Showing posts with label sugar. Show all posts
Showing posts with label sugar. Show all posts

Friday, October 18, 2019

In line


Starting off with news on Thai struggles with noxious agro-chemicals. 
The Bangkok Post (Oct. 3) to the kick-off:
'Rifts within the Agriculture and Cooperatives Ministry over a proposed ban on three toxic farm herbicides are deepening amid claims the minister urged his staff to restrict the use of paraquat, glyphosate and chlorpyrifos, instead of banning them completely'.
So no ban, but restrictions. The pressure on the Ag Ministry though continues. The Bangkok Post (Oct. 7):
'Representatives of the government, farmers and consumers have unanimously voted to ban the use of three toxic farming chemicals in December in a decision that could end the months-long controversial issue.
Deputy Agriculture and Agricultural Cooperatives Minister Mananya Thaiset said on Monday the working group comprising the three groups voted 9-0 in favour of the ban on three chemicals — paraquat, glyphosate and chlorpyrifos — starting Dec 1 at a meeting at the ministry.
From that date, it will be illegal to have, sell, import or produce the substances'.
Bangkok Post (Oct. 12) notes more pressure:
'Ministers attached to the Bhumjaithai Party will quit their jobs if they fail to convince the authorities to ban three pesticides that have been used for farming despite their high toxicity, party leader and Deputy Prime Minister Anutin Charnvirakul said on Saturday.
Mr Anutin, who is also Public Health Minister, said that he and his colleague, Deputy Agriculture Minister Mananya Thaiset, are ready to show their spirit by tendering their resignations if the proposed ban is shot down by the National Hazardous Substances Committee (NHSC).
“We need to go because the failure means we have no power to rule,” Mr Anutin said.
Mr Anutin and Ms Mananya have spearheaded the campaign to ban the use of paraquat, glyphosate and chlorpyrifos, which are harmful to the environment and health'.
Meanwhile over in Laos, concern on pesticides has also been voiced, though the approach seems different.  The Vientiane Times (Oct. 17):
'The Ministry of Agriculture and Forestry has issued a new regulation that enables authorities to check the quality and safety of pesticides before they are used on crops in Laos.
...
The minister’s decision to issue the pesticide regulation came amid growing concerns over the safety level of pesticides, which are imported for use in agriculture. 
In the middle of this year, the government came under strong pressure, especially from the National Assembly, which demanded that the government stop the import of dangerous pesticides and chemicals and ensured that such products were of good quality before being used by crop growers in Laos.
In response to pressure from law makers and the public, the government announced it was suspending the cultivation of some cash crops after learning that the pesticides used in these areas had a harmful effect on farmers and local residents.
Observers believe that this regulation, which requires the producers and importers of pesticides to register their products, will enable the authorities to carry out checks on the quality and safety of pesticides used in Laos. The move is in line with the government’s policy to promote clean and sustainable agricultural practices'.
So despite all indications that a ban is required, the Lao authorities also prefer restrictions.
 
