Monday, April 13, 2015

Better informed

Probably one of the major events the past month has been that the Facebook site of Mekong Oryza Trading has suddenly decided to publish links to stories on Cambodia and rice. It also includes relevant articles from other (Southeast) Asian media as well as oryza.com. An added instrument to keep abreast of rice related news. 

It also means I don't have to regurge  all rice related news for Cambodia. Just comment on trends or diabolical developments ...

Unfair
Big news (Cambodian Daily, Apr. 8):
'Cambodia’s year-on-year rice exports for the first three months of 2015 increased by 77 percent, according to figures released Tuesday by the Cambodia Rice Federation (CRF)'.
Reasons 1-10 for this increase: China.

Oryza.com (Mar. 27) highlight the anxiety of Italian rice farmer who feel threatened by lower tariff for some rice producing nations. On Cambodia:
'However, Italy's Ente Nazionale Risi, the National Agency for rice noted that the figures provided by Cambodia on 2015 rice exports are  wrong as the EU data shows that the decline during the stated period has been only 10%. They noted that despite a decline in imports from Cambodia, Italy is not able to recapture its lost share in the local market'.
Maybe Italian farmers are doing something wrong ....

Earlier the Phnom Penh Post (Mar. 20) noted the Cambodian side to the argument:
'Sok Puthyvuth, president of the Cambodia Rice Federation, said yesterday that the purpose of the meeting was for the delegation to have a greater understanding of Cambodia’s rice industry, to better inform their discussions with Italian producers.
“We clarified that Cambodian rice exports to Europe are largely only fragrant rice, so it does not affect the [Italian] farmers,” he said, Puthyvuth said that Italian rice farmers produce largely a white rice variety that did not compete with Cambodia’s fragrant rice'.
Cambodia is making progress with it's moves for Geographical Indication for a number of agricultural products, so notes the Phnom Penh Pot (Mar. 13):
'Feasibility studies on achieving Geographical Indication status for Thma Koul rice, Kampot durian and Cambodian golden silk have been completed, officials said yesterday.
...
Song Saran, CEO and president of AMRU rice and CRF board member, said achieving GI status for Cambodia’s Thma Koul rice would open up new markets for Cambodian rice.
“It will help boost Cambodian rice exports and the higher value will increase margins for farmers and exporters. With GI status, it will take exporters less effort to promote rice to buyers,” he said'.
A video on you tube making the rounds on social media concerning a rice planting machine.

Futures
The Bangkok Post (April 8) sees it relevant to note that the dry season rice crop in Thailand has dropped to a 15 year low. The article blames poor rains. Though I believe it's more to do with poor (and possibly lower) prices in recent years and the fact that subsidies have disappeared ... witness this sentence:
'Futures traded on the Chicago Board of Trade have slumped 31% in the past year to $10.70 per 100 pounds'.
The Bangkok Post (Mar. 24) reveals that one of the driver of lower rice prices is the Thai government itself as it tries to rid itself of stocks. They are coming at a bad time; oil prices are down and many of the buyers are stuck with cheaper Euros.

Sad news from the Nation (Mar. 27):
'A 46-year-old rice farmer in Phichit's Muang district committed suicide by hanging himself yesterday morning allegedly due to overwhelming debts. 
A police investigation found that Chid Chusri left home on Wednesday night to "check on water pumps" and didn't return. His relatives went looking for him and found his body hanging from a tree in his rice field at 8.30am yesterday.
His older brother, Siplapachai Chusri, told police that Chid had been under a lot of stress because he had debts amounting to Bt700,000 - more than Bt400,000 of which was owed to a local branch of Bank for Agriculture and Agricultural Cooperatives (BACC). He said Chid had recently borrowed Bt7,000 from a relative to pay the bank's debt interest'.
Tricks
A complicated article from Vietnamnet (April 1). This is the gis: Chinese businessmen are trying to buy rice through border trades rather than through Vietnam's official channels. They are paying more, but due to avoidance of (export) taxes, making more. The consequence is that the domestic price rise, meaning official export become less competitive, meaning less taxes ...
'The Vietnam Food Association said that Chinese businesses top the list of trade partners who try to lower prices by “tricks” and cancel contracts.
In 2013 alone, 64 percent of rice export contracts were canceled by Chinese traders. They delayed the delivery schedules for other contracts and lowered prices'.
One of Vietnam's bigger food company's, Southern Food Corporation Limited (otherwise known a Vinafood 2) is in the problems. Inefficiencies have resulted in losses covered by debts, which were than passed on through the conglomerate. Vinafood 2 plays a large role in Vietnam's rice industry and has also been forced to brunt losses in deals made at above market price. More on this at oryza.com.
The Phnom Penh Post (Mar 30) notes that the rice exporting joint venture in Cambodia (Cavifoods) would supposedly be unaffected.

Branding is hot in Cambodia, now the Vietnamese want the same, so reports Oryza.com (Mar. 24).

