White Paper Saraburi Food Valley Development for Food Industry Advancement of Thailand June 2566
White Paper Saraburi Food Valley Development for Food Industry Advancement of Thailand
Executive Summary The food industry plays a vital role in Thailand's economy, driven by the country's vast potential and production capabilities. Thailand is actively pursuing its goal to become the global center of food production and the renowned "Kitchen of the World." This objective is being pursued through various strategies, including advancements in raw material production technology, the establishment of quality and safety standards, and the addition of value to agricultural products and food.
The white paper is divided into seven sections. Part 1 focuses on global food industry development trends, addressing the increasing global population juxtaposed with decreasing production areas. It also explores potential solutions for future food development. Part 2 delves into Thailand's goals for food industry development, encompassing targeted industries, policies, strategies, and government-led regional developments. Part 3 analyzes the potential for food industry growth in Saraburi Province, considering factors such as logistics infrastructure readiness, its advantageous agricultural production base, and its role as a center for agricultural and food innovation. Part 4 explores the perspectives and needs of entrepreneurs striving to enhance the quality of agricultural products and position Saraburi as a center for food industry production. It advocates for value addition in the food industry, the creation of collaboration networks among entrepreneurs, and the establishment of a food industry research and development center. Part 5 presents guidelines for developing Saraburi Food Valley as a city dedicated to agricultural and food innovation. This includes selecting target areas, developing a master plan, conducting legal feasibility studies, and exploring investment opportunities within Saraburi Food Valley. Part 6 focuses on promoting Saraburi Food Valley to elevate Thailand's food industry as a whole. Lastly, Part 7 highlights the benefits of the proposed project, emphasizing its positive impact on the economy, employment, innovation, and overall food industry development in the country. Saraburi province, recognized for its potential in food production, serves as a critical source of raw materials for the country's food industry, encompassing both agricultural products and livestock. Consequently, it is essential to examine the potential, opportunities, and obstacles within the food industry value chain in Saraburi Province. This research is particularly beneficial for entrepreneurs, particularly those in medium and small businesses, who can leverage these findings to promote future development and enhance the food industry.
Contents Executive Summary 1. Development Trends of the Global Food Industry 2. Targets for Food Industry Development in Thailand 3. Potential for Food Industry Development in Saraburi Province 4. Perspectives and Needs of Entrepreneurs 5. Guidelines for the Development of Saraburi Food Valley 6. Promoting the Saraburi Food Valley 7. Benefits of the Project 1 5 12 16 20 34 37
Development Trends of the Global Food Industry
Increased urbanization, growing population, higher demand for food, but fewer sources of production The world's population is projected to reach 9.6 billion by 2050, leading to a higher demand for food. However, agricultural areas are being threatened by urbanization, housing development, and economic growth. This trend, combined with global warming and natural disasters, has raised concerns about "food security" and become a vital agenda worldwide, including in Thailand.
Future food as a solution to food security The future will witness a further increase in food demand. At the same time, consumers are becoming more conscious of health and environmental issues. Climate change, in particular, is exacerbating these concerns. Technology and innovation will play a crucial role in the food industry, enabling the production of nutritious, hygienic, and safe food. The future of the food industry should focus on value addition, reliability, and ensuring stability in production and consumption to achieve food security. It must move beyond traditional food processing and embrace the following aspects :
1) Functional Food: Provides energy while also containing ingredients that enhance bodily functions and nutrition. 2) Cell-based Food/Cultured Meat: Protein derived from laboratory culture. 3) Medical Food: Designed for specific nutritional needs of individuals or patients with particular diseases. 4) Plant-based Alternative Protein: Plant-based protein intended as a substitute for meat, often supplemented with fats, vitamins, and other nutrients 5) Organic Food: Produced from natural sources without chemicals, genetically modified organisms (GMOs), chemical fertilizers, pesticides, hormones, or irradiation. 6) Novel Food: Food or food ingredients obtained through modern technology or innovative production processes, which may cause significant changes in composition, structure, form, and nutritional value. This includes the levels of undesirable substances affecting metabolism within living organisms.
Targets for Food Industry Development in Thailand
2.1 S-Curve Group: Food for the Future Thailand has faced the challenge of the middle-income trap for over 40 years, and without correction, it is projected to remain in this state for the next 30 years. To overcome this trap, the Ministry of Industry proposed the identification of industries that will drive future economic growth. These industries are divided into two categories: the existing industries with potential for further development (First S-Curve) and the future industries (New S-Curve). Five existing industries with potential include Next-Generation Automotive; Smart Electronics; Affluent, Medical and Wellness Tourism; Agriculture and Biotechnology; and Food for the Future. Five future industries include Robotics, Aviation and Logistics, Biofuels and Biochemicals, Digital, and Medical Hub. Five future industries Five existing industries Robotics Aviation and Logistics Medical Hub Biofuels and Biochemicals Digital Automotive Smart Electronics Medical and Wellness Tourism Agriculture and Biotechnology Food for the Future
Thai food has an export value of 1,107,450 million baht and is ranked 13 in the world In the First S-Curve category, Agriculture and Biotechnology and Food for the Future are two of the ten targeted industries. Thailand's food industry has demonstrated remarkable export performance, with Thai food products worth as high as 1,107,450 million baht, marking an 11.8% increase. Although Thailand's global market share has slightly decreased, the country remains stable at the 13th rank worldwide as a food exporting nation. Strengthening the agriculture and biotechnology industry, along with the food processing industry, will enhance production efficiency, drive economic growth, and help elevate the population's income, thus escaping the middle-income trap th
2.2 Center of Food Production and "Kitchen of the World" Thailand's national strategy aligns with the 11th National Economic and Social Development Plan (2012-2016) and government policies. These initiatives focus on economic structure adjustment and enhancing the efficiency of crop production through research and development, technological advancements, and knowledge transfer to farmers. Thailand aims to become the "Kitchen of the World" by developing raw material production technology, ensuring quality and safety standards, and adding value to agricultural products and food. These strategies are vital for increasing the value of Thai food exports. Currently, Thai food products are exported at an estimated value of 7-8 billion baht per year, making Thai cuisine the 5th most popular choice for food enthusiasts worldwide.
