SMART FARMING in Chiangmai - WordPress.com · relative slower growth of agriculture. 9. The use of “Smart Farming” to improve crop productivity and thereby boost GDP is therefore

SMART FARMING in Chiangmai:

“Innovation through Inclusion”

Abstract: In February 2017, the Digital Economy Promotion Agency (under Thailand's Digital Economy and Society Ministry) announced US$1.2 million would be invested in developing Chiangmai into an innovation-driven “Smart City”, making it one of three model smart cities in Thailand. The “Smart City” outlook i.e. integrating Information and Communications Technology (ICT) with the Internet of Things (IOT), is critical for secondary cities with burgeoning urban population like Chiangmai. A key focus of Chiangmai’s “Smart City” initiative is “smart agriculture": some 80% of Chiangmai's population are farmers, mostly small-scale, and transforming the agricultural landscape through increased ICT use has the potential to meet policy objectives of increasing farmers’ income through difference sources, amongst others. Yet our literature review (existing “Smart Farming” initiatives in Chiangmai) and research methodology (field visits and interviews with select Chiangmai farmers) reveal digital literacy remains a key challenge for the older generation. Our project aims to address limitations of existing initiatives by designing a platform-enabled website to be owned and operated by a young generation of entrepreneurial, tech-savvy farmers, “Young Smart Farmers (YSF) Chiangmai”. The participation of such “change champions” is crucial for community inclusion, engagement and ownership of process and outcomes. Finally, our proposal envisages how the Sustainable Development Goals (SDGs), eg. SDG 2 (Zero Hunger) and SDG 12 (Sustainable production patterns), can be localized for a farmer-led digital transformation in Chiangmai.

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Contents Motivation for Study .................................................................................. Error! Bookmark not defined.

Policy Context ............................................................................................................................................... 3

Overview of Thailand’s Agricultural Goals ................................................................................................ 3

Institutional structures ............................................................................................................................ 3

Agricultural goals ................................................................................................................................... 6

Smart Agriculture and Sustainable Development Goals (SDGs)............................................................ 7

Background and overview of agriculture in Chiang Mai ............................................................................ 8

Distribution of agricultural sector ........................................................ Error! Bookmark not defined.

Consumers and markets ........................................................................ Error! Bookmark not defined.

Production and yield methods .............................................................. Error! Bookmark not defined.

Current challenges of small-holder farmers in Chiang Mai ........................................................................ 9

Low income and causes ........................................................................ Error! Bookmark not defined.

Smart Agriculture ......................................................................................................................................... 9

Chiang Mai as “Smart City” ....................................................................................................................... 9

Agriculture & Cooperative Ministry’s 20-year Plan (2017-2036) ............................................................ 10

How ‘smart agriculture’ can positively impact farmers ............................................................................ 10

Existing private sector initiatives in Thailand ........................................................................................... 12

Mobile farming apps ............................................................................................................................. 12

Internet of Things (IOT) solutions ........................................................................................................ 13

“Smart Farmer” Awards ...................................................................................................................... 14

Existing “Smart Farming” Initiatives specific to Chiang Mai .................................................................. 15

Department of Agricultural Extension (DOAE): Chiang Mai Office ................................................... 15

Young Smart Farmers (YSF) ................................................................................................................. 17

Scope for intervention: a ‘Cross-Learn’ Platform ................................................................................ 17

Thailand’s Unique Royal Projects ............................................................................................................ 18

Recommendations ....................................................................................................................................... 19

Proposal .................................................................................................................................................... 19

Estimated Cost .......................................................................................................................................... 21

SWOT Analysis ........................................................................................................................................ 21

Limitations ................................................................................................................................................ 22

Internet penetration rate ....................................................................................................................... 22

Digital literary of mainstream farmers ................................................................................................. 23

Conclusion ................................................................................................................................................... 24

Chiang Mai and the SDGs ........................................................................................................................ 24

Annexes ........................................................................................................................................................ 25

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Annex 1: DTAC video showcasing “Smart Farming” in Thailand ........................................................... 25

Annex 2: DOAE “Smart Farmer” assessment criteria form ..................................................................... 25

Policy Context

Overview of Thailand’s Agricultural Goals

1. Thailand is the second largest food exporter in Asia, with main products exported being

staples like rice and corn. As a major player in global agriculture, keeping pace with increasing

domestic and international demand for food production is a main driver behind Thailand’s

policy push into “Smart Farming”.

Key Institutional structures

2. The Ministry of Agriculture and Cooperatives (MOAC) has central oversight of

administration of country-wide agricultural policies. Its three-fold strategy includes: reducing

farmers’ risks price-wise (eg.from unstable production), developing/strengthening capacity to

meet production demand and facilitating marketing of products.

Figure 1: MOAC Agricultural Policies 1

1 Source: Ministry of Agriculture and Cooperatives, https://eng.moac.go.th/main.php?filename=main

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Figure 2: MOAC general strategic goals 2

Figure 3: MOAC 2016 Goals

2 Source: Strategy, Ministry of Agriculture and Cooperatives, https://eng.moac.go.th/ewt_news.php?nid=10

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3. Its Department of Agriculture then, through various provincial Extension Offices

(DOAE) (including Chiangmai), oversees the implementation of these policies on the ground.