Stay at home farming
If you want to know more on how rubber prices are keeping up (or in this case down), read this good background article from the Bangkok Post (Mar. 24). Soothsayers reckon prices  will not drop any further as current prices reflect the cost for harvesting and further processing only; no returns on investment / land /management, etc., so if prices drop further, rubber collectors will prefer to just stay at home ....

On the other hand, one crop on the up are cashews. The Phnom Penh Post (Mar. 20) features Kampong Thom Cashew Nut Association which hopes to get government support to encourage more cashew growing. Prices have risen this year by 50%.

Lawful
Not included in Mekong Oryza overviews, but probably of more significance for the local Khmer farmer be he / she a rice farmer or otherwise. Cambodian NGO's have brought to the attention that more than 2 million hectares of land were under Economic Land Concessions an agreement with central government giving investor a free hand on huge tract of land to do as they please (Phnom Penh Post, Mar 31). 
Anything goes, including driving out locals as well a full scale  deforesting which influences water levels and creating Despite a 2012 ban on new concessions, the granting of these has actually accelerated.  
Licadho has a nice interactive map. Branding would help Vietnam to upmarket it's rice. Or at least keeping up with the competition.

Hands washed
On topic, a very recent report (Apr. 11) in India's Economic Times tells how some farmers are upset with hybrid rice:
'"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast, a serious disease caused by the imperfect fungus'.
"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast, a serious disease caused by the imperfect fungus.

"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast

"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast

Nearly 700 ha were to be affected. Longping blame the mis-harvest on adverse weather conditions ...
Damage control as reported by CRI (Apr. 11):
'China's agricultural authority says the massive crop failure in Anhui province does not involve a super-hybrid strain of rice.
...
Super hybrid rice now accounts for around 30% of the country's overall rice cultivation'. 

Thursday, March 12, 2015

Leading by example


Market
Though not significant in itself, the Cambodian PM admits that the country is not going to meet the plans for exports of 1 million tonnes this year. According to the Cambodian Daily (Feb. 18), increased competition is partly to blame as are processing problems.

Export problems though will remain in light of dropping prices thus favouring importers. Oryza.com's rice market overview shows prices continuing to drop, 0,8% over the month, roughly 10% in annual terms.

How this pans out in reality? Just look at this piece of info from Thailand. The drop in international prices further hinders Thailand's efforts to recoup some of the past financial pledges which are now safely in hands of Thai farmers. Bangkok Post (Feb. 27): 
'Thailand is likely to face difficulty selling rice now that global market demand is slowing amid greater supply and price competition, said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. World rice trade is estimated at 41 million tonnes this year, down from an earlier forecast of 42 million tonnes, he said'.
The Bangkok Post notes (Feb. 25) that the losses under the last democratic government rice policies in financial terms have been revised upwards. Why? Because the current prices are dropping, so in today's terms that means more losses. But if every day prices drop, then isn't the current government responsible for further losses, because they aren't selling fast enough? 

A new kid on the block? Laos wants to boost rice exports. Vientiane Times (Feb.17): 
'The Lao government is working to provide messages on food safety as it continues to promote the increased production of commercial crops for export to neighbouring countries, especially rice production'.
The article sums what's needed for exporting and how the rice production is coming along as well as mentioning that in 5 years production should be 5 million tonnes, while this year it's estimated that production will be 4.2 million tonnes. 
Unsure how exports would work out, as most of Laos rice is sticky rice, which holds little commercial value outside Laos and northeast Thailand. Maybe pushing this might open an exclusive niche for Lao exports. But as they mention interest from China, I doubt that's whats in store ...

Defined
Just a slight improvement along the commodity chain for rice exports may well show how exporting can be assisted. Port authorities of Phnom Penh will waive storage fees for stored rice for a maximum of 18 days. So reports the Phnom Penh Post (Mar. 4).

However there are other ways as well. Not often does Cambodia set the rule for Vietnam. But in a recent interview with rice expert Vo Tong Xuan published in Vietnam News (Mar. 10) it appears that Cambodia is the example to follow for Vietnam:
'Last November, at the sixth International Rice Conference in Phnom Penh, Cambodia's rice was highly valued for its quality, even better than rice from Thailand. A key factor helping Cambodia to gain such a high reputation was support from the International Trade Centre (ITC) through a project to develop a rice trade mark.
Under the project, the ITC helped Cambodia to define a rice variety which has top quality. Next, the ITC supported Cambodia in building a most advanced rice mill and taught Cambodian farmers how to grow the special variety. In addition, the ITC helped eight Cambodian enterprises develop procedures on how to grow the rice.
However, Vietnamese enterprises do not to pay attention to developing their own trade marks. What they do is simply buy rice from traders. The Department of Trade Promotion doesn't have any policies to encourage enterprises to develop trade marks for Vietnamese rice'.
The Cambodian Rice Federation (CRF) though is not sitting on it's laurels. On Feb. 26 they mention that exporters will try to create a single export brand. The next day it also reports on how they would like to form export consortium's so as to upgrade export conditions and able to meet qualifications from major importers.
'They had also expressed the needs to enforce the CRF Ethical Code of Conduct to all exporters, whether they are members of CRF or not as the current “laisser faire” had led to abuses which have tarnished the image of the Cambodian rice and sent export price spiraling downward despite the very good quality of our rice'.
On March 5 oryza.com has a report on this, more or less as above.

