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Flood Boosts Farm Equipment Sales

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Flood Boosts Farm Equipment Sales

(CTN NEWS) –  The Federation of Thai Industries (FTI) anticipates that Farm Equipment sales will rise due to the damage caused by recent flooding on both domestic and international markets.

According to the Agricultural Machinery Club of the FTI, the favourable business prospects are anticipated to endure for one to two years, but once Beijing eliminates its zero-Covid policy.

Chinese products could exacerbate competitiveness. According to club chairman Yanapol Limpanachokchai, emerging markets like Africa would be a major factor in generating farm equipment demand, and increasing exports.

“Light farming equipment is necessary for African farmers. Thai producers benefit from this since they can produce goods of high quality at competitive rates, “He added.

According to Mr. Yanapol, Thailand can sell more farm equipment based on basic technologies to African markets.
The federation anticipates that sales of small machinery will fuel a 10% annual growth in the export market.

“Small and medium-sized firms (SMEs) typically manufacture agricultural machinery, and their manufacturing does not require high technology,” he stated.

In Thailand, there are a total of 3,628 businesses that manufacture agricultural machinery. SMEs make up up to 95% of them.

The FTI estimates that the agriculture market is worth 150 billion baht, of which 100 billion come from domestic sales and exports.

“According to the FTI, significant flooding damaged local farm equipment and prompted farmers to purchase new equipment for the approaching crop season.”

Between September and October, the flooding caused devastation in various provinces across the nation, impeding transportation and damaging numerous factories.

Out of the more than 60,000 factories the FTI examined, 14,995 were flooded. According to the FTI, the floods damaged between 6 to 12 billion baht.

Despite a promising economic outlook for producers of agricultural gear, Mr. Yanapol warned that competition from China could alter the forecast.

The club worries that China would saturate markets in Thailand and other countries with inexpensive items.

According to him, the Chinese industry might soon recover if Beijing abandons its strict lockdown tactics to stop the spread of Covid-19 and finally allows for a full reopening of the nation.

“Because of their reduced operating expenses, Chinese agricultural machinery is typically more affordable than Thai items,” according to Mr. Yanapol.

“We are concerned about this problem and urge the authorities to safeguard the neighbourhood market against dumping.”

The club intends to collaborate closely with the FTI to keep an eye on world economic conditions, especially the effects of the US-China trade war and the Russia-Ukraine conflict.

In a related development, the FTI will host the 16th Thailand Tractor & Agri-Machinery Show from December 1–10 in Nakhon Pathom in collaboration with the Commerce Ministry

And Kasetsart University to disseminate information on new agricultural developments and innovations and to facilitate business-related events.

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