Lost
Cambodia's rice news revolves around statistics. 
For instance recapping the rice trade figures (Phnom Penh Post, Sep. 25):
'Cambodian rice exports to international markets were worth more than $265 million in the first eight months of the year, said Cambodia Rice Federation (CRF) secretary-general Lun Yeng.
Yeng told The Post on Wednesday that the Kingdom exported more than 340,000 tonnes of rice during the period. Rice exports last year, he said, reached more than 620,000 tonnes or more than $473 million'.
The outlook as always seems bright. The Phnom Penh Post (Oct. 14):
'After three consecutive quarters of decline, Cambodia’s rice exports to the European market are expected to grow in the fourth quarter following a Cambodia Rice Federation (CRF) working group’s visit to the EU to promote the produce, CRF president Song Saran said.
The exports dropped sharply in the first nine months after the EU imposed tariffs on the Kingdom’s rice at the beginning of this year.
Saran led the working group to several European countries to meet with various parties and look into issues related to Cambodian rice.
Following the EU’s import duty on Cambodian rice, price competition with other countries led to a decline in exports to Europe, he said.
...
A CRF report shows that the Kingdom’s rice exports reached 398,586 tonnes in the first nine months of this year – up 2.3 per cent from the same period last year, or 389,264 tonnes.
Rice shipments to the Chinese market stood at 157,793 tonnes during the period. This was up more than 44 per cent year-on-year. But exports to Europe fell to 135,471 tonnes, or down nearly 30 per cent.
The rest was exported to Asean markets, said the report'.
However despite the upbeat, the market in Europe for Cambodia rice imports (and Cambodian imports in general) is (as known) clouded by the Everything-but-arms-trade concessions that were revoked.  The Bangkok Post (Sep. 30):
'A World Bank report estimates [for Cambodia] lost export revenue of $654 million -- $510 million for garments and footwear and $144 million for milled rice -- if the European Commission (EC) ends the EBA privileges, which have been in place for 18 years.
...
Meanwhile rice traders are trying to direct the local market. The Phnom Penh Post (Sep 25):
'The Cambodia Rice Federation (CRF) has called on farmers to delay their paddy sales until after the Pchum Ben festival to avoid a drop in prices.
CRF secretary-general Lun Yeng said on Wednesday that more than 80 per cent of rice millers had postponed purchases of paddy since earlier this week, which has allowed brokers to buy it at prices lower than the market rate.
“If their paddy is not [at risk of being] affected by floods or destroyed by insects, farmers should not rush to harvest. Good paddy should not be priced below 1,150-1,200 riel [$0.28-$0.29] per kilogramme,” he said.
Narum, a rice farmer in Kratie province, said prices in the province were not as high as they were last year. This time last year, he could sell paddy for between 900 and 1,000 riel per kilogramme, but must now settle for between 700 and 800 riel'.
Polished
Over in Thailand, the Bangkok Post (Sep. 15) reports on the Thai rice price pay-off system:
'The rice price guarantee scheme will begin next month with farmers set to be paid the difference when the price falls below a predetermined benchmark, Deputy Prime Minister and Commerce Minister Jurin Laksanawisit said'.
And then in more detail. Bangkok Post (Oct. 16):
'The rice price guarantee scheme started on Tuesday, with eligible farmers set to receive the difference when market prices fall below the predetermined benchmark.
Commerce Minister Jurin Laksanawisit said the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) transferred 9.4 billion baht in compensation directly to the accounts of 349,000 registered farmers.
The compensation will be paid mainly to growers of white rice paddy and fragrant Pathum Thani rice paddy if the market prices stay below a certain level.
Mr Jurin said the government is scheduled to pay the compensation every 15 days until the end of the harvest season'.
Vietnam has also been doing the numbers.  Vietnamnet (Oct. 8):
'According to Tran Thanh Hai, deputy director of the Import/Export Department under the Ministry of Industry and Trade (MOIT), Vietnam exported 5.4 million tons of rice in the first eight months of the year, an increase of 0.1 percent over the same period last year, but the export value was $1.96 billion, a decrease of 15 percent.
...
China, which was the biggest rice importer of Vietnam in previous years, has cut purchases. Exports to the market dropped by 65 percent.
In 2018, Vietnam sold rice at $500 per ton on average, but the price decreased in 2019. China, which imported rice in large quantities across border gates in previous years, began restricting imports through this channel in 2018.
Moreover, China has also begun applying the rice import quota scheme. It plans to import 5 million tons of rice this year, but in fact, it has imported 3.3 million only'.
Rice news from Laos.  Vientiane Times (16 Sep.):
'Many agricultural promotion companies in Laos have limited their rice exports because of the supply shortage in the domestic market despite high demand from overseas.
High rice prices and the impact of flooding within the country this season are the main reasons why farmers are storing rice for their own consumption, according to the industry and commerce sector.
Laos recently exported only 1,350 tonnes of polished rice to China as part of a 50,000-tonne export quota agreement between the Lao government and China National Cereals, Oils and Foodstuffs Corporation (COFCO)'.
So there's a shortage in the local market as there's also a need to export to China. Then the Vientiane Times (Sep. 27) reports on government measures to cool the market:
'The government has approved the sale of 2,000 tonnes of stockpiled rice to bring down the high market price after a shortage of supply meant the price of rice rose by over 20 percent above normal.
The move is aimed at cutting costs for consumers and easing the hardship of people on low and medium level incomes.
The Vientiane Industry and Commerce Department has directed the Khamphaengphet Chaengsavang Agriculture Promotion Co., Ltd. to sell the 2,000 tonnes of rice after the government and the company signed a contract to that effect.
Polished Grade B sticky rice is on sale at five locations in Vientiane for 6,500 kip per kg, from September 23-30. This price is 2,000 kip per kg less than the current market price. 
...
The government regularly stockpiles rice and has supplies available every year which can be put on sale when the market price of the staple becomes unacceptably high. This year, the price of polished sticky rice rose to an abnormally high level after a prolonged dry season followed by widespread flooding, meaning that rice yields were below the set target.
From January to June, the price of rice in Vientiane, mainly paddy sticky rice, rose by 3,425-3,500 kip per kg and the price of polished Grade B sticky rice by 6,335-7,000 kip per kg, according to the Vientiane Industry and Commerce Department.
From the end of June to September, the price of rice increased further to about 4,350 kip per kg for paddy sticky rice in the second week of September. Compared to June this was an increase of 1,500 kip or 24.28 percent, the Director of the Vientiane Industry and Commerce Department Director, Mr Berlin Phetchantharath, told the media.
The release of stockpiled rice is authorised by the Decree on the Management of Goods Price and Services No. 474/PM, dated November 18, 2010. The decree followed the appointment of a steering committee on the management of goods price and services in Vientiane'.
Tightlip
As an intermezzo, a feature from Nepal's Kathmandu Post (Oct. 13) on hybrid rice:
'There is a reason why Thakur is upbeat. This year, he is expecting to produce 9 tonnes of paddy on a hectare of land — three times the national average paddy productivity rate.
All this is because Thakur cultivated two high yielding hybrid varieties— Arize 6444 Gold and Arize Idea hybrids. He owns 1.7 hectares (2.5 bigas) of land. As the ripening period of these varieties is 125 days, Thakur is expecting to harvest his crop towards the end of October. The early ripening time has also given him ample time to prepare for a mustard farm in the next cropping cycle.
...
Thakur is expecting to at least double his income this year. “People, mostly my neighbors, had called me crazy when I decided to go for a hybrid variety,” remembers Thakur. “They are all tightlipped now.”
In Nepal, most farmers do not use hybrid paddy because they cannot produce the seed and have to buy them every year from the market.
But Thakur decided to take the risk. His hybrid journey began after he got a handful of hybrid paddy seeds from Nepal Krishi Company, Buddha Air’s corporate social responsibility initiative that works on farm mechanisation and commercialisation.
Thakur is a bit worried as well. “Since it’s a new variety, I don’t know what rate I will get for my produce. I don’t know if consumers will prefer eating these varieties.”
...
Farmers in the area say that hybrid varieties have many advantages but there are disadvantages as well. “We have to buy the hybrid varieties every year from the market as it cannot be reproduced,” she Khanal. “We are worried that it may make us dependent on seeds. “It’s expensive as well.”
The price for Arize 6444 seeds per kilo is Rs600 while Ranjit costs Rs70 per kg.
...
Nepal Krishi Company and Bayer BioScience of India had signed a memorandum of understanding last May to begin a pilot project to use two-hybrid paddy seeds this summer which have the potential to double productivity.
The company has piloted these hybrid varieties on 35 bighas of land. Out of the total land, these varieties have been cultivated with the latest technology and tools on a demonstration plot of 20 bighas owned by Birendra Bahadur Basnet, managing director of Buddha Air, who is also a board member of Nepal Krishi Company. The remaining 15 bigas are owned by the local farmers.
“By October end, we will see the result—the actual cost of production and productivity—of the hybrid varieties,” Basnet says. “The Krishi company’s objective is not only to produce paddy but we want to establish the fact that paddy farming can be done commercially.”
As always, it's about economics. It's also strange that a company uses a social initiative to push hybrid rice with a multinational company which only has one interest.

