The effects of COVID-19 have been broad, wreaking havoc on the global economy. Thailand has seen the effects firsthand, and its engines of growth have taken a significant knock. But now it is speedily recovering from this setback. BCG (Bio-Circular-Green) Economic Model is helping the nation in this recovery by stimulating all industries, including the food industry in Thailand.
The Thai government intends to use the BCG (Bio-Circular-Green) Economic Model as its key national objective moving ahead. While the BCG will focus on providing a launchpad for environmentally friendly firms and innovations across a variety of industries, this article will mostly focus on agriculture and “food for the future.”
The Sufficiency Economy Philosophy underpins this policy. His Majesty King Rama IX first proposed this idea in the 1970s. Thai culture’s core values of moderation and prudence form the ideals of the BCG Model.
His Majesty was apprehensive that sustenance of a company is not possible only from its profit. He believed it was critical for the Thai people to develop sensibly, first laying a solid foundation and then moving on to the next stage of development.
BCG, with its emphasis on both growth and the environment, could be the next step in His Majesty’s plan.
Implementation of BCG Model for Food Industry in Thailand
There will be growth in Thailand’s food industry with a US$213 million (THB6.7 billion) investment over nine years by the Ministry of Industry. These improvements apply to a wide range of targets, including:
Skilled Personnel
Thailand needs to have the indigenous talent to meet its expanding demand as it pushes toward modern, tech-based solutions.
Integrated Transport Systems
This will save time and money on transportation.
New Technologies
Technology can and will make farming easier and more efficient. By fostering an environment that encourages these advancements, better products will be available sooner.
Carbon Credits
Thailand has the inspiration to lower its overall emissions by using a carbon credit system. This will result in financial incentives for those in the food industry to adopt green solutions.
Solar and Green Energy
Individuals will be able to sell their extra energy generated from green sources through a smart grid system.
Thailand holds a good position as an investment destination in the world. Nevertheless, it is due to these new assistance measures, as well as a rising agro-industry and a shift in consumer attention toward sustainability. In reality, Thailand’s Board of Investment (BOI) offers a slew of incentives, including an eight-year corporate income tax holiday.
As a result, there is funding for a number of fascinating projects like the following –
Recycled Food Packaging
Rayong Province’s ENVICCO Company Ltd. has received approval for a THB2.48 billion investment to employ recycled plastic pellets in food-grade containers, as well as body care and household goods.
Yeast Extract Innovation
The Beta-Glucan Project in the provinces of Chaiyaphum and Amnat Charoen will improve numerous fermented goods.
Probiotic Food Innovation
The Suphan Buri Province’s Fructooligosaccharide (FOS) Project will allow for the introduction of healthier intestinal flora in items that witness microorganism development (like yogurt and pickles).
New health benefits and ecological packaging are just a few of the alternatives accessible for modern-day food goods owing to companies like these.
BCG Upgrade for Thai Food Industry
As we go into the next age of industrial development, it’s critical that some of our conventional farming practices evolve as well. The younger generation takes farming as a dead-end job of the past. Understandably, the number of Thais interested in becoming farmers has decreased significantly in recent years.
Farmers who follow the BCG economic plan will be able to experience the next generation of farming. Moreover, it is just as simple as the first farmers who found the plow did. Additionally, they’ll be able to earn more from the same plot of land, produce more food products and options, mitigate their environmental impact, and incorporate a variety of solutions that require far less manual labor thanks to smart farming, integrated technology, high-quality machinery, and stronger support systems.
Consider a farm where much of the work is done automatically, and you can use your smartphone to control and check the health of your plants from anywhere. Now, consider farming as a lucrative job that puts you at the forefront of development, marketing, and innovation.
Some folks may be surprised to learn that all of this is already in place. Therefore, it is no longer merely a concept. Moreover, among the fascinating pilot projects now underway are:
Plant Factories
A closed farming and cultivation system capable of providing artificial plant care. They provide complete control over light, temperature, moisture, carbon dioxide, and minerals while still maintaining an organic standard that keeps disease and insects at bay.
Biological Pollution Reduction
Ranching pollution is being reduced by using black army flies, according to a new study launched by CP. These flies are significantly more efficient than earthworms at breaking down and decomposing organic waste and animal manure. They’re also a great source of protein for both humans and animals and can be used as a supplement in animal feed. Insects are far more sustainable per gram of protein than regular beef.
Plant-based “Meat”
PTT-NR Joint Venture – Innobic (Asia) Co., Ltd., and Nove Foods Co., Ltd. were formed by PTT Public Co., Ltd., and NR Instant Produce Co., Ltd. to research, innovate, and sell plant-based protein food products.
Thailand may very easily realize its objective of being one of the top ten food exporters in the world if it receives government support.
Benefits for Consumers of Food Industry in Thailand
Producers and other agro-industry experts aren’t the only ones who will benefit from these improvements. The BCG economy will provide consumers with a wide range of benefits.
- For optimal freshness, high-quality organic produce is delivered to the market at record speed.
- New specialized foods that meet worldwide requirements for healthy snacking, delicious alternatives, and more are now available.
- Sustainable food options from farms that use renewable energy and avoid chemicals and animal suffering.
The industry is advancing at a breakneck pace. Consumers would have easier access to sustainable choices and will have a greater understanding of how food is produced. When it comes to the sustainability of our food, this will help us overcome our worried tendencies toward an out of sight, out of mind approach.
The Bottomline
Thailand’s future lies in the BCG economy. Public institutions are setting the path for the growth of BCG-oriented firms, which will benefit not only the owners and employees but also the investors and consumers upstream and downstream.
BCG equals more money, better produce, and a higher quality of life, all while conserving the environment. It is critical that we stay at the vanguard of the sustainability frontier, both for our own development and for the sake of a more prosperous future. In Thailand, this is the future for food in Thailand.
Therefore, as a foreign investor, you can milk this opportunity. Now you can plan your investments for the food industry in Thailand. This will help you attract lucrative BOI deductions in investment and tax incentives, thereby, reducing overall investment and running expenses. Email us at [email protected] to know more and get the correct guidance for incorporating your company in Thailand.
