Perceptive

The main news is as always: facts and figures. And financial gains. 

So how is Cambodia faring export wise? 
The Phnom Penh Post (Jul. 8):

'Cambodia exported more rice to China than the EU for the first time during the first half of this year, a report from the Secretariat of One Window Service for Rice Export Formality said.

The report shows that the Kingdom’s rice exports during the first six months of this year amounted to 281,538 tonnes – up 3.7 per cent from the same period last year.

Among the 50 export destinations during the period, the Kingdom exported 118,401 tonnes to China or 42.06 per cent. The EU, which was the leading market for Cambodian rice exports, imported 93,503 tonnes (33 per cent), the report said.

Cambodia exported a total of 626,255 tonnes of rice last year, of which 43 per cent, or 269,127 tonnes, was exported to the EU while some 17,000 tonnes (27 per cent) was exported to China'.

And there's mention made of seeking newer markets. Again, the Phnom Penh Post (Jul. 12):

'Cambodia plans to export rice to African markets through South Korean companies, as its EU market share showed signs of drop in the first half of this year.

In addition to the Chinese market, the Cambodia Rice Federation (CRF) expects exports to Africa to help fill the EU market share, said its secretary-general Moul Sarith.

The CRF met George Kim J H, the CEO of South Korean manufacturer JS Global Corporation and many other South Korean government small- and medium-enterprise agents on Wednesday to explore opportunities to export Cambodian rice to African markets'.

Khmer Times (Jul. 10) has an extensive article on the pro's and cons of the use of the EU Everything But Arms (EBA) deal used to punish those regimes deemed worthy of sanctions.
On the one hand, we have a so-called democratically elected government being punished, whereas all it's neighbours are beyond redemption and somehow escape the same downward spirally measures. 
Note that the EBA measures have impacted Cambodia's trade in rice with Europe.
Snippets from the article:

'Indeed, the withdrawal of EBA from Cambodia poses more harm than good, and will undermine the influence of the west in the Kingdom.
...
In fact, economic sanctions are proven to be less effective and hard to spark the regime change these sanctions are often perceived to inculcate in an academic sense, particularly since it comes at the expense of civilians and their livelihood.
...
Economic sanctions on Cambodia will sour the influence of the European Union and consequently push the Kingdom closer to China.
In response to the potential suspension of EBA and the recent tariff imposed on the Kingdom’s rice export to the EU market, China has promised Cambodia with four billion yuan in aid and pledged to import 400,000 tonnes of rice, giving Cambodia’s government, alternative sources of development aid and loans to withstand the impacts of economic sanctions.
...
The primary concern is the Chinese debt-trap diplomacy which has sparked international headlines. Though, Cambodia’s government claims the current debt is manageable, the Kingdom’s debts to China is nevertheless perceived to be at a level where perception has set in that Beijing may take advantage of this situation to put in place a certain degree of political influence on Cambodian affairs.
Having strategic control over Cambodia’s economic corridor, including the Kingdom’s major logistic and tourist hub, China may not hesitate to gamble for the influence over Cambodia to protect its interests. These will certainly pose significant threats to security interests and economic powers of the European Union and its alliance in the long run'.

Worry
Back to the rice market.
On the demand side, as always things are improving. The Phnom Penh Post (Jun. 21):

'Cambodia signed an engineering, procurement and construction contract on the “Promotion of Paddy Production and Rice Exports Project” with Chinese state-owned company CITIC Construction Co Ltd to build rice storage facilities and drying silos in strategic locations in the Kingdom, the Ministry of Economy and Finance said'.

Looking at organics, there's this, likewise from the Phnom Penh Post (Jun. 28):

'Amru Rice (Cambodia) Co Ltd, a local rice exporter and leading organic paddy producer, signed a more than $15 million loan agreement with the International Finance Corporation on Wednesday.

The firm plans to expand its organic milled rice exports to 50,000 tonnes a year, its CEO Song Saran said.

Saran told The Post on Thursday that the loan would be used to expand milled rice warehouses, drying silos, as well as to strengthen its packing standards, processing, quality and safety, and to increase capital to purchase paddy.

...

Saran said the company plans to export 20,000 tonnes of organic milled rice to the EU, US, China and Hong Kong this year, and 40,000 to 50,000 tonnes next year.

“We have been working on organic paddy for three to four years, and we have reached a commercial level, so it requires us to invest and expand business in compliance with the standards. We have nothing to worry about,” he said.

