Thailand Farm Equipments Market |Thailand Agricultural Equipments Market presentation

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Title: Thailand Farm Equipments Market |Thailand Agricultural Equipments Market

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Thailand Agricultural Machinery Market Report
2020 Ken Research
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How The Macroeconomic Factors Of Thailand Has
Performed In The Past?
The economy of Thailand has been considered to be
volatile due to its political instability and
natural calamities. However, relative stability
and favorable order in economic variables such as
the inflation rate, exchange rate and
unemployment rate have helped the Gross Domestic
Product (GDP) of the country rise from USD
billion in 2010 to USD to USD billion in 2015.
The 2025 projection for GDP of Thailand is
estimated to be USD billion, while the GDP
(PPP) of the country is expected to reach USD
billion. In 2015, the percentage of rural
population declined to , amounting to million
persons. On the other hand, the percentage of
urban population increased to of the total
population, accounting to million individuals.
The higher wage rate and infrastructure
facilities attracted individuals from rural to
urban areas.

As is true in every newly industrializing
economy, the economy of Thailand is mixed. While
Thailand is widely perceived as an economically
developing country led by agricultural exports,
the majority of the countrys income is driven by
the manufacturing and service sector. In 2010,
the agriculture sector contributed to overall
GDP while the manufacturing and service sector
contributed and respectively, to the
overall GDP of the country. In 2015, the
contribution of the agriculture sector declined
to of GDP, while the manufacturing and service
sector contributed and respectively, to the
overall GDP. The future estimates indicate the
contribution of the agriculture sector to further
decline in 2016 to and by 2020 the sector is
estimated to contribute to overall GDP. The
GDP Per Capita (Nominal) increased from USD in
2010 to USD in 2013 and then decreased to USD
in 2015.

How The Changes In Cropping Pattern Has
Influenced The Sales For Agricultural Equipment
In Thailand
Agriculture land is typically the land devoted to
rearing of livestock and the production of crops.
Arable land is the land that is capable of being
ploughed and used to grow crops. The total
agriculture land in Thailand increased from 210.6
thousand square kilometers in 2010 to 227.3
thousand square kilometers in 2015.
Alternatively, the arable land in Thailand
increased from thousand square kilometers in
2010 to thousand square kilometers in
2015.Thailands law defines land as either
private or public. Private land is owned by
individuals, groups, or entities. The balance is
public land, which includes, land used by the
state, land open to the public, land identified
for allocation under land reform plans and
forestland.The total number of farm holdings in
Thailand totaled to million with an area of
million hectares in 2015. The area in Thailand
under irrigation covers of the overall
agricultural land, amounting to million
hectares.

The Influence of weather and climate, farmer
decision making and technology, prevalence of
severe drought, the falling price of rice and the
adverse impact of global warming have resulted in
changing cropping patterns in Thailand. The
harvested area of rice in Thailand decreased from
million hectares in 2010 to million hectares
in 2015. The oversupply of rice with the
government of Thailand due to the rice pledging
scheme had caused the price of rice in the
international marker to fall. The harvested area
for Cassava increased from million hectares in
2010 to million hectares in 2015. The unstable
price of rubber in the international market has
caused farmers to switch to more lucrative cash
crops. The harvested area for rubber has
decreased from million hectares in 2010 to
million hectares in 2015. Since the government
directly negotiates with the farmers on the price
of sugarcane, the harvested area increased from
million hectares in 2010 to million hectares in
2015. Mechanization has played a significant role
in increasing agricultural production by
completing farm operations in time, reducing cost
of production and increasing crop intensity.

