The Agricultural Economy of Thailand

Traditionally a one-crop economy based on exports of rice, Thailand has achieved a remarkable degree of crop diversification, while continuing to expand rice production. Livestock raising is far less important than crop production. The world's second largest exporter of rice, Thailand has also become a major exporter of feed--mostly corn, but also cassava preparations, rubber, hard fiber, and castor seed. The country has long-term potential for further expansion of foreign sales of corn and for becoming an important exporter of soybeans and possibly sorghum. With U.S. and other aid, the Thai Government is endeavoring to further expand and diversify farm production and bring the poorer farming regions closer to the economic level of the area near Bangkok, one of Asia's richest and most productive regions. Continued growth of agriculture is essential to Thailand's development, since farming remains the basis of the country's economy, although important progress has been made in other sectors. Thailand is a $34 million market (3-year average) for U.S. products of farm origin. It imports from the United States mostly unmanufactured tobacco ($18.9 million); cotton ($7.6 million); liquid beverage bases and flavoring extracts and sirups ($3.1 million); grains and preparations ($ 1.2 million); dairy products; and miscellaneous food preparations. Crude rubber is Thailand's major farm export to the United States.