Agricultural Transformation "การพลิกโฉมภาคเกษตร”

Agricultural Transformation

19 September 2025

By Chaiwat Sowcharoensuk

Introduction

The global agricultural sector is facing challenges from a growing population, trade wars, climate change, and outbreaks of plant and animal diseases, which are leading to food insecurity and economic inequality. In response, many governments are pushing for “Agricultural Transformation” with the goals of increasing the quantity and quality of output, adding value across the supply chain, diversifying products, and mitigating risks from both natural and man-made disasters. The key technologies driving this agricultural transformation can be grouped into three categories: 1) technologies that change the overall production process, 2) technologies that improve specific parts of the process, and 3) technologies that create new products.

In Thailand, most farmers are small-scale, with limited capital and skills. Krungsri Research therefore believes that appropriate technologies should be ‘accessible, simple, low-cost, and deliver clear results.’ The proposed approaches are as follows: 1) Knowledge and Skill Enhancement: Focus on using group applications, learning platforms, providing online tools, and creating databases for decision-making; 2) Value Addition and Market Access: Implement basic processing technologies, traceability systems, and online marketplaces; 3) Transition to Smart Farming: Focus on cost reduction, promoting the use of applications for precise farm management, and utilizing small-scale agricultural machinery. With government support enabling farmers to access appropriate technologies, these measures can sustainably elevate the livelihoods of Thai farmers.

Introduction: The Agricultural Sector and the Path to Transformation

The agricultural sector has long been the backbone of the economy, playing a crucial role as the primary source of food-one of the four fundamental human needs-and providing shelter as well as economic security. However, increasing external risks such as trade wars, global warming, epidemics, and environmental degradation have led to agricultural output in certain areas and periods being insufficient for consumption. This has resulted in a lack of food security, which could ultimately lead to economic and social inequality. Therefore, to ensure food security and improve people’s livelihoods, many countries worldwide are prioritizing the transformation of the agricultural sector.

Agricultural transformation is the process of changing production methods and supply chain management within the agricultural sector to enhance efficiency. This is achieved by applying technologies, innovations, and new concepts to meet the evolving demands of consumers, society, and the global market. Key drivers of this transformation include:

Innovation and Technology: This is the core of agricultural transformation, as seen in the evolution of the agricultural sector from Era 1.0 to Era 5.0 (Figure 1), each driven by new innovations and technologies. The current era, Agriculture 5.0, integrates various technologies and innovations to boost production potential. Examples include the use of digital data combined with engineering tools, the application of biotechnology to enhance the traits of plants and animals, and the use of agricultural data to analyze production and sales strategies.
Population: The United Nations projects that the global population will increase to 9.7 billion by 2050^1/, leading to a more than 25% rise in food demand. Furthermore, the diverse global population-in terms of society, culture, religion, health, age, and income-has a variety of food needs. An increase in per capita consumption may also lead to competition for agricultural products to ensure food security. Therefore, many countries must transform their production models or develop new ways to increase agricultural output to meet their domestic needs.
Nature and Environment: Constraints from natural resources and environmental changes-such as natural disasters, invasive pests and diseases, rising global temperatures, desertification or increasing aridity, and water pollution-require people in frequently affected areas to accelerate development in order to cope with these challenges and overcome the limitations of existing resources.
Policies and Regulations: The interconnectedness of the global economy and trade means that policies and regulations in one country can impact the supply chain in another. For instance, increased tariffs can raise the cost of imported goods, while policies supporting environmental sustainability-such as avoiding agricultural products from deforested areas, reducing carbon footprints, and verifying sustainable production-encourage many countries to rapidly develop their agricultural sector to comply with the standards and regulations of their global trading partners.

Although all four drivers are important and interconnected, to effectively promote agricultural transformation, the development of innovation and technology should be the primary focus. Technology serves as a crucial "enabler" that helps the agricultural sector tackle the challenges posed by the other three drivers. This approach provides a root-cause solution and enhances the sector's capability to overcome various limitations and challenges, leading to a genuine transformation.