Saran said in the first six months of this year, the company exported more than 4,000 tonnes of organic milled rice, earning nearly $4 million. It expects to export 10,000 tonnes by the end of the year'.

Whereas Cambodia's exports are edging up, Reuters (Jul. 10) mentions the opposite for neighbouring Thailand:

'Thailand’s rice exports fell by 12% in the first half of 2019 hurt by a strong baht, and will likely fall short of this year’s target of 9.5 million tonnes, an exporter group said on Wednesday.

The country has been struggling to export rice at a time when the Thai baht is Asia’s best performing currency and is trading near its strongest in more than six years at 30.81 against the U.S. dollar'.

Palette
Other crops, other issues. The Khmer Times (Jun. 24) looks at mango business:

'Cambodia expects to export its first shipment of mangoes to South Korea in October following an agreement signed between both countries in 2015'.

China is also on the offering, so it seems. The Khmer Times (Jun. 17):

'Cambodia has urged China to speed work on phytosanitary requirements to greenlight exports of Cambodian mangoes'.

Rubber. The Khmer Times (Jun. 17):

'The price of rubber has fallen markedly in recent months due to a slowdown in demand in international markets, particularly China.

The commodity currently fetches $1,300 per tonne in the local market, a drop of more than $100 compared to last year, according to figures from the Ministry of Agriculture.

This is bad news for investors in the Cambodian rubber sector, said Lim Heng, vice president of An Mady Group, a company that owns a rubber plantation and exports the product.

...

Prime Minister Hun Sen last week called on farmers and investors to keep rubber plantation amid the fall in prices.

“The price of rubber is declining, but I would like to ask farmers to now follow what seems to be the trend. Some farmers are cutting down their rubber trees and replacing them with cashew trees. When the price of cashew nuts decline, they will be forced to cut down these trees and find a new crop, incurring a large cost in labour,” Mr Hun Sen said.

An Mady’s Mr Heng said the price of rubber will remain stable until next year. “At the current price, existing rubber investors may be able to stay in business, but attracting new investors will be difficult.

“Without a new policy that gives more incentives, investors won’t dare come in. They will sit and wait until conditions improve.”

More negatives. For cassava growers; potentially. The Khmer Times (Jul. 3):

'The Ministry of Agriculture is calling for stricter border controls after 12 provinces recently reported cases of the mosaic virus in cassava plantations, according to a ministry official.

...

On a Facebook post this week, Agriculture Minister Veng Sakhon also called for stricter controls and checks on sanitary and phytosanitary requirements. He asked importers to buy cassava from trusted sources and asked farmers to inform officials of any case involving the virus'.

Not all alternatives are a plus. The RFA (Jul. 3) looks at Laos' struggle with the banana plantations:

'This new plantation is the latest sign that the business of cultivating bananas in Laos for the Chinese market – widely discredited because of the impact of the excessive use of chemicals on the environment and health – is alive and kicking.
...
The central government, however, maintains that a January 2017 ban on new banana plantations remains in force, forbidding such plantations. The prohibition was prompted by concerns about chemical run-off and reports of sickened farm laborers.
“The government strictly maintains a ban on new banana farms in Laos and will punish those who violate the rules,” Deputy Agriculture Minister Bounkhouang Khambounheuang told RFA, adding that unauthorized plantations will have their operations “put on hold or shut down.”
...
But the reality is that in recent months local officials around Laos have granted concessions for new banana plantations in provinces that include Xayabury, Oudomxay and Borikhamxay. RFA has also learned that a substantial area in the southern province of Attapeu is being used for banana plantations--including land slated for villagers displaced by the deadly July 2018 collapse of the Xe-Pian Xe-Namnoy hydropower dam.

...

In late May, Laos’ state-run Vientiane Times newspaper reported that bananas were expected to be Laos' top agricultural export in 2019 despite the government’s ban on the expansion of plantations around the country. It cited a Ministry of Industry and Commerce forecast that exports would rise to $168 million in 2019, up from $112 million in 2018'. 

Finally, The Nation (Jun. 15) looks at issues surrounding fresh organic produce and fresh (wet) markets in Thailand:

'But hygiene remains an issue because these markets are not well regulated. In her study using data from the Bangkok Food Sanitation Office, Premkamol found that only 350 of the 1,120 markets in the city were regulated. In the rest there are no official checks on standards or hygiene. 

...

