Showing posts with label cashews. Show all posts
Showing posts with label cashews. Show all posts

Friday, December 29, 2017

Sticks

And so we come to the end of a year, a year in which there's been precious little to report on topic-wise, certainly of any substance. 

How come? 
If anything, companies have been gaining ever more influence over governments worldwide, so much so that it's becoming increasingly hard to distinguish between the two. 
Possibly pushing hybrid rice as such has so little positives to mention (other than profits) that we aren't hearing anything about it. 
I suspect the leading companies involved, are just at the moment in a lull and certainly looking into what f.i. Europe has been trying to regulate in say the glyphosate case. 
Producing fake news also doesn't seem to work long term wise, so probably the main companies involved are doing a rethink. 
We'll soon learn what's in stall for us in the coming year ...

With the deteriorating (and need I suggest farcical?) political situation in Cambodia, the news (Phnom Penh Post, Dec. 8) that Italy wishes to arrest further EU imports from Cambodia might be viewed as being linked. The article suggests otherwise:
'Italy, along with six other European Union countries, has filed a fresh request to European Commission to limit the volume of rice imported from the Kingdom by activating a “safeguard clause” that allows EU member states to impose barriers to protect against trade imbalances.
The Italian government submitted an official request to the European Commission on November 20 calling for restrictions on the amount of imported rice entering the European market from Cambodia, according to a report yesterday by Euractiv news.
While the report called the request “trailblazing” and a more concerted effort compared to a similar submission to the commission in 2016, local industry insiders said that Italy’s statements usually fall on deaf ears and are an annual protectionist complaint.
...
Long Kemvichet, spokesman for the Ministry of Commerce, said he was not worried about Italy’s recent request to limit rice exports, because the commission had never responded to such requests in the past'.
Though it's not linked, one can imagine that with the election run-in, the EU might want to give off a clearer sign that the road taken might not be exactly what they had in mind. And here's a stick ...

And concerning exports, state run Agence Kampuchea Press (Dec. 22) reports on the newest (upbeat) figures:
'For the first 11 months of 2017, Cambodia exported a total of 562,237 tons of milled rice, up 17.20 percent compared to the same period in 2016.
According to statistics of the Ministry of Agriculture, Forestry and Fisheries, during the period, Cambodian milled rice was exported to 63 countries around the world, mainly to China (164,979 tons), France (70,741 tons), Poland (41,469 tons), Malaysia (35,209 tons), Bangladesh (26,970 tons), England (25,889 tons).
By the end of November this year, rainy paddy rice cultivation ended successfully with 106.45 percent of the yearly plan, said the source'.
Phnom Penh Post (Dec. 11) adds:
'Approximately 45 percent of Cambodia’s total rice exports have gone to the European market, while 29 percent have gone to China alone.
According to Hean Vanhan, director general at the General Directorate of Agriculture, “based on the trend, rice exports should reach over 600,000 tonnes by the end of the year”.
So entry to Europe is quite essential for the Cambodian rice market.

From the Khmer Times (Dec. 13) this snippet of rice news:
'Next month the Cambodia Rice Federation (CRF) will hold the sixth edition of the Cambodia Rice Forum, bringing major stakeholders in the sector together to discuss the future of the local rice industry and create a joint effort to ramp up production and exports'.
Giant
I like this article (Phnom Penh Post, Dec. 27), just hope it's not all a write up to make the initiative seem positive. Read with me:
'A conservation scheme begun eight years ago in Preah Vihear province, in which farmers are recruited to grow organic rice for the international market in exchange for protecting local ecology, has successfully signed up 43 new families in Stung Treng province over the last year, according to a press release today.
An effort by Wildlife Conservation Society and BirdLife International, the Ibis Rice project guarantees incomes for participating farmers in selected conservation areas through the sale of organic rice above the market price. According to the statement yesterday, the 43 new families in Khek Svay village of Stung Treng’s Siem Pang Wildlife Sanctuary have committed to the project since last year. The project now has over 1,000 families participating, including in Preah Vihear’s Kulen Prom Tep and Chhaeb wildlife sanctuaries.
...
Siem Pang Wildlife Sanctuary covers 150,000 hectares and is home to about 20 percent of world population of the critically endangered giant ibis and half the world population of the critically endangered white-shouldered ibis'.
More initiatives, this time from the private sector. Amru Rice (Dec. 8) announces:
'The Cambodian Agriculture Cooperative Cooperation (CCAC) set to be completed in Kampong Thom province by the end of the year, is the first large-scale farm cooperative venture in Cambodia.
Funded by the European Union and local parties, the $3 million investment project will be located over 10 hectares and will process and store, rice, pepper, cashews, vegetables, and fruits ready for export.
Founder of CCAC and CEO of Amru Rice Cambodia Song Saran said rice will share about 60 percent of total storage of agricultural products, while pepper, cashews, vegetables and fruits, will be stored in the CCAC’s processing buildings, which has a storage capacity of up to 5,000 tonnes'.
More business on new ideas. The Khmer Times (Dec. 8):
'Cambodia and China will sign an agreement in the near future to support research on growing a new variety of rice in the kingdom, according to the Ministry of Agriculture, Forestry and Fisheries (MAFF).
The proposed MoU, which is being negotiated by MAFF and its Chinese counterpart, will lay down the rules for cooperation between both nations in conducting studies on the rice variety known as oryza sativa japonica.
The ultimate goal is to grow the crop in the kingdom and export it to China, where demand for the rice variety is huge'.
I doubt whether this could be a success. Still, nothing ventured, nothing gained.

