Legal advice and transaction support for foreign investments in Thailand’s agribusiness

PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property developments and acquisitions. The law firm has a particular interest, know-how, and experience with respect to agriculture, including livestock investments and fishery ventures.

Rice is Thailand’s most important crop, growing on half of the cultivated land. Thailand is a major exporter in the world rice market. Other agricultural commodities include fish and fishery products, tapioca, rubber, grain, and sugar. Exports of industrially processed foods such as canned tuna, pineapples, and frozen shrimp are of increasing importance.

Agribusiness is the business of agricultural production. It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply. Thailand’s agriculture is in a transition phase. This offers attractive investment opportunities for foreign companies.

 

Contract farming between huge agribusinesses and farmers is a means to assist small growers in gaining market access and reducing price risk, and as such it has attracted attention from development agencies and governments in Thailand. Relevant aspects are (i) quality specifications, (ii) conditions of the production, (iii) predetermined price, (iv) equipment and products provided by the agribusiness, (v) assistance, advice, know-how transfer and IP rights, (vi) risk allocation between the parties and (vii) financing aspects. 

In September 2018, the “Contract Farming Promotion and Development Act” has been enforced and provides specific rules on the formulation of contracts, determining factors, rules and procedures for contract farming agreements, and more. The act is divided into the main parts, (i) contract farming promotion and development commission, agricultural business operators, the conclusion of contract farming agreements, dispute mediation,  penalties, and transitory provisions.

Professional services from the Bangkok investment law firm

PUGNATORIUS Ltd. supports and advises foreign companies to access the Thai agriculture markets. It offers professional assistance, advice, and transaction support for foreign plantation projects and specialized agribusiness ventures. This includes investment structures in compliance with Thailand’s foreigner legislation, agribusiness licensing, commercial agreements, etc.

The law firm advises and assists Thai farms and agribusinesses to negotiate commercial solutions with foreign investors in the agriculture sector. This includes complex structured investments, contract farming schemes, etc.

The professional advice covers the transition of existing contract farming arrangements under Thailand’s Contract Farming Act 2018 and its legal and business implications for the stakeholders.

In 2018, the managing director of PUGNATORIUS Ltd. had been the chairman of the organizing committee and keynote speaker on the World Congress on Agriculture, Plant Science, and Genomics in Bangkok. His welcome message has been widely published to offer a global audience an exciting opportunity to meet with like-minded people and agribusiness industry peers.

In 2019, the law firm is the Thai coordinator and organizing committee member (OCM) of the “2nd International Conference on Food, Agriculture, Horticulture, and Aquaculture” on November 4-5, 2019 in Bangkok, Thailand. The event is organized in cooperation with the U.K. Tropical Agriculture Association. The law firm’s keynote presentation has the topic “Foreign investments in Thailand’s superfood – Agribusiness requirements, challenges, solutions”.

Each case is different. Telephone inquiries and ad-hoc email requests on Thailand’s legal and regulatory framework without details and documentation are not accepted by the law firm. Individual support and professional advice are available under a paid consultancy agreement only. 


Agribusiness Food, agriculture, horticulture, aquaculture, fishery, plantation, Agricultural supplies Agricultural science Agricultural engineering Agroforestry Agronomy Animal husbandry Animal-free agriculture Contract farming Extensive farming Farm Free range Intensive farming animals pigs crops Mechanised agriculture Organic farming Permaculture Sustainable agriculture Urban agriculture agrichemicals, breeding, crop production, contract farming, distribution, farm machinery, processing, and seed supply. plantation manager farmers, clear fertilize cultivate the land, plant the crops/trees, Water- Install irrigation systems water reservoirs, maintain & prune, harvesting your crops/trees, sustainably managed forestry and agricultural business. agricultural engineering, agrarwood industry, forestry as an asset class, bamboo, livestock investment, Aquaculture Cattle Dairy farming Goat farming Grazing Hydroponics Livestock Paddy field Pig farming Orchards Poultry farming Sheep farming Terrace