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Beef Cattle as Loan Collateral for Small-Scale Farmers

Beef Cattle as Loan Collateral for Small-Scale Farmers

Prachachat•Economy•40m ago

Reader Briefing

The Ministry of Agriculture and Cooperatives is piloting a project to allow live beef cattle to be used as loan collateral under the Business Security Act.

  • •The Livestock Creating Capital project allows small-scale farmers to use live animals as collateral for working capital while retaining ownership and care of the animals.
  • •Beef cattle will be the pilot animal, with plans to expand to dairy cattle, fighting bulls, and buffaloes.
  • •The project utilizes NID animal identification, farmer registries, and pedigree certificates to verify identity and assess value.

Overview

  • •The Ministry of Agriculture and Cooperatives is implementing the Livestock Creating Capital project to allow beef cattle to serve as loan collateral.
  • •The project operates under the Business Security Act 2015 to help small-scale farmers access working capital.
  • •Songsak Songsoemudomchai chaired the 4/2026 meeting to discuss criteria for using live livestock as loan collateral.
  • •Beef cattle are the initial pilot group, followed by planned expansions to dairy cattle, fighting bulls, and buffaloes, and later to goats, sheep, fighting cocks, and ornamental fish.
  • •The meeting discussed criteria regarding animal identification, ownership verification, valuation, credit limits, insurance, and risk management.
  • •The Department of Livestock Development was assigned to refine the draft criteria before presenting them to the meeting again.
  • •The Ministry of Agriculture and Cooperatives plans to invite relevant agencies to sign a Memorandum of Understanding (MOU) and closely monitor the pilot phase.

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Source: Prachachat (Original)

Key Entities

Organization

Ministry of Agriculture and Cooperatives(กระทรวงเกษตรและสหกรณ์)
The government ministry driving the Livestock Creating Capital project.
Department of Livestock Development(กรมปศุสัตว์)
The agency responsible for animal registries and refining the project's draft criteria.
Department of Business Development(กรมพัฒนาธุรกิจการค้า)
A relevant agency that participated in the project discussion meeting.
Office of Agricultural Economics(สำนักงานเศรษฐกิจการเกษตร)
A relevant agency that participated in the project discussion meeting.
Bank for Agriculture and Agricultural Cooperatives(ธนาคารเพื่อการเกษตรและสหกรณ์การเกษตร)
A financial institution that participated in the project discussion meeting.
Thai Bankers Association(สมาคมธนาคารไทย)
An association that participated in the project discussion meeting.
Thai Independent Valuers Association(สมาคมผู้ประเมินราคาอิสระไทย)
An association that participated in the project discussion meeting.
Pico Finance Association of Thailand(สมาคมพิโกไฟแนนซ์ประเทศไทย)
An association that participated in the project discussion meeting.
Thai General Insurance Association(สมาคมประกันวินาศภัยไทย)
An association that participated in the project discussion meeting.
Dhipaya Insurance Public Company Limited(บริษัท ทิพยประกันภัย จำกัด (มหาชน))
An insurance company that participated in the project discussion meeting.
Office of Insurance Commission(สำนักงาน คปภ.)ℹ️
A regulatory agency that participated in the project discussion meeting.

Policy

Livestock Creating Capital(ปศุสัตว์ สร้างทุน)
A project allowing live livestock to be used as collateral for loans.

Law

Business Security Act 2015(พ.ร.บ.หลักประกันทางธุรกิจ พ.ศ. 2558)
The legislation under which live livestock are used as loan collateral.

Person

Songsak Songsoemudomchai(ทรงศักดิ์ ส่งเสริมอุดมชัย)
Advisor to the Minister of Agriculture and Cooperatives who chaired the project meeting.