2.3 Food Industrial Zone or Food Valley International and national policies emphasize goals related to the food industry, such as enhancing food security, improving nutrition, and promoting sustainable agriculture. The development of flexible infrastructure and comprehensive industrial growth, coupled with innovation, technology, and research and development, are key priorities. Thailand aims to become a leading country in high-value agricultural and processed agricultural products, serving as the future food production center of ASEAN. The Thailand 4.0 policy focuses on technological advancements, creativity, innovation, and research and development in the fields of food, agriculture, and biotechnology. This includes thedevelopment of new agricultural technology startups and food technology ventures, supporting the country's future growth.
Saraburi Province has set a development goal to become a ‘smart green industrial city, a society of quality of life’ The Development Plan for the Central Region and Bangkok Area 2017-2022 (Revised Edition) outlines strategies related to the Food Valley concept in Saraburi Province. The third strategy focuses on raising the level of agricultural and industrial production through innovation, technology, and creativity to ensure sustainable competitiveness. It aligns with the vision of the Upper-Central Provinces' Development Plan 2023-2027 to become a city known for quality of life, innovation centers, high-tech industries, cultural and historical tourism, and safe food production. Saraburi Province aims to become “Smart Green Industrial City and Society of Well-Being”. This comprehensive approach includes ecoindustrial city development, the promotion of community potential and sustainable green cities, upgrading transportation and logistics to support ASEAN industries and services, and enhancing agricultural production, trade, tourism, and environmentally friendly high-value services. Based on the review of policies, strategies, and development plans at international, national, regional, and provincial levels, it is evident that the food industry is a priority across all levels. This aligns with the feasibility study for investment and upgrading in Saraburi Province, aiming to create investment promotion measures for the "Food Security Industry" or "Food Valley" of Thailand.
Potential for Food Industry Development in Saraburi Province
Exhibits the readiness of the logistics infrastructure. Phetchabun Nakhon Sawan Chaiyaphum Nakhon Ratchasima Lop Buri Ang Thong Suphan Buri Kanchanaburi Nakhon Pathom Nakhon Nayok Sa Kaeo Chon Buri Chachoengsao
3.1 Readiness in Logistics Infrastructure Saraburi plays a crucial role as a significant land transportation hub in the country and serves as a gateway to the northeastern and northern regions. It is an intersection of major roads, namely Mittraphap Road and Phaholyothin Road, which connect the central region with the northeast and north. Additionally, Saraburi has a primary highway that links it to the industrial production base in the eastern region through Sukhumvit Road. This road is currently designated as ASEAN Highway (AH1), and there are plans for future development of an intercity highway (Highway No. 3222) connecting Kaeng Khoi District and Ban Na District in Nakhon Nayok Province. This development will further enhance Saraburi Province's connectivity to the eastern region. Moreover, Saraburi serves as a junction for the northeastern, northern, and eastern railway lines. The province is also involved in the development of the Thai -Chinese high-speed rail project, Phase 1, which will connect Bangkok to Nakhon Ratchasima and is expected to be completed in 2026. This project will significantly enhance Saraburi Province's potential for land transportation. Furthermore, it will allow Saraburi to easily access water transportation through a large port and have convenient air transportation options via airports in Bangkok. Saraburi Province exhibits a trend of shifting from traditional agricultural practices towards value-added industrial sectors. To ensure future agricultural and economic growth, it is crucial to study the agriculture of the surrounding provinces, linking the production base and agricultural economy. Based on travel distance analysis, Saraburi's catchment area for raw material transportation without damage is divided into two levels: - Within a 1-hour travel distance (approximately 80 kilometers): This includes six provinces, namely Lop Buri, Nakhon Nayok, Nakhon Ratchasima, Phra NakhonSi Ayutthaya, Pathum Thani, and Ang Thong. - Within a 2-hour travel distance (approximately 160 kilometers): This includes 17 provinces, such as Sing Buri, Suphan Buri, Chai Nat, Uthai Thani, Prachin Buri, Sa Kaeo, Bangkok, Chachoengsao, Samut Prakan, Nonthaburi, Nakhon Pathom, Nakhon Sawan, Samut Sakhon, Phetchabun, Chaiyaphum, Chonburi, and Kanchanaburi. 3.2 Locational Advantage as a Center of Agricultural Production
