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'

Permissive

From now on, readers will note the lack of references to the Cambodia Daily. Politics have determined that publishing the news should be considered contentious. That's if you fear the light of truth.
The changing climate is also described by this by Phnom Penh Post (Oct. 16):

'Svay Rieng officials on Saturday prevented a local farmer coalition from conducting a workshop on raising chickens on the grounds it had failed to get permission from district and provincial authorities, a possible sign of increased scrutiny of NGOs working in the provinces.

...

The Coalition of Cambodia Farmers Community was conducting the workshop for 25 families when Ampil commune authorities and police told them to stop, said Chhem Kosal, a project coordinator with the NGO.

“I informed them that we had informed the commune chief already, and the commune chief also permitted [it]. But they still required me to ask for permission from district and provincial levels,” he said'.

Free
Something on-topic. The Phnom Penh Post (Sep. 9) has an extensive article on everything but traditional agricultural varieties:

'The government has denied the presence of genetically modified organisms (GMOs) in the agricultural sector amid persistent reports that some local farmers may already be cultivating genetically engineered “hybrid” seeds, warning that countries could restrict or ban the import of Cambodian agricultural products if use of the biotechnology is confirmed.
...
Hean Vanhan, an undersecretary of state at the Ministry of Agriculture, cast doubt on the veracity of the reports, stating firmly that Cambodian farmers have never taken up GM seeds – and the government would like to keep it that way.
“We are still not using any GM seeds for cultivation as they remain highly controversial in the international market, and we are dependent on exports so must comply with market trends,” he said. “If we allow GMOs to exist in our market it would have an impact on our exports as some countries do not trust them.”
Vanhan noted, however, that the government has never formally banned GM seeds or issued any regulations to prevent their import or cultivation “because there is no definitive proof that they are harmful”.
...
Sam Vitou, executive director of agricultural organisation CEDAC, said while the government appears to have blocked efforts by Monsanto and other GMO producers to market their products in Cambodia, there are fears local farmers could inadvertently be sowing their fields with GM seeds imported from Thailand, Vietnam and China.
“Even though the Ministry of Agriculture has not opened our market to Monsanto our agricultural sector could be threatened by the unofficial flow of [seed imports from] neighbouring countries,” he said.
Vietnam has embraced GMOs, approving at least 14 varieties of GM corn and eight varieties of GM soybean for cultivation, while indicating plans to have up to half of its farmland planted with transgenic crops by 2020. Thailand has waffled on GMO support, taking a more measured approach after field trials of GM papayas began contaminating nearby crops, resulting in several countries banning its papayas from their markets. To date, the country has approved 15 varieties of GM crops, mostly corn.
...
The confusion extends to the media, which often blurs the line between hybrid and GM seeds or incorrectly assumes that all Monsanto, Dow and Syngenta seed varieties are genetically modified.
A news report published online last year by Monash University’s School of Journalism made the explosive claim that over 100 families in Kandal province’s Kbal Koh district switched to planting Monsanto GM corn about a decade ago on the advice of local Agriculture Ministry officials.
Bun Tounsimona, director of Kandal province’s Agriculture Department, categorically rejected the report’s claims, insisting he had personally inspected farms in Kbal Koh district and did not find any GM plantings there.
“We use only hybrid seeds for corn farming as they provide high yields, but never GM seeds,” he said, adding that farmers had been warned not to use GM seeds because of the possible health concerns and risk it could restrict their exports to certain markets.
...
Four crops – corn, soybean, cotton and canola – account for nearly 99 percent of global GM acreage. GM varieties of rice have been developed and tested in field trials, but have never been commercially grown.
Hun Lak, vice president of the Cambodia Rice Federation, stressed the importance of keeping GMOs out of the Kingdom’s rice sector, adding that Cambodian rice has been tested and certified as GMO-free.
“Our farmers farm according to industry guidelines and market demands,” he said. “If GM rice is grown it will damage our export market because it is controversial and overseas buyers don’t trust GMO.”

