1. Seed Industry in Thailand:
Constraints to adoption, trade
and market development
Associate Professor Makasiri Chaowagul, Ph.D
Naresuan University
Orachos Napasintuwong Artachinda , Ph.D
Kasetsart University
Agricultural Transformation in Asia : Policy Option for Food and Nutrition Security
Conference September 25–27, 2013 | Siem Reap Angkor, Kingdom of Cambodia

2. Content of Presentation
• Seed industry of Thailand would focus on rice
and maize seed industries
• Paper tried to answer the main question of how
efficient the market was under the existing
market structure
• Concept of Market Structure , Conduct and
Performance was the analytical tool adopted

3. Overview of Thailand’s Seed Industry
• 24th largest seed exporter
• 3rd largest seed exporter in Asia following Japan
and China
• SE Asia is the largest export market, 70% of
total seed exports (12,937 tons in 2012)
• Seed of maize has the largest trade values

4. History of Maize Seed Industry in Thailand
Year Major Event
Mid1950s Promoted maize as alternative for rice (for export)
Subsidized opening of new land for maize cultivation
Distributed improved seed and other inputs & agreed to buy grain at
predetermined price
1960 Beginning of R&D breeding system/Collecting germplasm from abroad
1966 Established Corn and Sorghum Research Center on Kasetsart Univ Campus by
Rockefeller Foundation
1974 Suwan-1 OPV was successfully developed, resistant to downy mildew
1975 Public sector production of downy mildew resistant maize seed
1977 Development of hybrids by public and private sector
More investment from foreign companies and international organizations
i.e. USAID, Rockefeller, World Bank.
1978 Private companies started selling hybrid seeds
Low adoption due to high price and not significant yield different from OPV
Late1970s Promote baby corn as value-added product for export
Late 1980s Private co. developed hybrids specifically for local conditions
1990 Private companies bred new hybrid seeds giving more than 50% higher yield than
OPV, High adoption

5. Public Private Partnership in Maize
Seed Industry(cont)
• 1970s: Maize seed production & distribution established in
framework of Coordinated National Corn and Sorghum Program
• Private investment through Board of Investment incentives i.e. tax
holidays & reduction
• Suwan-1 was used to many hybrids development
• 6 inbredlines from Suwan-1 (S) C-4 have been used in public and
private breeding programs
• Many private companies in Asia have been using Suwan-1 to
develop hybrids i.e. Pioneer, CP, etc.
• Bank of Ag Credit and Cooperatives (BACC) provide credits through
inputs (including seeds) at subsidized price
• Under seed cluster: PPP in maize field trials (public universities &
Dept of Ag), germplasm collection and evaluation
• SME (Sweet Seeds, Co.) for germplasm development
Source: Sriwatanapongse, 1993; Morris, 1998; NSTDA, 2012

6. Current Situation:
Import/Export Value of Maize Seeds
Source: Generated from Thai Seed Trade

7. Share of Maize Seeds Export
Destinations, by Quantity, 2012
Source: Generated from Thai Seed Trade Association, 2013
Shares of Maize Seeds Import
Origins, by Quantity, 2012

8. Maize seed industry summary
• Successful public-private partnership & rapid private
industry development
• Four types of private companies:
▫ Developers: R&D, sell license
▫ Developers & producers: R&D, own brand , only 5 larges
co., 4/5 are multinational co.
▫ SME: no R&D, buy or free inbred from other co.
▫ Traders: buy and sell
• Role of public sector:
▫ Department of Ag: R&D, breeder seeds, foundation seeds
production, support famer own hybrid seed production
▫ Public universities: research, sell license
• Future development of maize seed industry depends on
regulations i.e. GMO, Plant Quarantine Act B.E. 2507
(1964) Amended by Plant Quarantine Act B.E. 2542
(1999)

9. Rice Seed Industry : Production
Organization Estimated
Quantity
produced (ton)
Production
Channel
Type of rice
seeds produced
Seed
certification
DOR 95,000
23 rice seed
centers
Certified seeds Certification
Agricultural
Cooperatives
30,000 members Certified seeds Certification ?
Community
rice centers
120,000 members Certified seeds Certification ?
Private
sector
200,000
Small local
enterprises
Certified and
Noncertified
seeds
Certification ?
100,000
Large enterprises Certified seeds Self
certification
Sub Total 545,000
Farmers 455,000
Farmers kept
paddy for seeds
Noncertified
seeds
No certification
Total 1,000,000
19.5% was certified seeds , 35.0% was (informal)
certified seeds , 45.5% was non certified seeds

10. Organization Production plans of rice seeds (metric ton)
2012 2013 2014 2015 2016
Department
of Rice
95,000* 80,000 75,000 70,000 60,000**
Community
Rice Center
120,000 150,000 160,000 173,000 200,000
* Extension and certified seeds ; ** only extension seed
• To increase the good quality of rice seeds for the
purposes of community self reliance on seed and
community enterprises , DOR would set up 4,000
Community Rice Centers (CRC) in almost all provinces
in 2016. ( 2016 CRCs in year 2012)
• However , only 10% are effective CRC in term of
community enterprises.
Rice Seed: Production Policies

11. Market Structure and Conduct of Rice seed
• Consider in terms of
▫ number of producers , varieties of rice seed produced
(many alternatives for farmers)
▫ market entry (low degree of barrier to entry)
▫ Production policy of DOR
• It could be concluded that market structure of rice seed is
competitive market
• Prices are derived from current prices of paddy
▫ Farmer prices received for seed produced are 500 – 1,000 baht per
ton higher than the paddy price at harvesting % of moisture (usually
20-22%)
▫ Selling prices would be determined by quality of seed , degree of
competition and prices of DOR seeds (reference prices)

12. Market Performance of Rice Seed Industry
Quality not quantity of rice seed produced is still
question. Factors explain are
 potential of production
 inefficiency of certification system
 current system is ‘product certification’
 Inspection is done by DOR personal by randomly
inspecting once in a while
 lacking of potential field inspectors
If there is enough potential field inspectors , certification
system could be modified into ‘Process Certification’
‘Process Certification’ and ‘professional field inspectors’
should be a challenge missions for rice seed certification
system of Thailand