Tearful

The bad news. Let's hear it. Reuters (Jan. 16): 

'The European Union will impose tariffs on rice from Cambodia and Myanmar from Friday to curb a surge in imports, the European Commission said on Wednesday. 

The decision, which will be in effect for three years, follows a “safeguard” investigation launched last March after a request from the Italian government. Rice is grown in eight southern European countries from Portugal to Bulgaria. 

In the absence of an opinion by the relevant committee, the Commission took the final decision itself on Wednesday. 

Cambodia and Myanmar benefit from the EU’s “Everything But Arms” scheme which allows the world’s least developed countries to export most goods to the European Union free of duties. But the Commission said its investigation had confirmed that a significant increase in imports of longer-grained Indica rice from Cambodia and Myanmar had damaged EU producers. 

From Jan. 18 it will set a duty of 175 euros (£155) per tonne of rice in the first year, dropping to 150 euros in the second and 125 euros in year three, it said'.

Southeast Asia Globe (Jan. 18) adds:

'Starting today, Cambodia and Myanmar will be forced to pay hefty tariffs to export rice to the European Union – and farmers fear that it will leave both nations’ rice industries in critical condition'.

It also looks at the implications. 
In short term, Cambodia's rice export sector will have to absorb the additional duties to be paid. 
Long term though, it's presumed that other markets will have to be found. Co-incidence or not, but the PM is off to China shortly looking for increased market opportunities.

The Khmer Times (Dec. 10) had an interesting look at the current problem:

'A year ago, the European Union offered Cambodia the option of using a unique Harmonised Systems Code (HS Code) for its Jasmine fragrant rice and white rice to differentiate it from other Indica rice, a move that could have saved the nation from the conundrum it now finds itself in. 
But this did not materialise because of what some have described as a powerful combination of apathy and arrogance that led key players to believe that Cambodia could not be harmed so long as she is shielded by the Everything-but -arms (EBA) privileges rendered to Least Developed Countries (LDCs). 
Then the ball dropped. EU launched a safeguard inquiry to determine whether imports of semi-milled and milled Indica rice from Cambodia and Myanmar resulted in “serious difficulties to EU producers of like or competing products”.
...
While criticism is rife that the government and the Cambodia Rice Federation (CRF) could have scuttled the entire classification process with a forceful and united front against the EU, there is also the long-standing quandary of whether Cambodian rice is of the Indica variety or not.
The truth is that Cambodia produces Jasmine fragrant rice and white rice for the EU market, which fall squarely under the Indica rice classification.
... 
Critics opine that Cambodia is ‘crying’ because not only did the letters sent by major rice exporters Amru Rice and Signatures of Asia lack exposure in the EU and were a tad emotional, but also the entire move to safe the nation from the tariffs was allegedly devoid of a united front. 
They also alleged that the cartels in CRF made up of rice exporters were more interested in sustaining a profit margin than fighting for the sake of rice farmers, which they fervently claim to do. 
According to a source close to the issue, exporters and millers, who largely make up CRF, are said to buy rice from farmers at low rates, often below market prices'.

So, own fault?

Challenged
The advent of the new year has meant a look at the past year in which exports of rice failed to grow.

The Phnom Penh Post (Jan. 11):

'The Kingdom’s rice exports saw a 1.5 per cent drop last year compared to 2017 due to the industry’s lingering challenges – the cost of production and competition with the international market. 
Ministry of Agriculture, Forestry and Fisheries figures show that the country exported 626,225 tonnes of rice last year, decreasing 1.5 per cent from 635,679 tonnes in 2017. 
According to the figures, the main destinations for rice exports were the EU with a total of 269,127 tonnes and China with 170,154 tonnes'.

Earlier the same source (Jan. 9) also noted an increase in value of rice, which to a degree offsets the lagging export figures. At least for farmers:

'As a result of more rice facilities constantly being installed, the price of paddy rice for the 2018-2019 season was between 900 riel and 1,300 riel ($0.22 and $0.32) per kg, an increase on the previous season, according to industry insiders. 
Cambodia Rice Federation vice-president Vong Bun Heng noted that the price was a 25 per cent increase on the 2017-2018 season. The price depends on the type of rice and its quality, with premium paddy rice sold at 1,300 riel per kg, with normal rice sold at 900 riel per kg, according to Bun Heng'.