So there does seem to be reluctance to grow GM crops, but no policy initiatives to avoid GM crops coming in. Naive at the best. Presumably GM corn is already grown with seeds available from neighbouring countries.
Perhaps the following news snippet (Business Monitor, Sept. 27) can enlighten what's going on, though arguably from the Philippines, a country which seems to have less scruples when it comes to growing whatever be it GM crop or not.

'In the Philippines, the cultivation of GM corn, such as the insect-resistant Bt-corn and roundup-ready corn varieties, is preferred over hybrid or native varieties because of its benefits, according to Romero [Gabriel O. Romero, Regulatory Affairs Lead of Monsanto Philippines Inc.].
Romero said that, before, it was only India and the Philippines planting GM crops in Asia. “Australia has its GM cotton; India has GM eggplant or  Bt eggplant. Now, Myanmar is planting GM cotton,” Rotmero said sans citing sources.
Romero added that China has been into GM cotton and GM papaya, while Pakistan is now also planting GM cotton.
“Not all of these are ‘legal planting’,” Romero said, adding that legal planting is only in the Philippines, Vietnam and Australia'.

Basically the article (without any emphasis on the negatives) bandstands Monsanto's objective to steam roll all Asian agriculture, one country at a time. But ultimately all Asian agriculture will see GM crops massively adopted, preferably those of Monsanto. 

Royal
A scathing article from the Bangkok Post (Oct. 18) notes a near Perronesque attitude to what the late King stood for. Anyway, it seems the current Thai regime has it's own ideas:

'Unfortunately, certain authorities recently seem to be doing things that contradict the late King's principles. This month, the Department of Agriculture (DOA) appeared to push for an amendment of the 1999 Plant Varieties Protection Act during the period when Thai people are mourning the late King ahead of the royal cremation ceremony. The amendment effort is also being criticised for favouring giant seed companies, enabling them to monopolise the ownership of certain "patented" plant varieties they developed from local plants and seeds. Accordingly, it will make it difficult for farmers to be self-reliant. The law amendment effort is seen to be aligned with the International Union for the Protection of New Varieties of Plants (UPOV) Convention of 1991. For decades, big transnational corporations, particularly giant seed companies, have put pressure on Thailand to accept the 1991 UPOV Convention.
Biothai, a non-profit organisation working for the protection of Thailand's biodiversity, issued a warning several years ago that several international free trade agreements (FTAs), particularly the Thai-US FTA and the Asean-Europe FTA, would force Thailand to change its laws to comply with the convention. And now it is actually happening. The DOA's proposed amendment to the law has been accused of jettisoning farmers' rights to save commercial seeds and regrow them. Violators risk facing criminal charges in which the punishment is a jail term or a fine or both.
However, the DOA has denied the allegation, saying that, under the proposed bill, small-scale farmers can still keep seeds for replanting, while plant variety study and innovation research will be expanded to create new strains that will bolster exports of agricultural products.
...
Still, it is stipulated in Section 35 of the bill that replanting must be carried out for the purpose of plant variety breeding and it must receive approval from a committee authorised to designate which plant varieties will be restricted or banned from replanting. In layman's terms, farmers will not be allowed to save commercial crop seeds and regrow them to make a living and feed their families. What they can do is buy new seeds from companies for new cultivation.
...
Instead of pushing for this new law, which is seen as favouring a handful of seed firms and limiting the rights of millions of farmers, the department should have followed the late King's valuable example'.

Stocktaking

Away from the controversy, exports of rice from Cambodia are ever increasing. The Phnom Penh Post (Oct. 6 ):

'Cambodian rice exports increased nearly 17 percent during the first nine months compared to the same period last year, with exporters pushing to fill orders under China’s higher import quota as European markets remained steady.
A total of 421,900 tonnes of rice was exported between January and September, a 16.7 percent increase compared to the first nine months of 2016, according to government data published yesterday.
China – which has agreed to accept 200,000 tonnes of rice this year – was the top destination for rice shipments, receiving 124,700 tonnes during the period, with 53,900 tonnes and 35,400 tonnes delivered to France and Poland, respectively'.