They had also expressed the needs to enforce the CRF Ethical Code of Conduct to all exporters, whether they are members of CRF or not as the current “laisser faire” had led to abuses which have tarnished the image of the Cambodian rice and sent export price spiraling downward despite the very good quality of our rice. - See more at: http://www.crf.org.kh/?page=api_location_detail&id=864&lg=en#sthash.IVc0uA0r.dpuf
They had also expressed the needs to enforce the CRF Ethical Code of Conduct to all exporters, whether they are members of CRF or not as the current “laisser faire” had led to abuses which have tarnished the image of the Cambodian rice and sent export price spiraling downward despite the very good quality of our rice. - See more at: http://www.crf.org.kh/?page=api_location_detail&id=864&lg=en#sthash.IVc0uA0r.dpuf

Write offs
On February 26, the Bangkok Post mentions how the Bank for Agriculture and Agricultural Cooperatives (BAAC) will try to write off some debts:
'Proposed by BAAC, the guideline features writing off outstanding debts owed by farmers who were no longer unable to service debts or who passed away. It will also extend the debt repayment period for those who still have the ability to repay'. 
Oryza.com notes that Thai authorities prefer to lavish money on rice cooperatives: 
'Thailand's Ministry of Agriculture and Cooperatives is planning to allocate 6.5 billion baht (around $200 million) to support rice farmers' cooperatives to improve their business capabilities, according to local sources'. 
Luckily when the government will change there will probably be no trace of whether or not this money will have been spent wisely. Now that's a policy we like!

Marginal
Big news in Thailand. Farmers are not growing rice but watermelons. So says the Nation (Feb. 22). And though returns might return more swiftly the article also mentions that growing watermelons was not very profitable ... 
 
The success of just one industry body for rice in Cambodia has rubbed off on the cassava sector. Same same says Phnom Penh Post (Mar. 3). The problems faced are also the same: 
'He [Pang Vannaseth, director of Battambang’s Agricultural Department] added that while cultivation has been increasing yearly, the sector still faces many challenges such as unstable prices, a shortage of warehouses, and a lack of capital among farmers'.
More market problems, now for Lao cassava farmers. The Vientiane Times (Feb. 17) quotes Champasak provincial officials who believe problems are there to be solved. And their problems are to ask their cassava farmer to sell the crop outside of the province, possibly even Thailand. Thus the lack of working capital at the provincial processor will not be a problem anymore.

Lifeless
Just to show how powerless farmers are in Cambodia, the Phnom Penh Post (Feb. 23) notes that farmers farming land for over 30 years somehow have lost their rights and the land is being sold off as land fill.
'Some 100 farmers gathered at Banteay Meanchey Provincial Hall on Saturday to protest the actions of a company they accuse of excavating 50 hectares of their rice fields for soil, which it sells by the truckload, according to protesters and the rights group Adhoc.
Bearing signs that read “My land is my life”, protesters called for a halt to the activities of the company, which is owned by the deputy provincial military commander, Phlun Hong, also known as Phlun Dara. Villagers said the company told them it was digging a canal for irrigation, but maintained it had not told them beforehand.
...
Phlun Hong’s company was one of four businesses whose licences were revoked by the Ministry of Mines and Energy late last year. Contact information for the company was unavailable yesterday'.
Elevation
Finally an interesting article from the states on an answer to some of Southeast Asia's upland rice problems. The answer may be perennial rice? 
Yale university online magazine Environment 360 (Mar. 5) has an interesting report on the future of perennial rice. With having standing crop year round, erosion would be largely dealt with while it would result in much lower labour costs.
'By crossing domesticated rice with its wild predecessors, they hope to create deep-rooted varieties that hold soils in place, require less labor, and survive extremes of temperature and water supply.
...
Critics argue, however, that perennial grains like PR23 will never be able to feed the world’s growing population. Kenneth Cassman, an agronomist at the University of Nebraska whose work focuses on global food security, says devoting a greater share of the world’s limited agricultural research funding to perennial rice research would be a mistake. 
“The goal is not just to increase agricultural productivity, the goal is to lift people out of poverty and provide adequate nutrition and health,” says Cassman, who worked at IRRI in the mid ‘90s. “And there’s no way that low-yielding perennial grains grown on small, marginal farms can lift anyone out of poverty.” Instead, he argues that farmers should grow drought-resistant trees or pasture — not grains — on steep hillsides to stabilize soils, and scientists should focus on improving annual grain yields in environments that are truly suited to them, such as flat fields with adequate water.
Nevertheless, those involved with the perennial rice research in China say it could have global environmental implications'.

