Friday, June 10, 2011

Rice exports

Phnom Penh Post, this week, had an interesting article on how rice exports had doubled since last year:
'Cambodia’s total rice exports reached 42,669 tonnes worth US$24,437,959 from January to April 2011, compared to 21,322 tonnes worth $12,178,797 in the same period last year'.
It does also show that prices for Cambodian rice are not increasing, well just by $1. If Thailands elections pan out well, these will result in higher prices and increased demand for Cambodian rice. Interestingly Mega Green
announced that they will sale 50,000 tonnes themselves but mentions prices starting at $385. Doesn't seem to add up ...

The same article on Mega Green, mentions FAO bumping up production numbers from 8 to 8.3 million tonnes for Cambodia last year. As always there's not much scientific analysis involved, though FAO already know
'It [FAO] said Cambodia’s 2011 rice crop could hit 8.5 million tonnes, though it noted the main crop was planted in June'.
So why? Better rains expected? No floods? I always read that the elasticity of rice is low, but heh since prices went up, so did the rice production ....


Elsewhere there were good signs on potential exports to the Philippines.

Suagr not honey yet
  • Other exports, f.i. palm sugar. Palm sugar will get Geographical Indicator (for Kampong Speu province) status which will enable local NGO to export plam sugar to Singapore (source).
  • Then the EU has discovered that it's policy of Everything but Arms Trade deal which diminishes tariffs for most products is having adverse effects in Cambodia. An Euro-parliamentarian concluded that allowing Cambodia sugar duty-free access is fueling a land war between a company run by a Cambodian parliamentarian and villagers who see themselves having to shift or losing their communal grounds (source).
    'The objectives of the EBA trade preferences include “the promotion of sustainable development and good governance in the developing countries”, according to EU regulations. Preferences can be temporarily withdrawn if there are “serious and systematic violations” of international conventions on human and labour rights, the environment or good governance. Wikström [the Euro-parliamentarian] said she would pursue the issue in parliament when she returns to the EU'.
    But she also mentioned it would be difficult. And the company (companies actually; many companies make sure they don't get lease deals over the legal limit of 10,000 ha, though the owners are the same as are company spokesperson!):
    'allegations that the companies were involved in human rights abuses an “injustice against the company”'.
Hi! brid
  • Hybrid news? Bayer will support
    'sustainable crop management solutions'
    in Vietnam's Mekong Delta with help of development aid.
    'As part of the collaboration, the institute will conduct extensive research of Bayer’s crop protection compounds and hybrid rice varieties to help the company adapt their products effectively in Vietnam'.
    So as of yet there are no hybrids fit for production for that area. Does not look sustainable. And it does look like that they are pursuing their own interests.
  • Better to help farmers pursue higher returns. An interesting article in the Bangkok Post explains how in north Thailand farmers are successfully grown japonica rice, for internal consumption as well as export. Prices are higher, no news on yields though, but in these parts of Thailand, cold tolerance is welcomed ...
  • Other hybrid news, Chinese varieties don't function well in Bangladesh (source).