More in the pipeline, with the deal with Bangladesh becoming reality. The Phnom Penh Post (Sep. 29):

'Cambodia and Bangladesh have finalised terms on a massive rice deal that could see up to 1 million tonnes of rice purchased from the Kingdom over the next five years, with the first shipment due to begin by November, a source close to the deal said yesterday.
Hun Lak, vice president of the Cambodia Rice Federation (CRF), confirmed that an agreement had been made between the two governments after the relevant ministries signed a memorandum of understanding (MoU) in August that hoped to replenish Bangladesh’s stockpiles after heavy flooding earlier this year decimated the country’s crops.
 ...
He added that the deal, which will be managed by the state-run company Green Trade, allows for flexibility in the next harvest season that will begin in January. While he declined to provide the agreed upon price for the deal, he said that the current market price for Cambodian white rice was at $430 a tonne.
In late August, Reuters news agency reported that Bangladesh had agreed to purchase Cambodian rice at $453 a tonne, while local officials insisted that price negotiations were still ongoing'.

How to develop the sector? A double take from the remaining news source on improving storage and drying facilities. The Phnom Penh Post (Sep. 13):

'The government-run Rural Development Bank (RDB) has extended the deadline to receive proposals from registered Cambodian agricultural firms to develop rice storage and drying facilities after receiving a tepid response to its finance offer, a bank official said yesterday'.

Phnom Penh Post (Sep. 26):

'The state-run Rural Development Bank (RDB) received a total of 10 proposals from Cambodian agricultural firms expressing interest in developing rice storage and drying facilities across three provinces using government-backed low-interest loans, a bank official said yesterday.

Kao Thach, chief executive of RDB, said six more companies submitted proposals for the $15 million finance package after the bank extended the application deadline from September 8 to September 22 due to a low response. Only four companies submitted proposals during the initial three-week call for submissions.

...

The storage facilities are intended to alleviate the stress on farmers and millers when rice stockpiles begin to stack up and are expected to be operational by the start of the next harvest season in January.

...

Earlier this year RDB awarded a $15 million low-interest loan to Thanakea Srov (Kampuchea) Plc, the operator of the Cambodian Rice Bank, to expand its rice storage warehouse in Battambang province.

The warehouse is set to be the first privately owned centralised storage facility with a capacity to store 200,000 tonnes of wet paddy rice and to process 3,000 tonnes of paddy rice daily'.

Direction
Thailand's The Nation (Oct. 2) looks at proposed new taxing:

'Citing its likely impact of further impoverishing already vulnerable rice farmers, some academics and farming leaders are slamming a proposed new national water-use policy that would tax farmers for irrigating their fields.
...
In the volume-based billing system, water costs would range from Bt0.5 per cubic metre of water for agriculture and animal husbandry, Bt1-Bt3 per cubic metre for tourism-oriented businesses, restaurants, and recreation businesses, and more than Bt3 per cubic metre for large-scale use such as large farms, industry, and power generation.
Economics lecturer Decharut Sukkumnoed from Kasetsart University, is concerned that the seemingly sensible approach would end up further hurting already struggling farm families. Collecting a water bill from farmers would intensify their financial difficulties by generating a new expense at a time when increased farming costs and decreased crop prices are already resulting in deficits among small farmers'.

Concerning price and market. The Nation (Sep. 30):

'Charoen Laothamatas, president of the Thai Rice Exporters Association, said yesterday that growing strength of the Thai currency has negatively impacted on the country’s exports of rice and other farm products such as rubber |sheet, tapioca and sugar. These products have 90 per cent local content, so the baht’s rise makes them more expensive than those of our competitors.
“The Thai currency has risen by 8.5 per cent against the US dollar, whereas the Vietnam dong has just risen 2 per cent against the greenback, resulting in Thai rice exporters losing market shares to their counterparts in Vietnam ,” he said'.

