Interesting

It's the start of the year, when Cambodia sees it's big bosses discuss rice. No difference there, this year. 

Probably the most significant snippet from the meet is the announcement of a national rice brand. The Khmer Times (Jan. 22):

'The annual rice forum starts in Phnom Penh today, bringing together farmers, businesses and researchers for a two-day event that seeks to find solutions to some of the sector’s most pressing questions.

...

Malys Angkor, the first brand name of Cambodian premium rice, will be formally launched during the event'.

Even the Bangkok Post (Jan. 24) chimes in:

'Rice authorities unveiled the “Malys Angkor” rice brand, a new certification mark that encompasses a range of Cambodian fragrant rice varieties'.

The Phnom Penh Post (Jan. 22) delves deeper into the issues of the single brand and more urgent problems as unveiled at the meeting:

'The Cambodia Rice Federation (CRF) today announced a new “Malys Angkor” brand to be used as the official moniker for four species of Cambodian fragrant rice.

The first day of the two-day Cambodia Rice Forum also featured the release of a remarkably frank report on the industry group’s internal issues, which acknowledges that the CRF’s numerous flaws are currently preventing it from acting as a proper representative of the country’s rice sector.

Sok Puthyvuth, president of the CRF and son-in-law of Prime Minister Hun Sen, lauded the branding effort at the launch of the forum at Phnom Penh’s Sofitel Hotel today.

...

The Malys Angkor branding push is part of the CRF’s long-term goal to promote the country’s rice sector, but those efforts are being hampered by significant internal problems, according to the group’s “Strategic Plan 2017-2021”.

“Current assessments suggest that there are many challenges facing the CRF,” the report says, noting that board members appear to have “commitment discipline issues” and that many board members only attend meetings “when the meeting is about their interests”.

Other complaints include farmers being pushed aside in favor of millers and traders, as well as more wealthy or connected members having greater access to the CRF’s services and attention than regular members.

Money also appears to be a problem, as “lack of sufficient financing” and few technical experts results in the CRF lacking a way of “sustainably handling requests from of [sic] members of the rice sector.”

In addition, board decisions “often remain unimplemented”, and a new scheme to increase local-level monitoring of the rice sector by placing CRF representatives in various zones around the country may run into trouble because “the CRF appears to not possess all the requirements” to implement the program'.

So, despite the hoopla concerning the single brand it seems the rice sector is more based on lining each participants pocket(s) as she/he wishes. Nothing new to the current Khmer climate, where it seems that there's only one party in town. Literally.

As if the single brand isn't sufficient the Khmer Times (Jan. 23) notes that there's also a focus on having a GI within the brand:

'Rice authorities in the kingdom are exploring the possibility of applying for Geographical Indication (GI) status for rice grown in areas around the Tonle Sap Lake.

Speaking during the Rice Forum in Phnom Penh, Sok Puthyvuth, president of the Cambodia Rice Federation (CRF), said his association will present a proposal to the Ministry of Commerce to consider awarding GI status to rice grown in Siem Reap, Kampong Thom, Kampong Chhnang, Pursat and Battambang, the provinces that surround the Tonle Sap.

Mr Puthyvuth said that creating a brand name for rice grown in areas around the Tonle Sap will make for a sound marketing strategy, helping increase demand for the product in European markets'.

Is this not complicating things?

Ups

Then there's the stocktaking of 2017. The Phnom Penh Post (Jan. 2) notes the numbers are up:

'Cambodian rice exports in 2017 increased 17 percent by volume compared to the year before, with exporters pushing to fill orders under China’s expanded import quota while shipments to European markets remained steady, according to Agriculture Ministry figures.
A total of 635,600 tonnes of rice was exported to international markets in 2017, up from 542,144 tonnes the previous year, according to a Facebook post by Hean Vanhan, director general of the general directorate of agriculture at the ministry.
China, which agreed to accept 200,000 tonnes of rice from Cambodia in 2017 – doubling the previous limit – and will expand the quota to 300,000 tonnes this year, was the top destination for rice shipments.
Over five years, total rice exports have grown 67.78 percent from 378,800 tonnes in 2013, the figures show'.

But are the returns in money terms also as positive? And what is the actual price being paid for becoming more and more dependent on the Chinese market?

The Bangkok Post (Dec. 29) jots down the Thai story of rice over 2017. Quite similar:

'Rice exports hit an all-time record in 2017, increasing by 14.77% this year to at least 11.25 million tonnes as of Dec 27, the Ministry of Commerce said. The price per tonne has risen above US1,000 for popular Jasmin fragrant rice, or hom mali'. 

The Phnom Penh Post (Jan. 10) looks at the government loan scheme. To big business mainly:

The government has provided $30 million in loans to rice millers since September to facilitate the purchase of paddy rice, with the head of a state-run bank saying more money was available if necessary.
The loans were issued to 38 rice millers by the state-owned Rural Development Bank (RDB) following September’s rice harvest, and would need to be paid back by April this year, according to RDB’s CEO Kao Thach'.

A lesser bit of national rice news, but more encouraging. The Khmer Times (Dec. 28) reports on how the Ibis Rice project has been successfully expanded to Stung Treng province.

Seething

Major news from the massive palmoil sector in the region, touching on one potential for Cambodia's ag sector. 

Hoping to cash in on the ill-ventured biofuel programmes (I mean you need more fuel to grow the crops than you receive after harvest) the boom may well be leading to a bust. 

