Lock & down?

The story over the past month has of course been how the Covid-19 pandemic is influencing rice markets, mostly on the consumer side.

From IRRI, an article by Valera, H.G.A., J. Balié, and V.O. Pede which seeks to look at the wider implications:

'The impact of the COVID-19 crisis on rice-based agri-food systems is expected to be much more serious and deeper than the 2008-2009 GFC. Containment efforts to address the pandemic have already severely disrupted farm supplies such as seed, fertilizer, and other agro-inputs. The lockdowns imposed in countries heavily impacted by the COVID-19 pandemic have also created important labor shortage and migration within countries (e.g. India). This could result in a higher rural wage rate if limited labor availability continues.
The lockdowns are also changing the behavior of consumers. They have been stockpiling food and other essential items. Consumers have also tended to change their spending expectations, anticipating a much longer negative financial impact of the crisis. According to a recently published McKinsey & Company article, the outlook of consumer spending is gloomy for most European countries, while for countries like Brazil and Japan the spending propensity would be impacted less.
We argue that the COVID-19 pandemic could also impact food access, and more particularly rice demand, for three main reasons. First, the traditional distribution (retail, restaurants, and food stores) and logistic (ground, air and maritime transportation, as well as processing) channels have been disrupted. Second, employment has declined and incomes have been suppressed, especially for wage earners. Third, food prices have already been negatively impacted in many countries. The price of rice has increased in many Southeast sian countries between early March and mid-April 2020 as reported by Reuters.
The combined effect of these forces could lead to a shift in rice demand. As the income of families will decline substantially, households will spend less on relatively more expensive food items like meat, milk, vegetables, and fruits. Hence, in most Asian countries where rice consumption per capita is already high, we could see both a moderate increase in rice consumption per capita and an overall increase in rice consumption due to the fact that more people will have fallen below the poverty line. For them, the only affordable food is likely to be rice. However, these poor consumers are already negatively affected by the price spikes for rice, which further compounds their purchasing power (see real price levels in Figure 3). These two mechanisms (contraction of incomes and higher rice prices) have the potential to worsen the food insecurity situation of the most vulnerable and poorest segments of the population'. 

So what I read is that consumption might inch up, though most probably for lower grade rice, but as the past has revealed, if an exporter decides to cut back for domestic policies, then anything can happen.
More in-depth. The Diplomat (May 7):

'Much of the reason for rice’s stellar and almost unique performance in the commodities space is attributable to governments’ coronavirus lockdown measures across Asia. This resulted in most of the world’s largest rice net exporters, namely India, China, and Vietnam, as well as major up-and-coming net exporters like Cambodia and Myanmar, freezing their overseas shipments to ensure sufficient stocks of rice for domestic consumption. Thailand stands out as the one significant rice exporting country continuing to supply the region’s heightened rice-consumption needs throughout the pandemic.
...
China’s surging demand for rice at the beginning of the year was arguably the principal driver in boosting global prices for the agricultural commodity. In the first quarter of 2020, according to China’s Customs Statistics, the value of rice imports rose by 60.3 percent while the value of overall agricultural imports increased by 17.4 percent for the period.
...
Vietnam, currently the world’s fourth largest rice exporter, behind India, Thailand, and the United States, managed $1.4 billion in exports, last year, which accounted for roughly 5 percent of international rice exports. Even so, Vietnam restricted export volumes for April and May to ensure ample reserves for domestic use. For the sake of maintaining cooperative relations with neighboring countries and within the Association for Southeast Asian Nations (ASEAN) framework, Vietnam’s government has been conducting bilateral negotiations with the region’s net rice importers to secure special government-supply agreements.
According to Vietnam’s deputy minister for agriculture and development, the Philippines, which imports 90 percent of its rice from the country, will be one of the first to be informed of the exception to this temporary restriction as Manila awaits delivery of about 1.2 million metric tonnes of rice. Other regional net exporters that have imposed such export restrictions, including Myanmar and Cambodia as top-ten global rice exporters, are similarly negotiating such agreements with the region’s net importers.
Thailand, the world’s second largest rice exporter, on the other hand, remains open for new business as its regional competitors close down international rice sales. The Thai government announced that sufficient rice was cultivated to meet its annual export target, normally around 10 million tonnes yearly, on top of its domestic consumption of a similar quantity, even in the face of a debilitating drought that’s lasted since November last year. The price of Thai white rice 5 percent broken, which is an Asian export benchmark, has risen over 25 percent this year, even reaching a seven-year high, as India and other exporters imposed export controls. At the beginning of the year, Thailand’s rice export prospects were relatively gloomy, but a complete about-turn materialized when the coronavirus outbreak arose'.