Dispersed
The Khmer Times (Oct. 7) reports on investment on Cambodian agriculture:
'Green Leader Holding Group Limited, a Hong Kong-listed firm, announced last week that it is increasing investment in the local market by building a new mango processing plant in Tboung Khmum province.
...
In May, Green Leader opened a $20-million cassava-processing factory in Kratie’s Snuol district
The company said the facility can process up to 130,000 tonnes of starch a year, absorbing 500,000 tonnes of raw cassava'.
More mango news. Khmer Times (Oct. 4):
'Cambodian mangoes are ready for export to the South Korea market with the first shipment officially kicking off in early November, Hyundai Agro, the Korean exporter, said.
...
Although the company got permission from the government, Chang Hoon Lee noted that there is another obstacle when it comes to competition with Vietnam, Thailand, Peru, and the Philippines.
Vietnam and Thailand have an air cargo connection with South Korea and enjoy a very low cost of transportation. Every day, Thailand sends more than 100 tonnes of mangoes to Korea and they are dispersed everywhere in one day, while Vietnam’s duties for mango exports are lower than for Cambodia because of the free trade agreement area, Mr Lee pointed out.
...
He noted that there are no cargo airplanes between Korea and Cambodia so the company is figuring out how to send 10 to 15 tonnes of mango by ship'.
Khmer Times (Oct. 2) looks at the evolving trade issues concerning Kampot's pepper:
'A lack of demand is driving a large number of Kampot pepper farmers to quit the crop, the Kampot Pepper Promotion Association said yesterday.
Many farmers are finding it difficult to sell their harvests, according to KPPA president Ngoun Lay. He estimates that 20 to 25 percent of small-scale farmers (those farming less than 3,000 square meters of land) have abandoned the crop after this year’s harvest season, which recently finished.
Mr Lay said an oversupply of the crop is causing farmers in Kampot and Kep provinces to switch to other crops like mango.
...
“For example, before a buyer would order 10 to 20 tonnes of pepper, but now they only need from 2 to 10 tonnes because they are also growing the pepper themselves. This is hurting farmers,” he said.
He noted that the crop is now grown in 290 hectares of land in both provinces by 445 farmers. Combined, those farmers produce a total of 100 tonnes a year on average, but buyers are demanding only about 70 tonnes a year.
A kilogram of Kampot black pepper fetches $15, while red pepper and white pepper sell for $25 and $28 per kilogram, respectively. However, some farmers have had to sell their black pepper for $13 a kilogram, red pepper for $22 and white pepper for $26, Mr Lay noted.
...
Low-quality pepper used to fetch $10 per kilogram, but now, due to oversupply, some farmers are selling it to Vietnamese merchants for as low as $2 per kilogram'.
Rubber. The Phnom Penh Post (Oct. 14):
'Cambodia exported $231 million worth of rubber in the first nine months of this year, a year-on-year increase of nearly 22 per cent from $190 million last year, a Ministry of Agriculture, Forestry and Fisheries official said on Monday.
Khuon Phalla, director of the Department of Administration and Legislation under the ministry’s General Directorate of Rubber, told The Post on Monday that Cambodia’s rubber exports during the period reached 173,072 tonnes, a year-on-year increase of 23.35 per cent from 140,303 tonnes.
...
However, Sopheak Nika Investment Agro-Industrial Plants Co Ltd director Men Sopheak said the rubber market during this period was not as strong as last year.
The current rise in rubber exports is merely due to an increase in the number of mature rubber trees, he said, which produce a larger harvest from year to year'.
Some news on evolving land issues. Taking a French company to a higher level. The Phnom Penh Post (Oct. 1):
'The group, from seven villages in Pech Chreada district’s Bou Sra commune, filed a lawsuit at a French court last year to claim damages and demand compensation from Bollore, a firm that funded Socfin-KCD.
They said they were under threat of losing their land, traditions and customs since the arrival of Socfin-KCD, which had received loans from Bollore to operate a rubber plantation in Mondulkiri since 2008.
...
He said some 800 families, mostly Bunong indigenous members, have been severely affected by the project after Socfin-KCD obtained investment rights to plant rubber trees and other cash crops on 2,368ha on a 70-year contract.
Of the more than 800 families, he added, 640 are directly involved in the land dispute. They turned to the French court after the provincial authorities claimed the dispute had been solved'.
Control
Couple of snippets from the region. 
Oddly, the Phnom Penh Post (Oct. 1) reports on sugar concerns:
'The Thai sugar industry has been hit by the twin crises of falling exports and sliding prices, industry experts have said.
The most imminent threat to the industry is the falling price of sugar in the global market, which has currently dropped by $0.22-$0.24 per kilogramme, the lowest price in six years'.
Then the focus shifts towards Vietnam. The Phnom Penh Post (Oct. 10):
'Vietnam is in the process of getting a licence to export avocado to the US, according to the Vietnam Trade Office in the US.
The Vietnam Trade Office’s branch in the US’ San Francisco said avocados are mainly sold at big supermarkets with large volumes, so they must meet the high requirements of the US market.
Avocado distribution companies must be responsible for controlling the stages of a supply chain, from production to distribution, while exporters need to have sufficient quality certificates.
To enter the US market, avocados must meet the minimum requirements of the regulations on maturity, colour and weight. Avocados must be intact, clean and without insects.
...
In Vietnam, avocado trees are now grown in many provinces and cities, but concentrated in the Central Highlands region with a total area of 8,000ha.
Dak Lak province – which borders Mondulkiri province’s northern Koh Nhek district in Cambodia – is the largest producer in Vietnam with a total area of more than 4,300ha.
Following are Dak Nong province – across the border from Mondulkiri’s southeastern O’Raing district – with an area of nearly 2,600ha, Lam Dong province and Gia Lai province – which borders Cambodia’s Andong Meas and O’Yadav districts in Ratanakkiri province'.

