricultural products and processed food items, Thailand has earned the designation of "Kitchen of the World". Additionally, it is a strategic hub for food production for both Asia and the rest of the world due to its biodiversity, year-round growing season, relatively low labor costs, and skilled, well-educated workforce.
Around 41% of the total land area in the country is used for agriculture. As a result, more than 80% of raw materials are sourced from domestic producers at low prices.Entrepreneurs in Thailand's agriculture and food processing industries continue to strive to introduce innovative technologies. The Thai Government through the BOI Thailand has been promoting policies which support food production at high standards of safety and quality. The aim is to expand Thai food exports to new potential markets, particularly ASEAN, China, US, India, UAE, Australia, and Russia.
Food demand in South Asia and South-East Asia will continue to grow as populations and incomes expand throughout the regions. Thailand offers tremendous opportunities for food processors.According to the National Food Institute, the Thai food processing industry currently comprises more than 30,000 processed-food factories with annual earnings of about US$25 billion. Major Thai and multinational industry leaders include such companies as Nestle, Saha Pathana Inter Holding, Patum Rice Mill & Granary, Royal Friesland Foods NV, Unilever Group, Thai Union, Dole Thailand, Charoen Pokphand Group, Betagro, Saha Farms, Thai Beverage, Kellogg’s, Kraft, PepsiCo, Del Monte, Procter & Gamble and Ajinomoto.
Other excellent investment prospects exist in the following areas:
The value-added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have a value-added of at least 10% of revenues.