The Phnom Penh Post (Dec. 1) reports on insurance for agriculture, mostly rice growing (I think):
'Officials in the agriculture sector yesterday called on relevant stakeholders to scale up initiatives for crop insurance schemes to help Cambodian farmers mitigate the risks of having their fields destroyed by flooding and drought.
Speaking at a workshop organised by German development agency GIZ, Mom Thany, undersecretary of state of Ministry of Agriculture, Forestry and Fisheries, said enlarging the availability of crop insurance would help secure the livelihoods of small-scale farmers.
“The agricultural sector is most vulnerable to climate change,” she said. “Crop insurance protects farmer’s investments and ensures that even when a harvest fails, farmers have sufficient financial resources to reinvest and cover basic household needs like food and health care.”
Typical crop insurance initiatives that have been piloted in the Kingdom involve rice farmers paying into a scheme at the beginning of the growing season, with payments based on the size of the farm, type of paddy grown and technical tools used. In return, farmers get an insurance payout if their crop is assessed to be damaged by flood or drought'.
Poetic
Bangkok Post (Dec. 23) has an interesting article on the on-goings of rural Thailand:
'In July of this year, Prime Minister Prayut Chan-o-cha released his "Farmers' Soul-Soothing" poem to the press and the Thai public. He urged farmers: "Don't leave your home and farmland, leaving family behind, struggling to make a living locally."
His poem focuses on a number of prominent themes in rural development debates in Thailand: the migration of the young; the consequent ageing of those farmers left behind; the sustainability of agriculture; and the risks of leaving home.
...
This apparent ageing of farmers on the one hand, and farm size decline on the other, is also evident across the Southeast Asian region. The government and many agricultural economists see these trends as problematic.
...
The livelihoods that gradually came into view as our study progressed revealed not ageing farmers stubbornly holding onto their land, thus preventing the modernisation of the agriculture, but households struggling to build secure livelihoods against the inherited vulnerabilities of farming, a thinly woven social safety net, and the precariousness of much non-farm work'. 
The riceland is held as a fall back option, should this modern life one day fall apart.

For the government's role, The Nation (Dec. 18) notes:
'The government has been trying to promote its large-plantation policy  [for rice farmers] since last year with the ambitious goal of bringing farmers out of the “middle-income trap” by 2021. But farmer groups cannot help but wonder whether the policy has really increased their bargaining power.
“When I go to rice mills, I still feel powerless,” the manager of a large rice plantation in Khon Kaen province said on condition of anonymity recently.
Under the large-plantation policy, the government does not push farmers into working on the same plots of land. Rather, a shared management system is promoted that the government believes will help farmers lower their costs and boost their productivity'. 
So poetry is the government's best shot?

Scrap
There's been quite a few articles on rubber and cashew growing in the Khmer press lately.