Concrete examples of agricultural transformations

The primary goals of agricultural transformation-increasing the quantity and quality of output, adding value across the supply chain^5/, and reducing risks-all depend on innovation and technology as the key drivers of change in the agricultural sector. The technologies6/ used in agriculture can be divided into three main groups:

1. Technologies that Increase the Quantity and Quality of Agricultural Output throughout the Production Process. This group of technologies helps expand farming methods and overcome production limitations, such as cultivating crops in deserts or farming in the sea. The most popular method is greenhouse cultivation using various techniques, including hydroponics, aquaponics, aeroponics, and vertical farming.

These techniques use technology to mitigate constraints related to space, insects, and pests, allowing for the control of nutrients and a reduction in risk from natural disasters. As a result, crops can be cultivated year-round, which meets the needs of consumers or importing countries that demand high-quality produce or have limited space. However, the limitation of this technology is the high initial investment. There is also a risk from economic uncertainty, as the high cost of the produce may not be suitable during an economic downturn.

Greenhouse Market Value: Technavio estimates that the global greenhouse market was valued at USD 28.0 billion in 2024 and is projected to reach USD 40.9 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 7.9% per year (Figure 2). Key players in the global greenhouse industry include Europrogress, Industries Harnois, Top Greenhouses, Dalsem Greenhouse Projects, Ceres Greenhouse Solutions, and Asian Perlite Industries.

2. Technologies that Improve Efficiency, Output, and Quality in Agriculture, or Transform Specific Steps of the Agricultural Production Process: These technologies are particularly suitable for farmers with limited capital, as they are flexible and can be adopted incrementally based on needs and available funds. Widely known innovations include Precision Agriculture, Sensor Systems (for measuring moisture, light, and nutrients), GIS & GPS mapping and navigation systems, Drones, Robotics, the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Applications and Platforms, Augmented Reality (AR) and Virtual Reality (VR), and 3D and 4D-Printing.

When used in combination, these technologies enable Smart Farming (Figures 3 and 4), which enhances efficiency and output, conserves resources, reduces damage, is environmentally friendly, and helps farmers make better, data-driven decisions. However, there are also some drawbacks, which include high initial costs, a reliance on advanced knowledge and infrastructure (such as electricity and the internet), the need for continuous software updates, and a long and uncertain payback period due to fluctuating produce prices.

Smart Farming Market Value: BIS Research estimates that the global smart farming market was valued at USD 20.4 billion in 2024 and is projected to grow to USD 47.6 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 18.5% per year. Prominent global players in this market include Deere & Company, CNH Industrial, Kubota Corporation, AGCO Corporation, Climate, BASF, Hexagon, Ag Leader Technology, CropX, and Cargill.

3. Technologies that Increase Output and Improve Quality Through the Development of New Products: This involves enhancing quality or creating new products in a lab or through scientific processes to replace traditional, time-consuming production methods. Examples include Synthetic Biology, Cellular Agriculture, and Genetic Modification.

Synthetic Biology Technology: This technology offers several key advantages: 1) it produces higher yields from plants resistant to diseases, pests, and adverse weather; 2) it is resource-efficient and environmentally friendly by reducing the use of fertilizers and pesticides; 3) it expands the market with new products that have increased nutritional value; and 4) it provides raw materials for high-value industries such as the pharmaceutical and vaccine industries (e.g., corn, tobacco, artemisia, and lettuce), the energy industry (e.g., soybeans, switchgrass, sunn hemp, and sugarcane), and the nutritional supplement industry (e.g., rice, wheat, tomatoes, and soybeans) (Figure 5). However, this technology has limitations, including high costs, particularly for research and development, making it difficult for small-scale farmers to access. There are also concerns regarding safety and ethics, as well as the need for appropriate laws and regulations. It also requires highly skilled personnel.

Market Value of Synthetic Biology: Arizton Advisory & Intelligence estimates that the synthetic biology market in the food and agriculture industries was valued at approximately USD 3.7 billion in 2024 and is projected to grow to USD 11.6 billion by 2029, representing a Compound Annual Growth Rate (CAGR) of 26.0% per year. Major players in the synthetic biology industry include Ginkgo Bioworks, Inari, Pivot Bio, Calyxt, AgBiome, Conteva Agriscience, Cibus, Evogene, Demeetra AgBio, and Avalo.