A study by Oxfam Thailand found that modern trade outlets, such as large supermarkets and hypermarts, have also started carrying organic products in response to demand, said Theerawit Chainarongsophon, who works in private-sector engagement at Oxfam. 

...

“This is an unfair and unbalanced distribution of the benefits,” Theerawit said. 

Oxfam Thailand found similar data when studying the distribution of income in Thailand’s shrimp industry. It discovered that up to 30 per cent of earnings went to modern-trade operators, while producers were given so little that they suffered food insecurity themselves. 

...

Kingkorn [Kingkorn Narintarakul Na Ayutthaya, BioThai’s deputy director.] said the trend is growing in the Asia region mainly because so many people live in cramped cities. “This type of trade could even kill fresh markets,” she said. 

Food-security advocates and economists say that, although markets and modern outlets have decided to put clean food on their shelves, they still ignore the mainstay of organic food – sustainable agriculture and fair trade – which is leaving farmers at the source of the food chain hungry. 

They blame the trend on consumers’ drive to be healthier. In their hunger for clean food, few people think about the producers who are critical to the food chain and its sustainability. 

Independent economist Sarinee Achavanuntakul, founder of Sal Forest – a company that promotes sustainable business growth – said her research shows there are different terms used to define organic products and “health food”, and the market values of these two categories are vastly different. 

For instance, she said, organic products generated around Bt1 billion last year, while health food earned Bt170 billion – a clear reflection on consumption trends and perception. 

She said the biggest challenge for clean products and markets was maintaining their value at competitive levels'.

Bamboo

Starting totally different this time round with an interesting byte from Laos.

On a recent highly listen worthy eatthispodcast (Jan 21), there's an interview with longtime Lao agro expert Michael Victor:

'Most recently, he’s been working with The Agro-biodiversity Initiative, funded by the Swiss Agency for Development and Cooperation. The idea is to make use of agricultural biodiversity in a sustainable way to reduce poverty and improve the livelihoods of people in upland regions. One thing the project has done is to collect all the information it can about agricultural biodiversity and make it available online'.

With sticky rice as the country's main stay both from the view of production and consumption, Michael explains how conserving past knowledge of the agro-forest livelihoods can help new generations become aware of their traditional foods and food habits which can assist in playing a major role in the conservation of Laos' forest lands. 
The website of the project is Pha Khao Lao, well worth a visit.

Raw

Cambodia's rice news still revolves around the tariffs imposed by the EU. 

The Khmer Times (Feb. 13):

'Rice exports in January saw a small decline that exporters have blamed on the European Union’s decision last month to impose tariffs on local rice.

Last month, Cambodia exported 59,625 tonnes of rice to international markets, a 5 percent drop compared to January 2018, according to a report issued yesterday by the Secretariat of One Window Service for Rice Export Formality'.

Vietnam has come to the rescue. Phnom Penh Post (Feb. 15):

'After the EU decided to impose tariffs on Cambodia’s rice exports from January, Vietnam agreed this week to expand its import quota for the Kingdom’s rice to 300,000 tonnes.

Vietnam’s actions come as the Chinese government late last night agreed to increase its import quota for the Kingdom’s rice to 400,000 tonnes this year from the previous year’s 300,000 tonnes.

...

Amru Rice (Cambodia) Co Ltd chairman and CEO Song Saran on Thursday said Vietnam is generally buying raw products such as paddy, rather than milled, rice.

However, he said the quota would encourage more Vietnamese to import the Kingdom’s rice, despite needing time to reach the 300,000-tonne quota.

“We expected more demand to come from Vietnam in the incoming years. It will take time to convince Vietnamese consumers and traders to import rice."

“It is also possible that in the long term, more Vietnamese consumers will be interested in high-quality rice since the Vietnam middle classes have grown a lot in recent years.”

Having higher quotas from China and Vietnam is helpful to the marketing of Cambodian rice. But, Chinese and Vietnamese buyers in the past did not buy as much as they agreed to. The reason, according to industry insiders, is because buyers offer lower prices'.

Phnom Penh Post (Feb. 20) repeats the above but with more detail:

'The Kingdom’s rice exports saw little change during the last three years to 2018 as the sector appears to face new challenges requiring the government and private sector to work harder to keep the industry healthy.

The challenges are centred around the EU market as the bloc imposes tariffs on Cambodia’s rice, added on to existing issues such as higher production costs and a lack of infrastructure.

