High output
A curious message in the Phnom Penh Post (18-10-2011) announces the intention of one of Cambodia's largest companies to establish a
The article tends to the former. But alas, as most main-stream press reports, it believes that higher productivity is an end, rather than a possible way to an end. More importantly are higher returns to farmers. Especially in the case of hybrid seed, higher productivity is off-set by higher costs and lower prices for inferior produce.
Lifting the veil
The Singapore investor mentioned in the article, Smah Prum Royal International Pte Ltd, is a rather unknown identity. It seems to be a rather recently established company with sole focus of investing in Cambodia's rice mill sector, which seems at odds with the announced seed factory.
A press release obtained from PSC Corporation Ltd reveals that it has a stake of 25% in Smah Prum, as do Leap Forward, while Meng Tai will have a 22.5% share.
Meng Tai, a Thai company based in Ubon Ratchathani has considerable experience in rice milling and seems a solid partner. PSC looks more like an investor group (PSC has previously invested in a lottery in Cambodia ...). Leap Forward seems an unknown identity.
And the remaining shares? They are owned by none other than Singapore Agritech Investment Holdings, which has a sleek web page ('sowing seeds of change') packed with good intentions:
A curious message in the Phnom Penh Post (18-10-2011) announces the intention of one of Cambodia's largest companies to establish a
'high-output rice seed factory'Unfortunately the article fails to explain what actually the intentions of the investors are. Of course to earn money, but how can a factory produce rice seed? Will the rice seed be produced at a high-output or is meant that the marketed rice seed ensure higher production?
The article tends to the former. But alas, as most main-stream press reports, it believes that higher productivity is an end, rather than a possible way to an end. More importantly are higher returns to farmers. Especially in the case of hybrid seed, higher productivity is off-set by higher costs and lower prices for inferior produce.
Lifting the veil
The Singapore investor mentioned in the article, Smah Prum Royal International Pte Ltd, is a rather unknown identity. It seems to be a rather recently established company with sole focus of investing in Cambodia's rice mill sector, which seems at odds with the announced seed factory.
A press release obtained from PSC Corporation Ltd reveals that it has a stake of 25% in Smah Prum, as do Leap Forward, while Meng Tai will have a 22.5% share.
Meng Tai, a Thai company based in Ubon Ratchathani has considerable experience in rice milling and seems a solid partner. PSC looks more like an investor group (PSC has previously invested in a lottery in Cambodia ...). Leap Forward seems an unknown identity.
And the remaining shares? They are owned by none other than Singapore Agritech Investment Holdings, which has a sleek web page ('sowing seeds of change') packed with good intentions:
'We help farmers or corporates that venture into the upstream in farming to implements sustainable and healthy foods, while making our world green'.CEO is Loius Kek, who was also the director of Malaynesia Resources (now defunct?) which together with Sunland Agritech (sounds similar?) sought to bring hybrid rice to Cambodia in 2008 (see report from side column or pages from GRAIN and CAAI News). The site also seems to have no access to reports or company information .... To be continued?
A final last minute note, today (19-10-2011) PSC notes that it has terminated it's investment in Smah Prum due to a lack of a definitive agreement in Cambodia! Weird?
