Status and financial performance of organic vegetable farming in northeast Thailand

In line with the national sustainable agriculture development policy of the Government of Thailand, organic vegetable farming (OVF) promotion projects have been implemented in several provinces of the country. Based on data collected through a questionnaire survey of 172 sample vegetable farmers in Mahasarakham Province of northeast Thailand, this study firstly assessed the status of OVF and then, analyzed the financial performance of three main vegetables cultivated, namely: morning glory, green onion and Chinese kale. Finally, sensitivity analyses of the financial performances for all three vegetables were conducted under four assumed scenarios with respect to price of synthetic fertilizers and pesticides, and yield and price of organic vegetables. The findings of the analysis on the status of OVF revealed that organic vegetable farms accounted for very small percentage of the total area used for all vegetables in the study area. Results of the financial analysis also showed that OVF was much less financially attractive than conventional vegetable farming due to low yield which usually does not come with premium price of the vegetables. Still farmers are growing organic vegetables on small scale primarily for household consumption. The findings of the sensitivity analyses indicated that the removal of direct or indirect subsidies for synthetic fertilizers and pesticides, and appreciation in the yield and price of organic vegetables can enhance the financial performance of OVF. In view of the possible rejection of radical policies that encourage OVF by discouraging conventional vegetable farming, this study suggests appropriate policy measures that could directly provide incentives for organic vegetable production and consumption.

► Organic vegetables accounted for a very small percentage of the total area under all vegetables.
► Financially OVF was much less attractive than the conventional vegetable farming.
► Farmers grew organic vegetables at a small scale primarily for household consumption.
► Promotion of OVF requires improvements in the yield and price of organic vegetables through the provision of needed support for production and for marketing of organic vegetables.