FAO rice price update for May 2020 sort of agrees. More sales at higher prices:

'The FAO All Rice Price Index (2002-2004=100) increased by 15.9 points (7 percent) in April 2020 to reach 248.2 points, it’s highest level since December 2011.
...
Asian markets were still reeling from the impact of sudden surges in domestic demand spurred by concerns over the COVID-19 pandemic, when the late March suspension of new export contracts in Viet Nam was followed by news of Cambodia prohibiting Indica and paddy exports and of Myanmar temporarily halting the issuance of new export licenses. Logistical constraints linked to quarantine measures, particularly in India, compounded on the uncertain export policy environment, driving prices up across most Asian origins and qualities. Asian quotations began receding only mid-way through April, when Viet Nam instated an export quota, successively expanding it and ultimately deciding to repeal all export restrictions as of 1 May, and when Indian exports regained momentum as bottlenecks began to clear'. 

Agreed
Back to some of the related action. The Bangkok Post (Apr. 23) reports on domestic actions:

'Packaged rice manufacturers and distributors yesterday agreed to cut their prices by as much as 50%, as requested by the Commerce Ministry'.

But the threat of a sellers market, seems to have ebbed away. The Phnom Penh Post (Apr. 30) on Vietnam:

'Vietnamese Prime Minister Nguyen Xuan Phuc on Tuesday agreed with the Ministry of Industry and Trade’s (MoIT’s) proposal to resume rice export from May 1, in accordance with Decree 107/2018/ND-CP on rice export business'.

Two weeks later, Cambodia follows suit. The Phnom Penh Post (May 13):

'The government has decided to allow the rice industry to resume exports of white rice to global markets after a ban was issued in March.
The lifting of the ban comes as the Philippines seeks to import an additional 300,000 tonnes of milled rice from major producers in Southeast Asia.
The decision is in response to a request by the Cambodia Rice Federation (CRF) to gradually resume white rice exports from May 20, said a letter sent from the Ministry of Economy and Finance to the CRF on Wednesday and signed by Minister Aun Pornmoniroth.
In March, Prime Minister Hun Sen ordered a temporary suspension of white rice and paddy exports to ensure adequate domestic supply, food security and price stability in the Kingdom during the Covid-19 pandemic'.

So are we now back where we started?

Edge

Meanwhile the non-Covid related news on rice and Cambodia.

Phnom Penh Post (May 3) notes how the rice related statistics are on the up:

'Cambodia exported 300,252 tonnes of rice to the international market in the first four months of this year – equivalent to $210 million – the highest export volume in the past decade, the Cambodia Rice Federation (CRF) said in a report.
The export volume is 40.46 per cent over the 213,763 tonnes reported in the same period last year, it said.
China accounted for 41 per cent of exports or 122,094 tonnes, the EU and the UK 32 per cent or 97,337 tonnes, ASEAN countries 13 per cent or 37,428 tonnes and other countries 14 per cent or 43,339 tonnes.
CRF secretary-general Lun Yeng told The Post on Sunday that rice exports have reached 48.41 per cent of last year’s total exports. The spread of Covid-19 has led to a higher demand for food and storage in all countries, he said'.