Friday, February 13, 2015

Seized

Reaping funds
The Cambodian Rice Federation (CRF) seems to be in the business of self-interest. The Cambodian Daily (Feb. 7) has this information on how the CRF hope to raise funds:
'The Cambodian Rice Federation (CRF) plans to borrow at least $400,000 for international marketing campaigns if it fails to meet its goal of raising $777,000 for the plans through imposing export fees on its members, the organization’s president said Friday at CRF’s annual conference.  
On Monday, the CRF voted to require its members pay an export fee of $0.50 per ton of long-grain white rice and $1 per ton of fragrant rice in order to raise the funds to educate local farmers and market Cambodian rice overseas'. 
Now does there need to be a marketing campaign? Or does the CRF have the authority to impose such a fee? And if so, would this not hurt exports? And how will the money be spent? 
The article then also has this info: 
'Also at Friday’s conference, Commerce Minister Sun Chanthol said the ministries of finance and commerce would borrow $300 million from China to build 40 warehouses and kilns for farmers to dry their rice.
“We will sign a [memorandum of understanding] with China Exim Bank soon, with leadership from the Finance Ministry,” he said.Mr. Chanthol said the move would help to avoid paddy outflow to neighboring countries such as Thailand and Vietnam.
A lack of industry capital in Cambodia has long left farmers unable to have their rice processed domestically for export, meaning that they miss out on adding value to their crop and are often pressured to accept lower prices offered by foreign traders'. 
Only to be offered lower prices by national traders?

With this being the year the Cambodian government has meant that it will export 1 million tonnes of rice, the Cambodian Daily (Jan. 19) takes stock. No secret that this export target will not be reached.
'According to an October economic update from the World Bank, significant gains were made in the ensuing years.
“[Cambodia’s] modern rice milling capacity (i.e. the larger mills) increased sevenfold, from 96 tons per hour (tph)…in 2009 to over 700 tph in late 2013,” the report says.
It adds that paddy production more than doubled from 2003 to 2013, from 4.3 million tons to 9.3 tons, and notes that Cambodia’s jasmine rice has been repeatedly named the world’s best rice by the World Rice Conference.
Another industry development came in May, when the country’s myriad miller and exporter associations united to form the Cambodia Rice Federation (CRF), electing Sok Puthyvuth, the son of Deputy Prime Minister Sok An and CEO of local conglomerate Soma Group, as its president.
Upon being elected, Mr. Puthyvuth said the two greatest obstacles to increasing exports were a lack of available funds and the quality of crops'.
However, dropping prices and intense competition have been of little assistance.
'But Cambodia still lacks the transport infrastructure, facilities and capital to guarantee the supply necessary for major trade deals, David Van, executive director of rice miller and exporter Boost Riche Cambodia, said last week.
...
The World Bank’s October report also notes that high fuel and electricity costs in Cambodia make milling 30 percent more expensive than in Vietnam and Thailand.
...
An area in which Cambodia has made particularly slow progress is in forming institutions to certify and test crops before shipment.
According to a report released last week by the Geneva-based International Trade Center, this was an impediment to trade for 89 percent of agriculture exporters in the country last year.
“Few agencies in Cambodia are capable of testing and certification of products for export,” the report says'.
Somehow this small piece of national news hardly registered in the Cambodian press. So from oryza.com (Jan. 29): 
'In a letter adressed to the Prime Minister, a group of opposition leaders noted that declining prices of rice, rubber and mung beans have been significantly impacting the lives of farmers'. 
The blame Thai and Vietnamese traders. Goevernment says they are doing their best. Politics.

In other national news Phnon Penh Post (Feb. 5) has this piece of business info:
'Local rice miller and exporter, QC Rice Company, signed a memorandum of understanding (MoU) yesterday with Chinese agricultural firm, Rizhao Rui Energy Trading Company, a partnership that will see the two businesses trade in rice and agricultural machinery.
The deal sees Rizhao Rui Energy Trading Company agree to import 250,000 tonnes of Cambodian rice from QC Rice, while the Cambodian rice producer has agreed to import $4 million worth of farm machinery from its Chinese partner'. 
Now I can understand buying rice and selling this into a market such as China, but does Cambodia really need the machinery supplied from China? And how can an industry cash-starved rely on the potential hope of selling a machine to ensure some cash flow?
Another hitch comes in the form of import restrictions for rice in China from Cambodia:
'China’s import quota of 100,000 tonnes of rice from Cambodia is something Kong [CEO of Rui Energy International] said the company would be seeking to lift in order to allow the 250,000 tonnes anticipated in the deal'. 
Note that neither company have a high internet profile ...