Bangkok Post (Oct. 17):

'Strong overseas demand for Thai rice is expected to support prices even as an influx of around 25 million tonnes of the 2017/18 major crop is about to flood the market next month, say industry officials.
Thai Rice Exporters Association president Charoen Laothammatas said hefty demand from the overseas markets could push 2017 rice exports to 10.8 million tonnes, nearly matching the record high of 10.9 million tonnes in 2014'.

What says the competition?
An interesting article from Vietnam.net (Oct. 8) looks forward and sees that rice is not the export flagship all regard:

'Phong [Hoang Ngoc Phong, deputy director of the Economic Development Consultancy Center] stressed that it is necessary to find a new direction for the delta development by changing the agricultural production model.

...

“Agriculture doesn’t always mean rice cultivation. It would be better to reduce the rice growing area to a reasonable level. We don’t strive to grow rice to export rice products at low prices, because farmers cannot make profits, while the state has to make heavy investments,” he said.
Phong went on to say that instead of trying to prevent saline intrusion, Mekong Delta should adapt to it.
In fact, in many localities, people have adapted to the saltwater intrusion when changing the crop structure. They have one rice crop and one shrimp/fish crop instead of two rice crops a year'.

But the above note is but a sideline, see this article from nhandan.com (Oct. 17):

'The Ministry of Industry and Trade (MOIT) has set the target of raising Vietnam’s rice export revenues to between US$2.3 and 2.5 billion by 2030.

The target was announced at a conference on realising Vietnam’s rice export strategy during the 2017-2020 period, with a view towards 2030.

Under the strategy, Vietnam will gradually reduce its rice export volumes whilst increasing the proportion of high-earning varieties, with the annual volume for the 2017-2020 period targeted at 4.5-5 million tonnes and shrinking to 4 million tonnes by 2030'.

It could be argued that growing less would result in higher prices thus achieving the same return with less effort ...
From afar this article in the  Guardian (Sep. 24 ):

'India is rice country: the cereal provides daily sustenance for more than 60% of the population. Half a century ago, it was home to more than 100,000 rice varieties, encompassing a stunning diversity in taste, nutrition, pest-resistance and, crucially in this age of climate change and natural disasters, adaptability to a range of conditions. Today, much of this biodiversity is irretrievably lost, forced out by the quest for high-yield hybrids and varieties encouraged by government agencies. Such “superior” varieties now cover more than 80% of India’s rice acreage'.

It then describes a local Orissa state initiative to save it's own varieties and seeds to increase the ability to be independent of outside agents be they government or privateers.

'By reviving seeds, they are also reviving food, taste, ritual, nutrition, and sustainability – attributes often forgotten as a result of the obsession with yield. Attributes that make rice more than just a bundle of calories and starch'.

Suited

From rice to veggie growing. The Phnom Penh Post (Oct. 6) gives space for vegetable growing initiatives:

'German development agency GIZ held a consultation workshop in Phnom Penh yesterday for its two-year Facilitating Trade in Agricultural Goods in Asean (FTAG) initiative, holding discussions with Ministry of Agriculture officials and local traders aimed at identifying the most suitable fruit and vegetable crops for cross-border trade between Cambodia, Thailand and Vietnam'.

Phnom Penh Post (Oct. 10):

'A $20 million Ministry of Agriculture programme has struggled to meet its goal of introducing 160 tonnes a day of high-quality locally produced vegetables to the market, with ministry officials saying that as a result of high production costs and pricing issues it was currently supplying less than a third of that amount.

...

Kean Sophea, deputy director of the Department of Horticulture and Subsidiary Crops at the Ministry of Agriculture, said that while the programme had so far signed on 2,060 farmers and 260 rice cooperatives, disagreements between farmers and buyers over prices had led to its poor performance.

“Farmers are ready to farm and sell following our food safety standards, but buyers complain about the higher prices and consumers are not happy either,” he said.