Current Overview of Thailand's Agricultural Sector

To determine the most suitable approach for the agricultural transformation in Thailand, Krungsri Research utilized a combined SWOT and PESTEL analysis framework. This involved integrating the analysis of 1) Internal Factors, which include Strengths and Weaknesses, and 2) External Factors, including Opportunities and Threats from the SWOT framework. These were then integrated with the environmental factors from the PESTEL framework: P - Political and government policies, E - Economic, S - Social, T - Technological, E - Environmental, and L - Legal. The analysis is presented as follows (Table 1):

Agri-Transformation

Based on the analysis, a multi-stakeholder approach is necessary to accelerate the transformation of Thai agriculture. Key stakeholders, in particular, should focus on the following:

Farmers: From “Traditional Producers” to “Smart Agri-preneurs”. Thai agriculture has several strengths that can be leveraged.

Production: The focus should be on precision agriculture to reduce dependence on weather, leverage technology to ensure consistent product quality, and elevate products to high-value goods like organic and Geographical Indication (GI) items. This also requires developing products that comply with Good Agricultural Practices (GAP) standards to build consumer confidence.
Business and Marketing: Farmers must evolve from being mere "producers" into "entrepreneurs" with business acumen in farm management, cost-benefit analysis, online marketing, production planning, and branding. They should also form groups through cooperatives, community enterprises, or associations to strengthen their bargaining power for both purchasing inputs and selling outputs.

Entrepreneurs or Exporters: From “Middlemen” to “Thai Agri-brand Builders”. Thai agriculture has numerous strengths that can be built upon.

Storytelling and Branding: Thai entrepreneurs can use the strengths of local wisdom and product uniqueness for storytelling. They should highlight organic and GI products that meet GAP and environmental standards and build a recognizable brand instead of just selling undifferentiated commodities.
Platform-based Market Access: Leverage Social Commerce (e-commerce and social media) to expand sales channels, promote products, and present compelling stories about their products.

The Ecosystem: Achieving Stability and Continuity. This involves creating a stable and continuous environment through: i) Government Policies, formulating policies that promote sustainable development throughout the entire supply chain; ii) Integrated Cooperation, fostering collaboration among government agencies, financial institutions, and the private sector to ensure support is coordinated and moves in a unified direction; iii) Modern and Clear Legislation, updating laws and regulations, especially those related to trade, investment, and import-export; and iv) Accessible Agricultural Technology, providing clear and accessible agricultural technologies to help farmers compete in the global market.

However, the key structural problem that the agricultural sector must urgently address is the lack of business and marketing skills among smallholder farmers. Their limited access to capital and technology is a “critical bottleneck”, preventing most farmers from capitalizing on existing strengths and opportunities. This keeps them trapped in a cycle of debt, high costs, and unstable income. Even with government support, excellent technology, or high-quality products, if farmers remain merely "producers" who wait for middlemen to purchase their goods, they will be unable to fully exploit these opportunities.

Krungsri Research View: How Will Thai Agriculture Embrace Technology?

Given that most Thai farmers are smallholders with limited land and liquidity constraints, they face high production costs, low and uncertain returns, and significant debt. The agricultural workforce is also shrinking due to demographic changes, with the average age of farmers being higher than in other sectors. Therefore, the adoption of highly advanced technologies may not be suitable in the Thai context. Instead, technologies should be "accessible, simple, low-cost, and deliver clear results." Krungsri Research has analyzed the following approaches for guiding the Thai agricultural sector in its transition to modern technology:

1) Knowledge and Skill Empowerment Technologies: With Thailand's extensive communication networks and widespread smartphone access, these technologies provide a simple, low-cost channel that supports and facilitates other tasks.

