Trade
Again, quite a bit of newsfeed concerning trade and investment in rice in Cambodia. For instance:
Bloomberg puts it down to Thailand's polls which brought a rural friendly government in the saddle which promises to give price guarantees for rice to farmers, thereby bringing all sales to a hold as millers and storers hope to see price guarantee rewards.
Thailand is counting on it's higher quality to be able to sell, whatever the price. That might seem folly, price elasticity would determine that higher prices lead to lower demand. Additionally there will be undercutting from other producers as well as promoting other nations rice programmes as well as encouraging illegal rice imports from Burma, Lao and Cambodia.
Already I read that in north Lao, farmers are shifting their cash crops from maize to rice. Then in the Phnom Penh Post (August 3, 2011) an article implies that Thailand's policy will undercut Cambodia's own policy of exporting processed rice.
An even more recent article in the Phnom Penh Post (26 August 2011) suggests the Thai rice industry is actually interested in investing in Cambodia's rice sector. So as to undercut their own position.
Enter the carabao
Then on the subject of hybrid rice, SL Agritech, one of Southeast Asia's hybrid rice leaders, seems to be contemplating entering Cambodia:
Again, quite a bit of newsfeed concerning trade and investment in rice in Cambodia. For instance:
- Chinese firm seeks rice from the Kingdom (Phnom Penh Post, July 14, 2011). Slight problem, the company is seeking rice to supply it's Guangdong mills, whereas Cambodia would prefer to export milled rice.
- A month later, a deal later. This time, Chinese company COFCO will import 1,000 tons (Phnom Penh Post, 25 August 2011). The same article also notes that for exports to China to be a success the Cambodian government reaction is required:
'Plans for a Cambodian rice-testing laboratory, required by Chinese inspectors to allow Cambodian imports, are also under way.Agriculture, Forestry and Fisheries Minister Chan Sarun and Chinese Commerce Minister Chen Jian signed a memorandum of understanding last Saturday confirming the two nations’ co-operation on a testing laboratory'.
- The Cambodian "conglomerate" Canadia is building a $8 million processing plant (Phnom Penh Post, 26 July 2011) .
Bloomberg puts it down to Thailand's polls which brought a rural friendly government in the saddle which promises to give price guarantees for rice to farmers, thereby bringing all sales to a hold as millers and storers hope to see price guarantee rewards.
Thailand is counting on it's higher quality to be able to sell, whatever the price. That might seem folly, price elasticity would determine that higher prices lead to lower demand. Additionally there will be undercutting from other producers as well as promoting other nations rice programmes as well as encouraging illegal rice imports from Burma, Lao and Cambodia.
Already I read that in north Lao, farmers are shifting their cash crops from maize to rice. Then in the Phnom Penh Post (August 3, 2011) an article implies that Thailand's policy will undercut Cambodia's own policy of exporting processed rice.
An even more recent article in the Phnom Penh Post (26 August 2011) suggests the Thai rice industry is actually interested in investing in Cambodia's rice sector. So as to undercut their own position.
Enter the carabao
Then on the subject of hybrid rice, SL Agritech, one of Southeast Asia's hybrid rice leaders, seems to be contemplating entering Cambodia:
'“We are looking at starting the shipment of seeds to Cambodia and to start planting there in the fourth quarter,” SL Agritech President Henry Lim Bon Liong said in a telephone interview.Oddly they seem to ignore current market conditions which hardly give any space for hybrid rice.
Under the joint venture, he said seeds will be given by SL Agritech to be used for the plantation, while its partner firm will provide the labor and land in Cambodia.
He said that for every produce sold there, SL Agritech will be paid with royalties'.
