Suffer

Thinking globally. Grain.org (Mar. 13):

'The agricultural seed and pesticide market is already extremely concentrated. Three impending mergers between six of these corporate giants (Bayer/Monsanto, Dow/DuPont, and ChemChina/Syngenta) will further consolidate market and political power, leading to even greater corporate control of our farms and plates'.

It then presents 5 reasons why we should oppose seed and agrochemical mergers currently being lined up.

• These mergers will harm farmers and ranchers.  

• Consumers will see increases in food prices. 

• Workers will suffer. 

• Environmental damage from industrial agriculture will increase. 

• The “lock-in” of industrial agriculture will prevent the expansion of food systems that work for people, pollinators, and planet.

More from the same source on the same subject. Grain.org (Mar. 27):

'More than 200 organisations have today raised their objections to the planned mergers of six giant agriculture corporations.
The farmer, farmworker, beekeeper, religious, international development, and environmental groups claim that the three resulting companies will concentrate market power and “exacerbate the problems caused by industrial farming – with negative consequences for the public, farmers and farm workers, consumers, the environment, and food security” in an open letter to the European Commission and Competition Commissioner Margrethe Vestager.[1]
The European and national organisations – together representing millions of members – state that the proposed mergers of Dow Chemical with DuPont, Monsanto with Bayer AG, and Syngenta with ChemChina will lead to an unacceptable monopoly, with three companies controlling around 70% of the world’s agro-chemicals and more than 60% of commercial seeds.[2]'

Limits

The next article seems to contrast the quotes of an article following this. The IRRI.org (Mar.  28):

'An important strategy to reduce reliance on chemical pesticides in Cambodia is steadily moving through a project that encourages the use of environment-friendly biological control agents (BCA).

Over the last decade, Cambodian rice farmers have mainly relied on chemical pesticides as a major method for controlling pests and diseases. Experts warn that the rampant use of toxic chemicals is likely to lead to numerous long-term effects on the health of farmers and the environment. Integrated pest management (IPM) and BCA provide an alternative to chemical pesticides. BCAs include insects, fungi, and other natural products to manage pests'.

Cambodia Daily (Mar. 29):

'The government has ordered a nationwide recall of the fungicide tricyclazole to keep its rice exports eligible for the important E.U. market, but said it might not get the chemical out of its supplies in time to meet the bloc’s July deadline.
The E.U.’s new threshold is 0.01 milligrams of tricyclazole residue per kilogram of rice paddy, down from the current cutoff of 1 milligram.
...
Phou Puy, a member of the Cambodia Rice Federation, was more optimistic [than the government]. Mr. Puy said most of Cambodia’s rice farmers were still chemical-free and so would not be hit by the new limits on tricyclazole.
“I am not worried about this because our country does not use a lot of chemicals. Most of our rice farmers remain organic,” he said'.

Either there is a lot of pesticides usage. Or there isn't. Or the quotes simply fit the need of the day.

Xinhua (Mar. 10) notes that exports to China are gearing up:

'Cambodia had exported 46,387 tons of milled rice to China in the first two months of 2017, up 127 percent over the same period last year, according to a government report released on Friday.

China is the top buyer of Cambodian rice, followed by France, Poland, Britain and the Netherlands, said the report compiled by the Secretariat of One Window Service for Rice Export'.

Qualified

It's less than rosy for Vietnamese exports. Vietnamnews (Mar. 27):

'Việt Nam exported an estimated 1.28 million tonnes of rice in the first three months of the year, earning US$570 million. But the exports were 18 per cent lower in volume and 17.3 per cent lower in value compared to the same period last year. This was reported last week by the Ministry of Agriculture and Rural Development'.

From Thailand news on how to get rid of rice. Bangkok Post (Mar. 11):

'The government has imposed strict criteria for bidders interested in participating in the state's first auction of 3.66 million tonnes of rice unfit for human consumption to ensure the grains are not sold on the normal rice market. According to the terms of reference revealed yesterday, qualified bidders are required to be juristic persons with an industrial factory licence, explain the purpose the rice will be used for, and guarantee it will only be used for industrial purposes'.

A central rice market for Thailand Bangkok Post (Mar. 20):

'The government is expected to decide on the venue for a central market for milled rice as a distribution channel for traders and farmers by mid-year, at a cost of 300-400 million baht.

...

Although Thailand is a leading producer and exporter of rice, averaging 20 million tonnes of milled rice a year, it has no central market for trading milled rice thus far. Such a marketplace would enable importers, wholesalers and retailers to shop for different grains'.

Currently the junta lead country only has a central market for paddy.