However, industry insiders said the volume of this year’s rice exports will remain steady due to a new quota from China and Vietnam.

Ministry of Agriculture, Forestry and Fisheries figures show that the Kingdom exported 626,225 tonnes of rice last year, decreasing 1.5 per cent from 635,679 tonnes in 2017.

The figures show that the main destinations were the EU with a total of 269,127 tonnes and China with 170,154 tonnes.

...

Centre for Policy Studies director Chan Sophal said that while the country has missed its target export of one million tonnes since 2015, its rice exports stand at around 600,000 tonnes. He said the higher production costs and the lack of the sector’s infrastructure are limiting competition.

“For this year’s exports, [I] predict that they may not increase because tax needs to be paid to export Cambodia’s fragrant rice to the EU market,” he said.

Sophal said that while the government is trying to boost the sector by cutting production costs to improve its competitiveness, it needs to improve infrastructure – roads and irrigation systems.

Faced with the EU’s decision to impose import tariffs, Cambodia’s rice could face a much more serious issue if the EU’s preferential Everything But Arms agreement is withdrawn.

Sophal said it is preferable if the Kingdom diversifies its export destinations, rather than rely on any one market'.

Even the Asianews Network (Feb. 21) highlights the kingdom's need to change direction:

'Prime Minister Hun Sen said the government will take more action to raise the Kingdom’s rice exports, including reducing production costs and boosting market competitiveness'.

Measures include:

'“We will set up a new policy to reduce production cost such as connecting electricity supply to regions with water access, by replacing diesel machines with electric ones,” he said.

Hun Sen also encouraged studying domestic fertiliser production to produce cheaper options for the rice industry and reduce production costs.

Relevant ministers, including those leading the Commerce and Agriculture, and Forestry and Fisheries departments, need to expand and seek new markets as Cambodia has world-famous, high-quality rice, he said'.

The Phnom Penh Post (Feb. 23) reports on more possible potential lifelines for the rice sector:

'Four days after the EU imposed tariffs on rice imported from Cambodia, China agreed on Monday to increase its import quota for Cambodian rice to 400,000 tonnes this year from the previous 300,000 tonnes.

If Cambodia can supply the quantity under the new Chinese quota, then that market alone would effectively absorb 63 per cent of Cambodian rice sold abroad based on last year’s export of 626,225 tonnes

...

The Chinese market is the largest for Cambodian rice in terms of individual countries, and it is the second-largest buyer after the European bloc. Last year, China bought 170,154 tonnes of rice from Cambodia or equal to 56 per cent of the latest quota.

Centre for Policy Studies director Chan Sophal said that having a higher quota from China will be helpful to the marketing of Cambodian rice, but in the past, Chinese buyers found rice in Vietnam and Thailand more competitively priced and did not buy as much as they agreed'.

Backnews. The Phnom Penh Post (Mar. 1) reports: 

'The state-owned Rural Development Bank (RDB) distributed $50 million in loans to private rice millers last year to sustain the paddy market for farmers, according to RDB CEO Kao Thach.Thach told The Post on Thursday that despite many provinces in the Kingdom facing drought, the demand for loans remains high'.

Sought

Beyond the Khmer border, rice related news; as usual mostly from Thailand. The Bangkok Post (Feb. 19) kicks off this section with a docile bit:

'The cabinet has approved a rice insurance scheme for the 2019 season worth 1.74 billion baht, aiming to cover 30 million rai of farmland.

...

Participating farmers will be charged an insurance premium of 59 baht per rai, with the government paying 35.40 baht per rai as a subsidy, and farmers paying 23.60 baht per rai'.

Bangkok Post (Mar. 8) curiously sees farmers looking east:

'Farmers in Nakhon Sawa insist they will continue growing Vietnamese fragrant rice, an unregistered variety they say is disease resistant, amid rumours the government is trying to dissuade them by forcing the price down.

Suthep Khongmak, chairman of the Thai Rice Growers Association, said on Friday that he had recently visited Nakhon Sawan and talked with farmers who were planting Vietnamese fragrant rice variety Jasmine 85, known locally as Hom Phuang rice.  

Rumours had it that the Rice Department had sent a letter seeking cooperation from rice mills to force the price down as the variety was not a native grain and not registered in the country, Mr Suthep said.  

...

Farmers said it was easily grown, disease resistant and in high market demand. Of course they preferred it'.

