New standards for farm products

In response to growing international environmental concerns, the Agriculture Ministry announced it would apply ISO 14000 environmental standard series to all farm products.

Rubberwood, as one of the country's top five exports, will be the first to have the new standard applied to its plantations and processing, said Suthiporn Chirapanda, deputy permanent secretary of Agriculture Ministry.

Once implemented, all rubber trees must be planted outside protected forests. The slope of the orchard will also be considered to prevent landslides. Chemical usage, whether in the orchard or processing plant, must also be minimised to protect the environment.

The Thai Parawood Association welcomed the news saying it would boost the competitiveness of Thai rubber.

However, it raised concerns the new standards could add to the cost of rubber.

Mr Suthiporn said the department was aware higher prices were inevitable but vowed to push ahead with the plan, pointing out that domestic demand was far weaker than overseas markets which were willing to pay more for the new rubber products.

Thailand is the world's biggest rubber exporter holding about 30% of the international market. Although the price of rubber plate has tumbled due to an oversupply, sales of rubberwood and rubber were still robust as demand for natural hardwood had declined because of environmental concerns.

Mr Suthiporn said he has recently received letters and inquiries from foreign buyers wanting to know the products' origin.

"I've heard that Malaysia, which is also a main rubber exporter, started applying the standard," he said.

Large buyers, such as Japan, have adopted a policy not to buy wood products and by-products unless certified that they come from commercial forests with environmentally-sound management.

The project will be divided into two sectors - rubberwood and rubber. A 300,000-baht pilot project will be established to manage the rubber sector. Participants would be accepted on a voluntary basis. The ministry expected at least 30% of the rubber would be certified by 2001.