Challenge

With the new year starting, there are a couple of articles looking at the year past and trying to see what the future could bring.

Khmer Times (Jan. 3) provides an excellent review of last year and future prospects. In short: the sector has lost track, production was slightly off, while growth in trade was non-existent. Possibly as China becomes the new market leader for rice exports, the market might see an upswing. Positive mentions also to organics:

'Cambodia’s rice sector is faced with the challenge of strengthening the quality of its fragrant rice, said Song Saran, president of the Cambodia Rice Federation (CRF), the recently appointed head of the milled rice export promotion body. “We have to compete,” he says. “The issues we can see include climate change, lack of pure rice seeds and sometimes lack of capital to buy paddy rice,” Mr Saran said.
Cambodia experienced a decline in milled rice exports to the EU this year because of tariff duties imposed by the European Union on Cambodia’s white Indica rice. However, the loss from the EU bloc, the biggest market for the country’s milled rice, has been replaced with increasing export to China and other new markets.
...
Cambodia shipped 174,397 tonnes of rice to the European market during the period, down 26 percent, the report read.
On the other hand, Cambodia exported 205,358 tonnes of milled rice to China during the first 11 months of 2019, up 34 percent over the same period last year, according to the report.
...
Cambodia has a quota of 400,000 tonnes that China allows Cambodia to export. According to the CRF, the quota will be implemented from early 2020.
Last week, the Chinese government allowed 18 new local rice millers to export to China, increasing the number to 44 rice millers exporting to China.
Cooperation with China is good, enabling export amounts to increases by 34 percent as of November 2019 compared with the same period last year, Mr Saran said, adding that almost of 80 percent rice export to China is fragrant rice.
Cambodia’s rice ranks fourth among rice exporters to China out of 12 countries, according to Saran.
...
Soeun, from Ministry of Agriculture, said that the ministry is preparing a policy for organic agricultural practices. We are applying the organic standard of Cambodia,” he says.“Cambodia’s organic rice ranks fifth in the EU and we are committed to competing to become number two or number three there,” Mr Saran said.
For Saran, although facing a number of issues that need to be addressed and enhanced, Cambodia’s ambition of exporting 1 million tons of milled rice would be within reach.
“We designate fragrant rice for promoting exports, which we register under the trademark Malys Angkor. Our rice is quality – our fragrant rice has won the world’s best rice award four times,” Saran said'.

Another attempt is made by Asia Times (Jan.) which sets the tone thus:

'Cambodia’s beleaguered rice sector is both literally and figuratively drying up, with drought parching crops and commercial banks refusing liquidity to farmers and millers in need of loans to stay afloat'.

Predicting future climate seems questionable, most of the analysis concerns the past:

'While the rice sector has long faced problems of underfunding and black market dealing, and is increasingly being impacted by environmental change and degradation, its woes have been compounded by European Union (EU) tariffs imposed last year on rice imports from Cambodia.
...
While the total tonnage of Cambodia’s rice exports fell by less than 1% last year, chiefly because of the uptick of exports to China, official data shows that the total financial value of rice shipments fell by 4.3%, down to US$501 million. In other words, exports to China aren’t nearly as profitable as exports to the EU'.

Looking back I see quite a few publications with similar conclusions. Asean Today (Jan. 13) for instance:

'Following the tariff introductions, rice exports from the Kingdom to the EU fell by 30% in 2019. Buyers are using falling exports as an excuse to drive rice prices down.
Choeun Socheat, a rice farmer in Cambodia’s Battambang province, told VOA that rice prices are down to US$232 per ton, US$60 less than the previous year’s rate. “The dealers told us that the price is low because they are buying rice to keep at the rice mills, but not for exporting abroad.”

However when looking at rice price changes (FAO, December 2019 report), export prices for Vietnamese rice (comparable?) were down 17-18% for the 12 months preceding, whereas FAO's own indices are down 5-7%.

So the loss of the aforementioned 4.3% in overall exported value doesn't seem too bad.

One should also note that exports are only a fraction of total production. The Asia Times article f.i. notes:

'The UN Food and Agriculture Organization (FAO) reported last year that some 44% of Cambodia’s rice exports are undocumented and smuggled out of the country, chiefly because millers cannot afford to purchase the entire harvest and growers look to informal brokers for quick cash'.