Starting off with rubber.
Phnom Penh Post (Dec. 13) looks into the governments role:
'Despite a 31 percent increase in Cambodian rubber exports during the first 11 months of this year, the Ministry of Agriculture is failing to recoup on expenses it has spent sending expert technicians into the field in order to help boost production.
According to data from the Ministry of Agriculture, the government has spent $379,000 so far this year on technical support for rubber farmers and plantations, and has received only $299,000 back through revenue generated primarily through land rental fees.
...
Khoun Phalla, a director of the rubber department at the Ministry of Agriculture, said that the government has established five teams of rubber experts that have been deployed across the country.
“We have helped the price of rubber,” he said. “It is now better for small-scale farmers.” Phalla added that the ministry’s experts have shown farmers how to increase yields at lower costs.
“What we have spent so far will be returned through higher profits from rubber farmers and that will eventually promote government revenue,” he said.
However, Hang Sreng, director of rubber exporter Long Sreng International, said that despite the government’s expert teams, the rubber sector would remain largely unprofitable unless the government scraps taxes.
“We do not make profits from rubber because we have to pay a lot of taxes and fees to the government and that makes us unable to compete,” he said. “The specialists have helped with efficiency, but that is not enough.”
The Phnom Penh Post (Dec. 18) has an article on the foreign interests in the kingdom's plantations:
"Socfin Cambodia, the local branch of a Europe-based international rubber producing company that currently operates a 7,500-hectare rubber plantation in Mondulkiri, has announced plans to open the doors to its first rubber factory next April, with an initial investment of $5.7 million, a company executive said last week.
Jef Boedt, general manager of Socfin Cambodia, said that since the company launched its rubber plantation in 2009, approximately 2,000 hectares of rubber have become harvestable, making it economically reasonable for Socfin to open its own processing factory.
...
According to Boedt, once the factory is operational it will have the capacity to produce 25 tonnes of dry rubber per day, or approximately 8,000 tonnes per year. He added that the company has not yet decided whether it will sell the rubber it produces directly to the international market or if it will continue selling through local traders.
International rubber prices have risen year-on-year, and Boedt said that he believes that trend will continue in 2018. “The probability that the price will go up is higher than the probability that the price will go down,” he said.
...
According to data from the Ministry of Agriculture, Cambodia exported over 150,000 tonnes of rubber in the first 11 months of the year, amounting to total revenue of $249 million'.
Over to the cashew news. The Phnom Penh Post (Dec. 4) reports on how huge Vietnam's slice of the Cambodian cashew concern is:
'Vietnam, a major buyer of the Cambodian cashew nut, has unveiled a plan to purchase cashews in even greater volumes during next year’s harvest season, giving hope to farmers who rely on selling their crops at good prices from February through May.
Agriculture Minister Veng Sakhon told The Post yesterday that Cambodian officials and the Vietnamese Cashew Association have been working together to form a committee on cashew production which is expected to draft an agreement to export more Cambodian cashews to its eastern neighbour.
...
According to data from the Ministry of Agriculture, Forestry and Fisheries, Cambodia is producing a total of about 104,268 tonnes of cashews annually. Most production comes out of the Kampong Thom and Kampong Cham provinces, which account for 29 percent and 18 percent respectively of the country’s total production.
During this past harvest season Vietnam bought around 102,000 tonnes of cashew nuts from Cambodia, explained Sakhon, with the few tonnes of cashews remaining being locally processed.
He added that Vietnam is currently importing about 1.2 million tonnes of cashews from India annually, and that it also exports about 3.2 million tonnes of processed cashews to international markets each year.
Um Uon, president of the Sambo Prey Kub Cashew Nut Association in Kampong Thom province, said yesterday that the prices of cashews this past harvest season were relatively good, coming in between 5,000 riel ($1.25) to 8,000 riel ($2) per kilo depending on quality'.
The Phnom Penh Post (Dec. 7) notes how the non-Vietnamese part of the value chain is to be propped up with help of South-Korean interests:
'Local agricultural firm Camcashew signed a memorandum of understanding (MoU) with an obscure South Korean company yesterday with the aim of exporting 10,000 tonnes of processed cashew nuts next year, claiming that the two firms had reserved $100 million to fund the agreement.
Camcashew, a joint venture between a Cambodian and Malaysian firm, signed the MoU with Kim Ki Chul, president of South Korea’s Naroo Marine Company Limited.
Syaiful Hazreen, director of Camcashew, said yesterday that $80 million would be spent to purchase 40,000 tonnes of raw cashew nuts while the remaining $20 million would be spent on purchasing a 400-hectare plot of land and machinery for processing the raw kernels.
...
According to data from the Ministry of Agriculture, Forestry and Fisheries, Cambodia produces a total of about 104,000 tonnes of raw cashews annually. Most production comes from the provinces of Kampong Thom and Kampong Cham, which account for 29 percent and 18 percent respectively.
