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.
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:
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):
'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.Though the comprehension in this task is apparent, there seems to be uncertainty on how to move forward.
....
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'.
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.
So why not go for Cambodian Clean, an organic fragrant high quality rice?
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'.
Plastic
Let's continue with the topical cambodian and rice updates
Rains on end, time to take stock. Phnom Penh Post (Oct. 30):
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.
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.
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):
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 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.
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.
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):
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?