More substantive information. The Phnom Penh Post (Feb. 13) reports that organic exports of rice from Cambodia are in high demand:
'Organic rice miller CEDAC is aiming to double its exports this year as competition in the niche organic rice market heats up.
... 
CEDAC buys its organic rice for an average price of 1,650 riel ($0.41) per kilogram, as much as 50 per cent more than the 1,100 riel nonorganic rice farmers receive per kilo.
But CEDAC is not the only firm eyeing Cambodia’s organic rice market for rapid expansion.
Non-organic rice miller and exporter AMRU Rice in September signed a deal with eight farmer cooperatives in Preah Vihear province to purchase 2,500 tonnes of organic fragrant paddy rice for export to the EU and US markets'.
Free press
The hacks over at Bangkok Post (Jan. 28) have a very insightful article on the current status quo of rice trade in Thailand and also how  the former PM's recent impeachment due to irregularities in the rice pledging scheme is to blame. As is customary there, there's a lot of applauding the junta while deriding the previous democratic government.
Just some excerpts:
'The biggest exporter stockpiled 17.8 million metric tonnes after former prime minister Yingluck Shinawatra spent $27 billion since 2011 buying at above-market prices to aid farmers. The move threatened the nation's credit rating and helped fan months of protests'. 
Wrong, the protesters were personal, irrespective of whatever policy was or was not in vogue.
'Ms Yingluck was impeached on Jan. 23 for failing to heed warnings about the spiralling cost of rice subsidies, which the FAO said were unsustainable'. 
So if the FAO say they were unsustainable, then that must be true. What's more the former PM was impeached by a military junta whose sole purpose was to get her suspended from any future political activities.
'[Junta] Prime Minister Prayut Chan-o-cha is seeking to clear the warehouses without torpedoing the market, saying on Jan 26 the government wants to accelerate sales to reduce inventory costs while ensuring prices are acceptable'. 
Prices since have dropped by 35% thus resulting in a loss for government. But more importantly farmers are highly affected by this selling resulting in lower prices now.
'A decline in the quality of the stockpiles also may limit the impact of sales on prices, which reflect food-grade grain. An audit in 2014 found about 80% was substandard and almost 4% was poor quality, destined for non-food uses.
Most is still food-grade quality and can be sold as long as it's kept dry and fumigated, said Somkiat Makcayathorn, secretary-general of the Thai Rice Exporters Association'. 
So the former PM is impeached because of the findings of the government buying and storing rice with low quality. But they still are saleable as food. It can't be both?

Thai government wants to cut rice production so reports the Bangkok Post (Feb. 2): 
'Rough-rice output may be cut to 33.73 million tonnes by 2016-17, down from an average of 35.11 million over the past six years, according to Apichart Pongsrihadulchai, vice agriculture minister. Growers will be encouraged with incentives including soft loans to shift from rice to sugar cane or to mixed farming with livestock, Mr Apichart said in an interview'. 
This is again an ill-conceived idea. Farmers respond to price incentives and opportunity. If sugar growing were a viable alternative, farmers would have switched long ago. They aren't. And with sugar prices dropping, there will be precious few who will change. 
Add to the price problems, the poor post-harvest processing (trucks unavailable, long waits for factories) and overall incompetence which results in low pay-outs to farmers with little alternatives, well one can hardly blame farmers for noting wanting to change.

Hotline
Marketing problems galore.
A very strange article in the Bangkok Post (Feb. 9) concerning sales of rice berry, which I am lead to believe is something akin to black rice.
'A group of farmers who delivered their crops of a new strain of grain, Rice Berry, to a wholesaler but did not get paid have finally received the first down payment on their harvests'. 
The article then continues to note that despite the farmers not getting their money, local officials have managed to sell more of their crop and thus all is not lost. 
But the farmers were scammed, how is this positive news? 
All the hoopla: 
'Rice Science Centre then-director Apichart Vanavichit earlier said the new strains, Rice Berry and Sin Lek, were full of anti-oxidants, iron and magnesium substances based on a clinical test by Kasetsart University. The bran and bran oil of Rice Berry contained lupeol that could help prevent cancer cell development or even kill the cells, he said'.
In Laos there's an article from the Vientiane Times (Jan. 27) on the problems with the marketing of corn:
'Sweetcorn growers in the northern province of Huaphan are finally being paid for the crops they sold to a state food enterprise through a middleman, after months of delay.
Acting Director General of the Domestic Trade Department under the Ministry of Industry and Commerce, Mr Bounthiene Keosipha, confirmed the payments at a press conference recently.