“The main challenge is still between farmer, buyer and consumer and until that is solved we will only be able to supply 50 tonnes per day.”

Pluses

Vientiane Times (Oct. 9) looks at coffee growing:

'The value of coffee exported by Laos is expected to exceed US$112 million in the 2017 fiscal year, an increase of 3 percent compared to 2016.
Coffee exports topped US$74 million in the first six months of this year, an increase of US$50 million compared to the same period in 2016.
...
Association Office Head Mr Sivixay Xayaseng told Vientiane Times on Friday that many companies have supported and encouraged local farmers to grow more coffee under the 2+3 system and to set a purchasing plan before reporting the figures to the Ministry of Industry and Commerce.
The 2+3 policy is a government initiative that encourages investors and land owners to partner in industrial tree plantations.
The system refers to a framework where farmers must provide land and labour while investors provide funding, technical support and a ready market for growers'.

And this (Vientiane Times, Oct. 16):

'The government is planning to develop coffee-rich Bolaven Plateau in southern Laos as the country’s top agri-business and agri-tourism destination due to its perfect climate and fertile volcanic soils.
A master plan for developing the plateau is being drafted by the National Economic Research Institute to ensure sustainable development in Bolaven'.

Life 
Bangkok Post (Oct. 1) has an expansive exposé of rice growers choosing for organic growing with the only alternative being growing sugar cane:

'A new machine stands quietly in a corner of a small rice mill north of Amnat Charoen town. Its operation will commence at the end of this year, marking an important step for local farmers to boost
their rice production. ...
When local farmers talk about "changing the world", it means supplying premium organic produce to the market. In return, they receive a reasonable income that lifts up their livelihood.
...
The self-determination movement of local farmers in Amnat Charoen is challenging the perspective of the central government and the entire agriculture sector, whose direction is determined by top-down policies. Promoting large-scale farming is on the agenda of the current military regime too, leading to conflict and public scepticism about whether it can save farmers in the long run.
...
At first, organic rice farmer Isara Keaodee didn't know who came to buy paddy fields in his community in Amnat Charoen's Nam Plik subdistrict.
It started with a few plots, then more.
The purchaser offered enticing prices for each plot. Farmers mired in debt could hardly resist such offers that delivered quick cash. Some sold their land without knowing the consequences.
It later became clear that each small tract pieced together in a large land plot, where a new sugar cane mill and a 61-megawatt biomass power plant will be soon built.
The mill, with a total daily processing capacity of 20,000 tonnes of sugar cane, will be run by Kalasin Mitr Sugar Company Limited, owned by Thailand's and Asia's biggest sugar and bioenergy producer Mitr Phol Group. The biomass plant will be fed by bagasse.
The advent of the sugar industry has raised concerns among organic rice farmers. Most of their fears concern herbicides and chemical fertiliser used in sugar cane plantations. Water seizure by cane monoculture is another major worry.
...
Funded by money from their own pockets, a group of organic farmers toured communities around sugar cane mills in the Northeast to get more information.
"I've seen many farmers suffer when they produce only to serve factories. They produce fast. They get support. But they are in great debt from purchasing chemicals and fertilisers to boost growth to catch up with the factories' demand," says Mr Isara.
"They don't actually hold market shares. They have very low negotiation power."
Two public hearings on a sugar cane mill and a biomass power plant were held at Nam Plik. Protesters claimed that the hearings did not provide complete information about the pros and cons of the project.
When Spectrum [= Bangkok Post] requested an interview with Mitr Phol, we were told by its public relations department that the executive who can comment was abroad'.

Finally, following a very interesting and intriguing video describing life in the Lao highlands. It notes the difficulties facing agriculture, practises in using chemical herbicides and eking out a living with hunting and collecting. 
More can be found here.

