It is the Essence of Agriculture, raising the level of Thai agriculture. to high value agriculture
The work at BAAC is challenging because it has a wide scope. In addition, it is a multi-faceted mission. Both in terms of being a bank customer development Promote agricultural products to have better quality and higher prices. In the past, we often heard the sentence that Farmers are the backbone of the nation. But many years have passed Farmers are still struggling as usual, so I want to try and see if If given the opportunity Will it be able to transform the Thai agricultural sector?
For 6 months since Chatchai Sirilai has assumed the position Manager of the Bank for Agriculture and Agricultural Cooperatives (BAAC) on March 27, 2566, setting the goal for BAAC to be “Essence of Agriculture” or agricultural core To upgrade the agricultural sector and Thai farmers to have a better quality of life.
Chatchai Sirilai Give a special interview "Bank Finance" That the decision to take the position of BAAC manager came from two reasons: 2. wanting to change the face of the Thai agricultural sector and 1. his term as managing director was about to expire. Government Housing Bank (GH Bank), while BAAC is recruiting a manager.
“Work at BAAC is challenging because it has a wide scope. In addition, it is a multi-faceted mission. Both in terms of being a bank and in terms of customer development Promote agricultural products to have better quality and higher prices. In the past, we often heard the sentence that Farmers are the backbone of the nation. But many years have passed Farmers are still struggling as usual, so I want to try and see if If given the opportunity Will it be able to change the face of Thailand's agricultural sector?”
Move forward with organizational adjustment
To keep up with the changing world
Chatchai said that for the mission that he began to do after accepting the position of BAAC manager, it was management. Non-performing loans (NPLs) that have increased due to the impact of the COVID-19 outbreak have returned to a manageable level. Including adjusting the organization to meet the standards of a bank and at the same time not abandoning its status as an agricultural bank.
“BAAC people are basically smart people, but in the past they may not have been able to adapt to the changing context. BAAC is like a very large warehouse but is not organized systematically, so we just Come to organize the system, such as managing data, using technology to increase work efficiency. To make everything better.”
In the fiscal year 2566, strategies for operating in 6 areas have been determined, including:
- Organizational restructuring By adjusting the internal structure so that they can move in the same direction.
- Rehabilitating occupations and developing farmers' incomes By changing from traditional agriculture to creating added value.
- Improving data quality (Data Cleansing) by making 4.2 million customer data accurate.
- Using technology to develop financial services
- Resolving non-performing loans (NPLs) and debt management
- Managing the cost of money and managing the budget for value and taking advantage of the money market to help reduce costs.
“Now everything follows the steps that have been laid out. All employees and executives help drive the organization. In the past, it's not that we've become less skilled. But the world changes faster than we think, so it is necessary to adjust the organization so that we can overcome the changes in the industry. The indicators of the BAAC are that everything must be in a dimension that can be controlled and managed. No need to aim for maximum profit. but focus on strength for both customers and the bank.”
However, BAAC is a large organization with an organizational culture that has existed for 58 years. Adjusting the organization is not a change. But it is a new system. Enter a new way of thinking and offer new options to people in the organization At present, 6 months have passed. It is estimated that the organization has begun to adjust in the direction that it wants it to be.
“Organizational adjustment is not a sudden change. Because changing is against nature, so what we're doing now is not forcing change. But motivate them to change by offering new options. If he sees it as a good option, he will go with us, but BAAC is a large organization and adjustments take time. However, 6 months ago, I think the axis has started to move and is in the direction. I want it to be.”
For the short-term goal that we want to see is to make BAAC a bank that can control, manage, and plan. After that, it will begin to restore customer income to increase sustainable income. At the same time, the mindset of people in the organization must be adjusted. Go in the same direction
“The decision to come to work at BAAC was not thought of as a right or wrong decision. But if you decide Along the way, don't think about why you didn't choose another path. because it will cause hesitation If you choose, then move on. If you think about having fun, there is something to do every day.”
Revealing the vision of BAAC moving into its 58th year
“Sustainable Rural Development Bank”
Chatchai continued: On the occasion of the anniversary of the Bank's founding, entering its 58th year on November 1, 2566, the vision has been set to be “Sustainable Rural Development Bank” has set the framework for operations in fiscal year 2566 as follows.
Aspects of being a sustainable bank The BAAC focuses on being a center for providing financial services in the agricultural sector. The technology infrastructure will be upgraded to be able to meet customer needs in a comprehensive and modern manner. As well as making use of data in asset management and developing technology systems to be in line with changes in customer behavior in the future. Including increasing efficiency in competition and debt management.