Despite warnings, palmoil plantations have done little to ensure a decent level of sustainability. And no surprise then, that the EU will be discontinuing the palmoil component within the regions biofuel programme. Euractiv (Jan. 17):

'The European Parliament decided today (17 January) to phase-out palm oil by 2021 and cap crop-based biofuels at the member states’ 2017 consumption levels and no more than 7% of all transport fuels until 2030....“The Parliament has sent a message that not all biofuels are created equal by focusing on getting rid of those that drive deforestation like palm oil. But its amendments still risk making it harder for EU member states to realistically boost renewables in transport,” Secretary-General of ePURE Emmanuel Desplechin said'.

The decision has especially Malaysia and Indonesia up in arms, both crying foul play. Mongabay (Jan. 19):

'Officials in Indonesia and Malaysia, the world’s biggest producers of palm oil, have lambasted the European Parliament’s decision to phase out the commodity from motor fuels over the next three years due to environmental concerns.
Indonesian Trade Minister Enggartiasto Lukita said Thursday that the vote to reduce to zero “the contribution from biofuels and bioliquids produced from palm oil” by 2021 was misguided and unfair, given that Jakarta had taken steps to address the environmental impact of the palm oil industry.
The trade minister’s remarks came a day after the European Parliament voted on targets to cap crop-based biofuels, which follows the parliament’s overwhelming decision last year to ban the use of vegetable oils in biofuels. The amendments will now go to the European Commission and member states before they become law.
The move will have serious ramifications for Indonesia and Malaysia, who together produce nearly 90 percent of the world’s palm oil.
...
While the governments seethe, conservation and indigenous rights activists have welcomed the phase-out vote, citing the massive toll the palm oil industry has taken on tropical rainforests and the local communities dependent on them.
Eep Saefulloh, a researcher with Sawit Watch, an NGO that monitors the palm oil industry in Indonesia, criticized the industry talking points that the deforestation caused was legally sanctioned.
“If we’re talking about large palm oil plantations, of course they cause deforestation,” he said. “Unless we’re talking about small farmers only need a hectare or two. But if we’re talking about large plantations that can extend beyond villages and districts, what do we call that if not deforestation?”

This news takes some time to seep through to Cambodia. The Phnom Penh Post (Jan. 24):

'New proposed rules from the European Union restricting the import of palm oil would likely affect Cambodia’s nascent palm oil sector, but the country’s main exporter is hoping that demand from India and China will cushion the blow.
Cambodia’s palm oil exports rose by a whopping 143 percent last year, according to Ker Monthivuth, a sanitation expert at the Ministry of Agriculture. The country exported more than 44,000 tonnes of crude palm oil in 2017, up from nearly 19,000 tonnes the year before, he said.
...
“We will look to what happen in India and China, if they increase [consumption] volume,” he [Prachak Kongtanomtham, vice president of sales and marketing at the Mong Reththy Investment Cambodia Oil Palm Co Ltd] said. “We should find how can reduce our production cost, especially logistic cost and utility,” he added, noting that costs were “very high” in Cambodia'. 

Flied

From the kingdom's fruit front, it's mostly mango making the moves. The Phnom Penh Post (Jan. 22) looks at the export of  the fresh produce:

'Cambodia’s mango shipments have been routinely blocked before making it to the international market, with the Ministry of Agriculture claiming the mangoes are not of a high enough quality to meet the sanitary and phytosanitary (SPS) requirements necessary to ship outside of the Kingdom.
According to Hean Vanhan, director general at the General Directorate of Agriculture, the main obstacle for Cambodian mangoes making it to the international market has been the prevalence of fruit flies, which infest prospective shipments of the produce.
“It is not a matter of the quality of our mango – the main obstacle to the market is the fruit fly, which blocks our mango exports and makes it difficult to achieve SPS certification,” he said, adding that the SPS certificate could only be granted to shipments of mangoes devoid of “injurious pests”.
...
In Chayvan, president of Kampong Speu Mangoes Association, said that while the fruit fly has been a problem for mango farmers in the past, most have established methods that ensure there are few to no flies in their mango shipments.
The real reason Cambodia’s mangoes are unable to reach the international market, he said, is because they are often blocked for perceived hygiene-related issues, and he urged the Ministry of Agriculture to hasten its administration of SPS certificates to encourage neighbouring countries to buy Cambodian produce.
“The fruit fly is not our main concern when it comes to being blocked from the international market,” he said, adding that most mango shipments that had been prepared to leave Cambodia had met the SPS requirements. “Our main issue is that the SPS certification is too hard to get from the ministry, and so we have no access to ship to surrounding countries.”

But on the upswing, the same source (Phnom Penh Post, Jan. 4) notes positives for the export of dried mangoes:

'Phillipines-based dried fruit exporter Profood International has begun construction of a new factory in Cambodia that, when completed, should see 4,000 tonnes of mangoes dried annually, according to Philippine news outlet Sun Star.
Justin Uy, Profood founder and president, told Sun Star the 11-hectare plant was expected to begin operations in 2019, and that all mangoes dried at the facility would be slated for shipment to the Chinese market to satiate the nation’s annual 30,000 tonne demand. The company’s entry into Cambodia is intended to strengthen its foothold in the Southeast Asian market. Profood products are sold in 52 countries'.

And now something totally unrelated, but I think it's relevant to this blog. It has  very little common with all the other subjects explored this time round, but I still feel I need to explain. Anyway the Vientiane Times (Jan. 24) reports:

'Chemical and pesticide experts from Laos and other Asean member countries are meeting in Vientiane this week to discuss the harmonisation of maximum pesticide residue limits in the interests of food safety.
...
So far Laos has adopted 768 out of 808 Asean maximum residue limits but lags behind many Asean member states in this regard'.

Boom to bust
Contrasting news.