Figure 4: Organizational chart of MOAC 3

Figure 5: Department of Agricultural Extension (DOAE) provincial offices 4

3 Source: Organization, Ministry of Agriculture and Cooperatives, https://eng.moac.go.th/ewt_news.php?nid=191 4 Source: Organization, Department of Agriculture: http://www.doa.go.th/en/?page_id=47

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Agricultural goals

4. Thailand’s long-term agricultural development directions and strategies for 2017-2021

are set out in The Twelfth National Economic and Social Development Plan (“the Twelfth

Plan”).5 They are formulated by the Office of the National Economic and Social Development

Board (NESDB) according to the country’s Sustainable Development Goals (SDGs), the

Thailand 4.0 Policy, amongst others.

5. Chiang Mai features in the Twelfth Plan as part of Thailand’s goals to develop its

Northern Region for creation and distribution of economic opportunities. Part of its

developmental guidelines include: “[to] improve agricultural productivity, value-added

products, safe and organic agriculture under Good Agricultural Practices (GAP), as well as to

develop various agro-processing products to serve market demand: developing the Upper

Northern Provincial Clusters to be an organic agricultural production base, and the Lower

Northern Provincial Clusters to be a safe agricultural production base (smart farms) by…

applying green technologies in the production process, and… supporting farmer groups or

cooperatives for effective joint production planning and marketing networks.” 6

6. Another important strategy relates to “behavioural nudges” for the children of existing

farmers to remain in agriculture and develop themselves as “new generation” farmers. Eg.

“Fostering the creation of smart farmer groups to become business managers, from downstream

production to marketing”, “[offering] the first priority to children of farmers who own farm

land to be developed as smart farmers”,7 designing practice-based curricula and setting up

“knowledge management” systems to keep them abreast of latest trends, “supporting

successful farmers to be role models for others…promoting the wide expansion of local

agricultural markets and e-commerce.”8

7. It is against this backdrop that we have chosen the “Young Smart Farmer” (YSF) group

in Chiangmai9 as one of the key stakeholders to work closely with on our proposal.

5 The Twelfth National Economic and Social Development Plan, Office of the National Economic and Social Development Board, http://www.nesdb.go.th/nesdb_en/ewt_dl_link.php?nid=4345 6 Ibid. p215. 7 Ibid. p112. 8 Ibid. p210. 9 “Young Smart Farmer Chiang Mai” Facebook page: https://www.facebook.com/YSF-Chiangmai-278899759307367/

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“Smart Farming” and Sustainable Development Goals (SDGs)

8. “There is fish in the water, there is rice in the fields”: this age-old Thai saying

underscores the proud link between Thailand’s strength in agricultural production and

achievement of SDG2.10 Yet agriculture accounts for nearly 40% of the labor force but only

12% of Thailand’s GDP.11 Low crop productivity has been identified as a critical factor to the

relative slower growth of agriculture.

9. The use of “Smart Farming” to improve crop productivity and thereby boost GDP is

therefore another core motivation for the Thai government.12 As part of “Thailand 4.0” policy,

agriculture is one target industry to be modernized using technology, endowed with some 10

million baht funding from the “National Competitive Enhancement Act for Targeted

Industries”.13

10. It is trite that a supportive policy environment is required to nurture “Smart Farming”.

While a 2017 World Bank study found that Thailand ranked below the global and regional

averages in providing an “enabling environment” for transport, water and markets for

agricultural products, 14 key national institutions have been instrumental in driving this

initiative in recent years.

11. In September 2017, Thailand’s Board of Investment announced “Production or Service

Providers for Modern Agriculture” as a new category to receive tax breaks for projects where

technology is employed in farm operations. Moreover, tax incentives are provided for using

technology to achieve “international standards and certifications as Good Agricultural

Practices or GAP and ISO22000 Food Safety Management”.15

10 “Thailand’s Voluntary National Review on the Implementation of the 2030 Agenda for Sustainable Development”, June 2017, http://www.peacewomen.org/sites/default/files/16147Thailand.pdf , p11. 11 Marimi Kishimoto, “Thailand’s new investment chief eager to spur smart farming”, Nikkei Asian Review, November 1, 2017, https://asia.nikkei.com/Economy/Thailand-s-new-investment-chief-eager-to-spur-smart-farming/ 12 “Thailand Investment Review”, Thailand Board of Investment, February 2017, Vol. 27 No. 2, http://www.boi.go.th/upload/content/TIR_Feb17_vF_93086.pdf 13 Priyankar Bhunia, “Thailand 4.0 means Opportunity Thailand: Government taking steps to attract investments in targeted industries”, Open Gov, June 1, 2017, https://www.opengovasia.com/articles/7386-thailand-40-means-opportunity-thailand-government-taking-steps-to-attract-investments-in-targeted-industries 14 “Enabling the Business of Agriculture 2017”, World Bank Group, http://eba.worldbank.org/~/media/WBG/AgriBusiness/Documents/Reports/2017/EBA2017-Report17.pdf , p5. 15 “Thailand Board of Investment (BOI) introduces new measures aimed at modernizing agricultural sector, enhancing Thailand competitiveness”, November 11, 2017,

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12. Core reforms in technology use have also been undertaken by MOAC: firstly, an “Agri

Map” will be created to identify different zones according to their unique climate and land

conditions, before recommending crops to grow in those zones. A “Learning Center” will be

set up in each district using data analytics to help farmers make better decisions and improve

efficiency. “Public-Private-People Partnerships” will be encouraged for collaborative farming.