Sunday, December 9, 2018

Rigged

The biggest news on Cambodia's rice front the past month, if not for the past few years, is Cambodia losing free access to European markets.
The Khmer Times (Nov. 14) presents the statistics:
'Cambodia’s rice export fell 13.20 percent in the first ten months of 2018 due to two factors, the European Union stopped buying Cambodian rice and the 300,000 tonnes quota to China was not fulfilled, said Kann Kunthy, vice president and managing director of Amru Rice Cambodia'.
But the Phnom Penh Post (Nov. 19) describes what's happening:
'AMRU Rice (Cambodia) Co Ltd, one of the Kingdom’s main rice exporters, has appealed to the EU to reconsider imposing a tax on the Kingdom’s rice exports to all EU member states.
The company expressed concern that the EU action on the Kingdom’s rice exports will impact the entire industry, according to a letter sent to the EU Commission Directorate-General for Trade.
...
Ngin Chhay, director of the General Directorate of Agriculture at the Ministry of Agriculture, Forestry and Fisheries, said that the Commission’s decision is unfair for the Cambodian rice industry.
“The statement from the EU regarding indica rice kind of puts pressure on Cambodia, which just stepped into [a stage of] better [economic] development."
“It is not fair for us to be based on EBA status policy and the WTO. Our rice production is based on the export of fragrant rice and does not hurt the Italian market,” he said.
The share of the EU rice market captured by Cambodian rice has grown from 15 per cent in 2013 to 25 per cent last year, said the EU.
Meanwhile, the share of the rice market controlled by European producers has fallen from 61 per cent to 39 per cent over the same period'.
But later (Phnom Penh Post, Dec. 3) it presents this:
'The president of the Cambodia Rice Federation (CRF) has expressed concern over an impending EU tariff on Cambodian rice imports, saying that it is factors within EU states that are harming European farmers most.
“Difficulties faced by European farmers are largely due to the lack of collaboration between them, millers and traders,” CRF president Sok Puthyvuth told the press on Friday.
He said the “high cost of milling in [EU]member states” was the main obstacle to improving European rice industries, not imports of Cambodian rice.
Sok Puthyvuth’s comments come following a November 5 announcement from the European Commission, an arm of the EU, that exporters of Cambodian and Burmese Indica white rice will face increased taxes within three years.
The customs tariff duty will be €175 (US$198) per tonne in the first year, €150 in the second year, and €125 the year after.
...
However, the CRF is sceptical that safeguard measures will improve the livelihoods of EU farmers, as much of Cambodian rice is not directly competing with their produce. As much as 55 per cent of Cambodian rice currently imported into the bloc is fragrant rice – a variety difficult to grow in the EU'.
So both describe a link between research on import pricing and the institution of import fees by the EU. 
However it seems that this link is non-existent. 
The missing link is politics. The Asian Times (Oct. 9):  
'Months after Cambodia held what many observers saw as a badly rigged election, the European Union is ramping up trade pressure in punitive response to the move away from rights and democracy.
The EU announced on October 5 that Cambodia would lose its special access to European markets under the so-called Everything But Arms (EBA) preferential trade scheme after it conducts a six-month review of its duty-free status launched last week'.
It also seems to have had an immediate effect as there have been tentative steps set in the opposite direction, back from the brink of totalitarianism towards a poor facade of democracy. But not.

To be continued.