 Vientiane Times (Feb 21) puts it's hopes on China:

'The Lao Ministry of Industry and Commerce this week requested China to consider a rice im-port quota of 50,000 tonnes along with accepting other industrial goods as part of efforts to bol-ster bilateral trade.

...

The call for the increased rice quota comes after 20,000 tonnes were shipped to the northern neighbour in 2017 by China’s Xuanye (Lao) Co., Ltd following approval from China’s NDRC'.

None lesser than the Guardian (Jan. 30) hails SRI (System of Rice Intensification) techniques in the region:

'Jesuit priest Henri de Lalanié working in the highlands observed that by planting far fewer seeds than usual, using organic matter as a fertiliser and keeping the rice plants alternately wet and dry rather than flooded, resulted in yields that were increased by between 20 and 200%, while water use was halved. Giving plants more oxygen, minimising the competition between them and strictly controlling the water they receive is thought to make them stronger and more resilient to flood and drought.

...

Academic criticism has since all but disappeared and the SRI system of farming has been validated in hundreds of scientific papers and adopted by up to 20 million farmers in 61 countries, according to the SRI information centre in Cornell University.

“The results consistently cite yield increases, decreased use of seed, water and chemicals, and increased income,” says Norman Uphoff, professor of global agriculture at Cornell.

...

But what is now exciting some of the world’s largest food corporations and governments is that growing rice along SRI principles also greatly reduces emissions of the powerful greenhouse gas methane, which escapes when rice, or any other crop, lies waterlogged for weeks at a time.

....

[Sunny Verghese, CEO of Singapore-based Olam]:

“But reducing emissions from rice cannot be a trade-off that hurts farmers and communities who depend on it for their income and sustenance. We have to measure the true cost of food and dismantle the subsidy system.”

Working with German development agency GIZ and south-east Asian governments, Olam now plan to roll out SRP rice to 100,000 farmers in Thailand, Cambodia, Vietnam and India within five years, increasing yields and incomes, and reducing methane emissions by 50%'.

Fight

The Thai junta has been trying to push through new legislation in a bid to control rice production in Thailand. The press has not been ummm ... impressed. Bangkok Post opinion (Feb. 17): 

'The National Legislative Assembly (NLA) made the right decision in backing down on the Rice Bill fight, removing controversial content which drew hefty criticism. It agreed to take out a contentious section that prohibits the trade of rice seeds which are not approved under requirements set by the bill. This positive response is good but is not enough.

...

Despite its good intentions, the bill seems to be riddled with several shortcomings. To start with, it gives too much power to the government. The rice board, in accordance with Section 6, shows an imbalanced structure with state officials, at 20, outnumbering those from farmers and rice mill groups which are to have five members each while there are three seats for experts.

...

Critics are of the opinion that the mandatory registration of rice varieties, as mentioned in Section 27, will do more harm than good to the country's rice development.

...

"If this draft was issued and became effective before 1957, Thailand would have possibly missed high-value rice varieties such as Khao Dawk Mali 105 rice, Khao Tah Haeng 17, Riceberry, Sangyod Rice and Tubtim Chumphae Rice," said Nipon Poapongsakorn, distinguished fellow at Thailand Development Research Institute (TDRI).

...

Despite the aim to improve farmers and the country's rice production, critics are of the opinion that the bill, if it becomes law, will deal a heavy blow to farmers and harm the country's rice industry.

On top of that, the bill, which was drafted in haste, has drawn criticism for the lack of participation from major stakeholders, in particular farmers. No public hearings were held, nor consultation with the farmers'.

The Nation (Feb. 25) reports:

'Thirty-two civil networks advocating alternative farming and community rights yesterday issued an open letter calling on Prime Minister Prayut Chan-o-cha to halt the controversial rice bill and other legislation before the National Legislative Assembly, citing a lack of checks and balances.

They threatened to mobilise opponents if their demands were not met.

...

They said parts of the legislation had merit, but there were also several flaws.

The main concern is a perceived limitation on farmers’ rights to use rice varieties that are available in their own localities. There are also restrictions on their production and a compulsion to yield to a new management system that could be disadvantageous to them.

As well, the letter’s authors said, the bill would give the Rice Department too much power without adequate checks and balances, while likely facilitating a monopoly on production by private firms'.

The Nation (Feb. 26) continues:

'Ad hoc panel says concerns addressed but NGO maintains it fails to protect farmers’ rights.

...

The National Legislative Assembly (NLA) will today consider a draft law that could impact millions of rice farmers across the country.

