FTI institute to boost sector

The Federation of Thai Industries (FTI) has set up the Institute of Agro-based Industry in a bid to add value to agricultural products, starting with wood-based items.

FTI chairman Chen Namchaisiri said the federation set up the institute to enhance the competitiveness of the agricultural sector, which remains weak because of a lack of connectivity with the industrial sector.

“The agricultural sector employs about 40% of the total labour force but generates only 8-9% of GDP,” Mr Chen said. “In contrast, the industrial sector, which employs only a small percentage of labour, generates almost 40% of GDP. So we’re trying to narrow this gap.”

He said the institute would help add value to agricultural products to meet market demand, certify agriculture-based industrial products and educate farmers to increase their competitiveness by applying innovation and technology to the production process.

Institute chairman Smai Leesakul said the new body would start its first project by setting up the Thailand Forest Certification Council as the agency to certify woodbased products.

The certification will ensure that Thai wood-based products are legal and traceable, and thus widely accepted in overseas markets such as the EU.

Mr Smai said Thailand exports wood products worth 100 billion baht a year, but the country must import high-quality and certified wood worth 60 billion baht to process and re-export.

“After we start this programme, we expect to increase the export value of woodbased products by at least 20-30%,” he said.

He said the institute had already been approved by the Program for the Endorsement of Forest Certification, the international agency for approving wood product standards, to act as a national governing body to certify wood-based products in the country.

He said the institute would start the process of certifying products within the next two months.

For its second project, the institute will help farmers access high-quality fertiliser at affordable prices to increase productivity.

The institute will also help educate 50 rice farmers in Chaiyaphum province on how to use fertiliser effectively and encourage fertiliser producers to meet demand in each agricultural area.

Mr Smai said the institute aimed to help farmers to increase productivity by at least 20% and reduce costs by 15%.

The project is intended as a model for other farmers on how to use technology to enhance productivity.

PHRAKRIT JUNTAWONG Wooden lampshades are shown at a furniture fair. The newly formed institute will support attempts to add value to wood-based products.