Starting off with news on Thai struggles with noxious agro-chemicals.
The Bangkok Post (Oct. 3) to the kick-off:
The Bangkok Post (Oct. 3) to the kick-off:
'Rifts within the Agriculture and Cooperatives Ministry over a proposed ban on three toxic farm herbicides are deepening amid claims the minister urged his staff to restrict the use of paraquat, glyphosate and chlorpyrifos, instead of banning them completely'.
'Representatives of the government, farmers and consumers have unanimously voted to ban the use of three toxic farming chemicals in December in a decision that could end the months-long controversial issue.Bangkok Post (Oct. 12) notes more pressure:
Deputy Agriculture and Agricultural Cooperatives Minister Mananya Thaiset said on Monday the working group comprising the three groups voted 9-0 in favour of the ban on three chemicals — paraquat, glyphosate and chlorpyrifos — starting Dec 1 at a meeting at the ministry.
From that date, it will be illegal to have, sell, import or produce the substances'.
'Ministers attached to the Bhumjaithai Party will quit their jobs if they fail to convince the authorities to ban three pesticides that have been used for farming despite their high toxicity, party leader and Deputy Prime Minister Anutin Charnvirakul said on Saturday.
Mr Anutin, who is also Public Health Minister, said that he and his colleague, Deputy Agriculture Minister Mananya Thaiset, are ready to show their spirit by tendering their resignations if the proposed ban is shot down by the National Hazardous Substances Committee (NHSC).
“We need to go because the failure means we have no power to rule,” Mr Anutin said.
Mr Anutin and Ms Mananya have spearheaded the campaign to ban the use of paraquat, glyphosate and chlorpyrifos, which are harmful to the environment and health'.
Meanwhile over in Laos, concern on pesticides has also been voiced, though the approach seems different. The Vientiane Times (Oct. 17):
'The Ministry of Agriculture and Forestry has issued a new regulation that enables authorities to check the quality and safety of pesticides before they are used on crops in Laos....The minister’s decision to issue the pesticide regulation came amid growing concerns over the safety level of pesticides, which are imported for use in agriculture.
In the middle of this year, the government came under strong pressure, especially from the National Assembly, which demanded that the government stop the import of dangerous pesticides and chemicals and ensured that such products were of good quality before being used by crop growers in Laos.
In response to pressure from law makers and the public, the government announced it was suspending the cultivation of some cash crops after learning that the pesticides used in these areas had a harmful effect on farmers and local residents.
Observers believe that this regulation, which requires the producers and importers of pesticides to register their products, will enable the authorities to carry out checks on the quality and safety of pesticides used in Laos. The move is in line with the government’s policy to promote clean and sustainable agricultural practices'.
So despite all indications that a ban is required, the Lao authorities also prefer restrictions.
Cambodia's rice news revolves around statistics.
For instance recapping the rice trade figures (Phnom Penh Post, Sep. 25):
The outlook as always seems bright. The Phnom Penh Post (Oct. 14):'Cambodian rice exports to international markets were worth more than $265 million in the first eight months of the year, said Cambodia Rice Federation (CRF) secretary-general Lun Yeng.Yeng told The Post on Wednesday that the Kingdom exported more than 340,000 tonnes of rice during the period. Rice exports last year, he said, reached more than 620,000 tonnes or more than $473 million'.
'After three consecutive quarters of decline, Cambodia’s rice exports to the European market are expected to grow in the fourth quarter following a Cambodia Rice Federation (CRF) working group’s visit to the EU to promote the produce, CRF president Song Saran said.The exports dropped sharply in the first nine months after the EU imposed tariffs on the Kingdom’s rice at the beginning of this year.Saran led the working group to several European countries to meet with various parties and look into issues related to Cambodian rice.Following the EU’s import duty on Cambodian rice, price competition with other countries led to a decline in exports to Europe, he said....A CRF report shows that the Kingdom’s rice exports reached 398,586 tonnes in the first nine months of this year – up 2.3 per cent from the same period last year, or 389,264 tonnes.Rice shipments to the Chinese market stood at 157,793 tonnes during the period. This was up more than 44 per cent year-on-year. But exports to Europe fell to 135,471 tonnes, or down nearly 30 per cent.The rest was exported to Asean markets, said the report'.