Agribusinessglobal (Jan. 16) looks at what seems to be a lesser positive development, environmentally:

'BASF on Wednesday inaugurated its first wholly-owned company in Cambodia: BASF (Cambodia) Co. Ltd., and will launch three new crop protection products in the country.
 ...
“Though Cambodia has quickly become a leading exporter of high-quality premium rice, a number of challenges remain for the country’s agricultural sector, including relatively lower levels of technology use and understanding by growers on how best to utilize innovations,” said Martin Wolf, ASEAN Business Director, BASF Agricultural Solutions. “We believe BASF is well suited to help address these challenges and are excited to help Cambodian farmers become more profitable and sustainable.”
... 
Three new crop protection products will be initially launched, empowering farmers and growers with more tools in their toolbox to manage their crops:
Basagran [Bentazon] Herbicide – for broadleaf weeds and sedges in rice
Tetris Herbicide [profoxydim]– for weed grasses in rice
Regent 50 SC Insecticide [Fipronil]– for stemborer, thrips and leaf folder in rice'.

Urge
Regionally, it's also about statistics.

Bangkok Post (Jan. 8) looks back at the year gone:

'Thailand exported 11.13 million tonnes of rice worth US$5.62 billion in 2018, but exports will drop this year, according to the Foreign Trade Department. Director-general Adul Chotinisakorn said on Tuesday that last year's rice exports were worth 180.41 billion baht, met the target and helped raise local paddy prices and farm incomes. He expected exports would drop slightly this year. The department would try to increase the export value and encourage farmers to grow quality rice and high-demand rice'.

The Nation (Jan. 9) notes that the remaining rice of the rice-pledging scheme is now off the market:

'All 16.84 million tonnes of rice in the government stockpile have now been released to the markets, securing some Bt145.08 billion in sales over the few years, according to the Ministry of Commerce.Adul Chotinisakorn, director-general of the Department of Foreign Trade under the Ministry of Commerce , said the department had cleared all of the remaining stock under the present administration from May 2014 to December last year.As a result, the government no longer bears the storage cost of more than Bt1 billion per month. Furthermore, the sales will normalise rice production, trade and prices according to market mechanism, while Thailand will gain the confidence of local and foreign consumers, he said'.

Then this piece of news from Thailand. Bangkok Post (Dec. 10):

'Deputy Prime Minister Somkid Jatusripitak has urged the Commerce and Agriculture and Cooperatives ministries to work with manufacturers to cut fertiliser prices by 30% to support the farm sector'.

Sometimes the Thai government just does not know what to do. Go organic, self-sufficient or chemi-agriculture? Fact is, current fertilizers are often of poor quality. Now that's an area the junta itself can improve ...

Phnom Penh Post (Dec. 18) looks at Lao affairs:

'Laos has achieved its target for exporting rice to China this month after the IDP Rice Mill of Laos signed a trading agreement with China National Cereals, Oils and Foodstuffs Corporation (Cofco) in November.
 Last year, the Chinese government agreed to purchase 20,000 tonnes of rice from Laos through Xuanye (Lao) Co Ltd, but up to October the country had exported just 16,800 tonnes, according to the Ministry of Industry and Commerce. 
The company first exported 1,000 tonnes of rice and will be exporting the remaining 2,200 tonnes by the end of this month, Minister of Industry and Commerce Khemmani Pholsena informed Parliament'.

Slowed

Looking at the main alternatives for rice in Cambodia, the Phnom Penh Post (Jan. 8) adds on corn:

'Cambodian corn production saw slow development last year with crop yields increasing a mere two per cent on 2017 to 715,000 tonnes, remaining far short of Cambodia’s peak in 2012 when production reached nearly one million tonnes.
According to United States Department of Agriculture (USDA) figures – endorsed by Minister of Agriculture, Forestry and Fisheries Veng Sakhon – Cambodian corn production amounted to 715,000 tonnes last year, up from 700,000 tonnes in 2017. 
However, the USDA data highlighted a big gap compared to Cambodia’s peak in 2012 when corn production amounted to 951,000 tonnes, the highest since records began in 1960. 
Sakhon said on Sunday that the Kingdom’s corn production is slowed by the fact that the crop is still grown on smaller scale family farms, while market prices fluctuate annually due to a lack of modernisation of growing and drying methods'.

Khmer Times (Jan. 10) reports on investments in the kingdom's cassava sector:

'TWPC Investment (Cambodia) Co Ltd, from Thailand, will start cassava-processing operations this year in Oddar Meanchey, absorbing the entire cassava production from the province, said Ho Ren Hua, director of the company. 
Mr Ren Hua said this during a meeting on Tuesday with Agriculture Minister Veng Sakhon, adding that his company invested in the agro-industry here after receiving approval from the Ministry of Industry and Handicrafts at the end of 2017.
 “Currently, the company has completed the construction of the factory but the processing stage will start soon. There are plans to expand the production of cassava from 40,000 to 50,000 tonnes and increase processing capacity to 200,000 tonnes in the future'.