In the first 11 months of this year, Cambodia exported 71,293 tonnes of raw cashews to Vietnam, Thailand, China and India. Vietnam alone absorbed 98 percent of these exports'.
Then back to Vietnam, which according to the Phnom Penh Post (Dec. 11) has set forward a benevolent idea:
'The Vietnam Cashew Association (Vinacas) gave the Cambodian Ministry of Agriculture a $66,000 grant late last week to support cashew production in the Kingdom, according to ministry officials.
According to Hean Vanhan, director general at General Directorate of Agriculture, the grant will go toward enacting a four-year plan that will see 1 million cashew trees planted on a new 500,000 hectare farm by 2022.
...
In the first 11 months of this year, Cambodia exported 71,293 tonnes of raw cashews to Vietnam, Thailand, China and India. Vietnam alone absorbed 98 percent of these exports [!]. Vietnam exports approximately 3.2 million tonnes of processed cashews to the international market each year'.
Then beyond the tried and trusted there are the new initiatives. The Phnom Penh Post (Dec 26):
'The Agriculture Ministry is set to sign a mango export investment deal with a Chinese firm worth up to $50 million, the second such deal in the country, Agriculture Minister Veng Sokhon said yesterday.'
...
Mong Reththa, vice chairman of the board of directors at Mong Reththy Group Co Ltd, said mangoes currently had the most potential for the international market, but farming techniques needed to be improved.
“In order to reach the international market, we need to have techniques and standards for maintaining a mango farm, then focusing on packaging and freezing,” he said.
The foreign investment deals would help spur family farms to adopt more technical methods and “add value for the farmer”, Reththa said. Kingdom Fruits International Co Ltd, a sister company of Mong Reththy Group, was the first to export mangoes abroad'.
Hazard
Then some more feedback concerning pesticides witnessed in Thai horticulture. 
The Nation (Dec. 3):
'Recent research has disclosed that serious contamination from persistent organic pollutants (POPs) and herbicides in food and the environment poses health threats to the Thai public.
The research, from Ecological Alert and Recovery – Thailand (EARTH) and Thailand Pesticide Alert Network (Thai-PAN), found that Samut Sakhon had the highest levels of dioxin contamination. The level of contaminants known as polybrominated dibenzo-p-dioxins and furans (PBDD/Fs) was 33 times higher than European Union standards, Meanwhile, 46 per cent and 55 per cent respectively of fruit and vegetables were found to contain pesticides and herbicides.
The organisations said that toxic substances posed serious health threats and the authorities had not put enough measures and regulations in place to protect the public'.
The Bangkok Post (Dec. 7) then demonstrates what consumer protectors are up against:
'Thai Pesticide Alert Network (Thai-PAN) will today submit a petition to the Ministry of Industry, asking it to ban the herbicide paraquat and the pesticide chlorpyrifos, while restricting the use of glyphosate.
'The petition is timed to coincide with a meeting of the ministry's committee on hazardous chemicals which will decide on the use of the pesticides. The petition urges the committee to classify paraquat and chlorpyrifos as a "hazardous" substance which will lead to a total ban on production, imports and exports or even buying and selling. Regarding glyphosate, the network wants the committee to monitor the use strictly.
...
Witoon Lianchamroon, director of Biothai, an advocacy group on sustainable agriculture, said he was worried the decision of the committee is likely to be swayed as two of the 10 members on the committee are from chemical companies. He said a report cited by the ministry that banning the chemicals will contribute to an economic loss of over 70 billion baht is also groundless'. 
Fake
Some bits and bobs to close this entry off.
The Phnom Penh Post (Dec. 7) reports on certification, I presume on cassava:
'In a bid to decentralise the certificates of origin (COs) process to help promote international exports and ease cross-border trade, the Ministry of Commerce launched a pilot project yesterday that allows officials in the provinces of Battambang and Pailin to directly issue certification'.
Meanwhile the Phnom Penh Post (Dec. 8) notes that palm sugar growers / traders have other problems:
'Takeo provincial authorities shut down 11 small-scale operations yesterday for making fake palm sugar, and say they have plans to close more
According to Lumpong Commune Police Chief Nob Phary, police have identified 43 palm sugar operations in Bati district that are suspected of cooking down white sugar to imitate the more expensive palm sugar'. 
Phnom Penh Post (Dec. 14):
'The Ministry of Industry and Handicrafts is urging provincial authorities to dissolve [really?] spurious palm sugar operations, after 43 sham sugar producers were shut down earlier this week.
On Tuesday, Minister Cham Prasidh ordered provincial officials to investigate and close any facility that appears to cut its Khmer palm sugar with similar substances, such as white sugar, in order to keep the industry in line with international standards'.
Then in a possible positive swing  Thailands The Nation (Dec. 17) reports that with the rubber boom rebounding forest encroachment may also be wound back:
'MID the plunging price of rubber latex to below Bt50 per kilogram, concerned officials are now eyeing the potential for eliminating the encroachment of rubber trees in forests. As well as returning forests back to nature, the move would help reduce the volume of latex and thus push up prices'.