The Rice Bill, which was abruptly withdrawn from an NLA meeting last week in the face of stiff opposition from farmers and academic networks, is scheduled for its second and third readings by the NLA today. 

...

Last week, farmers and academics alike had raised concerns about the proposed jail term of up to one year and/or a fine of up to Bt100,000 under the Rice Bill for those distributing uncertified rice seeds, including farmers.

...

BioThai Foundation, a non-governmental organisation, yesterday acknowledged the removal of clauses that could have adversely affected farmers. But added on Facebook: “It remains clear that this draft law ignores farmers’ rights.”

According to BioThai, exchange of rice seeds among farmers currently accounts for 21 per cent of rice-seed trade in the country. This is the biggest percentage in the sector – even higher than seeds sold by private firms, rice centres or the Rice Department'.

The Bangkok Post (Feb. 26) notes that the proposed bill has been shelved, waiting for more opportune times ahead? 

'The National Legislative Assembly president on Tuesday ordered the withdrawal of the controversial rice bill from the NLA’s business agenda'. 

Comments on this article btw were scathing. 

The Nation (Feb. 27) hasn't finished:

'The country's leading alternative farm advocacy group yesterday suggested that future parliamentarians retain the best parts of the scrapped Rice Bill while improving regulations that would otherwise give an advantage to big agro firms.

The latest version of the bill, as updated on Monday, contained some good points after amendments to the previous version, said Witoon Lianchamroon, director of the Biodiversity-Sustainable Agriculture-Sovereignty Action Thailand (BioThai Foundation)'.9

Comment from the South China Morning Post (Mar. 6):

“It has been a miscalculation of the timing and the political consequences,” said Thanapan Laiprakobsup, a researcher on rice policies in Thailand at Chulalongkorn University, who noted farmers, millers and exporters found rare common cause in opposing the bill.“[The military junta] didn’t think there would be such a big opposition … but this time all the stakeholders [except the big corporations] agreed in opposing. The rice industry wants assistance but not direct intervention.”

Short

Meanwhile and further afield, the Nepali Times (Mar. 1) has an editorial on rice policies:

'Till as late as 1985, Nepal used to be a net exporter of rice, and during the 1960s the country was exporting up to $45 million worth of rice to India every year. How the tables have turned, in 2015 Nepal has to import 531,000 tons of rice worth $210 million from India.

...

As our reportage in this edition (page 8-9) shows, a healthy monsoon allowed paddy harvests to increase by 9% up from the previous year, reaching 5.6 million tons.

...

The long and short of it is that Nepal’s rice economy is rain dependent, the government cannot take credit for the increased paddy harvests. There is precious little successive governments in the past 50 years have done to invest on improving yield, and finding a stable price for produce'.

Also in the same edition:

'Despite the fact that educated youth, and children of farmers are either migrating or moving away from the land, agriculture is still the mainstay of Nepal’s economy. Farming is also becoming increasingly feminised as most men are away in the cities or abroad for work. Which is why the increase in rice production is in one sense encouraging.

Not as encouraging, however, is that productivity is still sluggish. Paddy yield has gone up from 2.4 tons per hectare 30 years ago to only 3.6 tons today, whereas productivity is 4.1 tons in Bhutan, 6.6 in Japan, and 7.0 in South Korea. Productivity of other crops has also not gone up by much. The reason is that nearly 70% of agriculture is still rain-fed. Cheap imports of rice from India as well as the disappearance of traditional rice varieties suited to Nepal’s micro-climates have also impacted production.

...

The main reason why Nepal imports so much rice despite rising production is because our farmers are not growing the right type of rice, and the government’s efforts are not directed towards helping them grow the varieties that Nepali consumers prefer. For example, the Masuli variety of rice was common throughout eastern Nepal, and two thirds of the farmers in this region grew that variety.

Today, consumer demand has shifted to Jira Masinu variety, yet half the farmers are growing Rajit and Swarnal, which are not in high demand. This shows that our promotion and policies are running counter to consumer preference. The result is that Nepal imports Indian paddy (which is not cheaper than Nepali rice) at a time when domestic paddy floods the market, and it is also the reason why rice imports are not decreasing'.

Though it's encouraging to see a major local publisher looking into the country's main crop (rather than power politics and city affairs), a distinct failure to understand the basics of rice economics seems to have hindered drawing more logical conclusions. 