Phnom Penh Post (Dec. 19) adds:

'Hong Kong-based Green Leader Holdings Group Co Ltd, which announced its first cassava processing factory earlier this year, aims to commence operations by next year, according to Green Leader (Cambodia) Co Ltd CEO Gao Hua. 
The company is set to invest a total of $150 million in the cassava industry, which its first broke ground in April in Kratie province. Construction has been delayed, with the factory originally planned to be launched by the end of the year.
“The factory is nearly 70 per cent completed, as it was delayed due to rainy season and some technicalities in construction. The installation facility has already been prepared and we are awaiting shipments from China,” Gao said, adding that the factory is to commence operations by February next year. The Kratie province factory is located on 20ha of land in Snuol district, making it the largest such facility in Cambodia. It will be able to process some 600,000 tonnes of fresh cassava roots per year, with an annual production capacity of 150,000 tonnes of modified starch'.

On a side note, the Khmer Times (Dec. 12) has news on exports that take place via Vietnam. And it's not good:

'Local exporters have voiced concern over new customs regulations in Vietnam that require the submission of phytosanitary certificates for agricultural and livestock transshipments, arguing that they represent a significant barrier to trade. 
According to a circular issued by the Vietnamese Ministry of Agriculture and Rural Development, agricultural goods and livestock being shipped to a third country through Vietnam must be placed under quarantine.
As per the regulation, exporters are also required to present phytosanitary certifications at the loading port (Phnom Penh) as well as the Vietnamese port through which the shipment will be conducted'.

Markets and more
Then a listing of other Cambodia ag news mostly cropping.
Starting with pepper. The Phnom Penh Post (Dec. 7):

'The Kingdom’s non-GI pepper farmers continue to struggle due to low prices while cultivation is projected to decline next year, said Dar-Memot Pepper Agriculture Development Cooperative executive director Yin Sopha. 
Sopha said the market price for non-GI pepper this year is still under the margin of cost production, as the sector is expected not to expand next year. 
Since the beginning of the harvest season, pepper prices have stood at $2.6 per kg, which are under the profit margin. He said the lower price is due to the global market. 
“Pepper prices cannot increase anymore, as the pepper industry’s global supply is more than the need – the price is not beneficial for farmers and the growth of cultivation will not increase anymore. 
”Sopha said that the sector would no longer be a viable investment option if prices keep dropping'.

The  Khmer Times (Dec. 27) continues:

'The Kampot Pepper Promotion Association has sold just 50 tonnes of the coveted commodity, an 80 percent drop compared to last year.
 The dip in sales follows a decrease in production due to unfavorable weather conditions throughout the year, the association reported. 
Total pepper production decreased by about 30 tonnes, the association said, amounting to just 70 tonnes in 2018. This has been explained as the result of heavy downpours during the beginning of the growing season. 
Only about 50 tonnes of the crop were sold to export companies, 80 tonnes less than in 2017, said Ngoun Lay, president of the Kampot Pepper Promotion Association, who explained that the market has shrank'.

Then on to another niche product. The Khmer Times (Dec. 11) on palm sugar:

'Kampong Speu province’s palm sugar will be recognised as a geographical indication (GI) in the European Union early next year, an official from the Ministry of Commerce said. 
Op Rady, director of intellectual property at the ministry, told Khmer Times that palm sugar from Kampong Speu, which is already considered a GI product in the Kingdom, will become the second Cambodian product to be awarded GI status by the EU, and that registration will happen early 2019. 
He explained, however, that the process is taking longer than expected.
... 
Chan Sokheang, chairman and CEO of Signatures of Asia, told Khmer Times that his company plans to purchase about 130 tonnes of organic palm sugar from Kampong Speu and other Cambodian provinces. 
Signatures of Asia will spend around $234,000 to buy the palm sugar, which will be exported to the EU, mainly Italy, Spain, the Netherlands, Germany, Czech Republic, and France, Mr Sokheang added'.

Onwards to the fruit and veggies. The Khmer Times (Jan. 4)

'The area around Boeung Tamouk Lake, in the outskirts of Phnom Penh, will be built into a massive market to centralise the supply of locally grown and imported vegetables, according to recently revealed government plans. 
The project, which will see 20 hectares around the lake developed to host the market, has already been endorsed by Prime Minister Hun Sen, according to a letter that the Office of the Council of Ministers sent yesterday to the Ministry of Land Management to request a construction permit for the project'.

Banana's. The Khmer Times (Jan. 11):

'Longmate Agriculture is shipping banana containers to China through Vietnam to prepare for its first direct shipment to the East Asian giant, a company representative said.
Longmate Agriculture, a joint venture of Chinese and local investors, is preparing a direct shipment of bananas to China. It will be the first time Cambodia exports the fruit to China.
...
Bananas will become the fourth agricultural product that Cambodia exports to the Chinese market, together with maize, cassava, and milled rice.
... 
Longmate Agriculture is now cultivating 400 hectares of land in Kampot province’s Chhouk district. It plans to grow the plantation to 1,000 hectares in the future.
The company will export about 25,000 tonnes of bananas this year and plans to double the figure in 2020'.

