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):
Oryza.com (Mar. 27) highlight the anxiety of Italian rice farmer who feel threatened by lower tariff for some rice producing nations. On Cambodia:
Earlier the Phnom Penh Post (Mar. 20) noted the Cambodian side to the argument:
Futures
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.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):
“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'.
'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'.
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:
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):
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'.