The analysis highlights three following aspects: (1) Crops: Nakhon Ratchasima stands out within a 1-hour travel distance for field crops like cassava, sugarcane, and maize. Chonburi, Chachoengsao, and Sa Kaeo, which fall within a 2-hour travel distance, are known for fruit trees like coconut and alternative crops such as oil palm and rubber. (2) Livestock: Within a 1-hour travel distance, Nakhon Ratchasima and Lop Buri are prominent provinces for economically valuable animals. Nakhon Ratchasima has a high number of livestock products, including beef cattle, dairy cows, and buffaloes. Lop Buri excels in chicken and pig production, while Suphan Buri is abundant in ducks. Kanchanaburi has a significant number of goats and sheep. (3) Fisheries: Nakhon Pathom leads in freshwater fish production, followed by Nakhon Nayok. 3.3 Being an Important Agricultural and Food Production Base According to the Centre for Agricultural Information, Office of Agricultural Economics, in 2020, Saraburi Province ranks among the top in the country in various agricultural product categories. For example, it is the 14th highest producer of maize, the 27th highest producer of coconuts, and excels in other high-yield agricultural products such as off-season rice, cassava, sugarcane, and oil palm. Saraburi also holds a prominent position as the leading source of livestock in the country. It ranks second in dairy farming, sixth in laying hens and broilers, tenth in ducks, and twelfth in sheep. The province also produces other livestock such as goats, pigs, buffaloes, and beef cattle, which are essential raw materials for the food industry's development.
3.4 Knowledge Center for Agriculture and Food Innovation The Center of Learning Network for the Region, or CLNR, at Chulalongkorn University, located in Saraburi Province, serves as a standard development unit for teaching and learning management using distance communication technology and information technology. It plays a significant role in promoting collaborative research and development among research institutes, universities, and local entrepreneurs. The CLNR focuses on technology innovation for product development, production processes, and new packaging. In collaboration with Food Valley Saraburi, the CLNR aims to position Saraburi as a knowledge hub for domestic and international knowledge, research findings, technology, and food innovations. It provides consulting services to address technical and managerial challenges, facilitates knowledge and technology matching among entrepreneurs, and offers training programs to strengthen the entire food industry. Currently, the CLNR at Chulalongkorn University conducts research in areas related to the agriculture, biotechnology, and food processing industries. It includes food processing prototype workshops as followed food-processing Prototype Centre chemical laboratory physical laboratory microbiology laboratory processing units in sealed containers raw material preparation unit meat processing unit dry food processing unit drinking water production unit UHT beverage production unit
Perspectives and Needs of Entrepreneurs
The insights and opinions of key stakeholders regarding the investment and upgrading of Saraburi Province to create measures for promoting investment in the Food Valley of Thailand are derived from in-depth interviews, strategic foresight, and public hearings. The following are the key perspectives and needs identified: 4.1 Upgrading HighQuality Agricultural Products Saraburi Province serves as a source of upstream raw material production, but there is a lack of intermediaries for raw material processing. The majority of the population in Saraburi is engaged in the agricultural sector, while the industrial sector contributes the highest proportion to the GPP. Measures are needed to support farmers and small and medium enterprises. The province benefits from ample water and energy resources to support the industrial sector. Moreover, there are already several large food processors in the area. Encouraging small farmers to enhance the quality of their agricultural products to meet market demands and establishing fair connections with large operators can create sustainable value chains in the food industry, spanning from upstream to downstream.
4.2 Becoming a Production Center for the Food Industry 4.3 Adding Value to the Food Industry of the Future The target markets for the agricultural and food industries in Saraburi Province include the domestic market, especially the metropolitan area, as well as international markets. There is a high growth trend, and future marketing plans aim to expand the customer base to countries in the ASEAN region and beyond. Most food-related industries require immediate production and export without the need for storage to maintain freshness. Saraburi's advantageous location as a transportation center near the metropolitan region allows easy connectivity to raw material sources and target markets. The development of the dual-track railway network further enhances Saraburi's transportation potential compared to neighboring provinces with similar production capacity. However, delivery options are currently limited, and the efficient development of the rail system would increase transportation options, reduce costs, and facilitate exports to Southeast Asian countries. Consumer behavior is constantly changing, influenced by factors such as health, technology, population dynamics, environmental concerns, and economic conditions. These changes will undoubtedly impact the current food industry supply chain. Entrepreneurs and businesses anticipate the need for adaptation and creating new opportunities. They recognize the importance of technology and foresee plans to expand production capacity and diversify product types to meet the needs of the new generation. Research agencies are required to encourage small businesses to focus on developing future-oriented food products.