Trace
Other rice related news from the Khmer kingdom. The Khmer Times (Nov. 16):
'Amru Rice, one of the biggest exporters of rice in Cambodia, will purchase about 50,000 tonnes of paddy rice this year from dozens of agricultural communities across the country, amounting to an investment of $17 million.
Song Saran, Amru Rice CEO, said they have entered contract farming schemes with 56 agricultural communities in nine Cambodian provinces, from whom they will be purchasing paddy rice grown following organic techniques.
A significant portion of that investment will be made in Kampong Thom, where the company will buy 12,000 tonnes from 20 agricultural communities. Those communities have so far supplied about 40 percent of what they agreed to, Mr Saran told Khmer Times last month.
The price Amru Rice pays for each ton ranges from $280 to $400, depending on the quality of the product'.
Phnom Penh Post (Nov. 16):
'Oxfam in Cambodia launched the BlocRice project on Thursday – a platform using blockchain technology to connect a network of people in the rice supply chain that aims to ensure farmers get a fair price for their produce.
Working as the pilot test project since April this year, the BlocRice app focuses on transparency and traceability using blockchain technology by implementing smart contracts as a tool and interactive consumer communication apps for a better user interface.
...
In its first year, Oxfam’s BlocRice project will work with 50 small-scale organic-rice farmers in Preah Vihear province.
...
The project digitises and registers these contracts on the blockchain platform. Details such as primary purchase price, trade volume and transportation method are recorded, with cashless payments made to the farmers through bank accounts for traceability'.
Beyond Cambodia. Bangkok Post (Oct. 25) notes the optimism in Thailand concerning it's exports:
'Despite September's export slump, the government remains upbeat about achieving 11 million tonnes of milled rice exports this year on high demand'.
Bangkok Post (Nov. 2) adds this:
'The Rice Exporters Association of Thailand this week said it expects Thailand to meet the 11 million tonne rice export target before the end of the year.... Vietnam's rice exports in January-October were forecast to rise 3.4% from a year ago to 5.24 million tonnes, government data showed'. 
From the rice odd-news desk. Bangkok Post (Nov. 25):
'Wit Worawong, the director of the rural roads office in Buri Ram province, said farmers who use public roads to dry paddy are violating the Highway Act by obstructing vehicles. Violators are subjected to a fine of up to 60,000 baht and/or a maximum jail term of three years, the official added'.
Crime 
GRAIN (Nov. 21) has a state of affairs on nearly 2 decades of Golden Rice promotion:
'The delay of the commercialization of Golden Rice, and the ‘lackluster acceptance’ of the public is due to the inherent flaws and failures of both the technology and the product itself. Golden Rice is going to be useless and unlikely to achieve its objective of helping to solve VAD [Vitamin A deficiency] if its beta-carotene is consistently low, and even prone to degradation. Yields have been consistently low, indicating that farmers might suffer economically if they choose to plant Golden Rice. Meanwhile, Golden Rice will allow corporations to set their foot at the door of our agriculture and introduce more genetically-modified food crops.
Pro-Golden Rice groups have always been accusing Golden Rice detractors, blaming them as responsible for the death of millions of children suffering from VAD. But, who is really committing the crime?
While these pro-GR groups keep tagging the Golden Rice detractors as ‘vandals’, they also continue to take for granted the realities of hunger that these farmers and the Asian peoples are experiencing on a daily basis. Our countries are blessed with bountiful resources to feed our population, but poverty and social inequalities stop people from procuring safe and nutritious food. Golden Rice will never solve VAD and will only strengthen the status quo, benefiting only those interested in controlling our nations’ agricultural sector.
The real crime against humanity is committed by the pro-Golden Rice camp by peddling a GM product that is not tested nor proven to be safe. In fact, this can turn into a situation where the ‘medicine’ is worse than the illness it intends to cure.
Golden Rice is a techno-fix to malnutrition and a corporate ploy to control our agriculture. It is not needed by Asian people nor the world. Indeed, the solution to hunger and malnutrition lies in comprehensive approaches that ensure people have access to diverse sources of nutrition. Securing small farmers’ control over resources such as seed, appropriate technologies, water and land is the real key to improving food production and eradicating hunger and malnutrition'.
Over in Thailand there's much discussion on banning agrochemicals; the worst of those them that is. The Nation (Oct. 26):
'Farmer groups expressed their concern that agrochemical control measures proposed in the new ministerial regulation will turn them into criminals, as they will be forbidden from spraying herbicides on their farms without proper training.They were conveying their apprehensions yesterday at a public hearing arranged by the Agriculture Department on the draft of the Agriculture and Cooperatives Ministry regulation to enforce tighter controls on the use of paraquat, chlorpyrifos and glyphosate.... Meanwhile, BioThai Foundation director Withoon Lienchamroon said his organisation had not had a chance to participate in the public hearing on the new ministerial regulation draft, as the Agriculture Department had not invited his or other organisations that were opposed to the use of the hazardous farm chemicals.“Despite BioThai Foundation being one of the stakeholders on this issue, as we have been actively campaigning to ban paraquat and chlorpyrifos and limit the use of glyphosate from the beginning, we were not invited to this public hearing,” Withoon said.“This shows a serious lack of transparency in the ministerial regulation  draft. The Agriculture Department should have invited all stakeholders  to consider the controlling measures for these hazardous farm chemicals together.”Nevertheless, he insisted that though the regulations on the use and contribution of these three farm chemicals are becoming stricter, they are still not enough to prevent adverse impacts to the environment and public health'.
Prices
Let's look at other crops in Cambodia and what looks like their increasing attractiveness. 
The Khmer Times (Nov. 29) on cassava:
'The price per kilogram of cassava exports from Cambodia has this year increased mainly due to rising demand from neighbouring Thailand, Pang Vannaseth, director of Banteay Meanchey’s agriculture department, said yesterday.
Mr Vannaseth said the price increase is for both fresh and dried cassava'.
Corn. The Khmer Times (Nov. 27):
'Corn prices has risen in the second season this year to 580 riels (about $0.14) per kilo, compared to 380 riels (about $0.09) in the first season mainly due to a reduction of land under cultivation, insiders said yesterday.
Chhim Vichara, director of the Battambang provincial Agricultural Department, said this year the province planted corn on 128,000 hectares in both seasons and 116,100 hectares have so far been harvested'
While the Phnom Penh Post (Nov. 14) on the same subject:
'The price of corn in Battambang province increased by 130 riel ($0.03) to 590 riel per kilogramme in the second harvest season compared to the first, the provincial Department of Commerce said.
The crop is grown twice a year, with the first harvest from late June to August and the second from late October to February. The price in the first harvest was 460 riel per kilogramme'.
The Phnom Penh Post (Nov. 13) has stats on sugar:
'Cambodia's three major sugar companies produced 120,126 tonnes of raw sugar in the first nine months of this year, said a Ministry of Industry and Handicraft report.
It said Rui Feng (Cambodia) International Co Ltd produced 56,664 tonnes, Yellow Field (Cambodia) International Ltd (51,420 tonnes) and Koh Kong Sugar Industry Co Ltd (12,042 tonnes). Phnom Penh Sugar Co Ltd did not provide figures, said the report.
The report does not provide last year’s figures for comparison. However, Cambodia’s five major sugar producers exported just four per cent of the country’s planned refined sugar capacity to the international market in 2016 or just 80,000 tonnes, said a previous report from the ministry.
...
The ministry’s figures show that families cultivated 19,717ha of sugarcane last year – an 11 per cent decrease from 2016. Yield also fell by 15 per cent to 629,320 tonnes'.
With the widely reported land issues involved, this matter of fact presentation misses what the cost of this sugar production was.
Well, attribution. The Phnom Penh Post (Nov. 5):
'The victims of Ly Yong Phat’s Phnom Penh Sugar Company development project in Kampong Speu province’s Oral district said they are “happy” to hear that ANZ Bank had declared to the Australian Parliamentary Committee that it would consider compensating those affected by the project.
While on sugar, heed this article by Bangkok Post (Nov. 26) which informs it's  readers on all sugary affairs, notably how the Thai are slowly freeing up their market. But they are quite aggrieved that India seems to be working in opposite direction which has meant that Thailand has complained to WTO on stated nation.
 
