Government cooks up plan for Northeast food production

Farmers show oyster mushrooms they farmed organically to supplement their income in Warin Chamrap district of Ubon Ratchathani. (Photo by Pattarapong Chatpattarasill)

Four provinces in the lower Northeast will be grouped to set up a new business model to develop and market organic agricultural products as part of a government plan to turn the region into a national centre for innovative food.

The so-called hub, which will centre on modern techniques to process farm produce and other products including cosmetics, is being pushed amid a current trend in which more and more Thai and foreign consumers are turning to chemical-free farming produce.

Prime Minister Prayut Chan-o-cha has told authorities to "set goals that most fit market demand", Industrial Minister Uttama Savanayana said on Wednesday, referring to the preimer's intention to develop food processing based on organic farming.

Gen Prayut told the Industry, Agriculture, Commerce and Education ministries to work together to make the lower Northeast, known locally as Isan Tai, a model centre of this new food processing.

Isan Tai covers Ubon Ratchathani, Yasothon, Si Sa Ket and Amnat Charoen provinces.

Authorities will start work on the food processing business plan immediately, Mr Uttama said, adding a panel made up of representatives from the four ministries, will hold their first meeting this month.

They will discuss a range of issues from developing a pilot food processing plant and seeking financial sources to marketing and certifying organic agricultural products.

A plan to build a plant will be supported by the Industry Transformation Centre (ITC), which has been established to make new products under what officials call "digital manufacturing transformation".

With help from the ITC, Mr Uttama expects the government can "build at least 300 new SMEs and boost [the capabilities of] 1,000 existing ones."

The ultimate aim is new investment in the region worth up to 500 million baht, he said.

On Monday, officials and local businessmen also discussed an idea to make Isan Tai another pilot "Bio Hub", region which emphasises better connectivity between farms and factories.

According to Mr Uttama, villagers in Isan Tai are good at growing cassava, sugarcane, rice and rubber, and supply each year up to four million tonnes of crops to the market.

Many local entrepreneurs, meanwhile, have potential to add value to a variety of farm produce, turning them into organic food ingredients, the minister added.

The Industry Ministry and the Federation of Thai Industries' lower Northeast chapter have agreed to jointly remove obstacles to a Bio Hub, including laws and technologies. "The use of smart farming technology will be one way to turn the plan into reality," Mr Uttama said, commenting on the plans.