From Cambodia (Phnom Penh Post, Jan. 18) on the increasing expansion of rubber cultivation, though with a side note on smuggling to Vietnam. Beats me , why Cambodian producers would need to pay an export tax, totally uneconomic.

'The total amount of rubber exported by Cambodia surged 30 percent last year, but widespread rubber smuggling on the Vietnamese border crippled potential profits from the booming industry.
Cambodia generated about $300 million in revenue by exporting nearly 189,000 tons of rubber last year, according to Pol Sopha, general director of the rubber department at the Ministry of Agriculture. The revenue boost was also helped by a 24 percent increase in the average price per ton, which was up to $1,586 last year, compared to $1,283 in 2016.
But while small-scale rubber farmers were able to sell their crops for a profit, the industry as a whole was crippled by massive smuggling operations that shipped much of the country’s rubber into Vietnam tax-free, according to Sopha'.

But over in Thailand, there's more focus on the low prices. The Bangkok Post (Jan. 6):

'Rubber prices are expected to rise to 60 baht a kilogramme in the first quarter after Thailand, Indonesia and Malaysia pledged to withhold exports of 350,000 tonnes of natural rubber (NR) from this month until March.
...
Thai natural rubber prices have been falling for several years, largely due to oversupply from major rubber-producing countries. The weak global economy subsequently cut demand in the auto industry, damaging rubber producers as a result.
The drop was also attributed to the growth of rubber plantations in Cambodia, Laos, Myanmar and Vietnam in the past 10 years. The CLMV countries currently supply 5.3% of the commodity to the global rubber market'. 

Seeing the pie has not increased, the new entrants are claiming a share, but Thailand seems reluctant. A solution put forward was to allow large scale investment (read take-over) in the Thai rubber sector by China. But the Bangkok Post (Jan. 7) reports on the distrust issue:

'China's plan to invest in rubber plantations in Thailand must be carefully considered, says Grisada Boonrach, minister to the Ministry of Agriculture and Cooperatives, but such projects must not impact local farmers. His comment was made in response to a report that China Hainan Rubber Industry Group is set to invest more in rubber plantations in the country, as it has done recently in the CLMV countries (Cambodia, Laos, Myanmar and Vietnam). Under these schemes, Chinese nationals oversee rubber production on land leased by the company.
...
Mr Grisada said that as the issue is quite sensitive a thorough study must be undertaken to ascertain the impact on domestic producers. His major worry being that there might be a repeat of the price dumping by Chinese middlemen in fruit markets in the eastern provinces'. 

Then it's reported (Bangkok Post, January 24), that producers will still try to keep the prices reasonable:

'Thailand, Malaysia and Indonesia are hopeful of seeing the end of sagging natural rubber prices after agreeing on export cutbacks, Agriculture Minister Grisada Boonrach said.
The minister expressed Thailand, Malaysia and Indonesia are hopeful of seeing the end of sagging natural rubber prices after agreeing on export cutbacks, Agriculture Minister Grisada Boonrach said. The minister expressed confidence about the turnaround of rubber prices following the implementation of the three countries in the International Tripartite Rubber Council to curb exports for three months starting from Jan 10'.

Sugar

The great sell-off in practice. 

The Khmer Times (Jan. 12) notes how Cambodia is counting on China to take some sugar:

'During a meeting with Chinese Premier Li Keqiang yesterday, Prime Minister Hun Sen asked China to increase imports of Cambodian sugarcane.
...
The kingdom imports between 500,000 to 600,000 tonnes of sugarcane every year, according to a representative of Phnom Penh Sugar.
However, only 100,000 to 150,000 tonnes are absorbed by the local market, with the remaining sugarcane being re-exported.
During the meeting yesterday, Mr Li agreed to increase their quota for imports of Cambodian milled rice, from 200,000 tonnes to 300, 000.
During the opening of the LMC summit on Wednesday, Mr Hun Sen also encouraged China to purchase more Cambodian cassava.

Umm, the sugar isn't even Khmer.

Bangkok Post (Jan. 17) describes the measures taken to meet WTO rulings:

'The government has invoked Section 44 to float the local price of sugar, says Industry Minister Uttama Savanayana. The local price had been subsidised by the Thai government. But the government wants the local price to be on a par with the global rate, as its support was in violation of a World Trade Organization (WTO) rule, with other sugar producers such as Brazil crying foul.
The plan to float the sugar price had been postponed since Dec 1'. 

The idea is not to raise local prices, but to hope that world prices will drop to Thai domestic levels. Thus face saved.

Inclination

A few snippets concerning growing cassava. The Khmer Times (Jan. 11):

'Agriculture Minister Veng Sakhon met on Monday with visiting US professors W. Ronnie Coffman and Max J. Pfeffer from Cornell University to discuss cooperation in a new project whose purpose is to yield disease-resilient, high yielding cassava.
...
CARDI director Ouk Makara, who also joined the meeting, told Khmer Times that the team of US professors use biotechnology [genomic selection] to cultivate their cassava variety.
“The next generation cassava yields 10 percent more than our cassava,” he said, adding that, on average, Cambodian cassava yields 24 to 25 tonnes per hectare.
Cassava plantations in the kingdom have increased from 30,000 hectares in 2005 to 684,070 in 2016, with total production amounting to 14.8 million tonnes last year, according to data from the Ministry of Agriculture.
The provinces in which the crop is grown are Battambang, Banteay Meanchey, Pailin, Kratie, Kampong Thom, Tboung Khmom and Oddar Meanchey.
Cambodia exported 2.3 million tonnes of cassava chips during the first nine months of 2017. Cassava chip exports in 2016 amounted to 2.9 million tonnes, which mostly went to China, Thailand and Vietnam'.