Spillage
A wrap up of off topic, but nonetheless interesting articles on agriculture and rural development in the region. 
Starting off with the less exciting news from the Phnom Penh Post (Mar. 22) on agricultural waste:

'Villagers in Pailin province’s O’Tavao commune say they filed a complaint to the provincial environmental department last week about the alleged dumping of cassava waste by agricultural company Khmer Viniyok Kasekam, prompting a cleanup effort by the company.

Improperly processed cassava can be toxic, and locals yesterday said runoff from the company had killed animals and caused skin irritation among children who had swam in the river, though the firm denied it had intentionally released the waste into the waterway.

...

When contacted yesterday, company manager Ok Samphors, 39, denied villagers’ allegations of dumping waste. He said that his company, acknowledging the environmental risks, had constructed two ponds in which to deposit the waste.

“However, it has rained continuously for a week, so the ponds became full and the waste spilled into the river. The company did not dump it [into the river],” Samphors said.

He added that the company retrieved the waste from the riverbank on Monday after receiving advice from authorities.

Pailin provincial environment department director Kem Sokha corroborated Samphors’s account, agreeing that the incident was unintentional'.

More waste issues. The Cambodia Daily (Mar. 30) reports on more fish deaths, this time attributed to sugar waste. 

'The Environment Ministry is studying water samples from Preah Vihear province to find out what has been killing thousands of fish in the Stung Sen River, where villagers are reportedly blaming a sugarcane plantation.
A report posted to the National Police website Wednesday’said locals living along the river have accused Rui Feng, one of several Chinese-owned plantations in eastern Preah Vihear growing sugarcane, of dumping chemicals into the waterway and killing the fish. The report said the water had turned black and smelled bad'.

And then the shocker:

'Rui Feng [Chinese-owned plantation] could not be reached for comment. Though providing jobs for some locals, the company has also attracted its share of critics.
One of five parent companies investing about $360 million to grow, process and export sugar, it has been locked in a land dispute with hundreds of local families since it started clearing the ground in 2013.
Last month, police said they had started an investigation into allegations that the Chinese managers of another of the five companies, Heng Rui, had severely beaten three workers for stealing oil and fertilizer, one of whom later died of his injuries'.

Land issues. The Cambodia Daily (Mar. 24):

'A long-running land dispute between 175 Koh Kong farmers and two sugarcane firms accused of stealing their land came a step closer to conclusion on Thursday after 73 of the farming families accepted compensation, a government official said.

...

Phav Nhoeung, a representative of the villagers and one of those seeking compensation, said the remaining 102 families had rejected the offer because the land was too far from their homes.

“We reject this option because we are living far away from that area…. It is more than 10 km from our houses,” Ms. Nhoeung said'.

Glass half full, half empty?

However more conflicts on the horizon? The Phnom Penh Post (Mar. 16):

'Cambodia's five major sugar producers exported just 4 percent of the country’s planned refined sugar capacity to the international market last year, equalling only 80,000 tonnes, a sign that government officials said means the sector still has ample room for growth as sugar companies push for higher yields.

According to data in the yet-unpublished annual report of the Ministry of Industry and Handicraft, nearly 100,000 hectares has been earmarked for sugarcane plantations with a planned capacity of 1.8 million tonnes of refined sugar per year. However, just a small portion of this land is currently under cultivation by five producers: Rui Feng and its four sister companies, Kamadhenu Ventures (Cambodia) Ltd, Phnom Penh Sugar Co Ltd, Yellow Field International Ltd, and Koh Kong Sugar Industry Co Ltd'.

Phnom Penh Post (Mar. 15 ) concerning import substitution:

'Chip Mong Group is the latest conglomerate to invest into local production of animal feed, announcing this week that it will sink $60 million into building a large-scale feed mill and industrial piggery, a move that agricultural experts welcomed but said would still not be able to curtail the Kingdom’s dependence on imported feed.

Sen Sovann, director general of the Ministry of Agriculture’s animal production and health department, said Cambodia imported over half of its animal feed last year at a cost of $135 million. It spent another $100 million to import some 400,000 pigs from neighbouring countries to meet local demand for pork meat.

...

Mong Reththy Group, which inaugurated its own $10 million feed mill last December, has the capacity to produce 60,000 tonnes of animal feed a year from locally grown corn and paddy rice. The plant currently supplies the 100,000 pigs on its pig farm in Preah Sihanouk province, as well as 100 nearby family-owned farms'.