Khmer Times (Jan. 3) on pomelo's:

'After obtaining Geographical Indication (GI) status in June, demand for the pomelo grown in Kratie’s Koh Trong commune has spiked, with producers planning an expansion to meet it. 
The Koh Trong pomelo is only the third Cambodia product to be given the distinction, following Kampot pepper and Kampong Speu’s palm sugar. 
Chan Rina, president of the Koh Trong Pomelo Producer Association, said after GI status was awarded to their pomelo they have been unable to produce enough to satisfy rising demand from locals'.

Taxed
The Khmer Times (Dec. 11):

'Rubber export prices saw a continuous decrease this year impacted by uncertainties created by the US-China trade war and a surplus of rubber in the international market, insiders said yesterday. 
As of last week, rubber prices fell to $1,260 per ton from $1,500 early this year, said Men Sopheak, vice president of Chop Rubber Plantation in Tboung Khmum province.
 In the last months of 2016, a ton sold for $1,700, but from January to March of 2017 it traded at $2,200. Prices went down to $1600 in December last year, according to data from the General Directorate of Rubber at the Ministry of Agriculture.
“The fall in prices is caused by the US-China trade war which is putting pressure on China, a big rubber importer, to fight for cheaper rubber prices. This is resulting in an oversupply of rubber in the global market,” he added.
...
"The rubber export tax is still an issue for the local rubber exporters because the government takes $50 in taxes per ton of rubber, which sells for $1,000 or more. However, our production costs amount to $1,400 or more per ton.
“We would like to request the government not to tax rubber exports because other rubber-producing countries do not tax the sector,” Mr Heng said, adding that giving tax incentives will attract investors into the country.
Despite the decline in prices, from January to October, Cambodia exported 161,527 tonnes of rubber, an increase of 23 percent compared to the same period in 2017, according to the ministry'.

Khmer Times (Dec. 20) reports on how the Cambodia does not seem to be stimulating its own rubber sector:

'The Ministry of Agriculture is now discussing the Rubber Law with industry players and plans to send a draft to the Council of Ministers for approval next year, according to a high-ranking official.
... 
Lim Heng, vice president of An Mady Group, told Khmer Times that far from boosting the rubber industry, the law will increase the burden on the private sector. 
As per the current draft, businesses and investors involved in the rubber sector will have to secure a myriad of licenses before beginning operations. The amount of red tape involved will significantly increase, making it a much longer and arduous process for those interested in entering the market, he said.
...
General Department of Rubber’s Mr Sopha, however, said that the law simply provides a foundation, and that it is meant to serve as a guideline. Once passed, it will be enhanced with a series of sub-decress and a strategic plan for the sector to ensure that farmers and businesses are not negatively impacted'.

The Khmer Times (Dec. 21) also notes how a passed stimulus for the cashew sector is yet to take place:

'The Agriculture Ministry yesterday said Cambodia is still waiting for Vietnamese companies to invest in Cambodia’s cashew, after a Memorandum of Understanding was signed almost a year ago. 
In January, the ministry signed the MoU with the Vietnam Cashew Association to bolster Cambodia’s cashew production to one million tonnes per year.
“They wanted to come to sign an agricultural contract with local farmers to export cashew nuts, but until now I have not received any new requests from the Vietnamese side to invest here,” said Kong Pheach, director of the ministry’s agro-industry department.'

Some news from Laos, oddly that the source is Cambodian. The Phnom Penh Post (Jan. 10) looks at coffee:

'Coffee growers in southern Laos are asking for government assistance to create a fund to support coffee bean processing and provide technical advice to local growers following the recent slump in the market price.
Lao Coffee Association head Sivixay Xayyaseng told Vientiane Times: “The price of green coffee has fallen due to increasing supply on the global market. Especially increased green coffee bean production from Indonesia which is one of the biggest exporters. 
”Export Grade A green coffee beans, the highest quality grown in Laos, are currently shipping to Japan for $2,200 per tonne while Grade D green coffee beans fetch $1,300 per tonne in Vietnam. Grade A beans hit a peak of $4,800 per tonne in the past.
 About 6kg of coffee cherries are needed to produce 1kg of green coffee beans. The grade is dependent on many factors such as the quality of the coffee cherries as well as the processing. 
The recent fall in the coffee price has also adversely affected local processers'.