Is genomic selection just a short cut for natural selection?

The Vientiane Times (Jan. 15) finally shows us an example of how business should not take place:

'Many of the nation’s cassava farmers remain desperate to recover money that the Lao-Indochina Group Public Company has owed them since failing to pay for their produce in 2012.
The company’s bankruptcy resulted in the firm’s creditors, mostly cassava farmers, incurring further debts to banks, notably Nayoby Bank, leading the situation to its current deadlock.
...
The company ran up debts of 17.5 billion kip to cassava growers five years ago when it got into financial difficulties.
Only 4 billion kip of the total has been repaid to date.
In Vientiane’s Pakngum district alone, farmers sold 21 million tonnes of cassava worth almost 963 million kip to the company for processing at its tapioca factory in the district.
...
Cassava cultivation in Pakngum district is now fairly subdued.
Many farmers are disinclined to grow the crop because they are still indebted to banks as a result of their predicament.
This year, some farmers planted cassava, but in smaller quantities than in previous years with dried cassava then sold to Vietnamese traders.
Farmers want to know when they will get paid for all the cassava they grew and gave to the factory several years ago.
Many still owe money to district banks after borrowing to clear their land and plant cassava. Most of the farmers in question are now growing other crops, while some are pursuing other livelihoods'.

Disbursement

Falling prices for rice are holding Southeastasian nations at a ransome as rural communities are taking their complaints to the urban centers of power. 
It also means that the governments are in an uneasy position to answer the age old question: how to transfer funds from the urban rich to the rural poor?

Cambodia with it's administrative efforts still in their infancy has chosen to seek the business sector to invest more. 
Problem is that with falling prices the business sector (if interested) is only interested in buying at deflated prices, as after cleaning, grading, storing and handling prices would probably tend even lower, So by offering even more deflated prices they just might make a slight profit. Or they will not take the risk at all.

The Phnom Penh Post (Oct. 10) reports on the recent industry targeted initiatives:

'Three weeks since Prime Minister Hun Sen approved $27 million in emergency loans to prop up the struggling rice sector, the state-owned bank charged with disbursing the funds said yesterday that it has only granted $1 million in loans, claiming that the number of eligible applications has been lower than expected as millers have failed to meet the necessary collateral requirements'.

Foul
Thailand meanwhile has a long history of devising schemes to transfer funds to rural areas. 
Unfortunately the current junta has chosen the previous democratic governments efforts in this area as a way to write the politicians possible futures off altogether. Instead of focusing on the real shortcomings in the electoral system and dealing with these. 
It has meant that any transfer which directly enhances prices or puts money in the hands of farmers is now circumspect. 

But how to deal with previous regime's policies? Criminalise them, personalise them. What this means, that once the junta will step aside (much of their policies are likewise having little effect) is probably underestimated by themselves ...

Let's start with the Bangkok Post which has an opinion article (Oct. 13). In it they seek to solve the riddle of transferring funds to rural areas. What they fail to realise are economics in which the earnings of urban classes are a multitude of those in rural areas with the gap widening.

Former prime minister Yingluck Shinawatra has cried foul about the compensation, sought by the current regime, for damages caused by her government's loss-ridden rice-pledging scheme. She should instead have paid heed to concerns over irregularities and the scheme's lack of sustainability when she was in power.

...

What these governments have in common was the failure to help farmers realise the risks in their investment, learn how to enhance their productivity, and become more competitive. Those policies did not help uplift their livelihoods in the long term.

...
Mass production should be shifted to farming that creates a niche based on rice varieties. For example, a strong focus should have been given to organic rice breeds with unique and high quality. Policy makers should also capitalise on existing studies that can help farmers improve rice quality. However, if rice continues to be used by politicians as a political commodity, it will be unable to reach its true potential for a niche market. It will be used as part of populist policies without sustainable measures to truly uplift the quality of Thai rice and Thai farmers.

With a political process which has vote buying at it's heart, there will never ever be substantial progress in delivering to the rural communities other than hand-outs. And as said it fails to understand the opportunity costs, even the rural poor understand that running a business trumps toiling in rice fields. 
But also look at the so-called west, even here handouts in rural areas are seen as possibly the most effective way to ensure a degree of food sufficiency as well as encouraging a livable countryside.

The junta has finally done their sums and has presented the costs to the ex-PM. The Bangkok Post (Oct. 21) reports on the roughly 1 billion $US fine:

Former Prime Minister Yingluck Shinawatra said the junta had fined her 35.7 billion baht over the rice pledging scheme. She said outside a Bangkok court on Friday that she had received a notice two days ago ordering her assets to be seized.

...

Gen Prayut Chan-o-cha, in his capacity as the junta chief, in mid-September issued an order by his absolute power under Section 44 of the 2014 interim constitution to have the Legal Execution Department seize the assets of state officials liable to pay civil damages under the scheme. The executors will have immunity in doing their duties.

Is this realistic? The Asian Correspondent (Oct. 26):

THAILAND’s Prime Minister Prayuth Chan-ocha [junta chief] has defended the regime’s order seeking BHT35.7 billion (US$1 billion) in compensation from his ousted predecessor Yingluck Shinawatra as punishment for her role in her administration’s failed rice scheme.

According to Bangkok Post, the leader said he believes the fine to be fair, noting that the quantum was decided after consultation with lawyers, including those who drafted the 1996 Tort Liability by Officer Act. He said his legal advisers assured him that the punishment does not violate the spirit of the law.

...

On Monday, the leader of the Pheu Thai Party slammed the military regime for the punishment, accusing it of applying different standards on Yingluck.

