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March 04, 2011

Thai farmers and multinational companies

Can the US science-based products and service company DuPont help Indonesia stabilize the price of chilies throughout the year including during prolonged rainy seasons as Indonesia experienced in 2010? Chili prices skyrocketed up to Rp 100,000 (US$11.5) in December and January. The government blamed the drastic climate change for the flavor shortage.

The question is tempting because the company claims, “It is uniquely positioned to increase global food production across the value chain by boosting crop yields through advanced seed genetics, agronomic practices and product innovations that help farmers maximize productivity and quality; advancing the nutritional content derived from crops.”

Dr. Somchai Laohverapanich, managing director of DuPont Thailand, is the right person to talk on agriculture. His company contributed US$300 million of the total $900 revenue from all ASEAN countries last year. Thailand is famous for its agricultural products.

“Our research and development staff members can help you to overcome the problem. It is not very unique,” Somchai said.

Thai farmers are very disciplined and strive for good hygiene practice and to produce high-quality products, said Somchai. And the government provides great incentives to the private sector, which operate in agriculture-related sectors such as in the creation of quality seeds. It helps to explain why DuPont grows fast.

“In Thailand, seeds can be different from one province to another. You can learn from Thai farmers. Indonesia is a big country, you have a big market. You can be better than us,” said Somchai.

DuPont recently invited a group of journalists from ASEAN to Thailand recently. We were also invited to visit a shrimp farm outside of Bangkok. The workers demonstrated how to keep ponds in hygienic states and raise shrimps so that they could be harvested in six months.

DuPont products help Thailand become the world’s No. 1 shrimp producer. It is followed by China, Vietnam and Indonesia. Realizing the region’s potential, the company boasted its aquaculture products to support bio-safety farms and help the farmers in farm and food safety management.

“The world demand for shrimp continues to increase. And I am determined to open more ponds,” said the owner of the farm, who described himself as a farmer and an exporter of rice. He did not explain further but knowing that Indonesia is a regular rice importer from Thailand the prosperous farmer perhaps also sells his rice to Indonesians.

In 1996, millions of Indonesians were humiliated when the state-owned aircraft manufacturer IPTN bartered two CN-235 planes worth $28.6 million for 110,000 tons of sticky rice. Will Indonesia have to sell more aircraft in exchange for Thai chilies?

“Innovation of new technology and products can help farmers achieve good quality products… It makes production costs more competitive in the markets,” said Hsing Ho, DuPont’s ASEAN sales and marketing director.

In Indonesia there are some movements to reject the obligation to buy farm seeds from multinational companies. Their arguments perhaps are very reasonable, but when the seeds can produce high profits for farmers, why should we be preoccupied with these idealistic ideas? Thai farmers benefit from the seeding technology.

DuPont claims its seed genetics increase farmer productivity and profitability. In Indonesia the company also produces crop protection products. In 2008, sales from seeds are not less than 50 percent of DuPont’s $8billion sales from the agriculture and nutrition sector. While the rest came from crop protection and food ingredients.

People who visit Thailand are always impressed with the availability of various fruits even on Bangkok streets. Its corn is bigger and more delicious than Indonesian corn and the price is also cheaper.

Thais have taken the benefits from the multinational companies to develop their farm industry. We should not repeat the humiliation of 1996 where we could only gain sticky rice in exchange for our sophisticated aircraft.

But when can the discipline, passion and deep knowledge of Thai farmers transfer to Indonesian farmers? The government should also learn from the Thai government. Thailand has benefited from DuPont and other companies. So how about us?

Source: http://www.thejakartapost.com

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