Responsive production according to demand and use of technology to improve quality of

products will be encouraged. Geographic Information System tools will be utilized for

agricultural management and crop monitoring. Ways to decrease the production costs of crops

will be suggested. Finally, farmers will be trained in e-commerce and “agricultural

communities should have their own brands”.16

Background and overview of agriculture in Chiang Mai

13. Chiang Mai is the second largest province in Thailand and the largest province in

Northern Thailand. Agriculture is a core sector, constituting 22% of Gross Provincial Product.

Some 69.93% of the area is covered by forests, while 13.4% of the area is under agriculture.

14. Chiang Mai does not have a constitutional status as a ‘city’. The Governor of Chiang

Mai is a technocrat appointed by the Ministry of Interior, without budgetary decision-making

authority, and the provincial staff report to their respective Ministry instead of the Governor.

Unlike Bangkok which has an elected Governor, its own administration and an independent

budget, Chiang Mai lacks true autonomy and resources. This reflects a centralized and top-

down approach of the Government, which can make it challenging to implement an initiative

such as ‘Smart Agriculture’ which involves collaboration across levels of bureaucracy as well

as sectors.

https://en.prnasia.com/releases/apac/Thailand_Board_of_Investment_BOI_Introduces_New_Measures_Aimed_at_Modernizing_Agricultural_Sector_Enhancing_Thailand_Competitiveness-194624.shtml 16 Thailand Investment Review, p4.

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Current challenges of small‐holder farmers in Chiangmai

15. “Small-holder” farmers are defined as farm enterprises that produce crops in less than

two hectares of land. The average area of land per farmer in Chiang Mai is 1.6 hectares, which

is lower than the national average of 4.8 hectares.17

16. Challenges faced by small-holder farmers in general are: low productivity of crops, lack

of access to financial services, inadequate safety nets such as crop insurance, high cost of inputs,

institutional neglect of extension services and an inability to sell their produce at prevailing

market price.

17. Similar to other developing countries, small-holder farmers in Thailand are usually part

of an informal value chain – that is, they sell their products to a middleman or local market and

do not participate in further value-added components of the supply chain.

18. A longer-term pressing concern from the sustainability perspective is sustaining interest

of the younger generation to continue in agriculture instead of pursuing city jobs.

Smart Farming in Chiangmai

Chiangmai as “Smart City”

19. As part of Thailand 4.0, Chiangmai is being developed as a “Smart City”. One integral

aspect is promoting ‘Smart Agriculture”. The Digital Economy Promotion Agency (DEPA)

has committed some 36.5 million baht towards developing smart cities in Thailand, with

Chiangmai as the second site, alongside Phuket and Khon Kaen.18

20. Chiangmai is poised to be developed as a model ‘Smart City’ with special focus on

Smart Agriculture, as part of a national “Pilot Smart Cities Scheme” under Thailand 4.0 policy

(Ariffin 2018). This will be undertaken by the Digital Economy Promotion Agency or DEPA,

17 Based on oral interview at DOAE Chiang Mai. 1 Rai = 0.16 Hectares 18 Suchit Leesa-Nguansuk, “Chiang Mai to become smart city”, Bangkok Post, 11 February 2017, https://www.bangkokpost.com/tech/local-news/1196657/chiang-mai-to-become-smart-city

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a national agency formed under the Ministry of Digital Economy and Society to “promote and

support the development of digital industry and innovation and the digital technology

adoption in order to achieve economic, social, cultural and security benefits”.

Agriculture & Cooperative Ministry’s 20‐year Plan (2017‐2036)

21. Thailand’s 4.0 initiative envisages the shift of the economy from an industrial to a

value-based one. The Twelfth Plan aims to promote individual farm production plans (IFPP)

for Thai farmers to analyse, plan and standardize their products.

How ‘smart agriculture’ can positively impact farmers

22. We see “smart agriculture” best practices as a means towards enhanced agricultural

production and income levels of small-holder farmers in Chiang Mai. The advent of Internet

of Things (IOT) requires adaptive capability of the agricultural workforce to be prepared for

disruptions in the agriculture business.

23. We have identified about six Information and Communication Technologies to improve

inclusivity to value chains, as set out below.

Figure 6: Examples of ICTs to promote value chains

Current

Outreach Cost

Future

Potential

1. Traceability

(eg. Blockchain technology like AgriDigital to increase

information on origin of food)

Low Expensive High

2. Digital Credit Score

(eg. Database for smallholder farms on their credit

score: remove major barrier for smallholder farmers to

enter global value chains because of lack of access to

credit)

Zero Cheap High

3. Digital Extension Services Low Expensive High

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(eg. Linking farmers to data like weather advisory, data

from sensors and satellites, inputs to use for particular

crop etc)

4. Social Media

(eg. For farmers using smartphones to share

experiences and challenges)

Zero Cheap High

5. Mobile Wallets

(eg. Cashless transaction technology; remove

imperfections in payment to farmers because of

asymmetric information; allow them to plan crop

cycle)

Low Expensive Medium

6. SMS Updates

(eg. Providing farmers with information on input such

as seeds, market price of produce, advisory on weather

etc)

High Cheap Low

24. We note that some of these are already being implemented or explored in Thailand. For

example, Chiang Mai University is currently conducting research into traceability of food

products.