In addition, there is emphasis on increasing organizational and personnel capabilities to support competition. Raise the level of work to be consistent with the bank's future direction. Create awareness of compliance with the criteria
along with developing research and innovation that creates added value for the bank Increase efficiency in managing asset quality and capital adequacy. Manage income and cost of money Including developing new businesses or jointly investing in businesses related to the agricultural sector together with the network. To create opportunities for business growth
Sustainable rural development BAAC aims to strengthen the community economy. Have the potential to be self-reliant This will help raise the standard of living and well-being of rural people. Develop competitiveness according to the potential of customers and farmer households under the BCG Model.
Essence of Agriculture
It is the centerpiece for the agricultural sector.
Chatchai said In addition to the strategy that drives towards a sustainable rural development bank, We have also changed the operations of BAAC in many dimensions, covering both internal and external aspects to make BAAC the “Essence of Agriculture” or the core of agriculture. and step into a new era in concrete accordance with the bank's strategy
Using the strengths of BAAC, namely "Our people love our customers" through 4 important approaches.
1. Funding for the agricultural sector Farmers must have access to capital at a low cost along with quick and comprehensive financial services. Use modern technology, innovation and benefit from the database the bank has. Used to analyze and plan to create products and services that can meet the needs of customers and meet the needs of the market. As well as using modern technology to modify the customer service process for convenience and speed.
Including the need to plan production management. Adding additional value and predict the demand for agricultural products to be in line with the needs of various consumer groups in the market. The quantity and price of products can be set appropriately to prevent oversupply of products and low prices of agricultural products.
2. New knowledge By promoting knowledge of technology and new agricultural practices using the skills of a group of people with expertise in production, design, and processing to create added value to products. Helps reduce risks and impacts from natural fluctuations. So that income does not become zero when unexpected events occur.
3. Developing quality and upgrading products It connects farmers who lack skills with those who have skills but lack production resources. To have the opportunity to promote each other in profit-sharing business. and use knowledge from educational institutions Network for developing agricultural production standards To develop and add value to products and enhance competitiveness.
4. Development of marketing and distribution channels By developing marketing and distribution channels Both digital marketing and agricultural product distribution, where BAAC can act as an intermediary connecting as well as being a seller for the production sector to open up new channels, whether within or abroad.
“We are using the role of BAAC as a gateway to uplift farmers after recovering from the impacts of various crises, including crop price problems, drought, and COVID-19, so that farmers can overcome the changes and grow. sustainably”
Chatchai said that there is also a goal of expanding the agricultural sector towards high value agriculture. By supporting Thai farmers to add value to their products (Added Value) by using innovations such as banana processing. Change from making normal dried bananas. It's making banana powder. Turn bananas into processed, high-energy products for runners.
Including supporting the use of Benjarong patterns as items for daily use. Raising the level to Premium Grade as well as upgrading bamboo farmers to change from growing to make basketry to making blotting paper. Manage the bamboo garden as a tourist park. Using durian pulp to make durian ice cream for export. or change the new distribution method to the Ready To Eat format, etc.
In upgrading agricultural products in the past, BAAC has focused on the NPLs debtor group first so that this group of customers can return to being a good customer group and serve as an example for other NPLs customers to come and upgrade their products. of oneself to be of high value and be able to return to being a good debtor
“Being the Essence of Agriculture, BAAC will be the centerpiece that supports farmers in improving production to be more efficient in order to make the products and goods farmers have in their hands better and have higher value. Expanding the original form of agricultural products into agriculture for consumption. The goal that we want to see is for BAAC customers to be strong in our style. Relying on the strength of BAAC to pull customers to stand up.”
Ready to respond to government policy
Viewed as a Win-Win Situation
Chatchai said that BAAC, as a specialized financial institution of the state, It has carried out its mission as a mechanism for driving the grassroots economy. and the agricultural production chain Although responding to government policy may affect normal business operations to some extent, But it is something that must be done. This is because both the government and BAAC have goals in helping farmers.
“Responding to government policy Even though it affects normal business operations But it is something we have to do because BAAC is a state mechanism. But when affected, we must take advantage of government policies such as debt suspension measures. If customers want to participate in government measures, they must download BAAC Mobile, which is our application. And when BAAC Mobile is in the hands of customers Customers will have access to communication and technology, viewed as a Win-Win Situation.”
In the past, BAAC has carried out its mission to drive the grassroots economy through measures according to important government policies.
In terms of debt in the agricultural sector, which is a problem that has accumulated continuously, BAAC has a policy to solve the problem of household debt in the agricultural sector, allowing farmers to escape the debt trap and be able to create a career. Create stable income Passing measures to improve debt restructuring in problem debt groups. Using databases and technology to analyze data Customer grouping Developing various tools and channels to make it easier for customers to access financial services.
