Thailand's agriculture and agricultural products industries are an important part of the Thai way of life, and generate several billion baht a year in economic value. For this reason, 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 (major crops, off season rice cultivation, dairy products, farm products), Thailand has earned the designation of "Kitchen of the World". Additionally, it is a strategic hub for food production for both Asia and other countries/ other areas of the world due to its biodiversity, year-round growing season, relatively low labor costs, impressive crop yields, and skilled, well-educated agricultural workers and Thai farmers.
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 in the agricultural sector, private sector, and other economic sectors. The Thai Government and Department of Agriculture, through the BOI Thailand, has been promoting policies that support food production of the highest standard with regards to quality and safety. The aim is to expand Thailand's food exports and trade to other sectors and new markets, particularly ASEAN, China, US, India, UAE, Australia, and Russia, while striving for sustainability with regards to things like fossil fuels and soil degradation.
Food and water resources demand in the central region of Southeast Asia (South-East Asia) will have a continued growth 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 in recent years. Major Multinational and Thai industry leaders include companies like: Nestle, Kellogg's, Royal Friesland Foods NV, Saha Pathana Inter Holding, Sasha Farms, Unilever Group Patum Rice Mill & Granary, Thai Union, Dole Thailand, Del Monte, Charoen Pokphand Group, Betagro, Thai Beverage, Kraft, Pepsi Co., Procter & Gamble and Ajinomoto.
Other excellent investment prospects exist in the following areas of agricultural production:
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.