Production costs according to DLG economic farm analysis scheme in Thai agriculture

As part of the German-Thai cooperation project to promote the sustainable development of cluster farms in Thailand, three different one-day workshops were held in June 2022 on structuring and evaluating production costs according to the DLG farm branch evaluation scheme. The systematic structure of the different cost blocks for direct costs and labour completion were the focus of the event.

In addition, the application of the DLG farm branch accounting was worked out using the participants' own farm figures as examples and clarified to the participants using simple examples. In addition to the items affecting liquidity, the imputed approaches were also discussed and their significance in the comparability of the key figures explained and intensively discussed with the farmers.

The advantages of a uniform structure in the cluster farms are immense and represent an essential starting point for the further optimisation of the cluster farms. The workshops were led by Erik Guttulsröd (Head of Division Operations Management and Sustainability) and the team of the cooperation partner in Thailand.

The cluster farms with the production directions sugar cane, cassava (manioc) and vegetable cultivation were located in the northwest of Thailand in the regions of Khon Kaen and Nakhon Ratchasima. The technical findings in agriculture in Southeast Asia are diverse and can also be taken up and worked on in the newly founded DLG expert Committee South East Asia, in order to be able to discuss the special requirements of agriculture in the international network of the DLG.

The workshops were part of the German-Thai cooperation project, in which DLG is involved as a partner. A cluster farm is an association of small farming structures (up to 60 farmers) with the same production direction and factor endowment, which are supervised and supported by a central (state) cluster farm manager.

The aim of the project is to strengthen cluster farms in selected provinces and districts with regard to high-performance, efficient, resource-conserving and entrepreneurial agriculture.