By Mr. Kittipong Chantaraskul Department of Foreign Trade Project Framework for promoting Export Capacity of Thailand’s Organic Agricultural Product By Mr. Kittipong Chantaraskul Senior Trade Officer Department of Foreign Trade Ministry of Commerce

Presentation Outline Why should we focus in exporting Organic Agricultural Product Stakeholder Analysis DMF Work Breakdown Structure M&E Implementation Plan

Why should we focus in exporting Organic Agricultural Product ? Due to: The world market for organic agricultural products has been expanding rapidly Thailand stands a good chance of exporting more chemical-free products Thailand earns six billion baht annually from organic agricultural exports. The Government is pushing for the promotion of Thai organic agricultural products and is also prepared to expand Thailand’s organic export markets in ASEAN, when it becomes a single community in 2015. Aware of the importance of organic agriculture, the Cabinet on 13 March 2012 approved the formation of the National Organic Agriculture Committee, to set policies and strategies for Thailand’s organic agriculture and integrate all related plans and measures. The working group would also conduct a study and gather information to be proposed for the formulation of the National Strategies for Organic Agriculture for 2012-2016. Today, Thailand earns six billion baht annually from organic agricultural exports. It has set a target to increase the export value by 10 percent in 2013. Major Thai organic agricultural exports include rice, black tiger prawn, beef, milk, and fish.

Challenges for Thailand’s Organic Agricultural Product Fast growth in international market particularly in EU market. Comparative Advantage of production . - The world market for organic agricultural products has been expanding rapidly, so Thailand stands a good chance of exporting more chemical-free products. Major markets include the United States and the European Union, followed by Japan and Australia. Thai organic products are in high demand in the international market, but the market size is still relatively small

Stakeholder Analysis Stakeholders to be involved in the M&E process Stakeholder’s Interest Role in the M&E process Level of participation in the M&E process Methods they can use to monitor and evaluate the project? Ministry of Agriculture and Cooperatives Upgrading and maintaining quality of agricultural product including organic agricultural product Monitor and evaluation the implementation of the project. Partnership/Consulting Questionnaire/Interview Ministry of Commerce (Department of Foreign Trade and Department of International Trade Promotion) Improved trade volume; lower operating cost; expanded business opportunities Implementing Thailand Productivities Institute Upgrading production in agricultural product and reducing travel time Provide data and information Exporter Improved delivery of product to the customer Cheaper logistic cost Improved access to & opportunities for new market such as AEC market Participant in the project Informing/Implementing Producer Improved productivity of the product

Project Monitoring Mechanism DMF Design Summary Performance Target Project Monitoring Mechanism Assumption and Risk Impacts Thailand as a world leader inexporting organic agricultural product. By 2017 Increased contribution Of organic agricultural product to the GDP (from 1% to 3%) Improve access to AEC market. National Statistics Political Situation Unstable of the world economy Outcomes Increase the export value. High quality organic agriculture product. Expand the export market to ASEAN. Remain competitive in the exist market. Organic agriculture product from Thailand become a premium brand and different from other producers. High quality in organic agricultural product. Increase the export value by 20 percent in 2017 (6 billion in 2011) Annual Report Economic problem in AEC member countries National disaster

Project Monitoring Mechanism DMF (Continue) Design Summary Performance Target Project Monitoring Mechanism Assumption and Risk Outputs Organized trade mission to exist and new market. Provide the technical assistance to the grower in order to enhance the capacity. Create the partnership between Thailand and other countries in organic agricultural product. Negotiate with the government of importing countries in order to eliminate the trade barriers. Develop efficiency logistic system in order to save transportation cost. Organized training for the new exporter. Arrange trade facilitation for organic agricultural product. Broaden the production base for organic agriculture product by using production cluster and contract farming mechanisms. - Establish a national organic research and development center and national organic information database. - Establish Thailand’s organic agricultural product standard certification that accepted by EU and other countries in 2013. - Establish a regional organic trade association in 2015. - Number of people trained (with trainings, workshops, seminars) among - government representatives - industry employees - Exporter Quarterly project reports National Statistics Lack of money to join trade fair. Lack of budget to manufacturing the product. Lack of English skill.

Work Breakdown Structure Promoting Export Capacity of Thailand’s Organic Agriculture Product 1.1 Project of Thai organic agricultural product to AEC market 1.1.1 Expand the distribution channels to AEC countries. 1.1.2 Trade promotion 1) Developing marketing strategies and expanding new market. 2) Planning and execution of distribution strategies in each market. 3) Developing and maintaining good relationship with existing market. 4) Planning and preparation of oversea exhibition. 1.2 Developing the logistics delivery system for organic agricultural product 1.2.1 Analysis of organic agricultural product logistic problem. 1.2.2 Developing new logistic system Creating a committee for solving logistic problems and creating new logistic problem 1.3 Increasing Productivity 1.3.1 Create Value added to the product Organizing training team to help grower to increase productivity and create value added to the product

M&E Implementation Plan Design Summary Performance Targets/indicator Why do we need this target/indication? How do we gather data? (methodology) When do we gather data? Tools to apply in analysis Impacts Thailand as a world leader in exporting organic agricultural product. By 2017 Increased contribution of organic agricultural product to the GDP (from 1% to 3%) Improve access to AEC market. To measure the success of the project. Annual Report Annually Before-After Outcomes Increase the export value. High quality organic agriculture product. Expand the export market to ASEAN. Remain competitive in the exist market. Organic agriculture product from Thailand become a premium brand and different from other producers. High quality in organic agricultural product. Increase the export value by 20 percent in 2017 (6 billion in 2011) To measure the success rate from the output of the project Custom Department Data Statistic Monthly

M&E Implementation Plan Design Summary Performance Targets/indicator Why do we need this target/indication? How do we gather data? (methodology) When do we gather data? Tools to apply in analysis Outputs Organized trade mission to emerging and new market. Provide the technical assistance to the grower in order to enhance the capacity. Create the partnership between Thailand and other countries in organic agricultural product. Negotiate with the government of importing countries in order to eliminate the trade barriers. - Establish a national organic research and development center and national organic information database. - Establish Thailand’s organic agricultural product standard certification that accepted by EU and other countries in 2013. - Establish a regional organic trade association in 2015. - Number of people trained (with trainings, workshops, seminars) among - government representatives - industry employees - Exporter - To ensure the understanding of participant after joining the project. - To know the successful rate of the cooperation between countries. Questionnaires - Interviews - Focus Groups Annually/ After the seminar, meeting, or conference. Before-After With-Without

M&E Implementation Plan Design Summary Performance Targets/indicator Why do we need this target/indication? How do we gather data? (methodology) When do we gather data? Tools to apply in analysis Outputs Develop efficiency logistic in order to save transportation cost. Organized training for the new exporter. Arrange trade facilitation for organic agricultural product. Broaden the production base for organic agriculture product by using production cluster and contract farming mechanisms.

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