He spoke to local media in response to a question raised through the telephone hotline of the recent ordinary session of the National Assembly.
Through the hotline, a corn grower had called for the authorities to push for payments amounting to 320 million kip for about 600 tonnes of corn, which farmers had sold to a middleman.
...
He [Mr Oudsy Vongkham,Deputy Director of the Industry and Commerce Department in Huaphan province] said a Viet namese company gave the money to the province's state food enterprise to buy the corn from farmers in Sone – a newly-built district in the province. The crop was destined for Vietnam.
The state food enterprise then contracted with a local businessman nicknamed Mr Khamtui to purchase the crop from local farmers.
“The businessman later gave the money to other middlemen to help with the purchase of the crop, but those men didn't pay the farmers,” Mr Oudsy said, adding that the corn was sold last fiscal year.
After learning about the problem, the department contacted police officials in charge of economic affairs, asking them to look into the matter and identify the responsible parties.
Mr Khamtui has now had his assets seized in a bid to accelerate the payment of the outstanding money to farmers and this is now being carried out'.
Tackling
To corner the rubber market, Thailand needs to get an agreement with Malaysia and Indonesia. The Nation (Jan. 31):  
'PRIME Minister Prayut Chan-o-cha told Malaysia yesterday that a tripartite meeting should be held as soon as possible between Thailand, Malaysia and Indonesia to find urgent ways to tackle the falling price of rubber'. 
It's so strange, the former Thai government had an ill-conceived plan to corner the rice export market, fails and then is seen as criminals for trying. Current government does the same, the new heroes?

Cambodia Daily (Feb. 6): 
'Cambodia’s rubber export volume increased by about 33 percent last year compared to 2013, while the value of rubber decreased by about 9 percent during the same period, according to figures released by the Ministry of Commerce on Thursday.
...
Ly Phalla, who heads the Agriculture Ministry’s general directorate of rubber, said the increase in exports last year was likely the result of plantations hurrying to offload their excess stock'.

Tuesday, January 13, 2015

Ingenious

There's really not much to mention in this update ...

All clear
For instance there's the boring news from Thailand: how is the junta trying to tackle the former government?
Bangkok Post (Dec. 19):
'The National Anti-Corruption Commission (NACC) has cleared senior Democrat Party figures of wrongdoing in connection with rice sales made in 2009 when the party led the government'. 
The Nation (Dec. 22):
'Former Deputy Commerce Minister Yanyong Phuangrach yesterday voiced doubt over results of the government's audit of the rice-pledging scheme, saying they appeared to have been gravely distorted and that granary owners and surveyors should sue the panel in charge of verifying the state stockpiles'.
The Nation (Dec. 28):
'The director of the Marketing Organisation of Farmers (MOF) has been summoned to explain to the government's newly-established National Administrative Centre against Corruption tomorrow about the disappearance of over 100,000 sacks of rice from the government stock'.
Bangkok Post (Jan. 5):
'Attempts to clear the debts incurred by the rice-pledging scheme continued on Monday with the launch of 100-billion-baht bonds by the Finance Ministry and the Bank for Agriculture and Agricultural Cooperative (BAAC)...'.
Bangkok Post (Jan. 12):
'An inquiry committee set up by the National Legislative Assembly (NLA) to question former prime minister Yingluck Shinawatra about the NLA's impeachment motion is expected to focus mainly on the losses under the rice-pledging scheme'.
Cleaning their hands already?

Pressure
While rice farmers see some hope in the current Thai regime, rubber farmers remain dissatisfied (Nation, Dec. 15):
'The rubber industry will today ask the government to compensate farmers for a market price below Bt60 per kilogram after initially seeking compensation for prices below Bt80.
The news comes as the government has revealed that it believes a planned rally by rubber farmers in Phatthalung on Friday in response to falling rubber prices is not an attempt to put pressure on the government but merely an information-gathering exercise.
Domestic rubber prices range between Bt35-37 per kg compared to a peak of almost Bt180 over the past few years.
"If the rubber market price is Bt45 per kg, the government will have to compensate farmers for the Bt15 gap. If the price is Bt60 or higher, the government has no need to subsidise," said Manoon Ouppala, chairman of a network of rubber planters in Surat Thani'.
Meanwhile, pepper farmers are doing well, thank you. The Phnom Penh Post (Jan. 6): 
'The price of black pepper rose from $11 per kilogram in 2013 to $15 this year, while red pepper increased from $15 to $25 and white pepper went from $18 to $26, said Nguon Lay, president of the Kampot Pepper Promotion Association.
“The total harvest is expected to be 40 tonnes, while the total cultivation area has increased from 15 to 20 hectares,” said Lay.
Lay said that a lack of supply to keep up with demand was the reason behind the surge in prices'.
Pepper farmers may be the exception to the rule. In Laos, with prices of agricultural commodities going down, agro-industries are also feeling the heat. Vientiane Times (Jan. 6) reports on cassava farming near the Lao capital.
'Pakngum district Governor Mr Vongdeuan Bounnhaseng told Vientiane Times yesterday, “Farmers here have abandoned the cultivation of cassava and are now planting rubber trees instead.”
Farmers in more than 10 districts of Vientiane and nearby provinces had been growing large areas of cassava in recent years to supply the tapioca factory in Pakngum district, which has the capacity to produce 320 tonnes per day.
But their luck ran out when the company ran up a massive debt to the bank that had given it a loan, and was unable to pay farmers for the cassava they supplied'. 
An answer may be niche marketing. In practice, Vientiane Times (Jan. 3):
'As the main producer of khao kai noi rice in Laos, Xieng Khuang province is not only eyeing up more domestic markets, but also plans to expand into foreign markets.
The province is encouraging farmers to grow more khao kai noi rice using organic methods, hoping to attract the interest of consumers in Japan and France.
According to provincial authorities, prospective purchasers from France and Japan have visited the province to look into the situation ...'.
Smelling a rat?
Achievements in growing hybrid rice are sometimes marginally better than those grown normally. So why not shift the focus elsewhere?
One of the biggest threats to rice productivity are rats. Especially in south Vietnam where rice is grown year round, rats can gobble up as much as 20% of the intended harvest. So it's no surprise that rat catching is big business.
The Bangkok Post (Dec. 19) has a very informative article on what they name Vietnam's rat king, Tran Quang Thieu. Mr. Thieu had developed his own trap with a powerful spring. the article mentions that 30 million of these traps have been sold.
'His five children have all joined the family business and between them they now run six specialised companies to trap rats.
... 
... he's signed contracts to help hospitals, hotels, restaurants and schools to exterminate pests - even the Hanoi police headquarters.
"Once, we trapped some 300 kilos of rats in just one night at a tourist resort in Hanoi," he said proudly.
Over the last few years, the rat population has exploded in Vietnam due to a decline in the population of their natural predators - snakes and cats'.
A very interesting read on domestic ingenuity.