Figure 7: Evolution of agricultural technology in Thailand 19

19 Nicole Darabian, “How dtac is enabling digital transformation for Thai farmers”, GSMA, December 7, 2016, https://www.gsma.com/mobilefordevelopment/programme/magri/dtac-enabling-digital-transformation-thai-farmers

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Figure 8: Traceability research by Chiang Mai University 20

Existing private sector initiatives in Thailand

Mobile farming applications (app)

25. DTAC, one of Thailand’s largest mobile operators, has developed an app, “Farmer

Info”, that provides market information to farmers (available on the Apple store).21 This is on

par with other “smart farming” initiatives in the region (eg. Japan, Myanmar), and builds on an

earlier SMS alert function also by DTAC.

20 Photo taken by Ann Lervita. 21 https://itunes.apple.com/th/app/farmer-info/id541507104?mt=8

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Figure 9: Existing smart initiatives in Thailand 22

Internet of Things (IOT) solutions

26. DTAC has been actively involved in various projects with the Department of

Agriculture and NECTEC to introduce innovation and technology into agricultural

development, and increase productivity, quality control and reduce costs for Thai farmers. Eg.

They are jointly developing IOT solutions for temperature control, soil moisture, research and

production of sensors, data analysis and even cloud intelligence.

27. DTAC is also involved in educational courses for farmers, eg: (a) commercial farming

programs, which teach young farmers how to improve productivity in managing agricultural

products, develop online marketing channels and strengthen networks between farmers; and (b)

developing skills to use Internet applications on mobile phones to improve knowledge transfer

and increase access to information channels.23

22 DTAC Sustainability Report 2016, https://issuu.com/dtac/docs/20170227-dtac-sd2016-en/60 23 DTAC Smart Farmer website (translated from Thai): http://dtacsmartfarmer.com/

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“Smart Farmer” Awards

28. To incentivize “Smart Farmers” and to ascertain key trends of agriculture, a yearly

“Smart Farmer Awards” is organized by the DOAE, DTAC and Rak Ban Kerd Foundation.

29. This has proven a useful platform to showcase the latest trends in “smart farming”

including: (i) data-driven farming (the use of big data to supplement on-farm precision

agriculture, by having the right data at the right time to make better cost-reducing decisions,

raise product quality and improve long-term profitability); (ii) use of renewable energy

technology (to reduce vulnerability to rising oil prices and related sources of energy); and (iii)

development of bio-pesticides.

30. The 2017 Smart Farmer Awards were organized under the theme of integrated

agriculture by leveraging the use of technology. The ten finalists were selected based on criteria

such as: combination of innovation and local wisdom to raise the standard of their products,

access to information, transformation from traditional to “smart” production methods,

consumer-centric and eco-friendly consciousness, and use of “market-led” thinking and

readiness to share with their peers.

31. The 2017 winner was Jirawan Kamsow,24 a Chiang Mai farmer growing organic golden

cordyceps. She stood out for her research into agricultural planning, from upstream to

downstream. While traditional farmers usually focus on supply, she had a market-led strategy

that differentiated her from traditional farming. A PhD holder, she developed bio-fertilizer and

created her own brand. Her product is traceable using a Quick Respond (QR) code for

customers. She also networks with other farmers in the community.25

24 http://www.nationmultimedia.com/detail/Startup_and_IT/30340118 25 www.lifestyleinthailand.com/smart-farmer-awards-unveils-thailand’s-agricultural-trends/

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Existing “Smart Farming” Initiatives specific to Chiang Mai

Department of Agricultural Extension (DOAE): Chiang Mai Office

32. The DOAE Chiang Mai Provincial Office (“DOAE Chiang Mai”) oversees about

190,000 farmers in Chiang Mai (excluding the 20,000 farmers who are working with the Royal

Project Foundation). It is one of the offices under the Department of Agriculture.

Figure 10: Field session with ‘Smart Farmer’ representative at DOAE Chiang Mai 26

33. The DOAE Chiang Mai started its ‘Smart Farmer’ initiative around 2014. This initiative

receives funding from the Thai government to develops plans to help farmers farm smarter, by

categorizing them into three main groups:27

26 Conducted on 6 December 2017, between 9.30am – 12.00pm. 27 See also DOAE information for breakdown of “Smart Farmers” across different provinces: http://doc.doae.go.th/wp-content/uploads/2017/02/Data_DSF_SF_SFM_20160909.pdf

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Figure 11: Categorization of Chiang Mai farmers 28

Smart Farmer type Description Estimated number (%)

“Developing” Lowest income category 159,700 (84.05%)

“Exciting” Beginning to adopt smart farming

methods

(by income level)

30,000 (15%)

“Model” Successful farmers

(identified farmer in each district who

specialize in one area)

300 (0.15%)

34. The DOAE Chiang Mai categorizes the smart farmers according to certain assessment

criteria (Annex 2). 29 Amongst others, income level is used to differentiate between

“Developing” and “Exciting” Smart farmers. For example, a farmer with an income of not less

than 180,000 baht per year can apply to become a “Smart Farmer”.30 For “Exciting” Smart

Farmers to graduate to “Model” category, there are additional criteria such as assessment of

their leadership and how they share knowledge about technology with other farmers.