4.4 Creation of Entrepreneur Cooperation Networks Establishing networks of cooperation spanning the entire food industry, from upstream to downstream, will strengthen entrepreneurs, particularly small and medium-sized businesses. Training programs in various relevant fields will contribute to knowledge development, expand business opportunities, and increase the bargaining power of the food industry groups in Saraburi Province. Developing a central platform, such as an application or website, as a communication channel will serve as a vital tool for information collection and dissemination within the network. 4.5 Establishment of a Food Industry Research and Development (R&D) Center The development of food industry research and development centers presents an opportunity to foster collaboration between entrepreneurs and educational institutions to upgrade and develop products. The Food Valley concept offers an important platform to promote products and expand into new domestic and international markets. It should not merely serve as a food hub but also create an ecosystem that encompasses the collection, production, processing, distribution, and promotion of products. Additionally, it should facilitate cooperation and knowledge exchange among entrepreneurs in Saraburi Province. Currently, Saraburi has accumulated a significant amount of data, but there is a lack of connectivity among the various data sources. Establishing a system for collecting and analyzing data, coupled with the utilization of AI technology to analyze demand and supply, is crucial. Research agencies should support small businesses in expanding their product offerings, as R&D requires significant investment. This poses a major challenge or small and medium-sized businesses that rely on research and external expertise to grow their operations, generate patents, and generate commercial income. 19
Guidelines for the Development of Saraburi Food Valley
5.1 Center of Agriculture and Food Innovation Saraburi Province boasts a high concentration of agricultural and food industry activities. It serves as a significant water source for agricultural and livestock production, and it houses research centers focused on agriculture and food. These factors contribute to the creation of a value chain in the food industry, encompassing crops, livestock, and dairy. To develop Saraburi Food Valley into an innovative city in agriculture and food, a fostering innovative ecosystem needs to be established. This can be achieved through collaboration among the government, private sector, and academia. Key factors driving Saraburi Food Valley to become a center of agriculture and food innovation include: Effective policies and management: Saraburi Food Valley should act as a platform for translating government policies into local development plans. It should support entrepreneurs at all levels to foster innovation and encourage partnerships between the public sector, private sector, and educational institutions. Projects and activities promoting innovation should be implemented to achieve both qualitative and quantitative results. Robust infrastructure: The development of Saraburi Food Valley should prioritize the creation of a conducive environment for goods and services production and market testing. It should provide access to skilled workers and foster a learning environment that facilitates idea exchange. Promoting innovation development through events and providing spaces for entrepreneurs to learn, collaborate, and access information are crucial. Strong educational institutions: Educational institutions in Saraburi Food Valley should offer relevant information and knowledge related to innovation development. Regular training courses focusing on agricultural and food innovations for entrepreneurs should be organized. Private sector cooperation: Encouraging the private sector to actively participate in spatial development is important. Opportunities should be created for innovative entrepreneurs, such as establishing marketplaces for new products and services and organizing festivals to showcase these offerings. Building collaborative networks between entrepreneurs and educational institutions is also essential.
Considering the density of agro-industrial and food activities in Saraburi Province and the key factors driving Saraburi Food Valley's development into a center of agriculture and food innovation, the activities can be divided into two aspects: primary activities and support activities. Primary activities encompass: 1) Production: This involves the cultivation, care, and harvesting of agricultural produce to obtain raw materials for further processing, as well as research and development (R&D) activities. 2) Processing: This encompasses the transformation of agricultural products and livestock into main raw materials for the production of consumer goods, relying on knowledge and technology to increase their value. 3) Distribution: This entails efficiently controlling the movement of raw materials, components, and finished goods both inbound and outbound to deliver them to consumers. 4) Consumption: This refers to the utilization of products and services to meet consumer needs. 5) Reduction: This involves managing surplus resources that would otherwise become waste by transforming them into new materials or products.
Support activities encompass: 1) Infrastructure: Investments from both the public and private sectors in terms of financial resources, public utilities, information systems, and legal privileges are required to create an efficient network that drives various activities and adds value. 2) Human resource management: Incubating personnel and developing their skills in various related activities, particularly in agricultural entrepreneurship, biotechnology, and food innovation, is crucial to establish value-based businesses driven by innovation. 3) Technology: Knowledge, innovation, and technology play a significant role in extending core activities. Leveraging technologies such as the Internet of Things (IoT), artificial intelligence (AI), drones, and smart industry solutions can unlock the potential of existing activities, leading to greater efficiency, improved decision-making, and enhanced productivity. Infrastructure
5.2 Areas with Development Potential An overlay analysis was conducted, considering six analytical factors: prime agricultural areas, areas with good and medium quality soils, flood-prone areas, drought-prone areas, areas prone to sinkholes and slopes, and reserved forests and national parks. Based on the results, unsuitable areas for the development of the Food Valley project in Saraburi Province were identified. The suitable area for project development is located at the boundary between the southeast of Mueang Saraburi District and the southwest of Kaeng Khoi District, covering Kut Nok Plao Sub-districts, Huang Haeng Sub-districts, Taling Chan Sub-districts, and Tan Diao Sub-districts. These areas meet all six factors and have the potential for transportation due to their accessibility through the eastern Saraburi Bypass Road and double-track railway. Furthermore, the proximity of this area to Saraburi city center and the research area encourages the development of a comprehensive food industry, spanning upstream, midstream, and downstream activities.