Pepper prices following the global trends. Phnom Penh Post (Mar. 17):

'Pepper prices in the Kingdom’s largest pepper producing region have fallen over 30 percent in the last year due to growing international supply that is leading to higher competition in the market, an industry expert said yesterday.

Hong San, president of the Dar-Memot Pepper Agricultural Development Cooperative in the Tboung Khmum province, said prices have fluctuated since the harvesting season started earlier this month with pepper selling at 20,000 riel ($5.03) per kilogram yesterday, up from 17,000 riel earlier this week.

The volatile prices are far below those seen last year, when pepper was selling at prices ranging from 30,000 riel per kilogram to as high as 40,000 riel.

...

Data from the Ministry of Agriculture shows Cambodia produced a total of 11,819 tonnes of black pepper in 2016, a 20 percent year-on-year increase, with the Tboung Khmum province accounting for 8,566 tonnes of the overall harvest.

“Even if the prices are lower than last year, we are not experiencing losses at this point, only decreased profits,” San said. “It is not a big concern for us because our pepper is still of a high quality compared to Vietnam, which is struggling because they rely on chemicals.”

Vietnamese news outlets reported this week that pepper prices in the country were at a five-year low, currently standing at around $4.28 per kilogram. The decrease was attributed to a growing supply and stagnant demand.

Chhay Sor, a small-scale pepper farmer, explained that local pepper prices were unstable because Cambodian farmers rely on Thai and Vietnamese brokers to sell their products to the wider market'.

Mongabay has an article (Mar. 24) on how expanding cultivation of palm oil is cutting into protected peat land areas in southern Thailand. Part of the problem is the lack of law enforcement: 

'Thai media have blamed investors and local politicians have for using farmers as proxies by which to encroach upon protected land (Mongabay was unable to independently verify these allegations). This practice has been alleged elsewhere in Southeast Asia, where private investors distanced themselves from the process and aftermath of oil palm farming, leaving local farmers responsible for the damage.

Bribery and corruption often affect land ownership in Thailand, with the Department of Land ranked the most corrupt in the Thai bureaucracy, according to a survey done by Chulalongkorn University in 2014. Local Land Offices, which come under the Department of Land, are the key agencies for all transactions and documentation involving the sale or purchase of land, and can charge a fee for their services. But the survey revealed that land officials often demand extra money to speed up work or legalize documentation'.

Secrets

As much as I hoped that the Facebook page of Mekong Oryza Trading would carry a lot of Cambodian rice related news, the reality has been a little sketchy. Apparently not all snippets have been deemed postworthy and they have become more selective.
Especially when it comes to negatives in the trading practices itself. Where it usually takes just a bleep to post, it took 4 days to mention that the government is concerned about rice trading practices.

And what was said? 
Phnom Penh Post (May 4) mentions price fixing of agricultural produce:

'The Ministry of Agriculture and Forestry said yesterday that they were investigating a possible secret agreement between middlemen or traders in the supply chain to manipulate the price of agriculture commodities, leaving farmers with no option but to sell their products at a lower price'. 

Reactions to this article suggest that government may also be part of the problem.

Response was swift, as the PM was reported (Phnom Penh Post, May 5) calling for government officials to stop meddling with trade deals at the expense of farmers:

'Prime Minister Hun Sen urged provincial governors yesterday to stop government officials from colluding with traders to fix agricultural commodity prices, giving farmers no choice but to sell their products at below-market rates'.

The Khmer exporters had earlier criticised the government for it's official practices: their own nations export procedures. The Phnom Penh Post (Apr. 23): 

'The executive committee of the Cambodia Rice Federation (CRF) will meet with two ministries today to explore the possibility of reducing the logistical and energy costs of transporting rice, a key factor to keeping Cambodian rice exports competitive compared to neighbouring countries, a CRF official said.

The meeting is being held with the Ministry of Public Works and Transport and the Ministry of Mines and Energy, said Kim Savuth, head of the CRF’s cost competitiveness executive committee. Savuth added that high energy and logistics costs were some of the main reasons why Cambodian rice remained more expensive than that of its neighbours'.

Motionless

There's little to suggest that world market price changes for rice are imminent, it still a buyers market with prices nudging southwards.

The Nation (May 11) has an article on how exporting nations are competing each other with lower prices, mostly achieved by devaluation of their currencies.

'He said that for every Bt1 the Thai currency weakens against the US dollar, the price of Thai rice drops by about $10 per tonne. 

Vietnam's decision to devalue its currency also cuts the price of its rice by about $3 a tonne'.

Thai stocks of rice are down but not by much. Oryzae.com (May 19) notes that 11 million tonnes remain in storage.