35. There is existing use of social media platforms to maintain connectivity between

farmers. The LINE mobile app is used to set up communication groups between farmers, based

on the type of crop grown.

36. Some of the ‘Smart Farming’ activities organized by DOAE Chiang Mai include

activities in a centre for the 300-plus “model” smart farmers related to knowledge transfer. For

example, there could be information dissemination about fertilizer and pesticide use, or

demonstration conducted by farmers with practical experience in solving specific problems.

We understand that sometimes videos are recorded of these sessions, but as of date they are not

collated in a single place.

37. We also learnt that although younger Thais in general are not interested in taking up

farming as a profession, there is a group of about 50 young Chiang Mai farmers with high

28 The information in this table is based on our oral interview at the DOAE Chiang Mai on 6 December 2017. 29 Annex 1: Smart Farmer Assessment Criteria. 30 https://www.technologychaoban.com/news_detail.php?tnid=1999

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digital literary. They are mainly involved in selling products in niche markets such as those for

organic products, and produce videos for publishing on Facebook and YouTube.

Young Smart Farmers (YSF)

38. Over the past nine years, both the DOAE and DTAC are working with Young Smart

Farmers (age group of 17-45 years) across Thailand’s different provinces in areas such as:

applying modern technology to enhance efficiency of management, marketing of agricultural

products, capacity building and strengthening cooperation networks. YSF are generally more

open to embrace the use of information technology and IOT for farm operations, from planning,

cultivating, harvesting to sales – marrying modern technology with the “local wisdom” from

past generations of farmers. Based on information from the DOAE website: as of 2016, about

83% of Chiang Mai’s YSF population are considered “Smart Farmers”.31

39. Our research indicates that there are existing YSF networks across the eight northern

provinces (including Chiang Mai) which are currently establishing “provincial incubators” to

develop more YSF.32

Scope for intervention: a ‘Cross‐Learn’ Platform

40. Our takeaway from the DOAE Chiang Mai was that any intervention should be bite-

sized. They impressed upon us that the concept of “smart” need not be limited to the use of

technology but could simply a “smarter” way of farming.

41. We envisage building on existing networks between farmers to improve connectivity

both amongst themselves as well as to the markets.

31 The Buddhist calendar is 543 years ahead of the Gregorian calendar, ie. year 2559 is year 2016: http://doc.doae.go.th/wp-content/uploads/2017/02/3.- -Young-Smart-Farmer- -59.pdf 32 YSF Chiang Mai Facebook page: https://www.facebook.com/YSF-Chiangmai-278899759307367/

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Figure 12: Photograph taken at DOAE Chiang Mai

Thailand’s Unique Royal Projects

42. Owing to the initiatives of His Majesty Late King Bhumibol erstwhile opium planters

from poor hill tribes in Chiang Mai were able to produce high value fruits and sell it to the

market. This development project known as Royal Project now has 20,000 farmers in 7

provinces of Thailand with a specific target of uplifting low income and marginalized

communities. The Project has monetary resources at their disposal which enables market

research, planning and extension services. Also, they are the first buyers or support farmers in

times of harvest losses and hence minimize risks of cultivators.

43. We visited two Royal Projects in Chiang Mai where we interacted with farmers,

management and understood their business model. Projects such as Royal Project have a long

gestation period with difficulties in scaling up. But it does teach us invaluable lessons about

how knowledge dissemination and market led interventions can bring about a transformative

change in agriculture. We kept these lessons in mind while devising our proposal to improve

farmer incomes in the province.

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Figure 13: Interviewing farmer at Nong Hoi Royal Project, Chiang Mai

Recommendations

Proposal

44. Our research indicates that there is currently no platform website where Chiang Mai’s

farmers can interact directly with potential buyers from a wider market, consolidate knowledge

about farming and access services from agri-businesses. Current knowledge-sharing is mainly

via Facebook, group chats and YouTube (Annex 1) with information available in a scattered

manner.

45. Our proposal aims to fill this gap by setting up a web-based platform, in Thai and

English, for Chiang Mai’s farmers to share information (eg. on best practices), access services

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and ultimately be empowered to scale up their business so as to sell their products to a wider

market.

46. The core aim of such a platform is to facilitate the connection of Chiang Mai’s farming

base to the single market envisaged by the ASEAN Economic Community, through marketing

on a one-stop website in the common language of English.

47. We have identified and engaged a potential group of “change champions”, namely, YSF

Chiang Mai, who have expressed some degree of interest in exploring this proposal, and whom

we hope can eventually take over ownership of the platform after our initial start-up.

48. Other potential features of the platform including the following:

(i) “Exciting” smart farmers can access information on various stages of farming from

“Model” farmers through online resources (eg. demonstration videos, site-based

chatbots).

(ii) Agribusiness companies can provide personalized farm management plans to

farmers if they share information about their cropping patterns and location. These

companies can also sell their products (eg. seeds, fertilizers) to farmers through

these farm management plans.

(iii) Buyers (eg. wholesalers and retailers) can directly purchase from the farmers

advertising their crops

(iv) Local agribusiness companies can connect with foreign companies.

(v) The platform will enable the company to collect more data of farmers like their

cultivation pattern whereby profiles of farmers can be created for accessing credit

and other financial services.