“In the past, there were many public policies that used state funds to solve problems, but no former prime minister had to take responsibility for them, even in clear cases of losses of state funds.

“What’s also important: Does a government from a coup have legitimacy to demand accountability from the government that it seized power from?” Pheu Thai Secretary General Phumtham Wechayachai wrote on Facebook, according to Khaosod English'.

Then the junta's scheme. The Bangkok Post (Oct 28) notes the impatience:

'The government is being urged to speed up the implementation of measures to curb a sharp fall in price of Thai Hom Mali rice, particularly this year's pledging scheme for farmers with their own rice barns'.

Bangkok Post (Oct. 28):

'Farmers in Chai Nat province have started putting up "for sale" signs on their farmland amid plummeting rice prices. The decisions came after they could no longer shoulder losses and needed cash to repay bank loans'.

Bangkok Post (Oct. 29):

Rice farmers in some provinces have grown increasingly impatient and are imploring the government to help them after prices plunged to a 10-year low.

...

Rice prices around the world have fallen as a record crop is forecast for the 2016-17 harvest season, the UN Food and Agriculture Organization (FAO) said in its latest Rice Price Update.

The FAO’s All Rice Price Index showed international rice prices in the first eight months of 2016 were 9% below the levels of a year earlier

The International Grains Council (IGC) also noted a sharp fall in export prices of Thai rice in August.

“The market in Thailand was weighed down by sluggish international demand and increasing secondary crop arrivals, while additional pressure stemmed from efforts by the government to offload state reserves through a series of auctions,” it said. “At $369 [a tonne], 5% broken rice was down by $43 month-over-month."

Then the details, once again from the Bangkok Post (Oct. 29):

'The government is set to announce the pledging scheme for farmers with their own rice barns in a move to curb the fall in rice prices. Commerce Minister Apiradi Tantraporn said the scheme, which will go before a national rice policy committee meeting on Monday for approval, will set a pledging price of not less than 10,000 baht a tonne for Thai Hom Mali and glutinous paddy'.

The announcement. Bangkok Post (Oct 31):

'The Rice Board has set the price the government will pay farmers under its barn programme at 11,525 baht a tonne for hom mali paddy compared to the market price of around 9,000 baht.
... 

Col Sirichan Ngathong, deputy spokesperson of the National Council for Peace and Order [junta], said on Monday that present rice prices were abnormal and there might be attempts to intervene market mechanisms for political purposes. 
This government's answer to the costly rice-pledging programme of its predecessor is a barn-pledging scheme. Although the methods are similar, a key difference is the government only subsidises the interest a state bank should have received for the loans to farmers. Growers also keep the grain in their barns instead of at contracted warehouses like in the rice-pledging programme. There are also restrictions which limit the number of farmers eligible for the subsidy to effectively one third of all farmers, unlike the "buy-every-grain" pledge of the Yingluck Shinawatra government'.

Soar

Despite all the negativity, the Phnom Penh Post (Oct. 7) reports that recent rice export figures are on the up:

'Cambodian rice exports soared by 54 percent year-on-year in September, after failing to meet last year’s levels for six consecutive months from March through August, according to the latest report by the Secretariat of One Window Service for Rice Exports.
Total rice exports in September amounted to 41,429 tonnes, compared to 26,969 tonnes one year earlier.
The surge in rice exports still leaves the cumulative total of rice exported since the start of the year – about 361,000 tonnes –two percent below the total shipped during the first nine months of 2015'.

And there's possibly more. The Phnom Penh Post (Oct. 25):

'Cambodia is close to signing an ambitious agreement with the Indonesian government that would pave the way for the Kingdom’s rice producers to export 1 million tonnes of rice under a new quota scheme, a state official said yesterday.

...

Cambodia signed an MoU with the Indonesian government back in 2012 which outlined a more modest goal of exporting 100,000 tonnes of rice a year. Sophary could not comment on whether the target of the agreement was ever achieved'.

Then there's a Khmer Times (Oct. 14) article which reports on government involvement in branding the nations rice. It's not going well:

Two years after the Agriculture Ministry announced that it wanted a single brand under which Cambodian rice would be exported, disagreements between the ministry and the Cambodia Rice Federation (CRF) mean that nothing has yet been approved.

Despite the CRF proposing “Angkor Malis” as their preference, a lack of support from the Agriculture Ministry has meant that brand registration efforts have stalled, explained CRF vice president Hun Lak'. Upgrade
Meanwhile in Thailand, more progress on the branding front. The Bangkok Post (Oct. 12):

'The government has upgraded quality standards of Hom Mali fragrant rice in a move to highlight the identity of Thailand's premium long-grain fragrant rice. Duangporn Rodphaya, director-general of the Foreign Trade Department, said the Hom Mali designation will apply only to grains that contain 92% or higher Hom Mali content from December onwards. Grains with Hom Mali content of 80% or more, with amylose content of 20% or less, will be called Thai jasmine rice, Thai fragrant rice or Thai aromatic rice. Ms Duangporn said the overhaul aims at upgrading Thai rice quality standards to comply with the current trading situation, which requires a diversity of rice products'.

Vietnam has some problems. The vn.express (Oct. 1):

'Vietnam’s Ministry of Agriculture and Rural Development has decided to temporarily put on hold exports of rice to the U.S. due to pesticide residue issues.

...

The Vietnam Food Association cited information from the U.S. Food and Drug Administration (FDA) as saying that in the first four months of this year, the U.S. rejected 94 rice containers from Vietnam, which are equivalent to around 1,700 tons of rice'.