Monday, April 13, 2015

Better informed

Probably one of the major events the past month has been that the Facebook site of Mekong Oryza Trading has suddenly decided to publish links to stories on Cambodia and rice. It also includes relevant articles from other (Southeast) Asian media as well as oryza.com. An added instrument to keep abreast of rice related news. 

It also means I don't have to regurge  all rice related news for Cambodia. Just comment on trends or diabolical developments ...

Unfair
Big news (Cambodian Daily, Apr. 8):
'Cambodia’s year-on-year rice exports for the first three months of 2015 increased by 77 percent, according to figures released Tuesday by the Cambodia Rice Federation (CRF)'.
Reasons 1-10 for this increase: China.

Oryza.com (Mar. 27) highlight the anxiety of Italian rice farmer who feel threatened by lower tariff for some rice producing nations. On Cambodia:
'However, Italy's Ente Nazionale Risi, the National Agency for rice noted that the figures provided by Cambodia on 2015 rice exports are  wrong as the EU data shows that the decline during the stated period has been only 10%. They noted that despite a decline in imports from Cambodia, Italy is not able to recapture its lost share in the local market'.
Maybe Italian farmers are doing something wrong ....

Earlier the Phnom Penh Post (Mar. 20) noted the Cambodian side to the argument:
'Sok Puthyvuth, president of the Cambodia Rice Federation, said yesterday that the purpose of the meeting was for the delegation to have a greater understanding of Cambodia’s rice industry, to better inform their discussions with Italian producers.
“We clarified that Cambodian rice exports to Europe are largely only fragrant rice, so it does not affect the [Italian] farmers,” he said, Puthyvuth said that Italian rice farmers produce largely a white rice variety that did not compete with Cambodia’s fragrant rice'.
Cambodia is making progress with it's moves for Geographical Indication for a number of agricultural products, so notes the Phnom Penh Pot (Mar. 13):
'Feasibility studies on achieving Geographical Indication status for Thma Koul rice, Kampot durian and Cambodian golden silk have been completed, officials said yesterday.
...
Song Saran, CEO and president of AMRU rice and CRF board member, said achieving GI status for Cambodia’s Thma Koul rice would open up new markets for Cambodian rice.
“It will help boost Cambodian rice exports and the higher value will increase margins for farmers and exporters. With GI status, it will take exporters less effort to promote rice to buyers,” he said'.
A video on you tube making the rounds on social media concerning a rice planting machine.

Futures
The Bangkok Post (April 8) sees it relevant to note that the dry season rice crop in Thailand has dropped to a 15 year low. The article blames poor rains. Though I believe it's more to do with poor (and possibly lower) prices in recent years and the fact that subsidies have disappeared ... witness this sentence:
'Futures traded on the Chicago Board of Trade have slumped 31% in the past year to $10.70 per 100 pounds'.
The Bangkok Post (Mar. 24) reveals that one of the driver of lower rice prices is the Thai government itself as it tries to rid itself of stocks. They are coming at a bad time; oil prices are down and many of the buyers are stuck with cheaper Euros.

Sad news from the Nation (Mar. 27):
'A 46-year-old rice farmer in Phichit's Muang district committed suicide by hanging himself yesterday morning allegedly due to overwhelming debts. 
A police investigation found that Chid Chusri left home on Wednesday night to "check on water pumps" and didn't return. His relatives went looking for him and found his body hanging from a tree in his rice field at 8.30am yesterday.
His older brother, Siplapachai Chusri, told police that Chid had been under a lot of stress because he had debts amounting to Bt700,000 - more than Bt400,000 of which was owed to a local branch of Bank for Agriculture and Agricultural Cooperatives (BACC). He said Chid had recently borrowed Bt7,000 from a relative to pay the bank's debt interest'.
Tricks
A complicated article from Vietnamnet (April 1). This is the gis: Chinese businessmen are trying to buy rice through border trades rather than through Vietnam's official channels. They are paying more, but due to avoidance of (export) taxes, making more. The consequence is that the domestic price rise, meaning official export become less competitive, meaning less taxes ...
'The Vietnam Food Association said that Chinese businesses top the list of trade partners who try to lower prices by “tricks” and cancel contracts.
In 2013 alone, 64 percent of rice export contracts were canceled by Chinese traders. They delayed the delivery schedules for other contracts and lowered prices'.
One of Vietnam's bigger food company's, Southern Food Corporation Limited (otherwise known a Vinafood 2) is in the problems. Inefficiencies have resulted in losses covered by debts, which were than passed on through the conglomerate. Vinafood 2 plays a large role in Vietnam's rice industry and has also been forced to brunt losses in deals made at above market price. More on this at oryza.com.
The Phnom Penh Post (Mar 30) notes that the rice exporting joint venture in Cambodia (Cavifoods) would supposedly be unaffected.