Let's conclude with what the Phnom Penh Post (Jan. 2) reports on 2019:

'Rice exports reached 620,106 tonnes last year, a drop of almost one per cent from the 626,225 tonnes the previous year, the Cambodian Rice Federation (CRF) said.
The total value of exports dropped more than four per cent last year from 2018, the Kingdom’s rice industry body added.
Coupled with the 1.43 per cent decline between 2018 and 2017, the modest drop marks the second consecutive year that exports have fallen.
According to a CRF report obtained by The Post on Wednesday, the total value of the Kingdom’s rice exports were valued at some $501 million last year, down 4.3 per cent from $524 million in 2018.
A breakdown of the data showed that the 202,990 tonnes to the Chinese market accounted for 40.73 per cent of rice exports, followed by 13.41 per cent, or 83,164 tonnes, to the Asean region and 13.84 per cent, equal to 85,847 tonnes, to other markets.
According to Ministry of Agriculture, Forestry and Fisheries data, Cambodia also exported 2.15 million tonnes of rice to Vietnam last year'.

Shipped

It should be noted that Cambodia is not the only rice exporter faced with a downward trend. 

The Bangkok Post (Jan. 16):

'Thailand's rice exports in 2020 are forecast to drop to their lowest in seven year, the country's rice exporters group said on Thursday, as the strong baht reduces the competitiveness against other shippers.
Exports from Thailand, the world's second-biggest exporter of the commodity after India, are expected to drop to 7.5 million tonnes this year, the Thai Rice Exporters Association said. That would be the lowest volume since Thailand exported 6.6 million tonnes of rice in 2013.
The grim forecast came after Thailand fell short of its initial 2019 target by exporting 7.8 million tonnes of rice last year'.

Reuters (Jan. 13) though notes that Vietnam is bucking the trend though only slightly:

'Rice exports from Vietnam, the world’s third-largest shipper of the grain, rose 4.2% in 2019 from a year earlier to 6.4 million tonnes, customs data showed on Monday.
However, revenue from rice exports last year dropped 8.3% to $2.8 billion, the Customs Department said in a statement'.

In other rice related news from the region, Thailand's Nation (Jan. 8) has a report on a particular niche:

'Netizens have widely shared a phenomenal photo of a pink rice field in Phitsanulok, wondering if it was for real. It certainly is.
The pink rice field is owned by Naresuan University alumnus Jaturong Chomphusa, who turned his back on an office job three years ago to become a farmer'.

Then an interesting find a vdo from Laos on a labour saving small-scale, low tech rice harvester.

Jumping

Back to Cambodia and some competitive crops.

Cassava. The Phnom Penh Post (Jan. 9) notes an upswing for cassava growing.

'Cambodia exported 3.29 million tonnes of cassava last year, up 27 per cent from 2018’s 2.59 million tonnes, a Ministry of Agriculture, Forestry and Fisheries report said.
Minister of Agriculture, Forestry and Fisheries Veng Sakhon wrote via Facebook that the Kingdom’s export of agricultural products last year reached more than 6.93 million tonnes, which he estimated to be worth more than $1.9 billion'.

It contrasts with maize. The Phnom Penh Post (Jan. 7):

'Total corn exports dropped by more than 40 per cent on 2018 due to last year’s drought and pest damage, industry insiders said.
Ministry of Agriculture, Forestry and Fisheries data showed that last year the Kingdom exported 119,993 tonnes of red corn – down 41.23 per cent on 2018’s 204,184 tonnes.
The exports were mostly to Thailand, Vietnam and Taiwan, according to the data'.

Not so closely involved in competition, there's also news from f.i. rubber growing. 

Phnom Penh Post (Dec. 31):

'The Kingdom’s rubber exports saw a 24 per cent increase over the first 11 months of last year compared to the same period in 2018, data from the General Directorate of Rubber obtained by The Post on Tuesday showed.
Pol Sopha, the director-general of the General Directorate of Rubber, who declined to comment on the reason behind the jump, told The Post on Tuesday that the Kingdom exported 233,677 tonnes of rubber with an export value of $311 million during the period.
The data also showed that 434,552ha of rubber had been planted in the first 11 months of last year, with more than 230,000ha of rubber having been harvested'.