Wonders how their exports elsewhere are faring. Samesame? The Bangkok Post (Oct. 10):

'The Commerce Ministry is speeding up inspections of glutinous rice stocks in Chai Nat province which were found to be contaminated as it prepares to take legal action against those responsible'.

Then some reports on the Thai government is trying to play the market. The Bangkok Post (Oct. 26):

'The government will pause its efforts to dispose of state rice stocks to curb any adverse impact on domestic rice prices as the latest harvest enters the market'.

And again the Bangkok Post (Oct. 22):

'Rice exporters have agreed to buy 200,000 tonnes of Hom Mali fragrant rice and store it in warehouses during November and December, the period when new supply from the country's annual harvest season starts flowing into the market'.

Raft
Away from rice there's a description of how freeing up the wheat trade in Thailand is resulting in lower domestic prices for maize and cassava. The Bangkok Post (Oct. 10):

'The government has agreed to closely monitor wheat imports, requiring each importer to report the volume of their imports three months in advance. The requirement seeks to curb imported wheat, which is tariff-free and has resulted in lower domestic maize and tapioca prices, causing local farmers to cry foul.

...

Thailand waived import tariffs on wheat in 2013 at the request of animal feed producers. Before the move, wheat prices were about one to two baht higher than maize prices.Imports rose following the waiver, and wheat prices have been one to two baht lower than maize prices since 2014'.

Not everything is going down. The Phnom Penh Post (Nov. 2) reports on the pepper trade which sees it success being copied and exploited:

'Given the wild success of Kampot pepper, which can fetch up to three times the amount per kilo as Cambodian pepper produced without its prized label, it is hardly surprising that the product has its share of imitators.

...

Nguon Lay, president of the Kampot Pepper Promotion Association, said that despite its GI designation, Kampot pepper producers still struggle against a raft of inferior imitation products primarily geared toward the steady flow of passing tourists.

Pepper producers need to “raise public awareness of GI in order to strengthen the regulations and add value to the product”, he said. Lay added that it was up to individual producers to respect this privileged and protected status.

“We still find that around 25 percent of the market is using the Kampot pepper name without ensuring that it is actually a Kampot product or meets EU quality standards,” he said.

This was a substantial improvement, he admitted, from just last year, when a market survey carried out by the association found that 75 percent of pepper products were abusing its name'.

Vientiane Times (Oct. 7) reports on Vietnamese struggle with sugar prices set to drop as markets get freed up.

'Hoang Anh Gia Lai Group (HAGL) has finally confirmed it is negotiating with Thanh Thanh Cong (TTC) to transfer its sugar mill in Laos to TTC - both companies are giants in their field, Vietnam's local media reported this week.

...

According to HAGL's financial report announced on August 23, the firm racked up losses of more than VND1.07 trillion (US$48.2 million) in the first six months of this year. In the same period last year, it reported a profit of VND1.04 trillion.

The company, which has invested in various fields in Laos, recently reported that it may sell 20,000 hectares from 40,000 hectares of rubber plantation in Laos to Chinese partners in the event its proposed debt restructuring plan falls through as the company has been plagued by financial woes over its loss-making agricultural arm, according to Vietnam's Tuoi Tre News last month'

The Phnom Penh Post (Oct. 28) has an interesting article on the current status of Cambodia's rubber rush which was lead by foreign investment:

'The large-scale rubber plantations that arrived in force in Cambodia a decade ago as global rubber prices moved to historic peaks are facing sober prospects as trees they planted before the commodity’s prices headed south begin to reach maturity.

...

Jef Boedt, general manager of Socfin Cambodia, the local arm of a Belgian-Swiss agro company with rubber plantations spread across Africa and Indonesia, said the first batch of rubber trees that the company has planted on 7,500 hectares in Cambodia since 2009 reached maturity earlier this year. However, this first tapping season has been limited, both at Socfin’s plantations in Mondulkiri province, and at others like it across the country.

“Right now, all the plantations that started planting six or seven years ago should be tappable today,” he said. “However, because the price and demand is not strong we are only tapping around 700 hectares when it should be around 1,500 to 2,000 hectares.”

He said limited tapping operations were yielding about 1.2 to 1.5 tonnes of rubber per hectare, whereas the standard business model is closer to 2 tonnes per hectare. So far, the company has produced around 1,000 tonnes of natural rubber this year, he added.

Boedt previously told the Post the company had invested $80 million into its Cambodia operations. Having waited seven years already to begin recouping this investment, its decision to press ahead with tapping aims at covering overheads, ensuring that workers are paid, and funding further infrastructure expansion'.

Incorporated

Clean
Both Cambodia and Vietnam are struggling to qualify their rice crops as a single brand in an attempt to hope to gain better consumer acceptance of their eport rice produce and thereby hope to raise the ability to export more and/or at a higher value.

The Phnom Penh Post (Oct. 29) does its best to put forward Cambodia's case and quest as the Cambodian officials see fit:

'Cambodia must focus on building a single recognisable brand for its premium fragrant rice to strengthen its international marketing efforts, Minister of Commerce Sun Chanthol said yesterday.“Once the consumer recognises our rice brand, as well as the design of the rice package, we will be able to fetch a higher price for our premium rice,” Chanthol said during a roundtable discussion with the British Ambassador.
....
Cambodia’s Phka Rumduol – a long-grain, aromatic variety of rice – has been awarded the World’s Best Rice at the annual World Rice Conference for three years running. But efforts to market the premium rice variety overseas have stumbled on labeling.
The most prevalent export label, “fragrant rice”, has been deemed too general, while the alternative label “jasmine rice” is also used by Thailand for their premium variety.
While Cambodia’s fragrant rice comes in a number of varieties, such as Phka Romdeng, Phka Romeat, and Phka Rumduol, the commerce minister said all should be marketed under an umbrella brand name.
“We should promote and stick to ‘Phka Romduol’,” he said. “This is what won the contest, so please let’s focus on this name and register it as a trademark or trade name for future use.”
Chanthol said the branding should extend beyond a name and include the packaging, which should incorporate traditional Khmer design elements and his ministry’s seal of approval'.