To be
Finally, on topic (slightly) The Guardian (Jan. 13) let's readers get acquainted with what they say are five genetically modified fruits. 
Problems are what do we call GM? 
For instance two examples provided employ CRISPR techniques. Are they GM or not? They are certainly a technique which favours big biz, that's for sure. 
Interesting comments under this article. 
See also this Guardian article (Jul. 25, 2018):

'Plants and animals created by innovative gene-editing technology have been genetically modified and should be regulated as such, the EU’s top court has ruled.
The landmark decision ends 10 years of debate in Europe about what is – and is not – a GM food, with a victory for environmentalists, and a bitter blow to Europe’s biotech industry.
 It also marks a setback for UK scientists who took advantage of a legal grey area to begin field trials of gene edited camelina crops, augmented with Omega-3 fish oils'

Interesting

It's the start of the year, when Cambodia sees it's big bosses discuss rice. No difference there, this year. 

Probably the most significant snippet from the meet is the announcement of a national rice brand. The Khmer Times (Jan. 22):

'The annual rice forum starts in Phnom Penh today, bringing together farmers, businesses and researchers for a two-day event that seeks to find solutions to some of the sector’s most pressing questions.

...

Malys Angkor, the first brand name of Cambodian premium rice, will be formally launched during the event'.

Even the Bangkok Post (Jan. 24) chimes in:

'Rice authorities unveiled the “Malys Angkor” rice brand, a new certification mark that encompasses a range of Cambodian fragrant rice varieties'.

The Phnom Penh Post (Jan. 22) delves deeper into the issues of the single brand and more urgent problems as unveiled at the meeting:

'The Cambodia Rice Federation (CRF) today announced a new “Malys Angkor” brand to be used as the official moniker for four species of Cambodian fragrant rice.

The first day of the two-day Cambodia Rice Forum also featured the release of a remarkably frank report on the industry group’s internal issues, which acknowledges that the CRF’s numerous flaws are currently preventing it from acting as a proper representative of the country’s rice sector.

Sok Puthyvuth, president of the CRF and son-in-law of Prime Minister Hun Sen, lauded the branding effort at the launch of the forum at Phnom Penh’s Sofitel Hotel today.

...

The Malys Angkor branding push is part of the CRF’s long-term goal to promote the country’s rice sector, but those efforts are being hampered by significant internal problems, according to the group’s “Strategic Plan 2017-2021”.

“Current assessments suggest that there are many challenges facing the CRF,” the report says, noting that board members appear to have “commitment discipline issues” and that many board members only attend meetings “when the meeting is about their interests”.

Other complaints include farmers being pushed aside in favor of millers and traders, as well as more wealthy or connected members having greater access to the CRF’s services and attention than regular members.

Money also appears to be a problem, as “lack of sufficient financing” and few technical experts results in the CRF lacking a way of “sustainably handling requests from of [sic] members of the rice sector.”

In addition, board decisions “often remain unimplemented”, and a new scheme to increase local-level monitoring of the rice sector by placing CRF representatives in various zones around the country may run into trouble because “the CRF appears to not possess all the requirements” to implement the program'.

So, despite the hoopla concerning the single brand it seems the rice sector is more based on lining each participants pocket(s) as she/he wishes. Nothing new to the current Khmer climate, where it seems that there's only one party in town. Literally.

As if the single brand isn't sufficient the Khmer Times (Jan. 23) notes that there's also a focus on having a GI within the brand:

'Rice authorities in the kingdom are exploring the possibility of applying for Geographical Indication (GI) status for rice grown in areas around the Tonle Sap Lake.

Speaking during the Rice Forum in Phnom Penh, Sok Puthyvuth, president of the Cambodia Rice Federation (CRF), said his association will present a proposal to the Ministry of Commerce to consider awarding GI status to rice grown in Siem Reap, Kampong Thom, Kampong Chhnang, Pursat and Battambang, the provinces that surround the Tonle Sap.

Mr Puthyvuth said that creating a brand name for rice grown in areas around the Tonle Sap will make for a sound marketing strategy, helping increase demand for the product in European markets'.

Is this not complicating things?

Ups

Then there's the stocktaking of 2017. The Phnom Penh Post (Jan. 2) notes the numbers are up:

'Cambodian rice exports in 2017 increased 17 percent by volume compared to the year before, with exporters pushing to fill orders under China’s expanded import quota while shipments to European markets remained steady, according to Agriculture Ministry figures.
A total of 635,600 tonnes of rice was exported to international markets in 2017, up from 542,144 tonnes the previous year, according to a Facebook post by Hean Vanhan, director general of the general directorate of agriculture at the ministry.
China, which agreed to accept 200,000 tonnes of rice from Cambodia in 2017 – doubling the previous limit – and will expand the quota to 300,000 tonnes this year, was the top destination for rice shipments.
Over five years, total rice exports have grown 67.78 percent from 378,800 tonnes in 2013, the figures show'.

But are the returns in money terms also as positive? And what is the actual price being paid for becoming more and more dependent on the Chinese market?