'This video is Part 2 of the 3-part series that covers the lives of the villagers in Houay Len over a 12-month period. It looks at the lives of three Phong women Mrs. Tong, Mrs. Bua and Mrs. Chueng and examines local women’s lives during the production season from April to August. The women talk about the work that goes into getting fields ready for planting rice and maize, as well as how they feel about pesticides and why they are used in the village. We also learn more about nutrition and where Houay Len’s villagers get their food'.

Assessment

Not much to mention this month, everyone seems busy in growing rice itself rather than buying, selling and / or producing hot air.

Let's start with some bytes from Cambodia itself. The Phnom Penh Post (Jun. 8):

'Cambodian rice exports have dramatically declined over the past three months compared to the same period last year, according to data released by the General Department of Agriculture yesterday. The data detailed that rice exports had a monthly decrease of 14.5 per cent in March, 30.8 per cent in April, and 28.5 per cent in May'.  

It seems that the dropping prices which are heading even more lower are driving Cambodian government policies.

Take the Khmer Times (Jun. 29):

'The government has come to the rescue of rice millers and exporters, currently in the throes of a serious financial crisis, with loans of between $20 and $30 million to the Cambodia Rice Federation (CRF). This is to help the sector purchase rice from farmers after the harvest this November, to store in warehouses and process them for export, said the CRF'.

Or this from the Phnom Penh Post (Jun. 29): 

'The Ministry of Economy and Finance announced on Monday that the government will block all illegal rice imports at its borders and limit legal rice shipments from Vietnam based on production cost.

...

According to Sarith [secretary-general of the Cambodian Rice Federation (CRF)], Vietnamese rice produced for $200 to $300 per tonne was cheaper than locally milled rice, even with a 17 per cent import and VAT tax assessed'. 

Or Phnom Penh Post (Jun. 1):

'The Institute of Standards of Cambodia (ISC) is soliciting feedback from local stakeholders as it prepares to launch two new standards for the rice industry, the country’s most important agricultural sector.

The ISC is giving the public until June 30 to comment on its proposed national standards for the production and trade of two premium rice varieties – phka rumduol and phka chansensar – Chheng Uddara, director of the ISC’s standards development, training and consultancy department, said yesterday'.

The New Mandala (Jul. 1) has an extensive view of the direction where the Cambodian rice industry should be heading. Synopsis of what needs to be done: branding, certifying and reducing transport costs.

That may seem so easy, but in all three mentioned Cambodia is far behind competitors. 

The article concludes that the only way to stay competitive is to market a different product. Alas, the article fails to mention what that different product should be.

Hurting

Further afield the Bangkok Post (Jun. 3) seems very much interested in what the junta is feeding the press: 

'The government is set to call its biggest rice auction to capitalise on higher demand as new supply wanes.
...

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the new auction was timely given high market demand, but noted the amount was relatively high. Mr Chookiat said the government's auction was unlikely to affect rice market prices, as state stocks are mostly old grains while foreign purchase orders require primarily newly harvested rice'.

Naturally then that the Bangkok Post reports (Jun. 16) on the positives of this recent rice auction:

'The government has sold an estimated 1.99 million tonnes in its latest rice auction, the biggest since the National Council for Peace and Order took control, fetching 19.4 billion baht'.

And more government sales are expected from Thailand (Bangkok Post, Jun. 28):

'Thai rice is likely to see strong sales in the second half of the year as officials visit various countries to make deals amid expected healthy demand'. 

Funny thing though is that sales are still down for 2016 at lower prices ...

 
Rice production will be down in Laos (Vientiane Times, Jun. 23): 

'Rice production this fiscal year may be less than targeted as both natural disaster, including drought and flooding, as well as insects are expected to impact crop yields'. 

Vientiane Times on (Jul. 1) reports on the sudden realisation that most of what Laos produces is de-facto organic: 

'Officials believe that some rice fields in Savannakhet province that do not use chemical pesticides and herbicides might have the potential to grow organic rice for the international market.
Talking on the possible markets there was this comment:
'“One of the problems we found during the training of farmers is the change from old skills to new. It's hard to tell them to change what they have learnt from their parents about farming rice,” he [Head of the plantation division of the Savannakhet Agriculture and Forestry Department] said'.