5.3 Saraburi Food Valley Master Plan The development of Saraburi into an "Innovative City for Comprehensive Food, Agriculture, and Livestock Industry" has the potential to attract investments from both within and outside Saraburi. It is important to create job opportunities in the food industry and attract highly skilled workers to the province. This development also presents an opportunity to enhance labor skills within the province, aligning with the strategy and development trend to upgrade the Food Valley area nationwide. It serves as a mechanism to overcome the middle-income trap through innovation and ensures inclusive and equitable development across all sectors. Food, Agriculture, and Livestock Cluster Research and Development Showcase Area Innovative City on Comprehensive Food, Agriculture, and Livestock Industry Share Advanced Technology and Machinery Attract High-Skilled Labor
Concept of Area Development: The Food Valley Development Concept in Saraburi Province consists of seven activities that guide the zoning plan into five types. The initial sample area of 1,000 rai will focus on creating food innovations and developing commercial areas. It will be connected to the existing city area and the important logistics base of Saraburi Province, including major national roads and a double-track railway. These improvements will enhance accessibility and facilitate exports to various areas in the metropolitan region, central area, and the Eastern Economic Corridor. Moreover, it will improve the quality of life for the people in Saraburi Province. The area planning concept comprises three primary activities: 1) Research, invention, testing, and experimentation with innovation (incubator): This activity supports the creation of new entrepreneurs and aids in product development through science and technology. Services are provided to entrepreneurs from the idea stage to prototype product development, with the support of a network of specialists and access to funding sources from the government sector. Office spaces are also made available for new entrepreneurs. 2) Industrialization of innovation: This activity involves bringing prototype products obtained from experimentation into the production process. It focuses on product processing, creating added value, and mass production of food products that are consistent in quality, safe, and convenient for consumption or further use. 3) Commercialization of innovation: This activity aims to showcase, publicize, exchange, distribute, and test market the product (market validation) until it can be successfully introduced to the market. To develop an innovative city in the area of the food industry, agriculture, and livestock, four secondary activities need to be supported: 4) Quality housing: Developing high-quality residential areas is essential to provide a basic living space and attract specialists and industrial workers to the area. It improves the quality of life for residents, reduces travel distances, and minimizes costs for specialists and workers involved in the project. 5) Utility infrastructure: This includes ensuring the availability of water supply, electricity, water treatment, waste disposal, and other utilities necessary to support all activities and drive the project forward. 6) Logistics system: An efficient logistics system is crucial for promoting the import of main raw materials and exporting processed products from the food industry. Emphasizing quick and convenient product and service distribution can help reduce transportation costs. 7) Recreational activities: Providing recreational areas enhances the quality of life for residents within the project area. These spaces serve as recreational hubs and meeting places for communities within the project and the wider Saraburi Province.
Research, invention, testing, and experimentation with innovation Industrialization of innovation Commercialization of innovation
The concept of innovative urban development in the food industry, agriculture, and livestock consists of seven activities, leading to the layout of a circulation diagram that connects five types of zoning areas: 1. Incubator zone: Located at the center of the project, this area focuses on research, testing, experimentation, and innovation. It is interconnected with other areas such as the commercial and industrial zones. 2. Industrial zone: Positioned at the project's end, adjacent to the main road and rail transportation system, this zone comprises the food industry, chilled and frozen food industry, ready-to-eat fresh food industry, dry food industry, canned food, food packets, as well as the project office location and distribution center. 3. Commercial zone: Situated at the entrance and exit of the project, adjacent to the national transportation system, this zone serves as a welcoming area for the project. It accommodates both the local population and visitors, connecting the project with the original city area and supporting the expansion of the service and trade sectors. 4. Residential zone: This area supports the various groups of people within the project, including industrial workers, skilled workers, and researchers in the research and development areas. 5. Public space and recreation zone: This zone serves as a recreational area for all residents within the project. It acts as a buffer area between the residential and industrial zones. Train station Exhibition hall Meeting & Seminar Room Fresh and ready-to-eat food industry Dry, canned, and sachet food industry Frozen and chilled food industry Wastewater treatment pond Fire Department Healthcare Power substation Reservoir
Perspective: Future Food R&D Area Trial Plots for Future Agriculture and Livestock Build supportive environment for well-being and creativity of researchers and innovators Future Food R&D Center Perspective: Food Industry Operating Area Standardized, Convenient, and Safe Transportation Network Food Production Plant for Future Food Production Non-Toxic and Environmentally-Friendly Green Industrial Area Perspective: Commercial Area for Food Expo Commercial area for Saraburi Food Valley and Daily Life Indoor and Outdoor Activity Areas Miscellaneous Area for Expo, Meetings, and Food Product Exhibition
