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Thailand Farm Equipments Market |Thailand Agricultural Equipments Market

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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. 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. – PowerPoint PPT presentation

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Title: Thailand Farm Equipments Market |Thailand Agricultural Equipments Market


1
Thailand Agricultural Machinery Market Report
2020 Ken Research
2
  • 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.

3
  • 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.

4
  • 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.

5
  • 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.
  •  

6
  • 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.

7
  • 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

8
  • 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.

9
  • 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.

10
  • 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.

11
  • 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.

12
  • 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

13
  • 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.

14
  • 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.

15
  • 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 .

16
  • 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.

17
  • 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

18
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