Though the comprehension in this task is apparent, there seems to be uncertainty on how to move forward. 

Until recently Cambodia was known for it's poor quality rice, despite the evident superior traits as demanded by consumers. Now if there's a need for a single brand (which might make sense) why focus on a Khmer name and add traditional Khmer design?

When Cambodian rice finally hits the shops be it elsewhere in Asia, in Europe, the America's or Africa there's little to suggest that consumers there are going to be persuaded by branding as initialised by Cambodia. Consumers will go by local brands which they trust. Possibly in combination with international certification, f.i. an organic certificate, a fair trade certificate, etc.

So in this, Cambodia should solely focus on the less consumer driven export trade. Having more varieties will probably not assist in this process, so a single brand / name could work. So why not Cambodian Fragrant Rice as an umbrella brand? One that allows all the other varieties to be included as long as they meet visual quality standards as well as other traits such as fragrancy, cooking quality. Even have exporters limit themselves: they are only allowed to export these varieties and are to be held accountable if not. If wanting to export another variety, they need official clearance, etc. Seems pretty easy.

Vietnam is struggling with the same. Vietnamnetbridge (Nov. 15): 

'The Vietnam Food Association (VFA) has suggested that Jasmine and Japonica rice varieties can be chosen for development into Vietnam’s national rice brand. However, experts say they are not a reasonable choice'.

It seems that these have been included to raise awareness in export markets:

'Of the 4.3 million tons of rice exported by VFA’s member companies in the first nine months of 2015, Japonica rice only accounted for one percent'. 

Jasmine rice however does account for around 25% of the current production, so seems a more obvious choice.

'Japonica has been suggested for specialty rice. However, he [Huynh The Nang, VFA’s chair] stressed that the Japonica VFA has suggested is not the pure Japanese variety, but the one created by cross-breeding by a Vietnamese company, which also has round grains like Japanese Japonica.

Xuan [Professor Vo Tong Xuan] believes that the rice variety mentioned by Nang is DS1 created by the Vietnam Agriculture Genetic Institute. Meanwhile, Xuan does not think DS1 could be welcomed by Japanese.

Though DS1 also has round grain like Japonica, DS1 is less soft than Japonica and therefore, it could not be rolled to make sushi'.

Sush so to say? 
It all seems a bit opportunistic. Why not go for a three pronged attempt like Vietnamese general, Vietnamese frangrant and Vietnamese cross?

Interestingly, the Vietnamese Tuoitrenews website (Nov. 26) notes how domestic urban consumers in Vietnam's south are avoiding local Vietnamese varieties for Cambodia imports.

'Some rice businesses in the southern province of Tien Giang have begun sourcing rice from Cambodia to distribute to Ho Chi Minh City and neighboring localities, instead of that grown in Vietnam’s Mekong Delta, known as the country’s granary'.

Besides the perceived superior quality traits (less sticky after cooking) there's more:

'Professor Vo Tong Xuan, a seasoned rice expert, confirmed that many Vietnamese consumers are eating Cambodian rice as the grain is ‘cleaner’ than that grown in Vietnam, thanks to the sparse use of insecticides'.

So why not go for Cambodian Clean, an organic fragrant high quality rice?

 

Plastic
Let's continue with the topical cambodian and rice updates

Rains on end, time to take stock. Phnom Penh Post (Oct. 30):

'As a fickle rainy season that has seen areas of the country plagued by drought draws to a close, Cambodia’s rice production remains nearly on target, though food insecurity is still a problem for individual communities, according to the World Food Programme.

...

Though this year’s rice crop may not reach last year’s record of 9.4 million tonnes, less than 1 per cent of the crop was destroyed, and food supplies will be sufficient for the country at large, according to WFP country director Gianpietro Bordignon'.

Southeast Asia Globe questions Cambodia's rice industry (Oct. 25) and the future:

'A combination of erratic weather, poor infrastructure and an inefficient government has experts predicting that Cambodia’s rice industry could collapse within a decade.

...

Although the Kingdom is proud of its rice industry and even wins international awards for high-quality grains, the government has done little to help the sector. Song Saran, chairman of Amru Rice, the country’s biggest exporter, says that if this attitude doesn’t change, the outlook is bleak.

“We are in danger. It’s a business with very small margins, and it’s a high-risk commodity,” he says. Most experts are in agreement. 

....

Rather than the government providing loans at low- or zero-interest rates such as those offered in Thailand and Vietnam, a network of loan sharks caters to Cambodia’s small-scale farmers, preying on their dead-end situations following natural disasters.  

...

In Vietnam and Thailand, millers pay no more than ten cents per kilowatt of electricity. In Cambodia, it’s roughly twice as much. Transportation is also a headache. Using trucks that navigate potholed roads means that getting a tonne of rice from a Cambodian farm to a mill typically costs about $10. In Vietnam, where infrastructure such as railway lines is in place, it costs about $3'.

It sketches a bleak future for the Cambodian rice industry, one based on increased competition, with little possibility to drive down costs.  
Then again complaining doesn't seem to work, so focus on the positives: quality. As the lead above suggests, financing becomes less of a headache, thus relieving the whole chain.