5.4 Legal Feasibility The study identified four possible forms of Food Valley project development in Saraburi: (1) public-private partnerships (PPPs), (2) establishment of industrial estates, (3) establishment of a Smart City, and (4) establishment of Saraburi as a Special Economic Zone (SEZ). Among these options, the most feasible form is to establish a food industrial estate. This can be initiated by either the state or the private sector. However, there are concerns regarding the application for Saraburi Province to become a Special Economic Zone, as it may not be feasible. Similarly, establishing the project as a Smart City or implementing it through PPPs may not allow certain crucial activities such as research and development (R&D) or industrial setup, which are vital components of the project. Furthermore, the "area" limitations must be considered according to the area allocation plan for the project. Regardless of the chosen form of action, there will be limitations on designating "Green areas," which are defined as rural and agricultural land. The business model under the project should not involve buildings exceeding 16 meters in height. However, in the end, another important factor to consider is the availability of "vacant space" for farming or farming-related activities. Is more than 50 percent of the land allowed for such purposes or not? Additionally, Article 11, paragraph 2 (4) (5) clearly states the prohibition of industrial operations and limits the use of commercial areas to no more than 5 percent of the total land. However, the spatial development plan allocates 10 percent of the land for commercial operations. This allocation would inevitably violate the aforementioned ministerial regulations stated in Article 11. Nevertheless, in accordance with section 34, in conjunction with section 35, local officials are empowered to prepare a report assessing changes in circumstances and the environment, as well as the implementation of the general town plan. This report should be submitted to the provincial town planning board. If the provincial town planning board determines that significant changes have occurred in the situation and environment, rendering the general town plan unsuitable to support the city's development or maintenance in the future, or if modifications are required to promote urban development in terms of the economy, society, natural resources, and the environment, local government organizations can enhance the situation by establishing a new integrated city plan that aligns with the appropriate goals. In terms of investment privileges to incentivize investment in the project area, establishing an industrial estate or a Special Economic Zone in Saraburi would allow the Food Valley project to benefit from geographic advantages. Additionally, specific privileges based on activities and values under the Investment Promotion Act can be granted. The preparation of the Food Valley Regulatory Sandbox can also serve as an incentive for entrepreneurs to invest in the project area, providing flexibility and fostering the development of innovative systems and technologies before entering the market. However, it is important to note that the project owner in the Saraburi Food Valley project has limited authority in initiating policy relaxation regarding the enforcement of regulations, as this is typically the responsibility of regulatory bodies. (1) Ministerial Regulations to Enforce the Comprehensive Town Plan of Saraburi Province, B.E. 2554 (2) Look up: Comprehensive Planning Bureau. "Procedures and Processes Document for Amending the Comprehensive Town Plan under Section 35 of the Town Planning Act when Operated by a Local Administrative Organization”. <http://oldpvnweb.dpt.go.th/prachinburi/images/data_urban/63_urban/urban _law_62__for_35_local.pdf> Retrieved: 28 April 2023.
Legal Analysis and Advice The concept of the Food Valley project should consider both the "area" and "activities" involved. While the use of space determines the establishment style and conditions for receiving benefits, the form of activities within the project area is another crucial factor for maximizing benefits. Nevertheless, it may not be necessary to solely adopt the industrial estate operation model. For instance, if certain elements of the project align with the characteristics of a Smart City, the industrial estate can be established as a Smart Industrial Estate (SIE), which may offer greater benefits. Examples of industrial estates operating in this manner include the Eastern Economic Corridor (EEC) and Laem Chabang Industrial Estate. Additionally, establishing a joint industrial estate with the IEAT (Industrial Estate Authority of Thailand) could involve private sector investment and construction, with the IEAT serving as the regulatory body, similar to Amata City Industrial Estate (AMATA) and WHA Industrial Estate (WHA). [3] สมาร์ทกริด ไทยแลนด์, ‘การนิคมอุตสาหกรรมแห่งประเทศไทย’ (สมาร์ทกริด ไทยแลนด์, ม.ป.) < https://www.ieat.go.th/th/ieat-news/6110> เข้าถึงเมื่อ 28 เมษายน 2566. Feasible Project Configuration Public-Private Partnership (PPP) Investmen Establishment of Industrial Zones Creation of Smart Cities Transformation of Saraburi into a Special Economic Zone (SEZ) Propelling Towards National-Level Development in Future Food Industry Promotion Presented for Improvement to the Provincial Urban Planning Committee through Comprehensive planning Joint Collaboration in Establishing Industrial Zones with Thailand's Industrial Estates Authority (IEAT) Smart Industrial Estate: SIE
5.5 Investment Feasibility The economic worthiness analysis of the project aims to assess the feasibility of the investment by comparing the costs and benefits that will arise in the future. This analysis helps stakeholders decide whether to proceed with the project. To ensure fairness across economic sectors and maximize resource utilization, a Cost -Benefit Analysis (CBA) is commonly used to measure the costs and benefits of the project. Based on the economic value analysis, the following results have been obtained: 1) Initial investment value: 4,654,329,620.00 Baht Economic Net Present Value (ENPV): - Worst-case scenario: 845,287,971.67 Baht - Normal situation: 2,026,389,211.40 Baht - Best situation: 3,170,074,069.84 Baht 2) Economic Internal Rate of Return (EIRR): - Worst-case scenario: 11% - Normal situation: 17% - Best-case scenario: 24% 3) Discounted payback period: - Worst-case scenario: 6.3 years - Normal case: 5.61 years - Best case: 5.05 years 4) Employment: The project is estimated to create job opportunities for 10,000 people, starting from the 4th year of the project. This is expected to increase employment by approximately 70 percent of the number of unemployed individuals in Saraburi Province. 5) Evaluation of project worthiness: The assessment of the project's viability for decision-making purposes, based on the Net Present Value (NPV) indicates positive values for in all scenarios (worst-case, normal, and best). This suggests that the project is worth investing in. Furthermore, the project's Internal Rate of Return (IRR) exceeds the interest rate of 6.5% at r = 6.5%. In all three scenarios, the project demonstrates its worthiness for investment. Even in the worst-case scenario, where the project operates under the assumption of high land prices, it remains viable. Moreover, the project presents an opportunity to achieve an average net present value of 845,287,971.67 baht, and its internal rate of return is 11 percent, surpassing the bank interest rate by 6.5 percent. Investing in this project will contribute to the development of the food industry in Saraburi Province, promoting local economic growth and improving the income levels of local workers. It serves as a crucial means to enhance productivity and raise the gross provincial product (GPP) of Saraburi. Additionally, the project will foster innovation in agricultural processing and contribute to the overall development of the country's agro-industry and food sector.