Branding is hot in Cambodia, now the Vietnamese want the same, so reports Oryza.com (Mar. 24).

Stay at home farming
If you want to know more on how rubber prices are keeping up (or in this case down), read this good background article from the Bangkok Post (Mar. 24). Soothsayers reckon prices  will not drop any further as current prices reflect the cost for harvesting and further processing only; no returns on investment / land /management, etc., so if prices drop further, rubber collectors will prefer to just stay at home ....

On the other hand, one crop on the up are cashews. The Phnom Penh Post (Mar. 20) features Kampong Thom Cashew Nut Association which hopes to get government support to encourage more cashew growing. Prices have risen this year by 50%.

Lawful
Not included in Mekong Oryza overviews, but probably of more significance for the local Khmer farmer be he / she a rice farmer or otherwise. Cambodian NGO's have brought to the attention that more than 2 million hectares of land were under Economic Land Concessions an agreement with central government giving investor a free hand on huge tract of land to do as they please (Phnom Penh Post, Mar 31). 
Anything goes, including driving out locals as well a full scale  deforesting which influences water levels and creating Despite a 2012 ban on new concessions, the granting of these has actually accelerated.  
Licadho has a nice interactive map. Branding would help Vietnam to upmarket it's rice. Or at least keeping up with the competition.

Hands washed
On topic, a very recent report (Apr. 11) in India's Economic Times tells how some farmers are upset with hybrid rice:
'"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast, a serious disease caused by the imperfect fungus'.
"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast, a serious disease caused by the imperfect fungus.

"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast

"Liangyou 0293", a hybrid rice variety developed by Yuan Longping High-Tech Agriculture Co Ltd (Longping High-Tech) and grown around six cities of east China's Anhui Province has been reported to suffer massive crop failure after being infected with rice blast

Nearly 700 ha were to be affected. Longping blame the mis-harvest on adverse weather conditions ...
Damage control as reported by CRI (Apr. 11):
'China's agricultural authority says the massive crop failure in Anhui province does not involve a super-hybrid strain of rice.
...
Super hybrid rice now accounts for around 30% of the country's overall rice cultivation'. 

Sunday, February 24, 2013

Fight


The ongoing saga of the Thai rice pledging holds the global rice export market in it's grips, so much is clear. Everybody expects prices to drop, th question is when? 
In the meantime what will we learn from reading on? The rice pledging is stretching it's physical limits, Cambodia's exports are stalling but might take off (once more?), hybrid rice is over it's peak in Bangladesh.

But the most noteworthy news concerning rice may well be the scientists fight. In the left corner are all those that are  left rosy by the back braking efforts of rice farmers world wide and on the right are the scientists looking down on the practices of those farmers.
'Piqued over loosing out to an Indian farmer who beat his world record by harvesting 22.4 tonnes of rice per hector, a top Chinese scientist known as the "father of hybrid rice" has questioned the feat, terming it as "fake".
It is "120 per cent fake [a fake in reverse?]", Yuan Longping, who held the record earlier by growing 19.4 tonnes of rice in 2011, was quoted as saying by the Hong Kong-based South China Morning Post'.
Source the Financial Express (Feb. 21). 
In this Mr. Longping seems piqued by an article in the Guardian (Feb. 16): 
'Kumar, a shy young farmer in Nalanda district of India's poorest state Bihar, had – using only farmyard manure and without any herbicides – grown an astonishing 22.4 tonnes of rice on one hectare of land. This was a world record and with rice the staple food of more than half the world's population of seven billion, big news. It beat not just the 19.4 tonnes achieved by the "father of rice", the Chinese agricultural scientist Yuan Longping, but the World Bank-funded scientists at the International Rice Research Institute in the Philippines, and anything achieved by the biggest European and American seed and GM companies'.
As said the fight/discourse is more amusing than the actual discrepancy.