Tuesday, December 16, 2014

Fix

The biggest news this past month for rice growing Cambodia is the fact that Cambodia's jasmine rice, or Phka Romdoul won the world's best accolade. For the third time running, so actually not so newsworthy.

As reported by the Cambodian Daily (Nov. 21). But then they add:
'But this year, the coveted title—awarded by a panel of judges at the World Rice Conference at the Sofitel Hotel in Phnom Penh—was shared with hommali fragrant rice grown in Thailand.'
And though it doesn't mean any extra sales or possible higher prices, it does increase market awareness of Khmer rice. 
Phnom Penh Post concludes much the same: 
'Sok David, vice-president of Golden Rice Cambodia, said the award has show-cased the Kingdom’s quality.
“If your [client] wants a lower price with specific quality, Cambodia can do it,” he said'.
Then the World Rice Conference itself. The Phnom Penh Post (Nov. 20):
'Giving Cambodia a makeover was the focus at the sixth World Rice Conference, which was held yesterday at Phnom Penh’s Sofitel hotel.
Minister of Commerce Sun Chanthol opened the day’s events calling for better branding of the Kingdom’s products and investment environment.
“We need to do two kinds of branding. One is to do branding on products, and another one is to do branding on our country’s image,” Chanthol explained'. 
This article clocked up a response, but possibly not one the minister would like:
'Excellency Mr Minister, the world is not illiterate or stupid. Nobody thinks Cambodia is still in KR era. But everybody knows it is a supremely corrupt country without the rule of law and without human rights. So if you are looking for a Brand and for FDI just get those things fixed and the Kingdom will shine as in the Angkor era. Respectfully, FN'.
The risoitaliano website continues it's ongoing feud with duty free rice imports into Europe. at the possible cost to Italian rice farmers. Roberto Magnaghi (Dir.-Gen. of Ente Risi) in an interview applauds recent drops in imports witnessed from Cambodia, but only to see imports from Burma  overtake  ....

Enhancing Cambodia's rice sector: China will loan cash to Cambodia for building storage capacity. The Phnom Penh Post reports (Nov. 17): 
'China is set to loan Cambodia up to $300 million to build a series of warehouses aimed at assisting the Kingdom’s fledgling rice industry.
...
The loan is to be used to build more than 10 warehouses equipped with dryers capable of storing at least one million tonnes of Cambodia’s paddy. The facilities will be located along key rural production areas, urban markets and ports along the country’s value chain'.
Farmers problems, according to an article in the Phnom Penh Post (Dec. 5) concerning a consultation process between farmers, ngo's and the government: 
'A lack of irrigation, rising costs of production and finding new markets to sell their produce are problems that plague Cambodian farmers, attendees at the annual National Farmers Forum were told yesterday'. 
No news there.

On a broader level, the Cambodian PM sees that lagging other nations in export compliance is a further hindrance to getting more market share. The Phnom Penh Post (Dec. 2): 
'“Some big developed countries still practise farmers’ protectionist policies as a barrier not to let our products flow into their countries,” he said, without naming any specific nations.
Sanitary and phytosanitary (SPS) procedures, or the rules concerning food safety, and the application of animal and plant regulations on exports were an added barrier, the prime minister said'. 
Anybody involved with importing (or even exporting) via Cambodian custom officials will also note that less fortunate nations are often hindering all foreign trade ...
 
Disgruntled
Is there no news on rice-pledging? Marginal. The Bangkok Post (Dec. 12) notes that the attorney-general seems still to have insufficient evidence so as to indict former PM. Not so clear cut?

However it's mostly the rubber farmers ruffling the feathers of the junta. 