However despite the upbeat, the market in Europe for Cambodia rice imports (and Cambodian imports in general) is (as known) clouded by the Everything-but-arms-trade concessions that were revoked. The Bangkok Post (Sep. 30):
Meanwhile rice traders are trying to direct the local market. The Phnom Penh Post (Sep 25):'A World Bank report estimates [for Cambodia] lost export revenue of $654 million -- $510 million for garments and footwear and $144 million for milled rice -- if the European Commission (EC) ends the EBA privileges, which have been in place for 18 years....
Polished'The Cambodia Rice Federation (CRF) has called on farmers to delay their paddy sales until after the Pchum Ben festival to avoid a drop in prices.CRF secretary-general Lun Yeng said on Wednesday that more than 80 per cent of rice millers had postponed purchases of paddy since earlier this week, which has allowed brokers to buy it at prices lower than the market rate.“If their paddy is not [at risk of being] affected by floods or destroyed by insects, farmers should not rush to harvest. Good paddy should not be priced below 1,150-1,200 riel [$0.28-$0.29] per kilogramme,” he said.Narum, a rice farmer in Kratie province, said prices in the province were not as high as they were last year. This time last year, he could sell paddy for between 900 and 1,000 riel per kilogramme, but must now settle for between 700 and 800 riel'.
Over in Thailand, the Bangkok Post (Sep. 15) reports on the Thai rice price pay-off system:
And then in more detail. Bangkok Post (Oct. 16):'The rice price guarantee scheme will begin next month with farmers set to be paid the difference when the price falls below a predetermined benchmark, Deputy Prime Minister and Commerce Minister Jurin Laksanawisit said'.
'The rice price guarantee scheme started on Tuesday, with eligible farmers set to receive the difference when market prices fall below the predetermined benchmark.
Commerce Minister Jurin Laksanawisit said the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) transferred 9.4 billion baht in compensation directly to the accounts of 349,000 registered farmers.
The compensation will be paid mainly to growers of white rice paddy and fragrant Pathum Thani rice paddy if the market prices stay below a certain level.
Mr Jurin said the government is scheduled to pay the compensation every 15 days until the end of the harvest season'.
'According to Tran Thanh Hai, deputy director of the Import/Export Department under the Ministry of Industry and Trade (MOIT), Vietnam exported 5.4 million tons of rice in the first eight months of the year, an increase of 0.1 percent over the same period last year, but the export value was $1.96 billion, a decrease of 15 percent.Rice news from Laos. Vientiane Times (16 Sep.):
...
China, which was the biggest rice importer of Vietnam in previous years, has cut purchases. Exports to the market dropped by 65 percent.
In 2018, Vietnam sold rice at $500 per ton on average, but the price decreased in 2019. China, which imported rice in large quantities across border gates in previous years, began restricting imports through this channel in 2018.
Moreover, China has also begun applying the rice import quota scheme. It plans to import 5 million tons of rice this year, but in fact, it has imported 3.3 million only'.
So there's a shortage in the local market as there's also a need to export to China. Then the Vientiane Times (Sep. 27) reports on government measures to cool the market:'Many agricultural promotion companies in Laos have limited their rice exports because of the supply shortage in the domestic market despite high demand from overseas.High rice prices and the impact of flooding within the country this season are the main reasons why farmers are storing rice for their own consumption, according to the industry and commerce sector.Laos recently exported only 1,350 tonnes of polished rice to China as part of a 50,000-tonne export quota agreement between the Lao government and China National Cereals, Oils and Foodstuffs Corporation (COFCO)'.
Tightlip'The government has approved the sale of 2,000 tonnes of stockpiled rice to bring down the high market price after a shortage of supply meant the price of rice rose by over 20 percent above normal.
The move is aimed at cutting costs for consumers and easing the hardship of people on low and medium level incomes.
The Vientiane Industry and Commerce Department has directed the Khamphaengphet Chaengsavang Agriculture Promotion Co., Ltd. to sell the 2,000 tonnes of rice after the government and the company signed a contract to that effect.
Polished Grade B sticky rice is on sale at five locations in Vientiane for 6,500 kip per kg, from September 23-30. This price is 2,000 kip per kg less than the current market price....The government regularly stockpiles rice and has supplies available every year which can be put on sale when the market price of the staple becomes unacceptably high. This year, the price of polished sticky rice rose to an abnormally high level after a prolonged dry season followed by widespread flooding, meaning that rice yields were below the set target.
