Mr. Peerapan Kothong, Acting Secretary-General of the Office of Agricultural Economics (OAE), revealed that in line with the policy to promote agricultural tourism to increase income for farmers and communities, the OAE, through the Office of Agricultural Economics Region 8 in Surat Thani (OAE 8), has been monitoring and studying the successful model of “Rai Tia Wiset” in Koh Phangan District, Surat Thani Province. This case study concretely reflects agricultural business economics by transforming an egg-laying chicken farm and vegetable plots into an organic farming system under the Zero Waste concept, and further developing it into sustainable agricultural tourism. Rai Tia Wiset received the STG Star 4-star tourism standard award for 2024 from the Tourism Authority of Thailand (TAT). Established in 2010 on a 3-rai family plot, Rai Tia Wiset is run by Ms. Duangden Tia Wiset and has developed into a mixed farm with 500 egg-laying chickens (in a 186 square meter poultry house), a 1-rai vegetable plot, and various fruit trees. The farm transitioned to organic farming in 2011 and received organic certification in 2017. It then opened as an agro-tourism destination and community learning center.

The Tia Wiset Farm model exemplifies business design aligned with consumer behavior, or demand-oriented production, targeting two key groups: (1) consumers seeking high-quality food products with a story/trust, where the farm highlights its unique selling point: high-quality "happy chicken eggs" from naturally raised chickens; and (2) consumers who value experiences and learning, where the farm develops agro-tourism activities and workshops, attracting over 500 visitors annually with clearly defined service fees. Regarding production management and economies of scope, Tia Wiset Farm began by maximizing the efficiency of household-level production factors, integrating egg production, vegetable cultivation, fish farming, fruit cultivation, and tourism services to share resources (water, fertilizer, raw materials, energy, and labor). This model demonstrates that success doesn't come solely from scaling up production, but from increasing efficiency and reducing the average cost of the entire system—a cost-effectiveness model suitable for small-scale farmers in tourist areas.

In terms of upgrading production productivity... (Productivity) and cost reduction: The chicken feed farm manages its feed using 80% on-site raw materials (e.g., banana stalks, crop scraps, and bio-fermented liquid) combined with only 20% commercial feed. Organic fertilizers are used as a substitute for chemical fertilizers, water from the fish pond is used to irrigate vegetable plots, solar panels are installed, and waste materials are recycled. Household labor is also utilized. These mechanisms have reduced the farm's total expenses from 720,000 baht to 462,200 baht, a 36% reduction by 2025. This reflects the efficient use of on-site resources and helps mitigate the risk from fluctuating external input prices. Furthermore, the Office of Agricultural Economics (OAE) recommends applying digital technology to build upon this success, particularly for establishing cost accounting systems, visitor booking systems, and customer databases. This will provide clear operational data, enhance financial credibility (bankability), improve access to funding, and upgrade marketing strategies to higher value. The systems should be user-friendly and transparent for data verification.

In terms of cost-effectiveness and return on investment, the farm produces an average of 73,000 eggs per year, selling them at 10 baht each, generating a primary income of 730,000 baht per year. This is further enhanced by agro-tourism activities (tour fee 100 baht/person and workshop 3,200 baht/group of 4 people), as well as income from other products such as fresh vegetables, fish, and potted vegetable seedlings, totaling over 500,000 baht per year. This results in a total annual income of 1,280,000 baht and a net profit of 560,000 baht per year. “Having income from multiple sources ensures a continuous and stable cash flow, reducing the risk of reliance on a single production source. This allows the agricultural business to survive even during periods of fluctuating costs or market slowdowns. Furthermore, in terms of environmental impact and standards, the application of the Zero Waste principle to recycle resources for maximum benefit results in real cost reduction and increases the credibility of products and services. This aligns with the driving force of the BCG economy at the local level. Certifications such as organic farming or sustainable tourism standards are crucial tools for guaranteeing quality, building consumer confidence, reducing market risks, and enabling the effective expansion of this successful model to other areas,” said Mr. Peerapan.

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