Reports galore, hopefully not all following concern the same. The Phnom Penh Post (May 12):

'The government and the private sector are jointly studying the feasibility of lowering paddy production costs and refining milled rice export plans to increase the competitiveness of Cambodia’s market.
Ministry of Commerce secretary of state Sok Sopheak on Monday said ongoing discussions are aimed at identifying the challenges and giving the Kingdom’s rice sector a competitive edge'.

The Khmer Times (May 13) runs an article

'The Ministry of Commerce and development partner – CAVAC (Cambodia Agriculture Value Chain Programme) – have reviewed a study on rice export cost, aiming to enhance the competitiveness of Cambodia’s rice export'.

But not yet published. 

Oh yes, same source, same day even, but different article:

'The Ministry of Commerce and Cambodia Rice Federation (CRF) are continuing working to solve the long-running challenges of the Kingdom’s high cost of electricity and transportation in order to boost the country’s rice industry.
...
The Ministry said that the main challenges for Cambodia rice exports include the high cost of electricity, the high cost of transportation, fee costs at ports and the cost of shipping from ports to the destinations'.

Pity to have spent money researching this. It's been this case like since always.

Strict

Cassave remains on the up. The Phnom Penh Post (Apr. 29):

'Cambodia exported 1,115,365 tonnes of cassava to the international market in the first three months of this year, inching up around 1.6 per cent from 1,097,803 in the year-ago period, said a report from the Ministry of Agriculture, Forestry and Fisheries'.

 Khmer Times (May 7) on cashew:

'Cambodia exported 186,205 tonnes of cashew nut to foreign markets in the first four months of this year, according to a report from the Ministry of Agriculture, Forestry and Fisheries'.

Rubber acts as expected, a downwards spiral. The Phnom Penh Post (April 16):

'Rubber exports in the first three months of this year declined sharply as a result of tightened measures at border checkpoints to prevent the outbreak of the Covid-19 disease, plantation owners and exporters have said.
Long Sreng International Co Ltd general manager Heng Sreng told The Post on Monday that his company exported a very small amount of rubber in the first three months of the year due to restrictions on the Cambodian border with Vietnam.
Long Sreng International owns the Boeung Ket Rubber Plantation in Stung Trang district’s Prek Kak commune in Kampong Cham province.
Over the past three months, the company has exported 50 tonnes of rubber to the international market, down from the year-ago figures of between 250 and 300 tonnes, he said'.

Novelty. The Khmer Times (May 7):

'A local investor has created a large-scale dragon farm community in Preah Vihear province in response to local and export demand.
Cambodian agronomist Yang Siang Koma and local partners are planning to grow 1 million dragon fruit trees covering 1,000 hectares of land in Sambor Neak community.
“We expect ultimately to create 3,000 to 10,000 jobs for residents,” he said, adding that the fruit has great potential in the market, noting that Vietnam exported $1 billion of the fruit to international markets last year'.

Not all fruits are on the up. The Khmer Times (May 1) reports on difficulties  with exporting mango, though not really naming what the problem is:

'Mong Reththy Group (MRG), the largest local agribusiness company, and Korean mango exporter Hyundai Agro are discussing ways to seek a solution for mango exports.
Chang-Hoon Lee, managing director of Hyundai Agro, told Khmer Times yesterday that both sides have discussed the current situation of the local mango market.
“We agreed to exchange skills, techniques and know- how to each other. We [Hyundai] will support MRG to follow the guidelines to meet South Korea’s regulations because the Korea market is very strict with chemicals and records, plus worm and disease control when it comes to such fruit exports,” he said'.