Thai tales
Wishful thinking is a government policy in Thailand. Proof: 
'Rice shipments from Thailand are poised to surge 15 per cent this year to help the country win back the top-exporter slot. Government sales are accelerating from its record stockpiles, an industry group said Wednesday'. 
However the sales will be obligatory, what with the storage scheme tying up both capital and storage space. It also notes that the baht is rising meaning even lower returns. From the Bangkok Post (Jan. 31).

Not everybody shares the optimism. Therefore they must regard an article in the Bangkok Post (Feb. 18) concerning doubts raised by rice traders as a let down: 
'The government expects to deliver 2.5 million tonnes of rice through government-to-government (G2G) contracts this year amid scepticism from the private sector that the goal is daunting, given the relatively high price of Thai rice and burgeoning supplies. "The target can be achieved but only in the case that the government sells its rice stock at loss," said Sompong Kitireanglarp, president of the rice exporter Ponglarp Co Ltd'.
Despite Thailand's assertion that they may well sell most of their stock, the Bangkok Post (Feb. 8) quotes the UN's Food and Agriculture Organisation (FAO) as fearing the lack of storage space: 
'The FAO said the country may be running out of room to store the staple.
Milled holdings may jump 40 per cent to 18.2 million (metric) tonnes in 2013, the Rome-based United Nations agency said in a report Friday on the global rice market. The reserves, which averaged 5.4 million tonnes a year between 2008-2010, have increased from 7.8 million tonnes in 2011, according to the report.
There may be a "looming shortage of storage space," the agency said. "Government stock-release plans have progressed slowly, further aggravating the supply situation for an export sector that is faced with little offshore demand," it said'. 
It also noted how the pledging scheme was helping neighbouring nations exports; but not in the intended way: 
'The rice-purchase scheme has elevated local prices, prompted increased production and "fostered a considerable rise in unofficial inflows" from neighboring countries, the FAO said in the report. An estimated 750,000 tonnes in unofficial shipments was moved in, up from 400,000 tonnes a year earlier, it said'.
This may explain why Cambodian exports are failing to rise (see below) ...
And a minor note: 
'The World Bank estimated the total cost may be as much as 440 billion baht ($14.8 billion) in 2012-2013, compared with 376 billion baht or about 3.4 per cent of gross domestic product the previous year'.
Other drawbacks rising, for instance the failure to maintain quality:
'A Democrat MP Thursday sliced open a bag of the government's pledged rice in parliament in a bid to demonstrate shoddy quality control of the stored paddy.
Warong Dejkitvikrom, the MP for Phitsanulok, said the rice, retrieved from Surin, was brown and rotten.
His display in the House drew protests from government lawmakers.
The government will not be able to maintain the quality of the pledged rice, Mr Warong said, questioning the Commerce Ministry's handling of the programme'. 
The (typical) government reply: 
'Mr Nattawut said the government is trying to maintain rice quality.
There are huge quantities of stored rice and it is impossible to ensure all the rice is in perfect condition, he said.
Mr Nattawut fired back at Mr Warong, asking how he gained access to the government's warehouse to take the sack of rice.
He accused Mr Warong of trespassing and said he would instruct the Internal Trade Department to lodge a police complaint against him'. 
! Bangkok Post (Feb. 8) includes nearly 50 comments ...

Then we have troubles in the cassave guarantee programme in Thailand (Bangkok Post, Feb. 20). Would this be a mirror of the rice pledging schedule.
'Police have pressed embezzlement charges against three firms accused of stealing cassava under the government's pledging scheme.
aeng Isan Agriculture Ltd's manager Kittipong Sanvarangkul, Chalobon Enterprise's manager Sakarin Ratana and Thong Fah Trading Ltd's manager Attaporn Pansa-ard were summoned Tuesday to Muang Buri Ram station.
Their companies were accused of stealing 34,000 tonnes of cassava, worth more than 250 million baht, under the government's produce pledging scheme between 2011 and 2012'.

Regional
A side note, Myanmar is yet again another country thriving off Thai woes: 
'The Commerce Ministry expects the volume of rice export will hit the highest in 60 years with metric tonnes of 1.5 million for this year'.
So reports elevenmyanmar (Feb. 14).