Link > Forming Groups with Communication Technology: Farmers can use applications such as Line and Facebook to form groups, communicate, share experiences, solve problems collaboratively, strengthen networks, and enhance their bargaining power. For those without access to digital technology, traditional methods–such as cooperatives and village farming groups–remain effective for knowledge sharing and development.
Learn > Learning via Online Platforms: Platforms can serve as a bridge between farmers and experts or service providers. There are two types: 1) learning platforms (e.g., DOAE e-Learning^15/, TARR^16/, Kaset One Farmer^17/) which offer video tutorials, modern farming techniques, and channels for expert consultation; and 2) business platforms (e.g., Agri Service Provider^18/, Icon Kaset^19/, ALLRENT^20/) which provide services like drone spraying, harvesting machinery rentals, and other agricultural services.
Log > Collecting Data for Decision-Making: The government and other stakeholders can collaborate to develop a database system that supports farmers in cultivation planning. This system should encompass three main types of data: production factors (weather^21/, soil and water conditions^22/, pests^23/), market information (agricultural product prices^24/, market demand^25/), and knowledge (cultivation techniques, fertilizer and water management, modern agricultural technology, production standards). This data, gathered from reliable sources, should be analyzed and simplified into easy-to-understand graphs and infographics. This information can then be disseminated through familiar applications like Line^26/ and Facebook^27/. This approach will help farmers reduce risks in production planning, improve marketing strategies, and make rational decisions based on real data, leading to sustainable farming and stable income.

2) Value Addition and Market Access Technologies: Farmers who can utilize communication tools or have sufficient capital for simple processing machinery can leverage technology to add value to their agricultural products and thereby increase their income.

Technology for Processing > Basic Processing Technology: Farmers can apply simple technologies to develop and process their agricultural products. Examples include solar drying, chilling/freezing, pelletizing, and compressing. These processes not only add value but also reduce spoilage, extend shelf life, and facilitate storage and transportation (Figure 6).

Traceability > Track and Trace Technology: Farmers acting as entrepreneurs can implement simple data recording systems, such as QR Codes or Barcodes on their products. This allows consumers to access information on the origin of raw materials, production methods, and product standards, which builds consumer trust, elevates product standards, and increases opportunities to enter new consumer markets.
Trade Platform > Online Trading Platforms: The growing number of online trading platforms provides farmers with easier market access, reducing their reliance on middlemen, offering transparent access to market prices, and enabling them to quickly and widely expand their customer base. In Thailand, several online agricultural marketplaces exist, including DGT Farm^30/, Ortorkor Delivery^31/, Taladkasetronline.com^32/, Thailandpostmart.com^33/, Farmto^34/, DurianTradeX^35/, and Thai Rubber Trade^36/. Farmers can also utilize social media and popular e-commerce platforms such as Line, Facebook, TikTok, Shopee, and Lazada to promote and sell their products.

In addition to these marketplaces, the government has developed platforms to facilitate new agricultural entrepreneurs, such as OAE Ag-Info^37/, Farmbook Application^38/, Kaset One Farmer, Biz Portal^39/, and SME One ID^40/. These platforms enhance transaction efficiency and business matching within Thailand's agricultural ecosystem.

3) Smart Farming Technologies for Cost Reduction and Efficiency Improvement: If farmers can use basic digital technology, as well as small-scale machinery or equipment, or have sufficient investment capital for modern technology, they can apply the following:

Manage > Precision Management: Farmers can utilize basic technologies such as: 1) smartphone applications combined with simple soil testing kits to analyze crop nutrient needs and optimal water levels, providing quick information for immediate problem-solving; and 2) applications or platforms with accurate weather forecasts or information on regional plant disease outbreaks, enabling farmers to prepare and prevent damage in a timely manner, reducing losses and the cost of rehabilitating their plots.
Machine > Small-Scale Machinery: The market now offers an increasing number of small agricultural machinery products tailored for small farm plots, such as walking tractors, tillers, and drones for small-area spraying. These machines are becoming more affordable and offer multiple functions, making them more convenient to use than larger machinery.

The aforementioned approaches demonstrate that a sustainable transformation of Thailand’s agricultural sector does not depend solely on expensive technologies. Rather, it must be adapted to the realities of the country's smallholder farmers. The government should serve as a central hub for building a digital agricultural ecosystem that effectively connects farmers to knowledge, information, and markets. The priority is to promote access to technologies that are easy to use, low-cost, and deliver tangible results, whether for learning, data-driven decision-making, or market access. Such measures will help reduce production risks, increase returns, and strengthen long-term livelihood security. Ultimately, the transition to a new agricultural era will only be successful when every farmer can truly utilize technology as a tool to improve their quality of life.