The number of employment increased by (predicted from the number of unemployed 9,118 people or 2.34 percent of the total labor force of Saraburi Province in 2021). Revenue in the 5th-9th year has an annual growth rate of +2.64%. 2.00-2.34% Indirect benefits from income distribution to the community accounted for of the operating income each year. 10,000 people The first 4 years of revenue from Saraburi Food Valley , with the proportion equal to the 5-year historical GPP growth rate 2016-2020. 2.64% account for of Saraburi's GPP
Saraburi Food Valley Driving Force
6.1 Development Strategy The promotion of Saraburi Food Valley is guided by the vision of establishing an innovative city in the food industry, agriculture, and livestock sectors, based on the principles of innovative city development. This vision encompasses three key elements in innovation development: incubator, industrialize, and commercialize. To achieve the goals of Saraburi Food Valley, three strategies for area development have been established: Strategy 1: Establishing designated areas for incubators to promote research and development, with a focus on enhancing the food, agriculture, and livestock industries through the dissemination of research findings and the development of human capital. Strategy 2: Creating an industrial production center for food, agriculture, and livestock through the application of innovation and technology, aimed at boosting competitiveness within the sector. Strategy 3: Creating an environment conducive to the expansion of innovative solutions for commercialization, both domestically and for export to foreign markets. This strategy aims to showcase Thailand's food innovations on an international scale. 6.2 Road Map To propel Saraburi Food Valley towards becoming an "Innovative City of Comprehensive Food, Agriculture, and Livestock Industry," the following development mechanisms are proposed: 1) Investment feasibility study and upgrade Saraburi Province: Conduct a feasibility study to assess investment opportunities and upgrade Saraburi Province, creating measures to promote the "Food Security Industry" or "Food Valley" of Thailand. - Plan the concept of area development. - Investment Feasibility Study - Legal Feasibility Study 2) Tripartite network in the food industry: Establish a network of collaboration among stakeholders at all levels in the food industry of Saraburi. - Public sector: Engage central government agencies, Saraburi Province, and local authorities. - Private sector: Involve startups, small and medium-sized entrepreneurs (SMEs), angel investors, venture capital, and leading Thai and international organizations. - Educational institutes and research institutes: Collaborate with schools, leading universities, food industry research units, experts, and innovators. 3) Integration into development plans: Incorporate Saraburi Food Valley into the provincial and national development plans through private sector participation. - Prepare a memorandum of agreement (MOU) to drive Saraburi Food Valley” - Include it as a key strategy in the Saraburi Provincial Development Plan (2023-2027) and the 4-year Saraburi Provincial Development Strategic Plan (2023-2027). - Propose inclusion in the national development plan for promoting the future food industry. - Assess changes in the situation and environment, and propose modifications to the comprehensive town plan through the Provincial Town Planning Board.
- Establish it as a food industrial estate by seeking support from the Industrial Estate Authority of Thailand (IEAT), and explore opportunities for Smart Industrial Estate (SIE) designation to gain additional benefits in the future. 4) Innovation ecosystem infrastructure development: Establish infrastructure to facilitate the innovation ecosystem and create a conducive environment for businesses. - Industrial Park - Innovation Center - Commercial Zone - Residential Zone - Utilities - Land port, DC, CY 5) Marketing Platform Create marketing platforms and sales channels to expand business opportunities for entrepreneurs both domestically and internationally, foster business-to-business (B2B) and business-to-customer (B2C) formats, and build an online platform to capitalize on the expanding online space for project publicity. 6) Infrastructure for industry development: Implement measures and regulations to accelerate the development of the food industry and attract large producers to invest in Saraburi Food Valley. - Attract skilled personnel for innovation. - Provide tax benefits. - Offer government support. - Facilitate access to funding sources and various forms of financial support linkage. Investment feasibility study and upgrade Saraburi Province. Tripartite network in the food industry. Integration into development plans. Innovation ecosystem infrastructure development. Marketing Platform. Infrastructure for industry development.
