The Joint Public and Private Sector Consultative Committee (JPPSCC) has agreed to set up an innovative food processing hub in Ubon Ratchathani in a bid to push forward a pilot plant for the local agricultural sector in the lower Northeast.
The mobile cabinet meeting chaired by Prime Minister Prayut Chan-o-cha began yesterday at Ubon Ratchathani University to acknowledge the project, which is expected to increase household incomes and add value to local farm products.
Industry Minister Uttama Savanayana said the food processing hub will span Ubon Ratchathani, Yasothon, Amnat Charoen and Sri Sa Ket provinces.
"The JPPSCC has appointed the ministry to set up a new joint committee from four ministries -- Industry, Commerce, Education and Agriculture and Cooperatives -- to advance this plan," he said. "The hub will focus on organic agricultural products such as sugar cane and cassava and promote the organic cluster."
The new joint committee expects to hold the first meeting within this month, as the project is being rushed.
Mr Uttama said the government has teamed up with local business operators and educational institutions to promote the innovative food processing hub for organic farm products, food/drinks, cosmetics and meat products through the application of advanced technology and innovation in the manufacturing process.
"The government's Industry Transformation Centre will play a key role to upgrade the manufacturing sector to meet high standards, while this centre has been supported by Japan's government with a 30-million-baht budget," he said.
The government expects the innovative food processing hub to create more than 300 new small and medium-sized enterprises (SMEs) and strengthen the 1,000 existing SMEs in the region.
An investment flow of more than 500 million baht is expected to be created.
Moreover, the government plans to develop a biochemical project for cassava products until 2026 in the same region.
Organic cassava farms will help support local farmers in the long run, as agricultural processing for cassava creates high-value products in the region.
"The agricultural sector in the lower northeastern region has cassava, sugar cane, rice and rubber, combined at over 4 million tonnes a year," Mr Uttama said.
Moreover, the Industry Ministry will prepare to build a new industrial estate in Ubon Ratchathani's Det Udom district on 2,303 rai, with an expected development cost of 2.7 billion baht.
The government forecasts an investment value of 65 billion baht at this industrial estate.