Another country wishing to cut into Thailand's export market is apparently Laos. The Vientiane Times (Feb. 13) reports
'The government is aiming to boost rice yields so the crop can be exported, but while harvests are improving, Lao farmers have been unable to reach the targets set in recent years.
...
Despite the shortfall, the government has continued to set ambitious goals by adding 200,000 tonnes to the target yield each year.
This means the target for this fiscal year is 3.8 million tonnes; in 2013-14 it is 4 million; and in 2014-15 it is 4.2 million tonnes.
Laos aims to become a rice exporter over the next decade if it can maintain current grain production and consumption growth rates, according to an Asian Development Bank funded study'.
Laos has it's own problems with meeting government goals (Bangkok Post, Jan. 25):
'Natural disasters and a shortage of seeds have caused rice production in Laos to miss government targets for the second consecutive year – dealing a blow to its hopes of becoming a rice-exporting nation'. 
So how far off the mark? 
'Laos produced 2.7 million tons of rice in 2012, 10,000 tons short of the official target set, according to official figures'.
!
 
Passé?
Hybrid rice is over the hill? The Financial Express (Feb. 19, Bangladesh version) reports that the acreage of hybrid rice in Bangladesh has dropped by nearly half since 2008. The lesson learnt (or not): 
'"The farmers are not interested to produce hybrid rice as its market value is much lower compared to traditional high yielding variety (HYV) and indigenous varieties. Consumers don't like its sticky test", he [key official at the Field Service Wing of DAE (Department of Agriculture Extension)] said'.
Cambodia
The Phnom Penh Post (4 Feb.)  has an article doubting whether Cambodia is profiting from the Thai pledging scheme and it's massive storing and thus leading to lower thai exports for higher prices which on the face it should benefit Official Cambodian exports. Note the word official. The porous border means higher prices and more profits for unofficial exports to Thai ware houses. It does note:
'According to Renne Outh, owner of Mega Green Imex Cambodia, Thai rice exporters have already been entering Cambodia to export rice from here'.
Phnom Penh Post (Feb. 8) features an article on the cooperative US company Akra Group (A boutique investment firm for international multiparty transactions) and a deal it signed with a rice mill. However it´s unclear what the deal entails and what, if any, effects will occur. 
Luckily there is an earlier article by Phnom Penh Post (Dec. 19): 
'Tightening the Cambodian command of the market, next year alone, Akra plans to increase milled rice exports by between 100,000 and 300,000 tonnes.
...
Farmers and millers are invited to buy shares in the company, which then guarantees to buy their rice at world market price, mill the rice, package it and sell into to markets such as the US under the universal branding of Akra rice.
The profits would then be fed back into the co-op, with the member-elected board determining whether this money goes directly back to shareholders or is used to further invest in infrastructure.
Akra will also sell inputs such as seed, fertiliser and heavy machinery at cost, or lend machinery to those who cannot afford it, and pay for inspectors from foreign markets to certify the product'.
Opening open doors. Phnom Penh Post (Feb. 20) gives the opportunity to open open doors:
'Cambodia could drastically enhance its rice yields by improving its irrigation infrastructure and convincing farmers to adopt modern agriculture practices, researchers said in a study'. 
Well, fancy that. Though the published article merits itself in scientific approach, the findings seem too obvious. And it references itself withSurvey of Rice Cropping Systems in Kampong Chhnang Province, Cambodia; Kleinhenz, V., Chea, S., Hun, N., 2013. Rice Science, 20(3). Possibly meant as an upcoming article as Issue 3 isn't expected for another 6 months ....

Manipulation is another aspect of Cambodia's rice cultivation requiring urgent attention, though the Phnom Penh Post (Feb. 19) questions the market principle, it seems: 
'Farmers have expressed concern over local brokers’ manipulation of the market during harvest season, reducing buying prices for farmers who have no access to actual market rates'. 
Prices always drop at harvest time and rise thereafter, seems simple logic not price manipulation.

Phnom Penh Post (Feb. 5) concludes there is much optimism in this new year for traders and millers:
'Rice millers and exporters are optimistic that they will see an increase in exports this year after they received higher orders toward the end of 2012, producers said yesterday.
Toch Tepech, president of the Svay Rieng Rice Millers Association, told the Post he had exported over 1,000 tonnes, mainly fragrant rice, to world markets last year. Most of the exports went to Europe.
“This year, I believe exports from my rice mill will increase 100 per cent because there was lower export last year,” he said. So far, he has already received numerous orders in 2013, he added'.  
This message is echoed two weeks later. The Phnom Penh Post (Feb. 22) reports a 165% surge for January. It unfortunate fails to mention why the surge. With the very low figures, could this be a one-off? 

Other products on the up are cashews. 
'Cambodia's cashew-nut exports increased sharply from 443 tonnes in 2011 to 4,453 tonnes last year, according to the Ministry of Commerce. But observers say these figures do not reflect reality, as a large percentage of exports had not been recorded'. 
Statistics (Phnom Penh Post, Feb. 6)?