Bangkok Post (May 8) adds that Thailand regaining it's position as the world's biggest exporter may be on the back burner for the time being: 

'Thailand is unlikely to regain its crown as the world's largest rice exporter this year due to the slower-than-expected global economic recovery and a dearth of positive factors'.

Trade talks between Cambodia and China with Cambodia hoping to increase access to China for it's rice (Phnom Penh Post, May 22);

'“It is expected that there will be detailed discussion of Cambodia’s request to double the rice quota to China to 200,000 tonnes,” [Ministry of Commerce spokesman Ken Ratha] said, adding, however, that no agreement or memorandum of understanding is expected to be signed.

It doesn't seem to be China's interest. Phnom Penh Post (Apr. 13):

'China will increase its agricultural imports from Cambodia to include bananas, mango and soybeans, having already signed a food safety and health protocol for the import of corn last year, according to the Ministry of Agriculture, Forestry and Fisheries.

...

Srey Chanthy, independent economic analyst, said increased demand from the Chinese market coupled with sound agricultural policies can help address issues like lack of sustainable supply and low productivity among Cambodia’s farmers.

“It is an issue in the short term. But in the medium and long terms, if no proper strategies are in place, I am afraid that the issue is not only about higher volumes for export, but low productivity, seasonality and regularity of supply, lack of irrigation and efficient water use and management,” he said.

“For the growing season, it may not be problematic. But the problem is how to supply these products and export to China on regular basis throughout the year, with the amounts it demands. Issues are not related to only lack of irrigation and farming techniques, but also lack of farm labor,” he added'.

Meanwhile Vietnam are experiencing another form of trade terms with China. China is physically closing the market (tuiotrenews, Apr. 27): 

'Hundreds of trucks fully loaded with rice have stayed motionless in areas around different such ‘secondary’ border gates in the northern Vietnamese province of Lao Cai in the last ten days.

According to the Ban Quan border guard unit in Lao Cai’s Bao Thang District, Chinese buyers have stopped importing rice from Vietnam in the last two weeks because their authorities have tightened checks along the border'.

Vietnemnet (May 9) also notes how China wants Vietnams rice, but at lower prices:

'Rice exports to China across the border have been stagnant since the second half of April as China unexpectedly barred rice imports from Vietnam.

...

Professor Vo Tong Xuan, who is considered the leading Vietnamese rice expert, noted that despite great advantages, Vietnam still has difficulties in exporting rice to China.
According to Xuan, the majority of rice has been exported across the border by Vietnamese exporters even though they know cross-border exports cannot bring high profit. This is because they do not have to fill out many kinds of documents and do not have to pay tax'. 

Organic rice is reaching more markets. Phnom Penh Post (May 20): 

'Local rice exporter Amru Rice is close to signing an agreement with an American importer to bring Cambodian organic rice to the American market, according to the rice exporter’s chief executive'.

If Japan signs a new trade deal with the US, Thai rice exports to Japan will suffer (Bangkok Post, April 15):

'"As Japan wants its rice to be excluded from the tariff-elimination goal of the TPP, the government must come up with an alternative measure to improve foreign access to the Japanese rice market," said Mr Honma, who advised Japanese Prime Minister Shinzo Abe during his first term'. 

So if I understand correctly, if you want to protect your own market you'll need to give away concessions which mean that signee the USA would have preferred access at the cost of Thai rice?

Tales of future dreams. Dreams that were once true. For Burma. Bangkok Post (April 9):

'Dressed in Chelsea football shorts and a wide-brimmed hat, Than Tun toils away in his paddy field on the outskirts of Yangon, sweat pouring down his sinewy arms.

Gruelling work that once helped Myanmar become the world's largest rice exporter is today a Herculean and often lonely job for farmers striving to return the impoverished nation to its former grain prowess.

...

But rotting stocks, creaking infrastructure, heavily indebted farmers and minimal foreign investment are among the hurdles it faces.

...

Rice is a good poverty alleviation tool, he [Sergiy Zorya, a Bangkok-based expert on rice production at the World Bank] explains, because money actually filters down to poor farmers rather than resting in the hands of corporations or middlemen.

He points to Cambodia, which has heavily invested in improving rice production and exports. Over the past 10 year,s each one percent increase in GDP has resulted in reducing the country's poverty rate by 5.2%'.

Growth issues

Phnom Penh (May 19) Post has a long article on the use of glyphosate. 
Despite recent warnings on it's links to cancer (source), the article gives the yea sayers all the space in the articles conclusion:

'Lor Rasmey, spokesman for the ministry, also said yesterday he believed the herbicide to be of only minimal danger, explaining, “In France, they still use it.”

