why not food or oil deal? by Veera Prateepchaikul Recent report about the Gulf Cooperation Council showing keen interest to invest in farming and livestock in Thailand has brought to mind the alleged “neo colonial” land grab by rich governments and multinational corporations for arable land in Africa in order to ensure their food and energy security. (The Gulf Cooperation Council comprises Bahrain, Saudi Arabia, Kuwait, Oman, Qatar and United Arab Emirates.)

In Africa alone, it was reported that an estimated 15-20 million hectares are up for grabs across the continent – an area equivalent to the total amount of land currently under cultivation in the whole of Germany. South Korea’s business juggernault, Daewoo Logistics, for instance, has concluded a deal to lease one million hectares of land in Madagascar. The aim is to produce five million tonnes of corn by 2023 and palm oil from a further 120,000 hectares in the country to ensure food security. Although higher food production is needed across Africa and foreign investments will help in increasing productivity, critics doubt that the real beneficiaries will be the Africans many of whom will remain impoverished and continue to go hungry. Local farmers and communities will lose control over their ability to supply their own sustenance and wealth once the land ownership is handed over to the foreign investors. The result is often an increase in unrest, poverty and protest across the continent.

As far as Thailand is concerned, the question is whether the country needs foreign investments in farming and livestock industry to the point that large swathes of land are to be leased out to the foreign investors? Prime Minister Abhisit Vejjajiva appears to have the answer to this question. He recently said that Thailand welcomes foreign investments in farming and livestock that would introduce new technology which will help increase productivity. But he made clear that foreign investors would not be allowed to lease land or own land to implement such projects.

As a matter of fact, the Foreign Business Act bans foreigners which include companies with more than 50 percent foreign holdings from engaging in rice farming. So rice farming venture by foreign investors whether they are from the Gulf states or elsewhere is out of the question. To be honest, the Gulf Cooperation Council should be commended for their foresight to ensure their own food security for the future. The failed crops in several food-producing countries a few years back which resulted to sharp rises in grain prices may have tempted the Gulf states to look for land in such rice-producing country like Thailand to ensure their own supply of rice on a long-term basis. But instead of rejecting outright the Gulf states’ investment proposal, why don’t we seize the opportunity to bargain for a quid pro quo arrangement to ensure our own energy security since we import huge amounts of oil each year for domestic consumption. How about a food for oil deal on fair terms for the benefits of both parties?

 There is no doubt that Thailand needs foreign investments especially at this juncture of global economic recession. But we don’t want to follow in the same footstep of many countries in Africa or some of our neighbours whose governments willingly open up their farmland to foreign investors with little regard to the local farmers and native pastoralists who are increasingly being pushed aside to make room for the large agri-industrial estates....

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After i read the article topic about "why not food or oil deal?" by Veera Prateepchaikul i agree with him about we don't need to follow in the the same footsteop of countries in Africa or neighbours..and then the question came in my head ..should we allow foreigners to invest in farming in Thailand? When the world is galvanised by global warming and economic globalisation amid depleting natural resources, this is no longer an applicable question chai mai?.Intensive chemical farming has hardened the soil, destroyed the organisms that nourish soil fertility, and severely contaminated the waterways and the food chain with cancer-inducing residues. Is this not a crime if the Thais do it chai mai? rice farming is a politically sensitive issue because rice is not only a major export but also a national symbol of sorts  but if the government wants to protect poor farmers, why have its policies principally served the middlemen and exporters while strengthening the grip of agro-business monopoly?..   

There are plenty of opportunities for foreign investment, and good laws in place to make sure that investments are made in the right industries. Selling off farmland or even farming business would be a disaster for the farmers of Thailand. That's about 70% of Thai people!

I think people shouldn't get upset about foreigners buying land in their country. They're not going to dig it up and take it home with them. And if land is owned by someone else, you can't use it, and it doesn't matter whether they're foreign or from your own country. As for farming methods that are allowed, the government should regulate that for foreigners or natives alike.

yeh agree with would be a disaster for the farmers of thailand ka foreigners cannot engage in contract-farming here only Thai agro giants can do that and still call it agricultural development!chai mai ka

Neutron:I agree with you.. they can not take it ...but what about food price???

i wish the USA had some of the laws that thailand had about forigeners not being able to own land or become US citizen. also the visa rules would be good to have.

if i was a thai citizen i would think the laws would be fair to protect the thai country and farmers. are you can be like the US and give your country away to other people.

Yeh its not about i don't want forigeners invest in my country It is not about anger..this is my home "Thailand" Is it fair that the rich continue to be filthy rich while the poor continue to bleed to death?some time the government told us to see the big picture. It is junk talk.We are citizens. we won't let others determine our life..and i don't want eat expensive rice toooooo kao jai mai ka