Market Trends of Thailand Crop Protection Chemicals Industry
Herbicides are a Significant Segment by Product
Herbicides are chemical agents that are used to kill or inhibit the growth of unwanted plants, such as residential or agricultural weeds and other invasive species. The ease of application is a big advantage of chemical herbicides over mechanical weed control methods. This also helps save labor costs. The most widely used synthetic herbicides include 2,4-D, glyphosate, and glufosinate. However, the growth of the market is mostly driven by glyphosate. Glyphosate, sold under the Roundup brand name of Bayer, is the largest-selling herbicide in the country.
Thailand's agricultural sector grapples with labor shortages, a consequence of urban migration and an aging farming demographic. For instance, according to World Bank data, in 2022, the labor force numbered 40.91 million but saw a decline to 40.81 million in 2023. As a result, herbicides have become increasingly vital, minimizing the reliance on manual weeding. This not only conserves time and labor costs but also allows farmers to manage larger areas with reduced manpower. Such advantages propel the adoption of herbicides as a financially savvy choice for weed management.
Weeds compete with crops for essential resources like water, nutrients, and sunlight, often diminishing yields. By employing herbicides, farmers can safeguard their crops from such competition, resulting in enhanced yields and profitability. For key crops such as corn, cassava, and soybeans, herbicides play a pivotal role in curbing yield losses from weed pressure. Furthermore, in Thailand's expansive rubber and oil palm plantations, herbicides are crucial for controlling weeds, particularly in younger plantations where competition can stunt growth. Effective weed management in these sectors not only boosts crop quality but also enhances the production of latex and palm oil.
Fruit and vegetables Dominate the Market
The Thai horticultural sector is crucial in crop protection chemical markets. Fresh and processed tropical fruits are important contributors to the booming Thai agriculture sector, complementing the crop protection industry. In 2022, Thai farmers cultivated 57 tropical fruits on around 1.2 million hectares of land with approximately 11 million metric tons of volume. Thailand's tropical fruit business is well-known due to variables such as geography and tropical environment.
Thailand’s warm, humid climate creates ideal conditions for the proliferation of pests, diseases, and fungi that can damage crops. The increased production of fruits and vegetables exposes more farmland to these risks, requiring the use of more comprehensive pest control and crop protection measures. For instance, according to FAOSTAT, Thailand's production of fruits was 10.0 million metric tons in 2021, which increased to 10.9 million metric tons in 2022. Also, as the area under fruit and vegetable cultivation expands, the diversity of crops increases. This brings new challenges, such as the emergence of pests that target specific crops. Farmers must use targeted insecticides and biological controls to manage these pests and protect their investments.
A research study undertaken by the Biodiversity Sustainable Agriculture Food Sovereignty Action Thailand (Biothai) found that the highest levels of pesticide residues were present in fruits and vegetables. Also, around 62.0% of such fruits and vegetables included more than one pesticide as residue. However, the intensity of pesticide use in Thailand is still lower than that of Vietnam but also higher than in Laos and Cambodia. The application of pesticides in fruits and vegetables has been the highest over the past several years, and this trend is likely to continue.
