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2 Dec 2022


Net farm income in 2023 may face multiple challenges…amid the risks of global economic slowdown and high production costs (Current Issue No.3368)


        Overall net farm income in Thailand in 2023 is likely to face numerous challenges that are varied based on agricultural product type. This is because the global economic outlook is beset with risks that could trigger a drop in demand for farm products – especially uncertain demand from China – and a slump in agricultural prices. KResearch projects that farm income in 2023 may contract by 0.8 percent, compared to estimated growth of 13.5 percent in 2022. Meanwhile, production costs such as prices for oil and chemical fertilizer in the global market are expected to decrease from those of 2022 but remain high, thus causing 2023 net farm income to grow in only a narrow range.

        Agricultural products that tend to face serious challenges are rubber and durian due to slowing demand and relatively high reliance on the Chinese market. More resilient farm products include palm oil and maize bolstered by domestic demand, while sugarcane still has issues which must be monitored. Additionally, farm products that should be under less pressure are rice and cassava, with favorable prices thanks to demand both at home and abroad. However, attention must be paid to potential impacts from the La Niña global weather phenomenon.