Wednesday, November 4, 2009

'Logistics of the Agricultural Economy' by Victor Poon

Logistics, the science dealing with “the integrated management of all the material… from supplies through transformation of input materials up to the end consumer” (Vanecek 1) is fundamentally tied to concepts of the economy. The concept of an agricultural economy can be visualized as a plane, with a system of individual supply lines linking the producer to consumer. At each point, resources such as water must be consumed to maintain the system.

The raw material that is consumed by the system (the input) has a cost – including but not limited to: the cost of water, the cost of supplies and the cost of transportation. In the United States, only 21% (see diagram source) of energy expended for food production goes into agricultural production – the rest is consumed for subsidiary activities such as processing, transport and refrigeration.








(click for larger image)

If we look at a newly industrialized country like Thailand, we can begin to better understand the new stresses placed on a developing agricultural system. Food prices will continue to escalate, for reasons including but not limited to: the diversion of food-producing fields to fields that produce biofuels, rising fuel costs or simply as a result of higher global population and demand. There are two solutions for the poorer citizens of Thailand to cope with the increased prices – first, to increase their income or second to reduce the costs of their food production system, or to develop new ones altogether. (Thepent et al.)










Looking at Thailand’s recent history we can see that the increased production of rice has not corresponded with an equal increase in price. During the years of 1955-1985, Thailand increased crop production by increasing productive area, rather than increase the productivity of the land itself. In 1976, the government began to slow down the reallocation of forested areas to become farmland, and usable agricultural fields became capped. Despite increased efficiencies, total energy costs have increased by about 22 times since 1950, while crop yield has only increased by 7 times. (Aphiphan et al.) It is clear that this new energy usage is both unaffordable and inefficient.










This is in part due to the Thai government’s push for a high-input, export-oriented system to help supplant its fast growing economy. The new agricultural systems are now heavily reliant on mechanization and chemical product use and much less so on worker labour.

Thus, economic pressures in the agricultural sector have forced resource consumption to dramatically increase (water shortage less an issue in Thailand) and for farmers to produce more product, rather than a cheaper, more efficient crop yield. In order to simplify the current logistical model, energy usage must be trimmed at each and every point in the system. The methods outlined in this blog begin to relieve the stresses imposed on the system – from sustainable water management to the creation of keyhole gardens (which serve to introduce a new self-sufficient model completely). These are not simple problems that agriculture faces today, and solutions must be both economical and innovative to be effective in addressing the issues at hand.


Image Sources

1. Vanecek, D. and Kalab, D, “Logistics in Agricultural Production,” University of South Bohemia, http://www.cazv.cz/2003/AE9_03/8-Vanecek- Kalab.pdf.

2. Thepent , Viboon and Chamsing, Anucit, “AGRICULTURAL MECHANIZATION DEVELOPMENT IN THAILAND,” Agricultural Engineering Research Institute Department of Agriculture, Chatuchak, http://www.unapcaem.org/Activities%20Files/A09105thTC/PPT/th-doc.pdf.

3. Thepent , Viboon and Chamsing, Anucit, “AGRICULTURAL MECHANIZATION DEVELOPMENT IN THAILAND,” Agricultural Engineering Research Institute Department of Agriculture, Chatuchak, http://www.unapcaem.org/Activities%20Files/A09105thTC/PPT/th-doc.pdf.


Information Sources

Pookpakdi, Aphiphan. "Sustainable Food Production in Thailand". Department of Agronomy, Kasetsart University. http://www.agnet.org/library/bc/46012/. (accessed November 1, 2009).

Thepent , Viboon and Chamsing, Anucit. "AGRICULTURAL MECHANIZATION DEVELOPMENT IN THAILAND". Agricultural Engineering Research Institute Department of Agriculture, Chatuchak . http://www.unapcaem.org/Activities%20Files/A09105thTC/PPT/th-doc.pdf. (accessed November 1, 2009).

Setboonsarng, Sununtar and Gilman, Jonathan. "Alternative agriculture in Thailand and Japan ". Asian Institute of Technology School of Environment Resources and Development. http://www.solutions-site.org/artman/publish/article_15.shtml. (accessed November 1, 2009).

Vanecek, D. and Kalab, D. "Logistics in Agricultural Production". University of South Bohemia. http://www.cazv.cz/2003/AE9_03/8-Vanecek- Kalab.pdf. (accessed November 2, 2009).


- Victor Poon

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