The Bangkok Post (Dec. 29) jots down the Thai story of rice over 2017. Quite similar:

'Rice exports hit an all-time record in 2017, increasing by 14.77% this year to at least 11.25 million tonnes as of Dec 27, the Ministry of Commerce said. The price per tonne has risen above US1,000 for popular Jasmin fragrant rice, or hom mali'. 

The Phnom Penh Post (Jan. 10) looks at the government loan scheme. To big business mainly:

The government has provided $30 million in loans to rice millers since September to facilitate the purchase of paddy rice, with the head of a state-run bank saying more money was available if necessary.
The loans were issued to 38 rice millers by the state-owned Rural Development Bank (RDB) following September’s rice harvest, and would need to be paid back by April this year, according to RDB’s CEO Kao Thach'.

A lesser bit of national rice news, but more encouraging. The Khmer Times (Dec. 28) reports on how the Ibis Rice project has been successfully expanded to Stung Treng province.

Seething

Major news from the massive palmoil sector in the region, touching on one potential for Cambodia's ag sector. 

Hoping to cash in on the ill-ventured biofuel programmes (I mean you need more fuel to grow the crops than you receive after harvest) the boom may well be leading to a bust. 

Despite warnings, palmoil plantations have done little to ensure a decent level of sustainability. And no surprise then, that the EU will be discontinuing the palmoil component within the regions biofuel programme. Euractiv (Jan. 17):

'The European Parliament decided today (17 January) to phase-out palm oil by 2021 and cap crop-based biofuels at the member states’ 2017 consumption levels and no more than 7% of all transport fuels until 2030....“The Parliament has sent a message that not all biofuels are created equal by focusing on getting rid of those that drive deforestation like palm oil. But its amendments still risk making it harder for EU member states to realistically boost renewables in transport,” Secretary-General of ePURE Emmanuel Desplechin said'.

The decision has especially Malaysia and Indonesia up in arms, both crying foul play. Mongabay (Jan. 19):

'Officials in Indonesia and Malaysia, the world’s biggest producers of palm oil, have lambasted the European Parliament’s decision to phase out the commodity from motor fuels over the next three years due to environmental concerns.
Indonesian Trade Minister Enggartiasto Lukita said Thursday that the vote to reduce to zero “the contribution from biofuels and bioliquids produced from palm oil” by 2021 was misguided and unfair, given that Jakarta had taken steps to address the environmental impact of the palm oil industry.
The trade minister’s remarks came a day after the European Parliament voted on targets to cap crop-based biofuels, which follows the parliament’s overwhelming decision last year to ban the use of vegetable oils in biofuels. The amendments will now go to the European Commission and member states before they become law.
The move will have serious ramifications for Indonesia and Malaysia, who together produce nearly 90 percent of the world’s palm oil.
...
While the governments seethe, conservation and indigenous rights activists have welcomed the phase-out vote, citing the massive toll the palm oil industry has taken on tropical rainforests and the local communities dependent on them.
Eep Saefulloh, a researcher with Sawit Watch, an NGO that monitors the palm oil industry in Indonesia, criticized the industry talking points that the deforestation caused was legally sanctioned.
“If we’re talking about large palm oil plantations, of course they cause deforestation,” he said. “Unless we’re talking about small farmers only need a hectare or two. But if we’re talking about large plantations that can extend beyond villages and districts, what do we call that if not deforestation?”

This news takes some time to seep through to Cambodia. The Phnom Penh Post (Jan. 24):

'New proposed rules from the European Union restricting the import of palm oil would likely affect Cambodia’s nascent palm oil sector, but the country’s main exporter is hoping that demand from India and China will cushion the blow.
Cambodia’s palm oil exports rose by a whopping 143 percent last year, according to Ker Monthivuth, a sanitation expert at the Ministry of Agriculture. The country exported more than 44,000 tonnes of crude palm oil in 2017, up from nearly 19,000 tonnes the year before, he said.
...
“We will look to what happen in India and China, if they increase [consumption] volume,” he [Prachak Kongtanomtham, vice president of sales and marketing at the Mong Reththy Investment Cambodia Oil Palm Co Ltd] said. “We should find how can reduce our production cost, especially logistic cost and utility,” he added, noting that costs were “very high” in Cambodia'. 