What Have Been The Outlook Of Government Towards
Agricultural Equipment Market In Thailand
The government of Thailand has no declared policy
on farm mechanization. The development of
agriculture with respect to machinery in other
countries had caused the government to show an
increase in interest. Support to SMEs was
reinforced through a promotional tax exemption
package to upgrade their machinery. Government
procurement remained an important instrument of
economic policy, with a price preference margin
of given to domestic suppliers. The tariff
remains one of Thailand's main trade policy
instruments and a relatively significant but
declining source of tax revenue. As a result of
tariff line changes relating to the introduction
of the Harmonized Commodity Description and
Coding System 2012, tariff nomenclature and
higher ad valorem equivalent rates the average
applied MFN tariff rate rose from in 2011 to
in 2014. Non-agricultural products continue to
face considerably lower tariff rates ( ) than
agriculture items ( ). Thailand has signed Free
Trade Agreements (FTAs) with many countries
which have resulted in the removal of tariff and
quotas on various imports. Those countries which
have not signed Free Trade Agreements (FTAs)
with Thailand have to follow the tariff lines for
products imported to the country.

Agricultural machinery standards from various
countries have been studied and then adapted to
be suitable with Thai agricultural machines and
their corresponding working conditions. Safety
standard is one part of each agricultural
machinery standard. Most agricultural machinery
standards are. Voluntary standards Only small
diesel engine standard is a mandatory one and
only a few agricultural machinery manufacturers
apply for the TISI standard certification. In
Thailand, standards of some agricultural
machinery are already defined but the number of
agricultural machinery manufactures that
requested for the certificate for their products
were small. However, only few numbers of
requested cases were awarded the certificates.
Vehicle emission standards in Thailand are also
developed by the Thai Industrial Standards
Institute. Thai emission regulations are based on
European emission standards and test procedures.
Emission standards for diesel engines in Thailand
are based on EU regulations currently Euro III.
The government of Thailand has provided subsidies
to farmers in the form of efficient agricultural
policies such as the agriculture crop zoning
program, agriculture extension (Large Lands)
program and the price intervention policies

How The Agricultural Equipment Market Has
Performed In Thailand?
The revenues from the overall agriculture
equipments market increased from USD million in
2010 to USD million in 2015, accounting for a
CAGR of during the same period. Total
agriculture productivity of the country had
diminished and the contribution by the
agriculture sector to GDP reached USD 36.2
million in 2015 from 47.5 million in 2013. The
contribution by the tractor market to the overall
market stood at in 2015. Harvesters and Rice
Transplanters contributed and respectively,
to the overall revenues of the agriculture
equipment market.

How The Agricultural Tractor Market Has Resembled
Growth In The Past?
Military government focused on regulatory
policies that complimented the services and
industrial sector and neglected the agriculture
sector. The revenue from the tractor market in
Thailand increased from USD million in 2010 to
USD million in 2015, achieving a CAGR of
during the same period. Rice farmers expected to
substitute around hectares of rice lands with
sugarcane in 2015. Tractors have been segmented
on the basis of power and those that range from
14.5 to 47 hp were most preferred in Thailand,
accounting for of total tractor sales volume.
Tractors below 14.5 hp, also known as power
tillers, contributed to overall tractor sales.

How The Rice Transplanter Market Has Performed In
Thailand?
The market revenue for Rice Transplanters
increased from USD million in 2010 to USD
million in 2015, accounting for a CAGR of from
2010-2015. The harvested area of rice in Thailand
increased from million hectares in 2010 to
million hectares in 2012. The market for rice
transplanters has been segmented on the basis of
power. Rice transplanters below 10 hp include 4
row and 6 row walking type and contributed around
to overall sales. Transplanters above 10hp
include 6 row and 8 row riding type, contributed
to overall sales. The need for increasing
productivity and output of rice resulted in
higher demand for transplanters above 10 Hp.

How The Combine Harvestor Market Has Developed In
Thailand?
The market revenue from combine harvesters
increased from USD million in 2010 to USD
million in 2015, accounting for a CAGR of 11
during the same period. The government introduced
the rice pledging scheme that gave farmers an
assured above market price for rice produce The
market for combine harvesters has been segmented
on the basis of power. Combine harvesters of 70
hp and below are most preferred by the farmers of
Thailand and hence this segment accounted for 65
of total sales of combine harvesters. Harvesters
of 70-105 hp and above 105 hp contributed and
respectively to the overall sales of combine
harvesters in Thailand.