From January to June, the price of rice in Vientiane, mainly paddy sticky rice, rose by 3,425-3,500 kip per kg and the price of polished Grade B sticky rice by 6,335-7,000 kip per kg, according to the Vientiane Industry and Commerce Department.
From the end of June to September, the price of rice increased further to about 4,350 kip per kg for paddy sticky rice in the second week of September. Compared to June this was an increase of 1,500 kip or 24.28 percent, the Director of the Vientiane Industry and Commerce Department Director, Mr Berlin Phetchantharath, told the media.
The release of stockpiled rice is authorised by the Decree on the Management of Goods Price and Services No. 474/PM, dated November 18, 2010. The decree followed the appointment of a steering committee on the management of goods price and services in Vientiane'.
As an intermezzo, a feature from Nepal's Kathmandu Post (Oct. 13) on hybrid rice:
As always, it's about economics. It's also strange that a company uses a social initiative to push hybrid rice with a multinational company which only has one interest.'There is a reason why Thakur is upbeat. This year, he is expecting to produce 9 tonnes of paddy on a hectare of land — three times the national average paddy productivity rate.All this is because Thakur cultivated two high yielding hybrid varieties— Arize 6444 Gold and Arize Idea hybrids. He owns 1.7 hectares (2.5 bigas) of land. As the ripening period of these varieties is 125 days, Thakur is expecting to harvest his crop towards the end of October. The early ripening time has also given him ample time to prepare for a mustard farm in the next cropping cycle....Thakur is expecting to at least double his income this year. “People, mostly my neighbors, had called me crazy when I decided to go for a hybrid variety,” remembers Thakur. “They are all tightlipped now.”In Nepal, most farmers do not use hybrid paddy because they cannot produce the seed and have to buy them every year from the market.But Thakur decided to take the risk. His hybrid journey began after he got a handful of hybrid paddy seeds from Nepal Krishi Company, Buddha Air’s corporate social responsibility initiative that works on farm mechanisation and commercialisation.Thakur is a bit worried as well. “Since it’s a new variety, I don’t know what rate I will get for my produce. I don’t know if consumers will prefer eating these varieties.”...Farmers in the area say that hybrid varieties have many advantages but there are disadvantages as well. “We have to buy the hybrid varieties every year from the market as it cannot be reproduced,” she Khanal. “We are worried that it may make us dependent on seeds. “It’s expensive as well.”The price for Arize 6444 seeds per kilo is Rs600 while Ranjit costs Rs70 per kg....Nepal Krishi Company and Bayer BioScience of India had signed a memorandum of understanding last May to begin a pilot project to use two-hybrid paddy seeds this summer which have the potential to double productivity.The company has piloted these hybrid varieties on 35 bighas of land. Out of the total land, these varieties have been cultivated with the latest technology and tools on a demonstration plot of 20 bighas owned by Birendra Bahadur Basnet, managing director of Buddha Air, who is also a board member of Nepal Krishi Company. The remaining 15 bigas are owned by the local farmers.“By October end, we will see the result—the actual cost of production and productivity—of the hybrid varieties,” Basnet says. “The Krishi company’s objective is not only to produce paddy but we want to establish the fact that paddy farming can be done commercially.”
Dispersed
The Khmer Times (Oct. 7) reports on investment on Cambodian agriculture:
More mango news. Khmer Times (Oct. 4):'Green Leader Holding Group Limited, a Hong Kong-listed firm, announced last week that it is increasing investment in the local market by building a new mango processing plant in Tboung Khmum province....In May, Green Leader opened a $20-million cassava-processing factory in Kratie’s Snuol districtThe company said the facility can process up to 130,000 tonnes of starch a year, absorbing 500,000 tonnes of raw cassava'.
'Cambodian mangoes are ready for export to the South Korea market with the first shipment officially kicking off in early November, Hyundai Agro, the Korean exporter, said....Although the company got permission from the government, Chang Hoon Lee noted that there is another obstacle when it comes to competition with Vietnam, Thailand, Peru, and the Philippines.Vietnam and Thailand have an air cargo connection with South Korea and enjoy a very low cost of transportation. Every day, Thailand sends more than 100 tonnes of mangoes to Korea and they are dispersed everywhere in one day, while Vietnam’s duties for mango exports are lower than for Cambodia because of the free trade agreement area, Mr Lee pointed out....He noted that there are no cargo airplanes between Korea and Cambodia so the company is figuring out how to send 10 to 15 tonnes of mango by ship'.
