Evolution of agricultural mechanization in Thailand

Evidence from Asia indicates that mechanization can play a vital role in poverty-reducing small-scale agricultural and rural development. The case of Thailand is especially pertinent because it illustrates both the development of accessible small-scale machinery and the provision of large-scale machinery to smallholders through contract hiring services. This chapter reviews the specific demand and supply factors that have given rise to the pattern of mechanization in Thailand over the past half century. It is argued that rapid mechanization resulted from the conjuncture of several key elements from the 1960s to the 1990s—the dominance of smallholders in the landscape, cultivating rice and field crops for both domestic and export markets; dramatic demographic changes, contributing to a growing scarcity of agricultural labor; a boom in manufacturing, drawing labor out of farming; the development of infrastructure, facilitating agricultural commercialization and labor mobility; a technological and business environment encouraging competition among small and medium firms to develop suitable and affordable machines for farmers; and a policy environment broadly supportive of smallholder agriculture, agribusiness, industrial development, and trade. The Thailand case provides important evidence for policy debates about small-scale mechanization in other Southeast Asian countries and Africa south of the Sahara.