Further rubber news from the Phnom Penh Post (Jan. 12):

'The General Directorate of Rubber announced a joint study on family-owned rubber plantations in three provinces to better understand how growers have responded to the sharp drop in rubber prices over the past nine years.
The average cost of rubber has fallen from around $4,600 per tonne in 2011 to about $1,350 per tonne in early 2020, according to its report'.

Bangkok Post (Jan. 20) though exemplifies that increasing rubber cultivation (as in Cambodia) is not the broader global trend:

'Rubber farmers are set to endure another year of low rubber prices as global uncertainty and a strong baht drive importers to turn off the taps.
The Economic Intelligence Center (EIC) forecasts a gloomy outlook for rubber prices in Thailand this year due to tepid demand from China and increased domestic supply in Thailand'.

Involved

Fruitier news then. The Phnom Penh Post (Jan. 20):

'As many as 300 tonnes of mango are processed every day in the Kingdom for export, the Ministry of Agriculture, Forestry and Fisheries said in a report.
It said the industry is dominated by five companies which together use 250-300 tonnes of the fruit per day.
Heng Sreng, the general manager of Boeung Ket Planting and Industrial Co Ltd, one of the companies highlighted in the report, told The Post on Sunday that it buys between 100 and 140 tonnes of mangoes per day at around 750 riel ($0.18) per kilogramme.
“Recently, we have had a chance to buy a lot of mangoes. There is a large supply now as companies in Vietnam and Thailand have temporarily stopped orders due to the holidays [Chinese and Vietnamese New Year],” he said.
Last year, Boeung Ket Planting and Industrial exported between 300 and 400 tonnes of dry mango products, mostly to China.
...
Last year, the Kingdom exported 58,162 tonnes of fresh mango to six markets – Vietnam, Thailand, Singapore, France, Russia and Hong Kong.
Ngin Chhay, the director-general of the General Directorate of Agriculture at the ministry, said Cambodia produces four million tonnes of mango annually, with 100,000ha dedicated to the crop'.

Phnom Penh Post (Jan. 5) on banana's:

'The export of yellow bananas to international markets last year reached 157,812 tonnes, most of which was exported to China and the rest to Vietnam and Japan, a Ministry of Agriculture, Forestry and Fisheries report showed.
There is no data on 2018 banana exports to international markets as it mostly comprised of informal exports to Vietnam. However, the ministry said Cambodia exported some 10,000 tonnes to international markets in 2018.
Hun Lak, the director of Longmate Agriculture Co Ltd, which plans to invest in 1,000ha of banana plantations in Kampot province by 2021, said over 400ha of plantations were harvested last year – with 10,000 tonnes of yellow bananas going to China'.

Nuts then. Phnom Penh Post (Jan. 13):

'Cambodia exported some 202,318 tonnes of cashew nuts last year to foreign markets, up nearly 100 per cent from 2018’s 101,973 tonnes, a Ministry of Agriculture, Forestry and Fisheries report said.
Khan Samban, director of the ministry’s Department of Agro-Industry, told The Post that the strong growth in exports is due to the ministry’s simplification of export procedure and the commodity’s improved standards.
“Our cashew nuts have a good taste and quality, so we’ve received increased demand from foreign countries,” Samban said.
He said he expects cashew nut prices to fall to around 5,000 or 6,000 riel ($1.23 or $1.48) per kilogramme in the early harvest season this year. “Cashew nut yield will increase this year due to an increase in cultivation.”

Oddly, news on Vietnam - the world leader in cashew growing and exporting - but from the Phnom Penh Post (Dec. 24):

'Vietnam's cashew sector aims to earn US$4 billion in export turnover next year.
According to the Vietnam Cashew Association (Vinacas), the sector will focus on deep processing, improving quality and diversifying products towards realising the goal.
This year, the sector imported over 1.5 million tonnes of raw materials, mostly from Africa, to meet its processing and production demand.
Mergers and acquisitions have also taken place this year with more and more large-scale enterprises operating in the industry, the association said.
By the end of November, Vietnamese businesses had shipped more than 418,000 tonnes of cashew abroad for almost $3 billion, while this year’s targets are 450,000 tonnes and $3.5 billion'.