Imports / exports are very much dependent on demand. Nepal has seen a wicked growth in population which hasn't been met with any substantial expansion in cropping area: with the exception of some expansive flat lands along the border with India, most rice tilling takes place on small fields which do not favour modern tilling methods. 

The growth in population in the mountains has actually meant that field sizes are at best staying minimal, simply meaning that more persons are dependent on the production of these small fields. Self-sufficiency hardly results in agro innovation / investment, so it's no wonder productivity has not grown.

Control

Thailand's love affair with weed killers continues. The Nation (Feb. 13): 

'Consumer protection activists voiced firm objection to Agriculture and Cooperatives Minister Grisada Boonrach’s proposal to ban the use of paraquat chemical in three years instead of one year.

The Hazardous Substance Committee is scheduled to hold a meeting tomorrow to reconsider the banning of three controversial agricultural chemicals – paraquat, glyphosate, and chlorpyrifos.

However, the BioThai Foundation yesterday disclosed the minister’s text message to his ministry’s senior officials, ordering that the ban on paraquat be implemented on a step-by-step basis so farmers have time to seek an alternative weed-controlling option.

...

Thailand Pesticide Alert Network coordinator Prokchol Ousap said Grisada’s proposal was unacceptable, as it went directly against the Public Health Ministry, Office of the Ombudsman and the National Human Rights Commission’s decision to not just ban paraquat, but also glyphosate and chlorpyrifos, by the end of 2019'.

The Nation (Feb. 15):

'Paraquat, glyphosate and chlorpyrifos are still allowed for use in Thailand for at least another two years, after the Hazardous Substance Committee yesterday reaffirmed its previous decision not to ban the three controversial agrochemicals'.

 Bangkok Post adds with an opinion piece (Feb. 18):

'Big business won. Again. We should not be surprised nor disappointed at the government's decision to support the weed killer paraquat which poisons the environment and makes us sick. We should be angry.  

We should not be angry at only the decision by the Industry Ministry's Hazardous Substance Committee to allow the use of this toxic farm chemical, which has already been banned in 53 countries around around the globe. This shameful decision is only a symptom. We should target the illness itself -- the closed, top-down officialdom which is not transparent nor accountable to anyone but the mandarins' own bank accounts.

...

Biothai, the main civic group campaigning for a ban on paraquat, demanded to know the committee members' voting decisions. The answer is a big "no", because such demands attack the heart of the power of a centralised bureaucratic system'.

While on the subject of weeds and killers, Mongabay has an article (Mar. 5) on Monsanto's glyphosphate and winning awards:

'Science advances by debate. Unlike in politics, scientific arguments need to be backed by evidence and scientific reasoning.

These concerns surfaced again with the recent decision by the American Association for the Advancement of Science (AAAS) to award, and then suspend its 2019 Scientific Freedom and Responsibility Award.

On Feb. 4, the AAAS announced that “two public health researchers who battled powerful corporate interests to uncover the deadly effects of industrial herbicides, solving a medical mystery and protecting the health of farming communities across the world” were the latest winners of the award.

...

Two days later, the AAAS changed its mind: “We are taking steps to reassess the 2019 Award for Scientific Freedom and Responsibility, after concerns were voiced by scientists and members.

...

On Feb. 28, Mongabay reported that the AAAS had appointed a panel of experts to evaluate the scientific findings underlying the awards selection.

Though the science involved could be questioned, there are other opinions which try to lay a relation between agribusiness and the AAAS.

Odd business. 

Talking of odd business, the Khmer Times (KT, Feb. 18) sat down with 

'Martin Wolf, BASF’s business director for Asean, to discuss the company’s short and long-term plans in Cambodia as well as the industry’s current situation and outlook'.

Nothing controversial of course.

'KT: What local agricultural products will you be focusing on first?Mr Wolf: First, we are targeting the rice sector. We want to help farmers manage their fields, improve seeds and control pests'.

(Alarm bells ringing)

Understanding

The Khmer Times (Feb. 25) has an article on another project upstart (read: rehash of same old song) by the ADB this time:

'The bank added that the programme will help reduce the proportion of raw products that are exported, particularly for cassava, paddy rice, mango and cashew nuts.Takeshi Ueda, ADB agricultural economist, told Khmer Times that most exported Cambodian agricultural products leave the country in raw form'.

Phnom Penh Post (Feb. 22) takes a peek at cashew economics:

'Cashew nut prices saw a five per cent drop compared to last year due to more supply than demand at the beginning of the harvest season in Kampong Thom province – the Kingdom’s largest regional producer of the nut – according to provincial authorities.