Khmer Times (Oct. 2) looks at the evolving trade issues concerning Kampot's pepper:
Rubber. The Phnom Penh Post (Oct. 14):'A lack of demand is driving a large number of Kampot pepper farmers to quit the crop, the Kampot Pepper Promotion Association said yesterday.Many farmers are finding it difficult to sell their harvests, according to KPPA president Ngoun Lay. He estimates that 20 to 25 percent of small-scale farmers (those farming less than 3,000 square meters of land) have abandoned the crop after this year’s harvest season, which recently finished.Mr Lay said an oversupply of the crop is causing farmers in Kampot and Kep provinces to switch to other crops like mango....“For example, before a buyer would order 10 to 20 tonnes of pepper, but now they only need from 2 to 10 tonnes because they are also growing the pepper themselves. This is hurting farmers,” he said.He noted that the crop is now grown in 290 hectares of land in both provinces by 445 farmers. Combined, those farmers produce a total of 100 tonnes a year on average, but buyers are demanding only about 70 tonnes a year.A kilogram of Kampot black pepper fetches $15, while red pepper and white pepper sell for $25 and $28 per kilogram, respectively. However, some farmers have had to sell their black pepper for $13 a kilogram, red pepper for $22 and white pepper for $26, Mr Lay noted....Low-quality pepper used to fetch $10 per kilogram, but now, due to oversupply, some farmers are selling it to Vietnamese merchants for as low as $2 per kilogram'.
Some news on evolving land issues. Taking a French company to a higher level. The Phnom Penh Post (Oct. 1):'Cambodia exported $231 million worth of rubber in the first nine months of this year, a year-on-year increase of nearly 22 per cent from $190 million last year, a Ministry of Agriculture, Forestry and Fisheries official said on Monday.Khuon Phalla, director of the Department of Administration and Legislation under the ministry’s General Directorate of Rubber, told The Post on Monday that Cambodia’s rubber exports during the period reached 173,072 tonnes, a year-on-year increase of 23.35 per cent from 140,303 tonnes....However, Sopheak Nika Investment Agro-Industrial Plants Co Ltd director Men Sopheak said the rubber market during this period was not as strong as last year.The current rise in rubber exports is merely due to an increase in the number of mature rubber trees, he said, which produce a larger harvest from year to year'.
'The group, from seven villages in Pech Chreada district’s Bou Sra commune, filed a lawsuit at a French court last year to claim damages and demand compensation from Bollore, a firm that funded Socfin-KCD.
They said they were under threat of losing their land, traditions and customs since the arrival of Socfin-KCD, which had received loans from Bollore to operate a rubber plantation in Mondulkiri since 2008.
...
He said some 800 families, mostly Bunong indigenous members, have been severely affected by the project after Socfin-KCD obtained investment rights to plant rubber trees and other cash crops on 2,368ha on a 70-year contract.
Of the more than 800 families, he added, 640 are directly involved in the land dispute. They turned to the French court after the provincial authorities claimed the dispute had been solved'.
Couple of snippets from the region.
Oddly, the Phnom Penh Post (Oct. 1) reports on sugar concerns:
'The Thai sugar industry has been hit by the twin crises of falling exports and sliding prices, industry experts have said.The most imminent threat to the industry is the falling price of sugar in the global market, which has currently dropped by $0.22-$0.24 per kilogramme, the lowest price in six years'.
'Vietnam is in the process of getting a licence to export avocado to the US, according to the Vietnam Trade Office in the US.The Vietnam Trade Office’s branch in the US’ San Francisco said avocados are mainly sold at big supermarkets with large volumes, so they must meet the high requirements of the US market.Avocado distribution companies must be responsible for controlling the stages of a supply chain, from production to distribution, while exporters need to have sufficient quality certificates.To enter the US market, avocados must meet the minimum requirements of the regulations on maturity, colour and weight. Avocados must be intact, clean and without insects....In Vietnam, avocado trees are now grown in many provinces and cities, but concentrated in the Central Highlands region with a total area of 8,000ha.Dak Lak province – which borders Mondulkiri province’s northern Koh Nhek district in Cambodia – is the largest producer in Vietnam with a total area of more than 4,300ha.Following are Dak Nong province – across the border from Mondulkiri’s southeastern O’Raing district – with an area of nearly 2,600ha, Lam Dong province and Gia Lai province – which borders Cambodia’s Andong Meas and O’Yadav districts in Ratanakkiri province'.