Then the Phnom Penh Post (Jan. 6) on pepper growing:

'Pepper exports more than doubled last year despite Kampot pepper exports having dropped more than 27 per cent year-on-year, the Ministry of Agriculture, Forestry and Fisheries said.
Total pepper exports reached 3,693.25 tonnes last year – up 53.17 per cent from 2,411.20 tonnes over the same period in 2018, the ministry’s data showed.
Meanwhile, Kampot pepper exports fell from 69 to 50 tonnes over the same period, the Kampot Pepper Promotion Association (KPPA) said.
KPPA president Nguon Lay said farmers harvested 125 tonnes of Kampot pepper last year but were only able to export less than half of that due to “the lack of new export markets”

Noteworthy, Kampot pepper also gets reported on by the BBC (Jan. 16).

Finally in other news, Monsanto related. Reuters (Jan. 17):

'Bayer could be close to settling more than 75,000 cancer claims related to its Roundup herbicide, with mediator Ken Feinberg on Friday saying he was “cautiously optimistic that a settlement will ultimately be reached.”
Feinberg said the settlement negotiations were complex and difficult. Asked about a timeline, he said it would be “premature to state that a settlement is near or will be reached.
”Feinberg declined to discuss terms of the possible settlement, but told Reuters the group of plaintiffs’ lawyers involved in the negotiations had been expanded, suggesting a potential wide-ranging settlement'.

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'.

Hypocritical

I could spend a huge amount of this blog on the on-goings in Thailand: rational analysis, past present and future. But I am not.

Much of what has played out in the last few weeks in Thailand concerning rice pledging and political scheming was to be expected. Government is weak and has problems continuing programme: the dèja vu! It's all great when you start the rice pledge programme, but it's like a drug: there's no way you can stop. without tears that is.

So yesterday, Thai farmers were in arms, today it's believed they might get their pay, so they are back on the land. Thai government corrupt? Oh no! Not again!

Despite the good years, it's odd to see how fast some farmers are to switch their allegiance ...

Well what else is there to report about?

Rules, my a**?

We could start off by looking at how Cambodia is struggling to market it's rice. The Phnom Penh Post (Feb. 17) reports on stringent rules concerning providence of it's rice export so as to prove to Europe that yes indeed it is Cambodia produce.

'Exporters requesting a certificate of origin from the Ministry of Commerce will be required to show proof through invoices and receipts that the rice is local.

An audit committee consisting of both industry and non-industry representatives is tasked with investigating claims of fraud.

Penalties include the permanent revocation of an exporter’s certificate of origin, which strips the business of duty-free access to Cambodia’s largest market'. 

If this were to happen, the cost of exporting Cambodian rice just got more expensive and wrought with administration, yea! Note that David Van in a comment says it's bollocks, there is no need for a certificate. So article wrong?

Earlier this month (Feb. 4) the Phnom Penh Post had a re-cap / re-hash on the story. 

Italy seems to be lobbying for denying no-tariff imports for Cambodian rice. It's unfair to Italian farmers. This despite the fact that Italy produces different rice and hardly any note-worthy exports from Cambodia. Reaction:

'David Van [there he is], deputy-secretary general for the Alliance of Rice Producers and Exporters of Cambodia, said in an email yesterday that it was hypocritical of the Italian government to claim developing countries were receiving unfair subsidies, as European countries have long benefited from similar EU deals'. 

Trouble is that the importing country sets the rules ....

Lower market prices for Thai rice result in poor conditions for Cambodian rice exports, (Phnom Penh Post, 20 Feb.):

'Stockpiles accumulating since the [Thai rice pledging] scheme was introduced in 2011 have risen to record levels [in Thailand], and an anticipated fire sale has buyers holding out in anticipation of cheap rice flooding the market. Cambodia and other countries are taking the hit'.

Exporters must decide: to move their stock or to accept lower prices. 

Elsewhere, the importance of rice and rice exports to Cambodia was highlighted through a World Bank assessment which highlighted how the number of poor in Cambodia had halved since 2004. Main reasons were increasing prices for rice and higher productivity. 