Benefits of the Project
The development of Saraburi Food Valley into an "Innovative City of Comprehensive Food, Agriculture, and Livestock Industry" brings about numerous positive impacts on society, economy, and the environment, including: 1) Society - Rapid urban development: Attracts people from various areas to work in Saraburi Province. - Enhanced knowledge and skills: Provides training and education to meet future labor market demands, reducing unemployment. - Real estate and public space development: Improves the quality of life for residents in the area. 2) Economy - Employment opportunities: Generates jobs for local residents and attracts skilled workers to the food industry in Saraburi Province. - Increased business operations: Expands the food industry, creating new opportunities and enhancing competitiveness. - Sustainable income distribution: Higher demand for agricultural products benefits local farmers. - Support for small and medium-sized entrepreneurs: Access to funding, knowledge, and innovation fosters business growth and product enhancement. - Growth in the service sector: Expansion of restaurants, hotels, rental rooms, department stores, and related businesses due to the development of the food industry. 3) Environment - Environmentally friendly industry: Establishing sustainable practices promotes a positive image and fosters acceptance between industries and surrounding communities. - Market opportunities for green innovations: Products with low environmental impact gain recognition and consumer preference. - Transparent environmental monitoring: Regular monitoring and measurement of soil, water, and air quality ensure systematic and standardized environmental management. - Effective waste management: Adherence to circular economy principles maximizes resource recycling, reducing waste problems and preserving environmental quality.
References Andreas Kamilaris. (2019). The rise of blockchain technology in agriculture and food supply chains. Trends in Food Science & Technology received form http://agri.ckcest.cn/file1/M00/0E/7F/Csgk0F1bTVeAbNSMABhVdWynpr0352.pdf CUTIP. (2560). การศึกษานวัตกรรมในต่างประเทศ (INTERNATIONAL INNOVATION FIELD TRIP) เข้าถึงได้ จาก https://shorturl.asia/jcBMl OKMD. (2564). รู้จักกับ Value Chain ในการเกษตร เข้าถึงได้จาก https://www.okmd.or.th/ okmd- kratooktomkit/4057/ Salika, (2564). แชร์ไอเดียเปลียนวิกฤตเป็นโอกาส ฟื ่ ้นฟู ธุรกิจอาหารแห่งอนาคต ‘FUTURE FOOD 2021’ ของไทย. เข้าถึงได้จาก https://www.salika.co/2021/10/09/where-is-the-future -of-future-food-2021/ Thiraphon Singlor. (2565). SDG Updates | เมือโลกต้องการโมเดลเศรษฐกิจใหม่ ไทยจึงมี ‘BCG’ ่ (Bio- Circular-Green Economy) เป็นวาระแห่งชาติปี 2564 เข้าถึงได้จาก https://www. sdgmove.com/2021/04/14/bcg-economy-model-trend-th-national-agenda-2021/ Kris Piroj. (2561). Vaiue Chain คืออะไร? ห่วงโซ่คุณค่า มีอะไรบ้าง เข้าถึงได้จาก https://greedisgoods.com/value-chain-%E0%B8%84%E0%B8%B7%E0%B8%AD/ โชติกา ชุ่มมี. (2556). ถอดรหัส “Food Valley Model” … จากเนเธอร์แลนด์สู่ไทยแลนด์. เข้าถึงได้จาก https://www.scbeic.com/th/detail/product/759 ปางอุบล อํานวยสิทธิ. (2565). ์ Food Security: วิกฤตความมันคงทางอาหารท่ามกลางการแพร่่ ระบาดของ COVID-19 เข้าถึงได้จาก https://www.scbeic.com/th/detail/product/7400 สํานักงานพัฒนาวิทยาศาสตร์ และเทคโนโลยีแห่งชาติ (สวทช.). (2563). BCG Economy Model คืออะไร. เข้าถึงได้จาก https://www.nstda.or.th/home/knowledge_post/what-is-bcg -economy-model/ สํานักงานสภานโยบายการอุดมศึกษา วิทยาศาสตร์ วิจัยและนวัตกรรมแห่งชาติ (สอวช.). (2565). โมเดลเศรษฐกิจใหม่ BCG. เข้าถึงได้จาก https://www.bcg.in.th/bcg-by-nstda/ สํานักส่งเสริมการค้าสินค้าเกษตรและอุตสาหกรรม. (2564). สินค้าอาหารแห่งอนาคต (Future Food) เข้าถึงได้จาก https://www.ditp.go.th/ditp_web61/article_sub_view.php?filename= contents_attach/755929/755929.pdf&title=755929&cate=2514&d=0 เสถียร ฉันทะ. (2560). โครงการ “การสํารวจสถานะของเป้าหมายการพัฒนาที่ยั่งยืนในบริบท ประเทศไทยและทางเลือก มาตรการทางเศรษฐศาสตร์ สังคม และกฎหมาย" เป้าหมายที 2. ่ รายงานวิจัย. เข้าถึงได้จาก https://sdgmove.files.wordpress.com/2017/ 04/final- report-sdgs-goal-2.pdf สถาบันวิจัยและพัฒนา. ยุทธศาสตร์การวิจัยรายประเด็นด้านการพัฒนา National Food Valley. เข้าถึงได้จาก http://www.rdi.rmutsb.ac.th/2011/download/from61/6/27.pdf สํานักงานพัฒนาวิทยาศาสตร์และเทคโนโลยีแห่งชาติ (สวทช.). One Stop Service / Service Platforms เข้าถึงได้จาก https://foodinnopolis.or.th/th/home/service/
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