References

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1/ Source : United Nations Population Division, 2025
2/ Holistic and Regenerative Sustainability: This approach to farming takes a holistic view of the entire ecosystem. It includes practices such as Zero Waste production, converting agricultural byproducts into value-added resources, and farming that actively regenerates natural resources, with objectives to reduce reliance on new resources, create a natural balance, and ensure long-term sustainability.
3/ Digital Twins and Simulation: This involves creating a virtual replica of an entire farm or a specific part of it. This digital twin is linked to real-time data, allowing for experimentation, improvements, and the prediction of outcomes for various changes within the farm before implementing them physically. This process helps to reduce risk and increase crop efficiency.
4/ Resilience and Adaptability: This is the process of designing the agricultural sector to be highly flexible, capable of adapting to and coping with climate change, disasters, and shifts in production plans. It also involves securing a reserve of agricultural products to ensure food security.
5/ The Agriculture Value Chain begins with the preparation of raw materials, which are then fed into the production process. After cultivation, the produce is harvested, processed, or packaged. It is then stored for future use or transported for distribution to various locations to ultimately be sold to consumers.
6/ For definitions and applications of specific technologies, please refer to the appendix.
7/ Guidance and Steering Systems: Using navigation and positioning technology, these systems allow for the automated control of machinery, increasing the precision and efficiency of planting, fertilizing, and harvesting.
8/ Agricultural Sensors: These sensors are used to collect and transmit data on soil conditions, weather, pest activity, and plant health. The critical environmental and biological data they provide offers real-time insights, which are essential for making data-driven decisions to optimize crop management and yield.
9/ Displays/Yield Monitors: These devices display various physical properties such as temperature, humidity, pressure, pH levels, and soil moisture. They collect and analyze large datasets and then present this information to the farmer, thereby enhancing agricultural efficiency through precise data management and real-time monitoring.
10/ Include automated harvesters and planters, drones and aerial imaging systems, and feed management systems.
11/ Flow and Application Rate Control Valves: These valves are equipped with control mechanisms to accurately regulate and monitor the flow of liquids. This helps to optimize the use of water and nutrients for plants and animals.
12/ Farm Operation Management Software: This software has a wide range of functions, including automated farm data logging and storage, monitoring and analysis of farm activities, tracking expenses and revenue, financial management through accounting programs, farm planning support systems, purchasing functions, and marketing tools. Farm management software helps farmers efficiently plan production, farm operations, and daily tasks.
13/ Hardware Control Application: This is a program that manages and coordinates computer devices and other hardware to ensure efficient operation. Examples include software used with hardware that controls fluid systems, or farming robots/drones used for automated tasks like sowing seeds, watering plants, fertilizing, and pest control.
14/ Data and Predictive Analytics Software: This software focuses on analyzing farm data from sensors or farmer-input data, covering variables such as humidity, weather, and water flow. Integrated with Artificial Intelligence (AI) and Machine Learning, this software enables farmers to make informed decisions, conduct predictive analysis, and optimize crop or livestock management processes to mitigate production risks.
15/ This platform is managed by the Department of Agricultural Extension, Ministry of Agriculture and Cooperatives. It offers online courses aimed at developing the knowledge and skills of agricultural extension officers and the general public.
16/ This platform is managed by the Agricultural Research Development Agency (Public Organization) or ARDA. It serves as a repository for agricultural research, connecting data from both public and private sector organizations to provide easy access to research and knowledge for interested parties.
17/ This platform is managed by the Ministry of Agriculture and Cooperatives. It is advised and supervised by academics from the Land Development Department who provide guidance to farmers on all aspects, including crop planning, farm plot management, production activity logging, and cost/profit/loss calculation. Agricultural academics or extension specialists provide plot-specific advice.
18/ This platform is managed by the Department of Agricultural Extension, Ministry of Agriculture and Cooperatives. It serves as a database of agricultural machinery service providers and other related service providers nationwide, with the goal of promoting the use of machinery to replace human labor.