Especially higher prices seems to contradict common logic which says that low prices are good for the poor. They're not.

The article in the Cambodian Daily (Feb. 21) also highlights that though the poor has halved, most now languish in the near-poor category!

Resistance

Or we could note that Burma exports are increasing to Japan (Nation, Feb. 7). As well as smuggling to Thailand. Britain's Telegraph (Feb. 4) has a first-hand report from Burma, opposite Mae Sot, where large scale smuggling is taking place.

Meanwhile in Laos, farmers are apparently defying private armies trying to rob them of their lands (Radio Free Asia, Jan. 22), now why is this not a headline? 

'In a rare act of resistance, dozens of rice farmers in northern Laos have defied armed police orders to vacate land seized by a Chinese company wanting to build an airport as part of a casino-driven special economic zone, according to villagers.
The 50-odd farmers refused to budge when policemen, armed with AK-47 assault rifles, moved on Friday to enforce an order by the King Romans (Dok Ngiew Kham) Group for the farmers to leave their rice fields to make way for the construction of the airport in Tonpheung district in Bokeo province'.

Then in the Philippines where rice smuggling, or rice importing at inflated prices is all the rage. But those pinpointed alleged receivers are suddenly not fit to face a Filipino Senate committee (Oryza, Feb. 24).

Up your street

Or we could note that Thai research has found out that their farmers are a lot worse off than Vietnamese and Burmese farmers (despite the higher prices?). Thai farmers are hampered by the high cost of inputs so concludes the article on the research by University of the Thai Chamber of Commerce (Bangkok Post, Feb. 26).

But a quick flick through the article learns that the low productivity is the crux of the discussion and probably the high cost of labour, it's not clear.

Even worse is the conclusion, that it in part is due to the governments rice-pledging scheme. That seems to be the world upside down. But yes, that's how it is seen. The backers are requesting the government (which one?) to use subsidies to drive down production costs. 

But how? Will they want to lower labour wages? Give hand-outs to fertlizer and chemical producers? 

If you believe rice-pledging was hampered by graft and accountability, then why would you propose even less accountable alternatives?

One mistake (besides graft and accountability; no matter what you do these will always remain a problem in the Thai context) the government made was to think that the rice pledging programme would be self-sufficient: hoarding would lead to higher world prices. Market conditions were not so and the government failed to act.

And now I still being sucked into the discussion ....

Anyway, Siam Kubota's profits will drop so reports the Bangkok Post (Feb. 25 ) mainly due to lower purchasing power of farmers because the price for rice is lower. So, obviously the reverse is true, the rice-pledge has lead to increased investment. Or not?

And the Bangkok Post (Feb. 24) has a rather lengthy exposé in which they calculate that organic rice growing is as profitable as for non-organic. So if their consequence support for lowering input prices (above) is thought through, this would be distorted and yes the subsidies would mean more chemicals on the farms, good to see Bangkok Post jumping on this bandwagon!

Acknowledging

Forthcoming for the rice market is the political crisis looming in Thailand. Events being played out seem to suggest that a political status quo is not on the offering and any change will most likely see the rice pledging scheme shelved or changed dramatically.

What will occur is a downward push on global prices. Thai rice exports will restart on market conditions leading to an overall price drop; there's simply too much rice stocked at the moment and the malfunctioning of the Thai exports has made many a country see their own possibilities in exporting rice. 

And buyers can safely turn to other countries to satisfy their demands.

The Nation (Dec. 2), nearly a month ago has it's idea's on the future ahead for the rice pledge scheme: 

'There were signs the government wanted to back away from the policy, or at least scale it down. But politics came into play and the most ambitious pledges to the farmers were maintained.' 

So they suggest taking it off the agenda and letting experts suggest improvements.

Cambodia's mixed bags

Let's leave the Thai politics aside and concentrate on Cambodia. Their rice exports in particular.

Cambodian nascent rice exports to Europe are in hot water. Claims are made that up to 30% of the exports are in fact of Vietnamese origin (Oryzae, Dec. 19). 