49. For the purpose of sustainability, a company (incorporated in Thailand) should be set

up for prudent management of the funds required for the initiative to continue in the long run.

We foresee that funds can come from at least three sources:

(a) Advertising fees from agribusiness companies who would like to market their services

through the platform.

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(b) Membership fees for wholesalers and retailers who wish to buy directly from member

farmers through the platform.

(c) Farmers who invest in the company through eventual listing of the company and buying

of issued stocks

Estimated Cost

50. Based on the given budget of US$17,000, we estimate that we would be able to cover

about four months of operating costs for the setting up of a company to administer the proposed

new platform. The breakdown of monthly expenses is set out below:

Item Unit

Price(baht) Units Months Subtotal(baht)

Subtotal (USD)

Staff salary 25,000 2 4 200,000 6,250 Computer 32,000 2 1 64,000 2,000 Smartphone 10,000 2 1 20,000 625 Desk 5,000 2 1 10,000 313 Office chair 4,200 2 1 8,400 263 Table 5,000 1 1 5,000 156 Chair 1,150 4 1 4,600 144 Office rent bill 10,800 4 1 43,200 1,350 Electricity 1,500 1 4 6,000 188 Water 200 1 4 800 25 Internet 1,000 1 4 4,000 125 Smartphone fee 300 2 4 2,400 75 Other costs - - - 60,000 1,875 Total (baht) - - - 428,400 13,388

SWOT Analysis

51. The key drivers, opportunities and limitations of our proposal are summarized in the

SWOT analysis below:

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(Existing) STRENGTHS (+) (Internal) WEAKNESSES (-)

Enhance the bargaining power of smallholder farmers in agriculture value chains

Solution complements government efforts to reach out to a younger generation of innovative farmers

Sustainable solution if current policy of smart farmer is discontinued in the next budget cycle

Leveraging on the current network of farmers

Low digital literacy of farmers Economies of scale in agriculture may not be

achievable in Chiang Mai Incentivizing farmers to switch from staple

crops to high value crops Rise in environment issues such as

contamination of groundwater if chemical inputs are used

(New) OPPORTUNITIES (+) (External) THREATS (-)

Helping local farmers to connect with ASEAN economies

High potential and low financial risk Encourage future young smart to cultivate

high value crops Provides a single window to reach a large

community of farmers to communicate government schemes, subsidies and SDG targets.

A rival platform is set up by agribusiness or private sector

Cheaper exports flood the market Alternate remunerative career opportunities

in Chiang Mai Extreme weather events such as drought can

reduce the potential of agriculture in the province

Limitations

52. We have identified the overall digital literary of farmers and the current internet

penetration rate in Chiang Mai as the main obstacles. There is also tepid response from the

stakeholders approached.

Internet penetration rate

53. Currently, the internet penetration rate in Chiang Mai is low. We understand that the

traditional way of receiving information is through the television and radio.

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Digital literary of mainstream farmers

54. Digital literary is another issue. Although Thailand has experienced rapid development

of mobile phone technology, most Thai people still use smartphones primarily for basic

communication (eg.calls, texting and Internet surfing).

55. Efforts have been made by the public and private sectors to empower farmers through

mobile technology.33 For example, cellular operator DTAC has signed a memorandum of

understanding with the Agricultural Extension Department of the Agriculture and Agricultural

Cooperatives Ministry and the Ruam Duay Chuay Kan Sam Nuek Kerd Foundation to promote

the use of communication technology for agricultural development. Under the three-year

collaboration guidelines, the parties aim to create smart farmers through mobile learning

centres in all regions.

Figure 14: Training sessions for farmers on digital technology 34

33 Patcharee Luenguthai, “Empowering farmers through mobile technology”, The Nation, Thailand Portal, August 14, 2016, http://www.nationmultimedia.com/business/Empowering-farmers-through-mobile-technology-30292574.html 34 Ibid.

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56. Our field research suggests that Chiang Mai farmers still see face-to-face interaction as

the main source of knowledge. During our interview at the Mae Sa Royal Project, the farmers

informed us that while they did browse YouTube for videos of farming techniques (Annex

2),35 they still rely on traditional physical communication methods with other farmers rather

than YouTube.

57. That said, we believe that the small but involved YSF Chiang Mai, who are savvy with

use of technology, can act as agents of change to inspire other forward-thinking farmers

through their success.

Conclusion

“Smart Farming” and the SDGs

58. The above proposal will help to achieve SDG 2 of Zero Hunger and SDG 12 of

Sustainable Production. For Chiang Mai context both the goals are important as agriculture

provides sustenance to the province both in terms of food security and livelihoods. Our solution

aims to improve agriculture productivity via digital technology in order to make small holder

agriculture profitable.

Word count: 3919 (excluding content page, footnotes and annexes)

35 Annex 2: DTAC YouTube video on “Smart Farmer” (in Thai with English subtitles).

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Annexes

Annex 1: DTAC video showcasing “Smart Farming” in Thailand

Annex 2: DOAE “Smart Farmer” assessment criteria form Note: Translation into English of Thai forms by Monnaphat Jongdeepaisal (Sai).

‐1‐ Year of Evaluation ( )

Evaluation Form for Qualification of Smart Farmer Pilot (Dept. of Agricultural Extension)

Part 1 Basic information and information on agricultural activities of farmers

(Part 1 information is connected with Farmer ONE system)

1. ( ) Mr. ( ) Mrs. ( ) Others (identify) ………………………

First name …………………… Surname ……………………… Birth date/month/year………………..