Pepper received quite some newsprint. Phnom Penh Post (May 11):

'April marked 10 years since Kampot pepper became the first product to receive Geographical Indication (GI) status by the Ministry of Commerce.
Due to its high price and market favour resulting from its GI label, local farmers and investors are engaged in cultivating pepper in provinces across the Kingdom.
But market demand is very uncertain as the price of pepper not from Kampot or Kep, the two provinces recognised as legitimate areas to grow Kampot pepper, has plummeted, frustrating farmers.
Data from the Kampot Pepper Promotion Association (KPPA) shows that membership has increased to 455 families from 118 in 2010.
The number of wooden stakes, which farmers anchor into the ground for the pepper plants to grow around, used by its members has increased from 27,012 in 2010 to 727,317 this year.
Land designated for Kampot pepper cultivation has increased from 1ha in 2010 to 251ha today – exclusively in Kampot and Kep – and more than 100 tonnes of the prized pepper was produced last year.
The data also indicated that prices have increased significantly. Black pepper cost $5.75 per kg in 2010, while red pepper was priced at $10 per kg and white pepper cost $12 per kg.
The prices currently stand at $15 per kg for black pepper, $25 per kg for red pepper and $28 per kg for white pepper'.

Trust

Then that final paragraph in which we pull all that unrelated together. But maybe not so today.

First some Khmer related news. The Khmer Times (Apr. 28) notes that the government sees some interest in the organic growing sides of things:

'The government has announced it will launch rules and a special logo to certify food is organic.
...
Chan Pich, general manager of Signature of Asia, welcomed the move. He said currently only the private sector certifies organic standards for agricultural products in Cambodia. However, having a national organic standard is good because Cambodia wants to work within ASEAN organic standards, to have a proper logo for local products and have proper guidelines to build trust among producers and consumers'.

That said, the Phnom Penh Post (May 5) states that the kingdom is importing more and more of the non-organic:

'Cambodia imported more than 1.2 million tonnes of agricultural fertilisers and chemical pesticides in 2019, up more than nine per cent from 1.1 million tonnes in 2018, said a report from the Ministry of Agriculture, Forestry and Fisheries.
Of that, more than 1.14 million tonnes were fertilisers and 81,097 tonnes were chemical pesticides, it said.
The Kingdom imports more than 90,000 tonnes per month of about 2,600 types of fertilisers and pesticides to serve the agricultural sector'.

Then bringing into mind that we are a blog on hybrid rice and all it entails. The past we have had the opportunity to target Monsanto and it's new parent company Bayer. Responsibletechnology (Apr. 29) foresees doom:

'For Bayer’s Annual General Meeting yesterday, Monsanto investigator Jeffrey Smith predicted that Bayer will face possible bankruptcy from a new wave of lawsuits linking Roundup herbicide to numerous diseases, and that the current expected payout of up to $12 billion to more than 50,000 plaintiffs with Non-Hodgkin’s lymphoma (NHL) is only the beginning'. 

Perceptive

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

...

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

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

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

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

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

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

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

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

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

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

Rubber. The Khmer Times (Jun. 17):

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

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

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

...

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

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

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

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

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

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

...

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

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

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

...

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

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

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

...

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

...

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

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

...

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

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

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

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

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

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

Bamboo

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

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

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

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

Raw

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

The Khmer Times (Feb. 13):

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

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

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

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

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

...

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

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

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

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

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

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

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

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

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

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

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

...

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

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

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

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

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

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

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

Measures include:

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

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

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

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

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

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

...

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

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

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

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

Sought

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

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

...

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

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

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

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

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

...

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

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

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

...

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

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

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

...

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

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

...

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

....

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

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

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

Fight

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

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

...

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

...

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

...

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

...

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

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

The Nation (Feb. 25) reports:

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

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

...

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

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

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

The Nation (Feb. 26) continues:

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

...

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

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

...

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

...

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

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

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

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

Comments on this article btw were scathing. 

The Nation (Feb. 27) hasn't finished:

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

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

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

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

Short

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

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

...

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

...

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

Also in the same edition:

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

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

...

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

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

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

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

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

Control

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

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

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

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

...

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

The Nation (Feb. 15):

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

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

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

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

...

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

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

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

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

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

...

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

...

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

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

Odd business. 

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

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

Nothing controversial of course.

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

(Alarm bells ringing)

Understanding

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

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

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

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

...

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

...

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

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

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

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

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

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

Stress

The Khmer Times (Mar. 7) mentions that:

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

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

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

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

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

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

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