...

Cambodian Ministry of Agriculture and the Vietnamese Cashew Association (Vinacas) signed a memorandum of understanding (MoU) last year to increase Cambodia’s cashew nut exports to one million tonnes by 2028.

...

However, no official deal has been made with Vietnamese companies through the MoU, according to Suy Kokthean, vice-president of the Cashew Nut Association of Kampong Thom province.

“We have not heard anything about any official deal or technical assistance from Vietnamese firms,” he said.

The Phnom Penh Post (Feb. 8) on cassava:

'The cassava yield in the provinces bordering Thailand saw a decrease in the 2018-2019 season, with a slight fluctuation in prices, said provincial agricultural authorities.Battambang provincial Department of Commerce director Kim Hout said the decline in cultivation was due to a large number of farmers shifting to other crops, such as corn to adjust to market trends'.

The Khmer Times (Feb. 19) notes a lesser known rice alternative:

'With the country’s first-ever harvest of organic cassava having recently come to an end, farmers say they are happy with the price the crop is fetching, with some earning as much as $2,350 per hectare.Un Sokun, the leader of an agricultural community in Kampong Thom province, told Khmer Times that cassava farmers in her community are earning more this season after having gone organic.She said farmers in her community are being paid $94 per tonne of high-quality organic cassava, with lower quality organic cassava selling for $89. Non-organic cassava, by contrast, generally fetches just $77 per tonne, she said....“Our fresh organic cassava is sent to Vietnam for processing but soon we will be able to process in Cambodia as a new plant is opening in Oddar Meanchey,” he [Kunthy Kann, Cambodian Agriculture Cooperative Cooperation managing director] said'.

Stress

The Khmer Times (Mar. 7) mentions that:

'The Ministry of Agriculture will focus on diversifying agricultural production across the country to meet rising demand for vegetables and fruits from locals and visitors.The goal of diversifying and expanding agricultural output was announced yesterday by Agriculture Minister Veng Sakhon during a meeting with Jiangfeng Zhang, director of the Asian Development Bank’s environment, natural resources and agriculture division.Mr Sakhon stressed the need to focus on products other than rice, a crop that has been prioritised in the last few years'. 

Phnom Penh Post (Mar. 8) on fruits, mango:

'Mango production is expected to decrease this year as climate change severely impacts yields, according to a mango association in Kampong Speu province – the Kingdom’s largest regional producer of the fruit.Kampong Speu Mangoes Association president In Chayvan said the impact of climate change could reduce yields by around 50 per cent this year.“Mango production this year will not be as good as last year as effects of climate change – too much rain and too much drought – will reduce yields this year,” he said, adding that the main yearly harvest will begin next month....The installation of a Hyundai-owned fruit treatment facility in Kampong Speu province was completed this month, with mangoes set for export to South Korea. The company plans to export 1,700 tonnes in its first year of operation.Kim La, a Kampong Speu province mango farmer and an association members, said her 5ha mango farm yielded 60 tonnes in last season’s harvest.However, she said yields will not increase this harvest season – starting from March – as the weather is currently too hot.“I am now concerned about the coming season, as the weather is really hot and dry. I am afraid my mango trees cannot yield big fruit,” she said'.

Phnom Penh Post (Feb. 12) on Pailin longans:

'The trend of longan cultivation in Pailin Province continues to expand as farmers see the fruit as more and more profitable, according to provincial Department of Agriculture deputy director Im Sophoeun.He said longan is regarded as the main agricultural product of the province.Provincial Department of Agriculture figures show that farmers expanded longan cultivation to 3,983.5ha last year, a 24.4 per cent increase from 3,201ha in 2017.The report shows that last year, total yield reached 3,997 tonnes, with a market price of $1 per kg'.

And finally, the Phnom Penh Post (Feb. 12) on Kampot pepper:

'Yields of Kampot pepper, which was awarded geographical indication (GI) status in 2016, are projected to increase in the upcoming harvest season despite forecasts of heavy drought, the Kampot Pepper Promotion Association (KPPA) said on Sunday.Association president Ngoun Lay said that even after the government announced predictions of drought for this year, the next harvest season is expected to produce better yields.“Our next harvesting season will reach 90 tonnes of Kampot pepper as farmers are more experienced with drought conditions and have a better understanding of water management.

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.