At the same time, it also motivates customers who repay their debts well with the Good Mee Chok Repayment Project. by customers who pay their debts on time The bank will take the amount of principal or interest actually paid for every 1,000 baht as a benefit in the sweepstakes. Total prizes worth over 500 million baht from 1 October 2566 - 30 June 2567.
Regarding the problem of debt outside the system, BAAC has created a project. "If you have foreign debt, tell the BAAC" by registering to join the project through www.baac.or.th and Line Official Account: BAAC Family, where the person registering must be a farmer or person in the household. The debt must be a debt that the creditor is not a financial institution. and who can create or have sufficient income to pay off debts In the case that the borrower is over 60 years of age, at least one heir or person in the household must be a co-debtor. And after registering, the bank will contact you back using the contact channels provided to arrange a date and time to meet, talk and give advice on solving the problem of informal debt.
As for the problem of the elderly (Aging), BAAC has created the "Loans for You Project" with a total credit limit of 20,000 million baht to help farmers and customers aged 60 years and over who have heavy debt and wish to Transferring assets and debts to heirs To provide an opportunity for heirs to participate in resolving debt in a sustainable way and to preserve assets for the family. In the past, BAAC has granted 24.63 million baht in loans according to the loan project on behalf of you.
Meanwhile, BAAC is also ready to support heirs in furthering the family business by adding financial knowledge, technology, innovation, and capital to increase value (Added Value), creating diversity in products and packaging designs. To elevate the product to a market with high purchasing power The target is for 42,000 farmer heirs to join the project.
In addition, the BAAC has also created measures to cut debt proportionately (pay interest, cut principal), measures to adjust debt repayment schedules (pay principal, adjust installments), and guidelines for helping debtors with heavy debt to reduce the burden and Concerns about debt burden through sustainable debt restructuring projects By adjusting the new debt repayment schedule to be consistent with the customer's potential and source of income. Including vocational rehabilitation by career development and enhance investment liquidity To pursue a career to increase income
Moving forward with sustainability-CSR
Responding to social and environmental needs
BAAC joins with communities in implementing the BAAC Carbon Credit project to move forward in accordance with the guidelines for promoting the buying and selling of carbon credits in the country. According to the voluntary greenhouse gas reduction program according to Thailand standards (Thailand Voluntary Emission Reduction Program : T-VER)
Starting with project registration Counting the number of trees Verification of carbon credits from external assessors (Validation and Verification Body: VVB). Certification of carbon credits from the Greenhouse Gas Management Organization (TGO) in order to bring the amount of storage to meet the needs of the agency. Government and private sectors that have net zero greenhouse gas emissions goals
In this regard, the Ban Tha Li Tree Bank project has been piloted. and Ban Daeng Tree Bank Khon Kaen Province The amount of carbon credits is 453 tons of carbon, sold semi-CSR at a price of 3,000 baht per ton, totaling 1,359,000 baht when deducting operating expenses. Farmers in the community will have an income of approximately 951,300 baht.
“BAAC aims to expand the creation of carbon credits in the forestry sector to communities participating in the tree bank project. Including expanding the results to other activities such as alternating wet and dry rice farming. To reduce methane emissions Reducing the area of rice stubble burning sugar cane and corn Increasing the area for planting mangrove forests, etc. It is expected that there will be over 150,000 tons of carbon credits that can be bought and sold within 7 years.”
Chatchai said that in addition, BAAC has moved forward to drive integrated community potential development for sustainable grassroots economic development under the BCG Model, which is in line with the 20-year national strategy to increase competitiveness. and create growth in the agricultural sector towards the Sustainable Development Goals (SDGs)
By promoting and supporting funds for farmers, individuals, juristic persons, community enterprise groups. Farmer groups or agricultural cooperatives
PastLoans under the BCG Model Total amount of 35,000 million baht consists of:
- Bio Economy Credit To promote and support the use of innovation or biotechnology to increase production potential and create added value to products.
- Circular Economy Credit To support reducing the amount of waste to zero (Zero waste) by using resources for maximum benefit. As well as reusing materials (Reuse) and transforming them for reuse (Recycle).
- Green Credit To support organic farming or production of safe food (Food Safety), promote the use of alternative energy or clean energy. including the conservation of arts and culture Natural resources and environment
From the implementation of BAAC's strategy, whether it be in driving to be a sustainable rural development bank, resolving household debt Response to government policy Including adjusting the organization's working style. All of this aims to develop the potential of Thai farmers to be strong. Support the use of technology and innovation to expand the agricultural sector towards high value agriculture. Aiming to be the Essence of Agriculture
Follow and read the Special Interview column. Available in the October 2566 issue of Finance and Banking Journal. Issue 498 In digital format: https://goo.gl/U6OnIi
Including channels for ordering banking and finance journals Both current and past editions Complete in one place: https://moneyandbanking.co.th/2023/18250/