Provenance, such an important aspect of the global trade rules affects many an agricultural item in the lower Mekong where age old trading routes don't necessarily follow modern day borders. Many an agriculture item moves over the border  especially to Thailand with it's higher prices and to Vietnam with it's more aggressive exporting strategy. 

So it's no surprise that cheaper Vietnamese rice might make it s way towards Vietnam, likewise Cambodian rice heads to Thailand.

But Cambodian exporters are refuting the claims (Cambodia Daily, Dec. 23): 

'Van Vichet, the deputy secretary of ARPC (Alliance of Rice Producers and Exporters of Cambodia) , said that while the association had agreed to create a code of conduct, it denied Cambodian rice was being contaminated before being exported to Europe.

He said that the accusation was the political result of recession-stricken rice farmers from European countries lobbying E.U. officials to reintroduce tariffs for rice imported into Europe'. 

Deny, shift the blame (link to Oryzae article, Dec. 17, with some European nations complaining about imports but with no substantiation).

And: 

'Commerce Ministry spokesperson Kong Putheara agreed with Mr. Vichet’s rejection and said that any tests of Cambodian rice exports to the E.U. would confirm that the rice is all grown locally.

“What factors have the E.U. based this claim on that 30 percent of rice exports from Cambodia contain rice from Vietnam? Have they looked at the DNA or have they looked at other factors?” he asked.

Mr. Putheara acknowledged, however, that exported Cambodian rice is often sent to Vietnam, where it is milled, before being exported'. 

Officials know little ...

The EU responds. The Phnom Penh Post reports (25 Dec.): 

'While the European Union Trade Commissioner Karel De Gucht never told the Ministry of Commerce that Cambodian rice was “30 per cent” mixed with the same product from Vietnam, he did say Cambodia had to better ensure that its harvest was homegrown and not from another country, a spokesman for the commissioner said yesterday'. 

The measured response would be as such:

'In response to the trade commissioner’s concerns, the Alliance of Rice Producers and Exporters of Cambodia (ARPEC) will form a Code of Conduct in a bid to protect the country’s rice exports.

ARPEC said in a statement released yesterday that all Cambodian rice exporters had taken note of the views and would sign the Code of Conduct with the Ministry of Commerce to self-regulate exports'. 

But when do you need to stop?

'ARPEC deputy secretary David Van said the issues raised in the Oryza article were informal and emanated from rumours within “EU circles”.

“As far as the rice exporters are concerned, we maintain that until clear evidence is produced by the EU, we do not condone their claims,” he said.

In response to suggestions that some Cambodian rice could be contaminated during transit to Vietnam-based milling facilities, Van said the external process does not mean the two rice origins are mixed. He added that the low supply of Cambodian milling facilities producing the country’s rapidly increasing harvest forces farmers to send their rice to Vietnam for milling.

“But all rice grown, harvested, milled and exported in Cambodia is 100 per cent our product,” Van said'. 

Collecting evidence need not be such a problem ... Ah but wait for it, a correction (Cambodian Daily, Dec. 26):

'In the story “Rice-Exports Alliance Rejects EU Accusations” (December 23), I was quoted as saying that “some of our rice millers take rice and hire Vietnamese millers to mill it and then bring it back to Cambodia for export.”

I would like to clarify that the rice exported to the European Union. is 100 percent made in Cambodia.

All aspects of the rice production are completed in Cambodia; moreover, the rice is also checked and issued a certificate of origin before being exported from Cambodia.

Kong Putheara, spokesman, Ministry of Commerce'. 

Oops.

Of prices & exports

The Bangkok Post (Dec. 4) quotes the UN's agricultural arm, the F.A.O.: 

'Thailand will see a 17% jump in its rice stockpiles to a record level next year as it pursues a policy of buying from farmers at above market rates, the Food and Agriculture Organisation (FAO) said on Wednesday'. 

So that spells more bad news for lower pricing in the future. It also notes: 

'The expansion of Thai stockpiles will help global milled reserves gain 2.6% to 179 million tonnes in 2013-2014, rising for a ninth year, said the FAO. World rough-rice production will expand 1.1% to a record 741.1 million tonnes, with Thai output rising 3.9% to 38 million tonnes.