2. Identification number ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

3. Permanent Address No. …….. Moo ……. Village ……………………………………

Tambol ……………….. Amphoe ……………….. Province …………….. Postal code ………..……….

Tel no. ………………………. Fax ……………………….. Mobile no. …………………………….

4. Address coordinate: X = ………………………. Y = …………………….. Zone …………………………….

5. Household income from agriculture (previous year) ……………….. baht/year/household

6. Main agricultural activities (yield the highest income for household; choose one)

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( ) Rice ( ) Vegetables ( ) Crops ( ) Flowering plants ( ) Ornamental plants ( ) Fruits ( ) Perennial plants

( ) Corn for animal feed ( ) Rubber trees

( ) Cassava ( ) Tea ( ) Sugarcane for factory ( ) Coffee ( ) Pineapple ( ) Oil Palm

( ) Beans

( ) Oilseed plants

( ) Herbs and spices (long life cycle) ( ) Herbs and spices (short life cycle)

( ) Integrated farming ( ) Salt pan ( ) Insect farming

( ) Aquaculture ( ) Livestock ( ) Sericulture

Part 2 Information on status of farmers

1. First income received from agriculture in year ………………

2. Status of farmer

( ) Village Farmer Volunteer (VFV)

( ) Excellent Farmers in sector …. Year awarded …. Level ..(national/district/province)

3. Membership status

3.1 Collaborative Farming

( ) 1) Not a member

( ) 2) Become a member in year …….. (starting year 2016)

( ) 3) In preparation stage to become a member

3.2 Agricultural Learning Center (ALC)

( ) Member ( ) Not a member

3.3 ALC Network under the Ministry of Agriculture and Cooperatives


‐2‐


Part 3 Evaluation on Qualification of Smart Farmer Pilot

Qualification / Indicator1 Yes No

1. Eligible for all the basic qualifications of Smart Farmer

2. Engaged on the activities by themselves

3. Experience on agricultural activities by sectors (evaluate by sector)

3.1 Rice sector (as indicated by the Rice department)

3.1.1 have at least 3 years of experience in rice farming

3.1.2 engage in rice farming by themselves and their family

3.1.3 produce a higher yield than the provincial average

3.2 Vegetable sector at least 3 years

3.3 Crops sector

3.3.1 Corn for animal feed at least 5 years

3.3.2 Cassava at least 5 years

3.3.3 Sugarcane for factory at least 5 years

3.3.4 Pineapple at least 5 years

3.3.5 Beans at least 3 years

3.3.6 Oilseed plants at least 3 years

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3.4 Flowers sector at least 5 years

3.5 Garden trees sector at least 5 years

3.6 Fruits sector at least 7 years

3.7 Perennial plants sector

3.7.1 Rubber plants at least 10 years

3.7.2 Tea at least 3 years

3.7.3 Coffee at least 3 years

3.7.4 Oil palm at least 10 years

3.8 Herbs and spices (long life cycle)

3.8.1 at least 5 years with life cycle less than 4 years

3.8.2 at least 10 years with life cycle more than 4 years

3.9 Herbs and spices (short life cycle)

3.9.1 at least 3 years with life cycle less than 1 year

3.9.2 at least 6 years with life cycle more than 1 year

3.10 Integrated farming at least 3 years

3.11 Salt pan at least 10 years

3.12 Insect farming at least 3 years

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‐3‐


Part 3 Evaluation on qualification of Smart Farmer pilot (cont.)

Qualification / Indicator1 Yes No

4. Exercise good practices

4.1 produce a higher yield than the provincial average

4.2 use chemical products in a correct and safe manner

4.3 apply the concepts of Green Economy and Zero Waste Agriculture

5. Be distinguishable

5.1 develop new tools/techniques or apply appropriate tools or local wisdom to

solve problems

5.2 produce explicit tangible outcome from developed or applied tools

5.3 attract the interest or attentions from other farmers to use such tools

6. Be well‐prepared to become a role model

6.1 have a regular visitor to study activities

6.2 able to communicate with others and share their learning experience

6.3 be well‐prepared and volunteer as a learning center for other farmers

7. Be able to take a leadership role

7.1 participate or have a role in development activities in their village

7.2 be diligent, determined, generous and service‐minded

7.3 be respectable and credible figure in their village

Part 4 Conclusion of the evaluation

This farmer ( ) is not a Smart Farmer pilot by sector ( ) is a Smart Farmer pilot by sector 1 The selected farmer must be eligible to every indicators in each qualification

Note The selected Smart Farmer pilot by sector is required to be evaluated for the Smart Farmer pilot

by sector in Farm Account in Part 5 if they are also in the program.

Part 5 Evaluation on the qualification of Smart Farmer pilot by sector in Farm Account

Qualification / Indicator2 Evaluation

Yes No

The select farmer is also a farmer in Farm Record (if yes, please continue)

5.1 have continuously recorded their occupational costs

5.2 able to use the recorded account to do cost‐benefit analysis

5.3 make production plan to lower the productions costs and expenses

5.4 have higher income/savings

5.5 able to be a lecturer to share their farm record to others in community

This farmer ( ) is not a Smart Farmer pilot by sector in Farm Account

( ) is a Smart Farmer pilot by sector in Farm Account 2 The selected Smart Farmer pilot by sector in Farm Account must be eligible to every indicators in

each qualification.