Then from Vietnam the Tuoitrenews (Jun. 11) comes with trade news:

'China has started applying more stringent regulation to ensure the safety of rice imports from Vietnam, a move some Vietnamese insiders say will benefit, instead of hurting, the rice sector'. 

It seems to stimulate official imports over illegal and give impetus to quality control while bringing down costs for verification. All good news apparently.

Peaked

A couple of other crops to hear from. Btw what's happened to our rubber press?

Anyway, the Phnom Penh Post (Jun. 14) focuses on the negatives of the black pepper boom which manifests itself in increased deforestation both to expand in area as well as to provide supports:

'While the luxury timber trade continues to eat away at Cambodia’s forests, there is another industry that poses a growing threat to the Kingdom’s trees: pepper farms.

...

Black pepper prices peaked during June 2015 at $10,900 per tonne, compared to $1,560 per tonne in July 2005, according to Nedspice. 

....

“Not only local people but also newcomers want to grow pepper,” said Prob Chib, a member of a Phnong ethnic community in Mondulkiri, adding that the new arrivals hail from Kratie, Kampong Cham, Tbong Khmum, Prey Veng, Takeo and Siem Reap. 

“First they cut down the forest and sell the wood, then they occupy the land while they grow pepper, then they cut the forest in another location to make pepper stakes. It’s double deforestation'.

More negatives, this time from the banana business. The Bangkok Post (Jun. 5) looks at the banana business driven by Chinese interests in the north of Thailand.

The article explores recent developments with large scale investment from China into banana growing. Much is made of it's supposedly over-use of chemicals, it's extraction of water from rivers and the way these leases are set up with what might be foreign entities (not allowed under Thai law). 

It makes a comparison with Japanese driven investment in northern Thai agriculture: 

'Under Lanna Agro-Industrial's model contract farmers, who own the land, have the power to negotiate prices, said Ekasit Nunbhakdi, coordinator of the Japan Watch Project and a researcher for Thailand Research Fund. "We have to ask ourselves why Thai farmers have to rely on Chinese investors, who are perceived as treating workers and resources poorly. Are we taking care of our farmers well?" ddition, Thailand does not view agriculture as important to its culture. "Unlike the Japanese who see agriculture as part of their cultural foundation," Mr Ekasit said."Thailand views agriculture as a commercial product. Thai farmers receive too little assistance, they take whatever they can get."   

Equally on the negative subject the Vientiane Times (Jun. 16):

'Imports of cassava and its products into Thailand must adhere to the specific government announcements, Thai government officials reaffirmed'.

It seems Thailand is willing to kill off imports by insisting on officialdom.

Paintbrush
Then the wrapping up of this blog some GMO issues. 

Regionally: the Bangkok Post (Jun. 9) copies as decreed by junta:

'Authorities have brushed aside farmers' concerns about imports of genetically modified organisms (GMOs) if Thailand joins the Trans-Pacific Partnership (TPP). Winichai Chaemchaeng, commerce vice-minister, said the TPP would limit GMO issues only to information exchange and cooperation on trade-related matters associated with products of modern biotechnology. Thailand has the Plant Quarantine Act that bars imports of GMOs, he said'.

Unfortunately the TPP will trump national legislation ...

Finally, the undergroundreporter notes (Jun. 15) how Brazil has a moratorium on imports of GMO from the United States: 

'The list of countries refusing Monsanto’s genetically-modified crops continues to grow. Highlighting the world divide on the issue, Brazil recently refused all U.S.-grown GM crops. While we are continually force-fed genetically modified foods — since they are in approximately 80 percent of all packaged, conventional foods in grocery stores in America — other countries are refusing to import them, grow them, or sell them within their borders.
...
Ironically, Brazil is the the second largest producer of GM crops in the world after the U.S., and grows 29 varieties of GM corn, so they are likely pulling rank for trade rather than hoping to save their population’s health  ...'.