Failure by rubber producing nations to agree on cuts in rubber production have seen prices drop resulting in more pain to rubber growing nations and their farmers. Predictably those farmers in Thailand want their government to act.
The Bangkok Post  (Nov. 25) reports that about 50 farmers are decrying new proposed legislation to help rubber prices.
'The Rubber Planters Rescue Alliance, which demonstrated in defiance of martial law's ban on political gatherings, also demanded the National Legislative Assembly scrap a proposed law aimed at supporting the rubber industry. Coalition coordinator Sunthorn Rakwong claimed the bill won't boost prices because it was drafted mainly by academics, civil servants and politicians. 
"We want the national assembly to scrap the draft because small-time rubber farmers will have very little say in it and it is not a genuine support measure," said Mr Sunthorn, speaking for 14 southern  farmer groups, told Reuters. "If the national assembly does not scrap it, then rubber farmers all over the country will rise up and protest." 
The draft aims to set up a Rubber Authority of Thailand, including farmers and representatives from the public and private sector, to oversee policy and prices. But Mr Suthorn said the plan would not help all farmers, especially who grow rubber trees but don't own land, and rubber tappers'.
Looks more a class war. One of the proposed actions would be Thailand cutting trees. Now how does that look when Laos, Cambodia and Vietnam are still planting more ... 
The solution sought, has been to set up a rubber fund. The Nation reports (Dec. 13) on how an outlay of somewhere near 10 million $US is the answer. With rubber prices currently at just 20% of those in 2011, it seems this outlay will be do little to bring prices up. And certainly do nothing to the long term prospects: more and more rubber is coming onto the market while demand is slow ...

And the rubber farmers are getting restive as witnessed by them now setting an ultimatum to the junta. The Nation (Dec. 10): 
'Disgruntled rubber farmers said yesterday that they were giving the government a few more weeks to push the price of rubber up to at least Bt80 per kilogram, or they would kick off massive rallies'. 
The Bangkok Post the day before than this article notes that the minister can't afford the demanded prices!

As said it's not just Thailand struggling with low rubber prices. The Cambodian Daily (Nov. 27) sees more strangeness: 
'And while Cambodia’s natural rubber export tariffs are set at between 2 and 10 percent, Vietnam has moved to ease the impact on its rubber farmers, slashing export taxes from 5 to 1 percent last December before removing tariffs altogether on October 2'. 
With larger amounts disappearing into the apparent illicit trade to Vietnam, rubber factories in Cambodia are caught. Unable to meet prices offered in the trade to Vietnam, they can go higher only to see them stuck with produce taxed higher than that of neighbours and thus unsalable ....

And in the Vientiane Times of November 6 farmers from the northern province of Phongsaly are hoping that authorities will help them out with selling their rubber. The answer: 
'The provincial authorities asked all the relevant companies to assist the people in their district and proposed the government consider implementing suitable policies for the companies'.
Now how will these lessons translate once rice prices drop. Or fail to rise in the coming years?
 
Roundup
Further afield, in Nepal after the showing of the film the Seed Wars, there's discussion on how far companies can be allowed to possess seed patents and therefore the future of farming. The discussion was published in the Nepali Times (14-20 November). Besides this article there is also an opinionated article in the same Times, which promotes the use of GMO, but favours curtailing the power of companies. 
There is quite a lot of reaction to this point of view to suggest that the author may well be barking up the wrong GMO tree ...
Outside of Asia, there is quite some focus on an article on the healthyhomeeconomist website (Nov. 13), a brainstorming process which starts off with non-scientifically trying to link wheat consumption in the US with food allergies. It notices that this doesn't always take place, has it got to do with GMO's? Hybrids? The article then links the practice of drenching wheat with Roundup just before harvest, to gain a few % more yield, a common practice in the US.

On alternet (Dec. 4) the arguments are laid to rest. If Roundup were the cause then we would see much more intolerance of say soy or corn. It's not so says the article's author Jill Richardson. 
Of course most of the comments oppose this. Two counter arguments: Roundup is highly soluble. Only with wheat is it used shortly before harvest with no moist to either dilute or wash off the herbicide. The other is that setting up experiments to link the two might take decades: maybe it's better to err on the safe side ...

Cheat
Back in Asia, but yet again off-topic
Vientiane Times (Nov. 21) reports on cardamom in the northern province of Phongsaly. In what seems an anomaly for state officials there seems to be problems with prices: come harvest time, prices drop only to recover once the harvests have finished and the stock sold!
'He [Deputy Governor of Khua district Mr Phonethavy Xaymonty] added that more farmers have switched from growing rice to growing cardamom which is a positive sign for reducing slash and burn cultivation'.
Finally, Hong Kong customs have raided a warehouse where counterfeit [!] rice were being packed / sold (Bangkok Post, Dec. 14), this to the detriment of trademarked Thai rice. The report fails to detail what kind of rice was being sold instead ...., possibly cheaper Thai rice?