19/ This application was developed by Icon Kaset Co., Ltd., a subsidiary of ICP Group, a manufacturer and distributor of fertilizers and agricultural drones.
20/ This platform is managed by CPAC, a subsidiary of SCG (Siam Cement Group). While not directly focused on the agricultural sector, its function as a nationwide hub for renting all types of machinery, including large-scale agricultural machinery like tractors or construction equipment for farming areas, makes it relevant.
21/ This includes daily, weekly, and seasonal weather forecasts, as well as data on rainfall, temperature, humidity, and wind speed, to assist in making decisions about irrigation, fertilization, and preventing damage from natural disasters.
22/ This includes data on soil quality, water sources, and available water volume, enabling farmers to efficiently select suitable crops to cultivate given their available resources.
23/ This involves a notification system for outbreaks in nearby areas, along with information on proper and safe prevention and eradication methods.
24/ This includes current and future price trends for agricultural products at both local and national levels.
25/ This provides data on the overall volume of produce expected to enter the market this year, which helps in forecasting supply and planning production to align with demand.
26/ These can be used to send direct and consistent notifications of important information, such as daily weather forecasts, alerts for disease outbreaks, or weekly summaries of crop prices.
27/ This can serve as a space for knowledge exchange, Q&A sessions between farmers and experts, and for posting educational content in video or image formats.
28/ In 2025, the price for pineapples for processing was 12-13 Baht/kg, with cultivation costs at 4.5-4.8 Baht/kg. Source: Office of Agricultural Economics.
29/ Based on revenue minus costs, for both fresh and dried pineapples, at a fresh-to-dried processing ratio of 15:1.
30/ This platform is managed by the National Bureau of Agricultural Commodity and Food Standards (ACFS), an agency under the Ministry of Agriculture and Cooperatives. Its purpose is to serve as a channel for farmers to sell agricultural products that meet established standards.
31/ This platform is managed by the Marketing Organization for Farmers (MOF), a state enterprise under the Ministry of Agriculture and Cooperatives. It focuses on selling high-quality agricultural products from the MOF market.
32/ This platform is managed by the Department of Agricultural Extension, Ministry of Agriculture and Cooperatives, with the goal of helping Thai farmers sell their produce directly to consumers, by passing middlemen.
33/ This platform is managed by Thailand Post Co., Ltd., a state enterprise under the Ministry of Digital Economy and Society. Its key feature is leveraging the postal network for nationwide transportation of agricultural products.
34/ This platform is a startup founded by a group of young farmers who aim to use technology to directly connect producers with consumers.
35/ This platform is a collaboration between Global Multimodal Logistics Co., Ltd. (GML), the Marketing Organization for Farmers (MOF), and DurianTradeX Co., Ltd., to enhance the export of agricultural products, especially durian.
36/ This platform is managed by the Rubber Authority of Thailand (RAOT), a state enterprise under the Ministry of Agriculture and Cooperatives. It serves as a digital channel for rubber trading, enabling fast and convenient transactions while also providing traceability of the rubber's origin to comply with international standards, such as the European Union's EUDR regulation.
37/ This platform is managed by the Office of Agricultural Economics (OAE), an agency under the Ministry of Agriculture and Cooperatives. The platform's objective is to serve as a central source of agricultural economic information and news, and to be used for agricultural planning and decision-making. This includes information on agricultural product prices, agricultural calendars, production and market situation monitoring, warnings, public relations news, and government policies.
38/ This platform is managed by the Department of Agricultural Extension, Ministry of Agriculture and Cooperatives. It is a tool for farmers to register and update their agricultural activities.
39/ This platform is managed by the Digital Government Development Agency (Public Organization) (DGA) in collaboration with relevant agencies. Its purpose is to allow for the online submission of applications for licenses and necessary documents to start or operate a business.
40/ This platform is a collaboration between the Office of Small and Medium Enterprises Promotion (OSMEP) and the DGA. It serves as an identity verification system for entrepreneurs, linking them to various government services.

Agricultural Transformation

Announced :19 September 2025

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