An Equation of Oil Palm Plantation Areas in Thailand

Thailand’s oil palm plantation areas have increased continuously in response to rising demand for food and non-food products. This quantitative research aims at presenting situations of oil palm production areas and their relevant variables, and analyzing factors determining these areas. Annual time-series data were analyzed using appropriate descriptive statistics and multiple regression analysis. The results revealed that Thai oil palm plantation areas have substantially increased for over the past three decades. Statistically significant variables determining oil palm plantation areas were domestic demand for crude palm oil per capita, farm prices of oil palm fresh fruit bunch and unsmoked rubber sheet grade 3, and prices of diesel. The results are useful for agricultural policy makers to formulate guidelines for oil palm policy and management plans.