Quality? Extraordinary circumstances in Poipet, rice containing plastic particles. The Phnom Penh Post (Oct. 26):   

'A rice-milling company has admitted to letting pieces of plastic from its machinery make their way into bags of rice after residents and authorities in Banteay Meanchey’s Poipet town raised fears of “plastic rice” upon finding their rice abnormally sticky since the Pchum Ben holiday.

...

Reached yesterday, Minh Bo, 60, the company’s owner, said that while the rice itself wasn’t plastic, pieces from the milling equipment appeared to have made their way into the bags.

“We admit to our technical mistake leading to the break-up from the plastic plank in the miller getting into the rice, and to not checking it properly before bagging and sending it to the market,” he said'.

Going up
Move over Cambodia.

Big news from Thailand (the Nation, Nov. 9): a rotten rice auction. 

'The Commerce Ministry will open bidding for thousands of tonnes of rotten rice from government stockpiles this month for supply to the industrial sector.
... 
After the auction, the ministry will set up a monitoring team to inspect rice being transferred from warehouses to non-food industries to ensure the rice is not used for consumption. 
The rotten rice is expected to be used for ethanol, biomass, and non-food production'. 

The Thai government is thinking that climate change will be working in their favour (The Nation, Nov. 17): 

'The Commerce Ministry is set to release 13 million tonnes of rice from the government's stockpiles by the end of 2018, while it expects Thailand to export at least nine million tonnes of rice next year due to lower-than-normal rice supplies globally because of climate change'. 

However the article refers to the El Niño effect which probably is not due to climate change. And it's effect has lead to lower rice production in Thailand itself, thus the sign of encouraging prices. But not necessarily more money in Thailand's pockets. Sort of an own goal.

Then again maybe the Nation sourced their article from the wrong official. Thai soothsayers believe the slow slide in export prices of rice will come to a halt. Bangkok Post (Oct 31): 

'The government and the private sector agree that Thai rice prices are unlikely to fall further because of state measures and low supplies brought on by the drought'. 

And though the government applauds itself, none of their policies have sorted any effect to lead to higher prices. Other than down selling their stocks which lowered prices. Same-same, different story? 
In the past in Europe the way to stabilise prices was to destroy the stored goods altogether, this way the government takes the loss fully, while farmers come out scotch free.

Bucking the trend, Lao farmers will be stimulated to grow more rice, according to the Vientiane times (Nov. 5):

'The Ministry of Agriculture and Forestry is asking farmers around the country to grow 4.2 million tonnes of rice this fiscal year, seeking to boost commercial production and ensure food security'.

But there will be no fat carrots (nor sticks), so it's more wishful thinking.

Criticize

While in Thailand rice farmers seem to be shunned, rubber farmers initially  will not get what they want: subsidies. So reports the Bangkok Post (Oct. 21):

'The government will not provide a cash subsidy for struggling rubber farmers, as it could open Thailand to criticism in the global trade arena, but will instead promote local consumption of rubber to boost the price'.

Whatever the arguments contra subsidies, the Thai government has decided against their own thinking. No production subsidies, though a subsidy on land under rubber. Now expect this system to be fraught with fraud. 

And the returns? No production, no extra selling, possible even more land being brought under rubber.  
But a potential vote buyer. And this from a junta which blames a democratic government of financial ruin. Hmmmm .....  
Read all from the Bangkok Post (Nov. 3). 

If the Thai government had wanted to make an impact, they might have tried to subsidize the cutting down of older plantations to be replaced with forest while banning any new plantations. Less rubber on the market, potentially higher prices, farmers rewarded for work in restructuring and forest cover maintained / expanded. If only things were all so simple.

Pockets
Further trade issues, notably the all encompassing Trans Pacific Partnership (TPP).
The BBC (Nov. 6) has an index file on the TPP, for all of us commoners to try understand the deal made. Note that the deal is no less than 6,000 pages. It highlights the complexity of such a deal with currently sceptics slowly gaining momentum in their push to shelve the deal before it's actually signed.

Thailand itself remains wary of the TPP (Bangkok Post, Oct. 24). It notes that it already has many trade agreements with partnership countries. And the Thai are also involved with other trade pacts upcoming. Note that the many comments on this article are quite negative of the TTP.

Not TTP, but very much in the trade corner there's this article from the Economist (Nov. 14). It notes how many countries like to try to get the rice market to sway their way:

'The market for rice is more distorted than that for any other staple. Rice growers pocketed at least $60 billion in subsidies last year, according to the OECD'. 

It also notes how the consumers in importing countries are footing the bill with poorer households relatively more affected than the more fortunate. Adverse export policies also contribute, from countries banning exports to Thailand's feat to (try to) corner the rice export market.

Ignorance

When policies come home. Cambodia's land policies are very weak and with some government colluding, their own laws can be circumvented. However it looks like a catch up is in the process.

Vietnam Rubber Group loses it's FSC accreditation so reports the Phnom Penh Post (Oct. 28):

'In a damning report, the Forest Stewardship Council (FSC) claims Vietnam Rubber Group has been involved in “illegal activities”, which include converting about 50,000 hectares of evergreen forest into rubber plantations without public consultation, ignoring land claims from local people, allowing illegal logging and destroying wildlife sanctuaries.

...

VRG could not be reached for comment'.

A day later, same newspaper:

'Asia's largest sugar producer, Mitr Phol, is responsible for violating the rights of hundreds of villagers in Oddar Meanchey who saw their land grabbed, homes destroyed and livestock killed to make way for plantations, according to the National Human Rights Commission of Thailand (NHRCT)'. 

Also under scrunity. Looks like a new trend?