Flied

From the kingdom's fruit front, it's mostly mango making the moves. The Phnom Penh Post (Jan. 22) looks at the export of  the fresh produce:

'Cambodia’s mango shipments have been routinely blocked before making it to the international market, with the Ministry of Agriculture claiming the mangoes are not of a high enough quality to meet the sanitary and phytosanitary (SPS) requirements necessary to ship outside of the Kingdom.
According to Hean Vanhan, director general at the General Directorate of Agriculture, the main obstacle for Cambodian mangoes making it to the international market has been the prevalence of fruit flies, which infest prospective shipments of the produce.
“It is not a matter of the quality of our mango – the main obstacle to the market is the fruit fly, which blocks our mango exports and makes it difficult to achieve SPS certification,” he said, adding that the SPS certificate could only be granted to shipments of mangoes devoid of “injurious pests”.
...
In Chayvan, president of Kampong Speu Mangoes Association, said that while the fruit fly has been a problem for mango farmers in the past, most have established methods that ensure there are few to no flies in their mango shipments.
The real reason Cambodia’s mangoes are unable to reach the international market, he said, is because they are often blocked for perceived hygiene-related issues, and he urged the Ministry of Agriculture to hasten its administration of SPS certificates to encourage neighbouring countries to buy Cambodian produce.
“The fruit fly is not our main concern when it comes to being blocked from the international market,” he said, adding that most mango shipments that had been prepared to leave Cambodia had met the SPS requirements. “Our main issue is that the SPS certification is too hard to get from the ministry, and so we have no access to ship to surrounding countries.”

But on the upswing, the same source (Phnom Penh Post, Jan. 4) notes positives for the export of dried mangoes:

'Phillipines-based dried fruit exporter Profood International has begun construction of a new factory in Cambodia that, when completed, should see 4,000 tonnes of mangoes dried annually, according to Philippine news outlet Sun Star.
Justin Uy, Profood founder and president, told Sun Star the 11-hectare plant was expected to begin operations in 2019, and that all mangoes dried at the facility would be slated for shipment to the Chinese market to satiate the nation’s annual 30,000 tonne demand. The company’s entry into Cambodia is intended to strengthen its foothold in the Southeast Asian market. Profood products are sold in 52 countries'.

And now something totally unrelated, but I think it's relevant to this blog. It has  very little common with all the other subjects explored this time round, but I still feel I need to explain. Anyway the Vientiane Times (Jan. 24) reports:

'Chemical and pesticide experts from Laos and other Asean member countries are meeting in Vientiane this week to discuss the harmonisation of maximum pesticide residue limits in the interests of food safety.
...
So far Laos has adopted 768 out of 808 Asean maximum residue limits but lags behind many Asean member states in this regard'.

Boom to bust
Contrasting news.

From Cambodia (Phnom Penh Post, Jan. 18) on the increasing expansion of rubber cultivation, though with a side note on smuggling to Vietnam. Beats me , why Cambodian producers would need to pay an export tax, totally uneconomic.

'The total amount of rubber exported by Cambodia surged 30 percent last year, but widespread rubber smuggling on the Vietnamese border crippled potential profits from the booming industry.
Cambodia generated about $300 million in revenue by exporting nearly 189,000 tons of rubber last year, according to Pol Sopha, general director of the rubber department at the Ministry of Agriculture. The revenue boost was also helped by a 24 percent increase in the average price per ton, which was up to $1,586 last year, compared to $1,283 in 2016.
But while small-scale rubber farmers were able to sell their crops for a profit, the industry as a whole was crippled by massive smuggling operations that shipped much of the country’s rubber into Vietnam tax-free, according to Sopha'.

But over in Thailand, there's more focus on the low prices. The Bangkok Post (Jan. 6):

'Rubber prices are expected to rise to 60 baht a kilogramme in the first quarter after Thailand, Indonesia and Malaysia pledged to withhold exports of 350,000 tonnes of natural rubber (NR) from this month until March.
...
Thai natural rubber prices have been falling for several years, largely due to oversupply from major rubber-producing countries. The weak global economy subsequently cut demand in the auto industry, damaging rubber producers as a result.
The drop was also attributed to the growth of rubber plantations in Cambodia, Laos, Myanmar and Vietnam in the past 10 years. The CLMV countries currently supply 5.3% of the commodity to the global rubber market'. 

Seeing the pie has not increased, the new entrants are claiming a share, but Thailand seems reluctant. A solution put forward was to allow large scale investment (read take-over) in the Thai rubber sector by China. But the Bangkok Post (Jan. 7) reports on the distrust issue:

'China's plan to invest in rubber plantations in Thailand must be carefully considered, says Grisada Boonrach, minister to the Ministry of Agriculture and Cooperatives, but such projects must not impact local farmers. His comment was made in response to a report that China Hainan Rubber Industry Group is set to invest more in rubber plantations in the country, as it has done recently in the CLMV countries (Cambodia, Laos, Myanmar and Vietnam). Under these schemes, Chinese nationals oversee rubber production on land leased by the company.
...
Mr Grisada said that as the issue is quite sensitive a thorough study must be undertaken to ascertain the impact on domestic producers. His major worry being that there might be a repeat of the price dumping by Chinese middlemen in fruit markets in the eastern provinces'. 