Leads
Getting organised.
Phnom Penh Post (Nov. 12):
'The government has formed a new federation for the country’s pepper industry to enhance the market and solve challenges in the sector, as the cash crop is currently facing depressed prices.
The Cambodia Pepper and Spice Federation was jointly formed last Friday by the Ministries of Commerce, and Agriculture, Forestry and Fisheries.
Amru Rice Cambodia CEO Song Saran who has been elected as the federation’s president said it is no different from the Cambodia Rice Federation in that it will work on seeking markets for pepper and be involved in pepper cultivation issues.
...
The pepper federation has 17 members from pepper cooperatives across the Kingdom that will raise issues to the federation and work together with the two ministries to resolve them.
Saran said the country grows mainly black pepper, of which 20,000 tonnes on average are produced annually.
He said the pepper price currently stands between $2.50 and $3 per kg, which is not sustainable for farmers'.
Phnom Penh Post (Nov. 9):
'The Switzerland-backed non-governmental organisation, HEKS/EPER, announced to launch a five-year, $7.8million development project for cashew nuts in Cambodia, with a goal to improve the livelihood of rural families.
The project, which will be implemented between this year and 2022, was announced in a workshop yesterday in Phnom Penh and is expected to boost food security, income and land management for poor communities.
...
The country director for the Swiss Development Agency, Carin Salerno, said the project can only be successfull if all stakeholders were involved, especially local communities and government institutions.
“This project will strengthen knowledge about cashew cultivation techniques and ensure market price stability for the community,” she said, adding that the project would also help to prevent indigenous communities from becoming victims of land grabs'.
Tradewars
The Bangkok Post (Nov. 25) has an article which looks at the wider implications for rubber growing in Thailand as effected due to the trade dispute between China and the US:
'But the rubber trade is at a crossroads as a bitter dispute between the world’s two biggest economies ricochets across Southeast Asia with unexpected consequences.
Countries like Vietnam are benefiting as manufacturers migrate from China to avoid punishing tariffs on exports to the US.
But in Thailand, the price of rubber has slumped 20 per cent since June, as those same tariffs bite hard on demand from factories in China – the market for more than half its latex exports.
...
The country [Thailand] currently produces about 4.6 million tonnes of rubber a year and the sudden drop in Chinese demand has compounded a longer term global oversupply crisis to push prices off a cliff.
“A climate of uncertainty” pervades the industry after US tariffs hit nearly half of all Chinese imports, according to Karako Kittipol, marketing manager at Thai Hua Rubber.
“Chinese companies don’t want to have too much rubber in stock,” he told AFP.
The value of the yuan against the US dollar has also dipped, making rubber more expensive for Chinese manufacturers to buy'.
Thailand's the Nation (Nov. 15) looks at what the national government is doing:
'The agriculture and Cooperatives Ministry plans to seek a budget of more than Bt10 billion to help rubber growers and tappers cope with the dropping price of rubber. 
“We intend to compensate them more than we did last year,” Agriculture and Cooperatives Minister Grisada Boonrach said yesterday. 
...
Meanwhile, oil-palm growers in Krabi province yesterday continued burning their crop for the third consecutive day to protest against the drop in price. So far, they have already burned down more than 50 tonnes of oil palm. 
It doesn't seem to effect Cambodia though. The Phnom Penh Post (Nov. 27):
'Cambodian rubber exports during the first 10 months are up 24 per cent, while the price decreased 18 per cent compared to the same period last year, figures from the Ministry of Agriculture, Forestry and Fisheries said'.
Interestingly an article from the Khmer Times (Nov. 30) on coffee growing in Cambodia: 
'With demand for the commodity booming, the area used for coffee plantations in Mondulkiri has doubled in just a few years, and it will continue to grow, says Seng Se, chief of agronomy at the provincial department of agriculture.
There are now 206 hectares of coffee plantations in the province, 132 of which belong to corporate entities, while the rest are owned by smallholder farmers, according to Mr Se.
A kilogram of non-organic coffee fetches $2.5 in the local market, much higher than a few years back, when it sold by just $1, Mr Se says, adding that the price for organic coffee is much higher.
...
According to research conducted by CEDAC, Cambodia currently produces about 300 tonnes of coffee beans a year. However, it is estimated that total demand in the country sits at around 5,000 tonnes a year, which means that most of the beans Cambodian consume are coming from abroad, particularly Vietnam, Laos and Thailand'.
The Khmer Times (Nov. 13) reports on efforts in promoting banana's-for-China scheme:
'In an effort to ensure compliance with sanitary and phyto-sanitary standards in the Chinese market, the Ministry of Agriculture will send teams to registered banana farms to conduct on-site checks.
The announcement of these inspections follow a statement by the ministry in August urging farmers, owners and exporters to register with the ministry to gain access to technical assistance that will help them achieve compliance with SPS requirements demanded by Chinese buyers'.
Possibly the backers are unaware that banana growing is not viewed as positive elsewhere in the region. RFA (Nov. 30):
'Chemicals released into a river by a Chinese-owned banana farm near the Lao capital Vientiane killed over 300 kg of fish in November, prompting warnings by authorities to local villagers not to bathe or fish in the polluted stream, sources in the country say.
...
Also speaking to RFA on condition she not be named, a Lao expert on foreign investments in Laos said the country’s government should consider as a priority the impact of foreign-owned concessions on local people, and that if a business is found to have broken the law, its permit should immediately be canceled.
“Foreign business owners who invest in our country often do not follow our laws or protect our environment,” she said. “And even if we give them two or three chances [to do better], they will often make the same mistakes.”
“The authorities should find more qualified investors,” she said.
Illnesses and deaths have long been reported among Lao workers exposed to chemicals on foreign-owned farms, with many suffering open sores, headaches, and dizzy spells, sources told RFA in earlier reports.
Chemical run-off from farms has also polluted many of the country’s water sources, killing fish and other animals and leaving water from local rivers and streams unfit to drink, sources say'.
Freshplaza (Nov. 30) reports that growing bananas in Laos doesn't seem as profitable as perceived:
'Nowadays, investing in bananas in Laos has to take into account the cost of land rentals, agricultural materials, labor and freight. When arriving at customs, the cost per acre of bananas is about 5,000-7,000  yuan. Such a cost price doesn't have significant advantage over Guangxi, and is slightly higher than that of Zhanjiang and Yunnan in Guangdong'.
On other fruits, the Phnom Penh Post (Nov. 15) reports:
'The Kingdom’s first $10 million fresh fruit processing plant will launch in December this year in Kampong Speu province. It will benefit farmers, especially those who grow mangoes, said the Ministry of Agriculture, Forestry and Fisheries.
Owned by South Korea’s Hyundai Group, the plant lies on a 3ha plot in Kampong Speu province’s Phnom Sruoch district.
...
Hyundai Corporation inked a deal with local mango producer Mao Legacy Co Ltd in November 2016, which has about 2,400ha of mango farms in Kampong Speu province.
The Korean company hopes to process 50,000 tonnes of fruits annually, including coconut, durian and mangosteen.
The Hyundai Group has 44 branches worldwide and a strong network for the export of Cambodian food products.
“We already received an order of more than 6,000 tonnes of mangoes, but we are not in a hurry as we have to compete with fruits from Thailand and the Philippines,” Lee said.
The ministry said Cambodia exported 77,421 tonnes of mango last year, increasing almost three-fold from 22,114 tonnes in 2016. Reports show mangoes were cultivated on 151,602ha last year'.
An interesting article concerning Malaysia's durian trade. The Nation (Nov. 2):
'Deputy Agriculture and Agro-based Minister Sim Tze Tzin outlined a nightmare scenario for durian lovers here, saying that Malaysians will have none left to savour if demand for the "king of fruits" increases in China.
"We are producing 300,000 tonnes of durians a year and currently exporting 5.8%, or 17,000 tonnes to China.
"In comparison, Thailand exports 300,000 tons a year and if China has the same demand for durians from Malaysia, there will be none left here," he said in his ministerial reply on issues raised during debates during the Mid-Term Review of the 11th Malaysia Plan on Thursday (Nov 1).
However, he assured lawmakers that there is an adequate supply of durians for locals as China only imported premium durian varieties.