(Name of evaluator …………………. Position …..….. Evaluation date …….) (updated Sept 2017)

‐1‐ Year of Evaluation ( )

Evaluation Form for Qualification of Smart Farmer Pilot

Part 1 Basic information and information on agricultural activities of farmers

29

(Part 1 information is connected with Farmer ONE system)

1. ( ) Mr. ( ) Mrs. ( ) Others (identify) ………………………

First name …………………… Surname ……………………… Birth date/month/year………………..

2. Identification number ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

3. Permanent Address No. …….. Moo ……. Village ……………………………………

Tambol ……………….. Amphoe ……………….. Province …………….. Postal code ………..……….

Tel ………………………. Fax ……………………….. Mobile no. …………………………….

4. Address coordinate: X = ………………………. Y = …………………….. Zone …………………………….

5. Household income from agriculture (previous year) ……………….. baht/year/household

6. Main agricultural activities (yield the highest income for household; choose one)

( ) Rice ( ) Vegetables ( ) Crops ( ) Flowering plants ( ) Ornamental plants ( ) Fruits ( ) Perennial plants

( ) Corn for animal feed ( ) Rubber trees

( ) Cassava ( ) Tea ( ) Sugarcane for factory ( ) Coffee ( ) Pineapple ( ) Oil Palm

( ) Beans

( ) Oilseed plants

( ) Herbs and spices (long life cycle) ( ) Herbs and spices (short life cycle)

( ) Integrated farming ( ) Salt pan ( ) Insect farming

( ) Aquaculture ( ) Livestock ( ) Sericulture

Part 2 Information on status of farmers

1. First income received from agriculture in year ………………

2. Status of farmer

( ) Village Farmer Volunteer (VFV)

( ) Excellent Farmers in sector …. Year awarded …. Level ..(national/district/province)

3. Membership status

3.1 Collaborative Farming

( ) 1) Not a member

( ) 2) Become a member in year …….. (starting year 2016)

( ) 3) In preparation stage to become a member

3.2 Agricultural Learning Center (ALC)


3.3 ALC Network under the Ministry of Agriculture and Cooperatives


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‐2‐

Note: 1. This farmer is in a group of:

DSF = Developing Smart Farmer; farmers not eligible for Smart Farmer and are over 45 years of age

(as indicated by the Department’s category).

DYSF = Developing Young Smart Farmer; farmers not eligible for Smart Farmer and are 17‐45 years

of age (as indicated by the Department’s category).

SF = Smart Farmer; farmers eligible for Smart Farmer (qualified for both income criteria and

qualification criteria, in which need to fulfill in at least 1 indicators in each qualification) and

are over 45 years of age (as indicated by the Department’s category).

Evaluation Form for Qualification of Smart Farmer (cont.)

Part 3 Evaluation on Qualification of Smart Farmer Pilot

Qualification / Indicator Before* After*

Yes No Yes No

Basic qualification

1. Be knowledgeable in the career

1.1 able to be a lecturer for technology transfer or give advices

1.2 able to be a learning center for others

2. Able to access information and manage the information

2.1 able to access information sources from both officers and other

information systems e.g., internet and mobile phone

2.2 record and use the information to analyze and manage the products

to match market demands

2.3 use the information to solve problems and develop their career

3. Be knowledgeable in product management along the supply chain

3.1 able to manage factors of productions, capital, etc.

3.2 able to link with markets to commercialize the products

3.3 able to operate effective waste management

4. Be aware of product quality and consumer safety issues

4.1 engage with the production that meets GAP GMP, organic farming, or

other production standards

4.2 engage with the production process that conforms with GAP GMP,

organic farming, or other production standards

5. Be responsible to the environment / society

5.1 engage with production process that does not create pollution and

harm the environment (Green Economy)

5.2 engage with activities that benefit community and society

6. Be proud to be a farmer

6.1 be determined in agricultural occupation

6.2 cherish the land and agricultural occupation for the next generation

6.3 be happy and satisfied with agricultural occupation

Part 4 Conclusion of the evaluation

This farmer is in a group of ……………. (by an automatic evaluation system).

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YSF = Young Smart Farmer; farmers eligible for Smart Farmer and are 17‐45 years of age (as

indicated by the Department’s category).

2. *Before = before joining the program

After = after joining the program

‐3‐

Evaluation Form for Qualification of Smart Farmer

Part 5 Training history

Office of the Permanent Secretary for Ministry of Agriculture and Cooperatives

1. Growing rice with less water

( ) never train ( ) Trained in year ……...

2. Off‐season rice farming


Department of Cooperatives Auditing 1. Occupational cost account


Department of Fisheries 1. Aquaculture


Department of Livestock Development

1. Develop Smart Farmer pilot


2. Develop and create new generation of farmers


3. Develop farmers to become Smart Farmers


4. Increase income of farmers


Department of Agricultural Extension

1. Smart Farmer


2. Young Smart Farmer


Other Organization please identify …………………………………

1. Curriculum please identify ……………………………………

Trained in year ……...



Other Organization please identify …………………………………





(Name of evaluator …………………. Position …..….. Evaluation date …….) (updated Sept 2017)

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