What Were The Driving Forces For Tractor
Implements Market In Thailand?
The revenues from the tractor implement market
augmented from USD million in 2010 to USD
million in 2015, accounting for a CAGR of
during the same period. It has been estimated
that almost of implements bought are along
with tractors. Therefore, the growth of the
implements market is highly dependent on the sale
of tractors in Thailand. In addition to this, a
higher replacement demand for implements has
caused a small portion of the population to
procure them independently. The market for
tractor implements has been segmented on the
basis of major products. Rotavators contributed
around to overall sales of tractor implements.
Disc ploughs and harrows contributed and
respectively, to overall tractor implements
sales. The shift towards organic farming and
reduction in the use of large amounts of
fertilizers have caused farmers to use manual
methods for crop fertilization, which has led to
the decline in sales volume of fertilizer
spreaders

How The Major Players Have Dominated Agricultural
Equipment Market In Thailand?
Changes in labour force, improving credit
environment, government support for agricultural
mechanization and a strong replacement demand are
expected to drive the growth of agricultural
equipments in Thailand. With respect to sales of
agricultural tractors, Japanese manufacturer Siam
Kubota had the highest market share of ,
followed by Yanmar S.P. with and Iseki with
in 2015. The agricultural equipments used in
Thailand are locally produced. However, local
machines produced from small manufacturer, are
not standardized in quality, efficiency and
durability. Currently, there are two forms of
utilizing agricultural machinery as machine
owner and machines hiring service. Given the
target audience, it is essential manufacturers
use efficient channel strategies to create
awareness and boost the sale of agricultural
machinery. It has been estimated that nearly
sales of new tractors is accompanied with the
purchase of tractor implements.

In the combine harvester market, Siam Kubota had
a share of of overall sales, Yanmar S.P.
accounted for of total combine harvester
sales, while domestic manufacturers TAMCO and
Kaset Phattana and Sakpattana contributed ,
and respectively to overall sales of combine
harvesters. With respect to Rice Transplanters,
Siam Kubota had the share in overall sales
accounting to . On the other hand, Yanmar S.P.
accounted for share in overall sales of rice
transplanters. Siam Kubota manufactures 4 and 6
row walking and riding transplanters and 8 row
riding transplanters catering to farmers with
different farm sizes. The 4 and 6 row have
transplanting speeds of up to meters per second
and a fuel consumption of to litre a rai,
replacing around to farmers The sale of
agricultural equipments is expected to reach in
2018 and by 2020. It has been estimated that
revenues from the agricultural equipment market
will increase from USD million in 2018 to USD
million by 2020.

The growth in sales of tractors and combine
harvesters is expected to drive the revenue and
sales of the overall agriculture equipment
market. The increased penetration in the
northeastern region by manufacturers and dealers
will help shape the positive growth in sales and
revenues of the tractor market. Combine
harvesters of 70 hp are demanded by most farmers
and this segment is expected to aid the growth of
the overall combine harvester market. The growth
in sale and revenue of tractor implements is
dependent on the sale of agricultural tractors as
70-75 of tractor implements are bought along
with tractors. Region and land holding size are
the primary factors that determine the type of
agricultural machines a farmer would like to
purchase. The annual income a farmer generates
would depend majorly on the crops grown, farm
size and the machinery utilized. Thus, the annual
income earned by a farmer in Thailand can range
from USD to USD .

Apart from this, certain secondary factors such
as the type of crop, fuel efficiency of the
desired equipment, cost of implements, brand and
the credit availability will determine the
quantity and types of machinery that would be
demanded by the farmer. Usage pattern of farm
equipments play an essential role in
understanding the intensity of farming that
occurs in a year. It has been estimated that
tractors are used for to hours a year.
Combine harvesters are used only during the
harvest season due to which their average usage a
year amounts to to hours. Rice can be planted
and harvested a maximum of two times a year due
to which the usage pattern for Rice Transplanters
ranges from to hours a year.

Source https//www.kenresearch.com/agriculture-an
d-animal-care/agriculture-equipment/thailand-farm-
equipment-implements-market/25252-104.html
Contact UsKen ResearchAnkur Gupta, Head
Marketing CommunicationsAnkur_at_kenresearch.com
91-9015378249

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