The argument mirrors that commonly used in the US, where as recently as 2010, glyphosate was referred to as a “miracle chemical for farmers”, according to the New York Times.

This language was also parroted in a bulletin for Cambodian farmers distributed by USAID in 2011, which states the “very low toxicity” of glyphosate and recommends it as an effective farming tool.

When asked if the agency would reconsider its endorsement, a spokesman yesterday referred to comments made by Deputy Secretary of State Antony Blinken on the situation in Colombia, who told El Tiempo: “I can tell you that glyphosate is used in all states of my country, and believe me, we’d have taken action if there was something wrong.”

Phnom Penh Post (Apr. 20). Cambodia's economy is expanding, but not for the poor where the lower price of rice is impeding investment. This despite misgivings that higher prices for rice are not good for the rural community, sometimes you can never win. An excerpt:

'The agriculture sector, one of Cambodia’s key growth drivers, remains the biggest worry for the World Bank, as a slowdown in the sector will have a ripple effect on poverty alleviation efforts.

“The agricultural sector has decelerated. This is the driver [of the economy] that has slowed the most and the reason is low yield and low rice prices,” said Enrique Aldaz-Carroll, senior country economist at the World Bank'.

Development watch

Cambodia's land policies are nothing to be proud, far from it. So it's no wonder that foreign investment in it's agricultural sector is lagging. One of the more upfront investors, Thailand's Mitr Pohl has announced that it will be pulling out of Cambodia (Phnom Penh Post, 11 May):

'Asia's largest sugar producer, Thailand’s Mitr Phol Sugar Corporation, has withdrawn from its three plantations in Oddar Meanchey province following years of criticism over alleged illegalities and human rights abuses at the concessions, a development watchdog has said.

The announcement itself was not confirmed, and oddly two days later it was in the press that the EU and Mitr Pohl were making

"good progress” towards finalising an agreement with the government over compensation claims made by thousands of villagers from Oddar Meanchey province who were evicted from their homes by Thai sugar giant Mitr Phol'.

But beyond rice there are alternatives. Phnom Penh Post (May 4):

'From January to May this year, more than 1,100 tonnes of longan were exported to China, up 63 per cent from the 676 tonnes last year, according to Sreng Sreang, deputy director of the Pailin Longan Farmers’ Community.

“There has been increasing demand for Pailin longan in the Chinese market, Chinese buyers tell me. They buy longan from us and do the packaging in Thailand before sending them to China,” he said.

Pailin longan is harvested from December to May. One kilogram of longan costs around 5,000 riel, or $1.25, almost a two-fold increase from three years ago when the price stood at $0.70'.

Investment in agribusiness (Phnom Penh Post, Apr. 30). Despite lower prices Mong Reththy company will provide investment in palm oil processing:

'As of February, Reththy’s company had 16,000 hectares of palm oil trees, 8,000 of which were ready for harvesting, with plans to extend the farm to 30,000 in the future.

Last year, the company exported 22,000 tonnes of crude palm oil, up from 19,000 tonnes in 2013. But price falls had significantly cut into the firms revenue'.

Where rice growing nations are having problems with raising prices, tactics to raise rubber prices seem to be having more effect. The Bangkok Post (May 29) notes:

'Rubber prices jumped the most in nine months as shrinking stockpiles in China and steps by the biggest producers to curb supplies bolstered speculation a global glut will dissipate.

The commodity surged 5.5% on the Shanghai Futures Exchange, the daily limit and the biggest gain since July for a most-active contract, to close at 14,195 yuan (US$2,288) a tonne. Prices are up 13% this month, the most since September 2012'. 

For the farmers sake let's hope the prices are gains in reality, but I suspect that this is just a minor hiccup: there's simply too much rubber waiting to be harvested, current prices are simply dissuading collection as they're not covering the costs of harvesting. Any sustained price movement upwards will see collection kick in again, cushioning any gain.

On the other hand, rubber prices going up are not all good news. The rubber bubble has exploded sometime ago (2 years?) and only now does the Thai government see fit to take action on protected forests being encroached on by rubber farmers (Bangkok Post, April 21) as they hausse for planting rubber seemed to indiscriminately target existing forests:

'With the blessing of the National Council for Peace and Order [read military junta], the Royal Forest Department intends over the next two years to seize back one million rai [50,000 ha] of former forest that has been encroached on, cleared and planted in rubber.

This one million rai is just one-quarter of the area of what was once forest reserve land that has been illegally taken over and planted in rubber trees'. 

So much for the protection of forests ...