"Greater competition resulting from an increase in Thai supplies in the world markets is expected to come to the detriment of a number of suppliers,'' said the FAO, citing India as the most at risk'.

The Thailand Development Research Institute (TDRI) had a recent forum on the future of global rice. So reports the Nation (Dec. 17).  The bad news: increasing incomes means an evening off of consumption with possible drops by 2050 while at the same time a shift to more quality rice. The good news: there isn't any! Recommended is for Thai farmers to increase efficiency.

The Bangkok Post (Dec. 17) quotes sources from Thailand's rice exporting association: 

'Rice buyers remain reluctant to purchase Thai rice even though prices are now competitive with Vietnamese grain. "This is unusual, as Thai rice prices are now quoted at about the same price as Vietnamese rice," said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. "The free-on-board prices of 5% white rice, for instance, are only US$420 per tonne, but we still can't find buyers. This has never happened in Thai rice trading."'

Are buyers waiting for prices to drop more?

The year that was. For Thai exports: wilting ... (Bangkok Post, Dec. 27):

'The government acknowledged for the first time rice exports in 2013 will reach a mere 6.68 million tonnes worth US$4.38 billion, down by 3.9% and 7.9%, respectively'.

But are they correct?

'"If the government's rice stock sales made up 60% of the country's overall rice shipments, this is tantamount to the government selling as much as 3-4 million tonnes and the private exporters selling only only 2 million tonnes," said Mr Chookiat [honorary president of the Thai Rice Exporters Association ]. "This is impossible. Parboiled rice, which is sold only by exporters, is equal to 2 million tonnes this year. That would mean the exporters sold hardly any white rice".' 

It also notes that the anti-corruption committee will look into government-to-government trades.

Sector news

Mekong Oryza will export CEDAC's organic rice, so reports the Phnom Penh Post (Dec. 13).

What Cambodian exporters are up against? The Cambodian Daily (Dec. 24) goes into details of a truck carrying rice that has been impounded by police as it was above the maximum weight. Not so surprising, but the owner claims foul. Faulty scales. Will be continued.

More about winning the globe's best rice prize. The Phnom Penh Post has a nice article (Dec. 20) with the views of what may lie ahead. Challenges are funding, lower energy prices, poor logistics, high transportation costs and poor pr.

  

The Vientiane Times (Dec. 20) notes that Europe certifies rice from the province of Savannakhet: 

'Savannakhet has exported its first shipment of rice to European markets after attempting to enter one of the largest agricultural markets in the world for several years.

This year the province exported almost 2,000 tonnes of rice worth US$1.2 million in total, after European countries certified the standard of product as fit for sale in their markets, according to the Industry and Commerce Department'. 

FAO call for a pan-Asian rice strategy. Why? To avoid price crisis? It calls for increased efficiency. The nation (Dec. 1) has more background. Seems futile.
 

Vietnamnews (Dec. 25) mentions that Vietnamese rice is now regarded as the most expensive Asian rice. interestingly it notes that one of the reasons is that Thailand is selling older rice, thus Vietnamese rice is fresher and gets a better price. noteworthy is also that if price disparity continues Vietnam might buy Thai rice to market domestically freeing up domestic produce for export!

Unapproved

When is a GMO a GMO? We've seen this discussion before. China are hardly known for their anti-GMO stance. In fact they are one of the staunchest proponents. So it's a bit strange to see that they have rejected U.S. corn product imports because the imports were of GMO's whereby a strain had not been approved yet! Sourced from Reuters (Dec. 26):

'China has turned away about 2,000 tonnes of U.S. dried distillers grains (DDGs), a corn by-product, and more rejections are expected in coming weeks as Beijing imposes strict checks over an unapproved genetically-modified (GMO) strain, traders said on Thursday.
The move follows the rejection of more than half a million tonnes of U.S. corn after authorities detected the presence of MIR 162, a GMO variety developed by Syngenta AG and not approved for import by China's agriculture ministry'.

More on the background:

'Strict testing for MIR 162 comes as Beijing seeks to curb cheap corn imports and support domestic prices for the grain, industry sources have said.
The U.S. has urged China to act promptly to approve the strain'.

Seems that this is picking hairs.