Then it's reported (Bangkok Post, January 24), that producers will still try to keep the prices reasonable:

'Thailand, Malaysia and Indonesia are hopeful of seeing the end of sagging natural rubber prices after agreeing on export cutbacks, Agriculture Minister Grisada Boonrach said.
The minister expressed Thailand, Malaysia and Indonesia are hopeful of seeing the end of sagging natural rubber prices after agreeing on export cutbacks, Agriculture Minister Grisada Boonrach said. The minister expressed confidence about the turnaround of rubber prices following the implementation of the three countries in the International Tripartite Rubber Council to curb exports for three months starting from Jan 10'.

Sugar

The great sell-off in practice. 

The Khmer Times (Jan. 12) notes how Cambodia is counting on China to take some sugar:

'During a meeting with Chinese Premier Li Keqiang yesterday, Prime Minister Hun Sen asked China to increase imports of Cambodian sugarcane.
...
The kingdom imports between 500,000 to 600,000 tonnes of sugarcane every year, according to a representative of Phnom Penh Sugar.
However, only 100,000 to 150,000 tonnes are absorbed by the local market, with the remaining sugarcane being re-exported.
During the meeting yesterday, Mr Li agreed to increase their quota for imports of Cambodian milled rice, from 200,000 tonnes to 300, 000.
During the opening of the LMC summit on Wednesday, Mr Hun Sen also encouraged China to purchase more Cambodian cassava.

Umm, the sugar isn't even Khmer.

Bangkok Post (Jan. 17) describes the measures taken to meet WTO rulings:

'The government has invoked Section 44 to float the local price of sugar, says Industry Minister Uttama Savanayana. The local price had been subsidised by the Thai government. But the government wants the local price to be on a par with the global rate, as its support was in violation of a World Trade Organization (WTO) rule, with other sugar producers such as Brazil crying foul.
The plan to float the sugar price had been postponed since Dec 1'. 

The idea is not to raise local prices, but to hope that world prices will drop to Thai domestic levels. Thus face saved.

Inclination

A few snippets concerning growing cassava. The Khmer Times (Jan. 11):

'Agriculture Minister Veng Sakhon met on Monday with visiting US professors W. Ronnie Coffman and Max J. Pfeffer from Cornell University to discuss cooperation in a new project whose purpose is to yield disease-resilient, high yielding cassava.
...
CARDI director Ouk Makara, who also joined the meeting, told Khmer Times that the team of US professors use biotechnology [genomic selection] to cultivate their cassava variety.
“The next generation cassava yields 10 percent more than our cassava,” he said, adding that, on average, Cambodian cassava yields 24 to 25 tonnes per hectare.
Cassava plantations in the kingdom have increased from 30,000 hectares in 2005 to 684,070 in 2016, with total production amounting to 14.8 million tonnes last year, according to data from the Ministry of Agriculture.
The provinces in which the crop is grown are Battambang, Banteay Meanchey, Pailin, Kratie, Kampong Thom, Tboung Khmom and Oddar Meanchey.
Cambodia exported 2.3 million tonnes of cassava chips during the first nine months of 2017. Cassava chip exports in 2016 amounted to 2.9 million tonnes, which mostly went to China, Thailand and Vietnam'.

Is genomic selection just a short cut for natural selection?

The Vientiane Times (Jan. 15) finally shows us an example of how business should not take place:

'Many of the nation’s cassava farmers remain desperate to recover money that the Lao-Indochina Group Public Company has owed them since failing to pay for their produce in 2012.
The company’s bankruptcy resulted in the firm’s creditors, mostly cassava farmers, incurring further debts to banks, notably Nayoby Bank, leading the situation to its current deadlock.
...
The company ran up debts of 17.5 billion kip to cassava growers five years ago when it got into financial difficulties.
Only 4 billion kip of the total has been repaid to date.
In Vientiane’s Pakngum district alone, farmers sold 21 million tonnes of cassava worth almost 963 million kip to the company for processing at its tapioca factory in the district.
...
Cassava cultivation in Pakngum district is now fairly subdued.
Many farmers are disinclined to grow the crop because they are still indebted to banks as a result of their predicament.
This year, some farmers planted cassava, but in smaller quantities than in previous years with dried cassava then sold to Vietnamese traders.
Farmers want to know when they will get paid for all the cassava they grew and gave to the factory several years ago.
Many still owe money to district banks after borrowing to clear their land and plant cassava. Most of the farmers in question are now growing other crops, while some are pursuing other livelihoods'.

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.

Read more at:
http://economictimes.indiatimes.com/articleshow/46888562.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

"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

Read more at:
http://economictimes.indiatimes.com/articleshow/46888562.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

"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

Read more at:
http://economictimes.indiatimes.com/articleshow/46888562.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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'.