Tuesday, October 23, 2018

Failed

Keeping the system accountable. 
An Australian bank's subsidiaries actions reflect poorly on the mother company which is held accountable to their national standards. 
The documented problems concerning Cambodia's sugar "investments", which in reality are schemes to rob poorer farmers from (access to) their land. 
National retribution (read law and order) have not been forthcoming, so it's no wonder that international backers are then called upon. 
With success. 
Wonder what Mitr Phol, the Thai company heavily involved thinks?
Anyway, the Sydney Morning Herald (Oct. 11):
'ANZ Bank failed to meet its own human rights standards when it financed a Cambodian sugar plantation that was linked to forced evictions, child labour and workplace deaths, according to an Australian government investigation.
...
But the Australian Treasury division stopped short of endorsing a suggestion by non-government organisations that ANZ be forced to divest its profts from the sugar plantation loan to provide financial redress to hundreds of Cambodian families.
...
Representatives of affected Cambodian families told the inquiry that the sugar development was associated with “arbitrary arrests and intimidation of villagers, the use of child labour and dangerous working conditions which have resulted in death”.
In its response, ANZ continued to argue that its financing was linked to the development of a sugar refinery and not the plantation which had required the removal of the families.
...
Concerns about the behaviour of Phnom Penh Sugar were on the public record as early as 2010, but ANZ decided a year later in 2011 to accept the company as a client and loan it tens of millions of dollars'.
So, no compo apparently. 
Well, that also seems forthcoming.  ABC (Oct. 12):
'ANZ will consider whether to compensate hundreds of Cambodian families who were forcibly evicted from their farms to make way for a sugar plantation and refinery partially financed by the bank, chief executive Shayne Elliott has told a parliamentary committee'.
Best
Once again the non-transparent selection of what could be the globe's best rice has shifted back to Cambodia, after Thailand had won the award the last few years. The Khmer Times (Oct. 15):
'Cambodian premium fragrant rice, Malys Angkor, won the World’s Best Rice award – the fourth achievement it earned for Cambodia, after landing second in the last three years'.
However coveted, the Phnom Penh Post (Oct. 15) notes this does not mean that the national rice sector is in an upswing; au contriare:
'Cambodian rice exports fell 8.4 per cent from 421,966 tonnes in the first nine months of last year to 389,264 tonnes in the same period this year, said the Ministry of Agriculture, Forestry and Fisheries’ General Directorate of Agriculture.
Cambodia Rice Federation (CRF) vice-president Hun Lak said the decrease is due to the shortage of paddy to supply the industry.
The claim conflicts with government records which show national paddy surpluses of up to more than three million tonnes a year.
“The world rice market this year is good, so there are many brokers to buy the paddy directly from farmers, while our storage [facilities are not yet] ready."
“So the trend of rice exports this year has decreased. Even though we have buyers, we do not have paddy on hand to mill for exports,” Lak said'.
Reliance
While Cambodia's exports are down those of Vietnam are up. The Bangkok Post (Oct. 11):
'Vietnam is seeking to reduce its reliance on Asian rice markets while boosting the output of high-quality grain to better position itself in the global market, the government said on Thursday.
...
The government said it will seek to boost exports to Africa to 25% of its exports and to 10% for markets in the Americas.
"(Vietnam's) rice production in the coming time will focus on clean and organic rice and on diversifying its processed rice products," Tran Thanh Hai, the deputy head of the trade department of the Ministry of Industry and Trade said in the statement.
The value of Vietnam's rice exports in 2018 may rise to between $3.2 billion and $3.3 billion, an increase of up to 26.9% from $2.6 billion last year, the trade ministry said on Thursday in a separate statement on its official Facebook page.
...
The nation exported 4.89 million tonnes of rice in the first nine months of 2018, up 6.7% from a year earlier, while rice exports revenue in the nine-month period jumped 21.3% annually to $2.46 billion, official data showed'.
The Vientiane Times (Sep. 26) shares how the Lao rice market will have nought to export:
'The Nation will not face serious rice shortages but will encounter temporary difficulties in supplying the staple grain, according to the National Ad Hoc Committee in charge of the post-disaster response.
This will occur in some provinces which usually require rice supplies from others.
Minister of Agriculture and Forestry, Dr Lien Thikeo representing the committee made the comment at their first press conference last week to report on initial assessments of the impact of floods around the country.
“We will not face serious shortages of food but will face temporary difficulty only,” Dr Lien said.
According to the minister, losses in the agriculture and forestry sector have been estimated at 1,260 billion kip.
Some 90,600 hectares or around 12 percent of planted rice fields were damaged by floods and 3.2 million tonnes of rice will be generated from the harvest of wet season paddy fields'.
In more detail, The Nation (Oct. 22) takes a look at the plans to wean farmers from rice:
'Agriculture Minister Grisada Boonrach has ordered officials to proceed with a corn-growing promotion scheme under the government’s San Palang Pracharat public-private partnership initiative.
Moving ahead now would help achieve Grisada’s goal of having rice farmers switch from off-season rice this year to instead growing corn for animal feed on 2 million rai of land in 33 target provinces.
He aims to reduce workplace risk to rice farmers and solve the issue of sagging agricultural product prices due to an oversupply that could drive many to call for government aid.
...
However, Dr Chokechai Aekatasanawan – director of the Kasetsart University’s National Research Centre of Millet and Corn - has advised rice farmers to be very cautious when switching to corn plantations.
“There is a risk of the whole corn plantation being ruined by drought or floods if they are not careful,” he said. “Rice farmers are usually able to curb damage to paddy to an extent when natural disasters strike, because they have had long experience growing rice. Things will be different when they handle corn – a crop they are not so familiar with.”
Not all good news though.
 
Finally, VietNam News (Sep. 26) reports on the rising sea levels, the lack of silt laden Mekong waters and their effects both on the land and rice growing in the delta:
'Because of climate change, Vietnam’s Kien Giang province is struggling to maintain its place as the country’s biggest rice producer, a distinction it has held for nearly two decades.
The province is well positioned to produce rice. Located on the coast, in an area in the Mekong Delta with some of the country’s richest soil, Kien Giang has more than 357,000 hectares of rice paddies. It produces an average of four million tonnes each year.
But ever-rising seas have deposited saltwater deeper into the province, contaminating the three key production areas of Long Xuyen Quadrangle, West Hau River and U Minh Thuong and killing off hundreds of thousands of hectares of rice over the last few years.
...
With its economy threatened by climate change, Kiên Giang is pushing ahead with new irrigation facilities to manage the rapid invasion of saltwater.
The province is investing VNĐ950 billion (US$42.2 million) to finance new sluice gates along the An Biên-An Minh coastal dyke that will prevent saltwater intrusion and retain as much fresh water as possible. The funds will also go towards a massive network of irrigation channels in the Long Xuyên Quadrangle and West Hậu River agricultural areas'.
Lamentations
Well, we are now looking at other crops and we're back where we started: sugar and Mitr Phol.

 The Nation (Oct. 15):
'Hit by low prices, Mitr Phol Group chief says producers must focus on increasing productivity and cutting cost
Challenges lie ahead for the global sugar industry and Thai producers must prepare for higher productivity and costcutting, says Isara Vongkusolkit, chairman of Mitr Phol Group, the world’s fifth-largest sugar producer,
Thai farmers should change their thinking when it comes to production, he said.
“They should not be preoccupied with prices, but should instead focus on raising production volume and lowering costs,” he responded when asked about the low prices of farm products, including sugar canes.
...
Isara conceded that new tax structure on beverages with high sugar content had adversely impacted the local sugar industry.
It is a social trend where sugar is blamed for many health issues, but many tend to overlook salt which does more harm, he lamented.
Thailand restructured its sugar industry after Brazil, a rival proฌducer, raised the issue of Thai subsidies before the World Trade Organisation.
“Market liberalisation is expected to make the Thai sugar industry more volatile in years to come,” said Nipon Poaponsakorn, veteran economist at Thailand Development Research Institute.
...
Meanwhile, the government has pledged to support sugar cane farmers with a handout of Bt50 per tonne, followed by sugar producers’ offer of Bt70 per tonne. Each farmer is entitled to receive support for up to 5,000 tonnes'.
It seems that the farmer is to blame. 
However it's very well known that because of poor factory planning, farmers are loosing big time, as their crop takes weeks from field to factory, while sugar content drops.

Phnom Penh Post (Oct. 4) has a write up on banana's:
'Longmate Agriculture Co Ltd, a joint venture between local, Chinese and Hong Kong investors, is set to send some 30,000 tonnes of its maiden banana export to China in January.
Its chairman, Phe Hokchhoun, said: “The first [shipment] of 30,000 tonnes will be exported in January and we will double the amount in the coming years.”
Cambodia inked an agreement in August with China to begin exporting the fruit to the Asian economic powerhouse'.
The Nation (Oct. 5) has an article on Thai rubber farmers receiving handouts:
'The Agriculture and Cooperatives Ministry is planning to offer Bt3,000 compensation per rai to rubber growers who agree not to tap rubber latex in their plantations for three months.
“This is a planned measure to tackle falling rubber prices,” Agriculture and Cooperatives Minister Grisada Boonrach said yesterday.
He said he had already instructed the Rubber Authority of Thailand to consult the Council of State about the possibility of seeking a Bt9-billion loan, with the government acting as a guarantor for the plan’s implementation.
...
While plantation owners are promised compensation, their farm hands look set to bear the brunt. Normally, rubber tappers get paid to do their jobs on the basis of benefit sharing. But compensation is unlikely to be shared if the plan is implemented'.
Phnom Penh Post (Sep. 25) in probably an article sourced elsewhere looks at the regions issues with palm oil:
'Indonesian palm oil farmer Kawal Surbakti says his livelihood is under attack, but the threat is not from insects or hungry orangutans eating his prized crop.
Half a world away, the European Parliament is moving to ban the use of palm oil in biofuels, while British grocer Iceland has announced it will stop using the commodity over concerns that it causes widespread environmental destruction.
Losing the key European market worries small farmers like Surbakti and millions of others in Indonesia and neighbouring Malaysia – the world’s top two producers – as prices drop for an oil found in everything from biscuits and sweets to cosmetics and vehicle gas tanks.
...
Environmentalists accuse the multibillion-dollar industry of destroying huge swaths of rainforest home to indigenous communities, orangutans and other threatened species.
Critics say that palm oil development also contributes to climate change through deliberate forest-clearing fires, which release carbon dioxide into the atmosphere and lung-clogging smog into the region’s air.
Many under-pressure firms made “no deforestation” pledges, but activists say they are tough to monitor and frequently broken in the vast jungles of Sumatra and Borneo island.
This week, Greenpeace said a group of Indonesian palm oil firms that supply major international brands including Unilever and Nestle have cleared an area of rainforest almost twice the size of Singapore in less than three years.
A ban would threaten the livelihoods of 650,000 smallholders and over 3.2 million Malaysians who rely on the industry, according to the Malaysian Palm Oil Council'.
Ironically at the same time smallholders are driven off their land, larger companies simply steal their land.
More climatology. Should dams be brimming or should they fulfill their role as flood regulators?
The Nation (Oct. 10):
'Farmers are being urged to store as much water as possible and carefully plan their farming needs, as most areas in the Northeast and some parts of the North and Central areas will have no water for agriculture during the coming dry season.
With the rainy season ending within the next 20 days, the Royal Irrigation Department (RID) yesterday raised concerns about a possible drought and water shortage in many parts of Thailand, after the agency’s Smart Water Operation Centre revealed that 35 reservoirs across the country have stored water below 30 per cent of capacity, and 95 reservoirs have water at 30 to 60 per cent of capacity.
...
Sutat Weesakul, Hydro and Agro Informatics Institute director, said that based on the long-term weather forecast, he expected that Thailand would face more arid conditions than usual at the peak of the dry season in the first months of next year, due to a strong El Nino in the Pacific. He suggested that farmers store their own water and refrain from growing a dry season rice crop so as to minimise the impacts of the upcoming drought on their farm'.