Helpful clarification

I would have wanted to start this blog off with a look into all the possible GMO interventions which, increasingly, are becoming more like traditional crop improvement but just a little faster in it's outcome. It certainly is obscuring the discussion. But there's not really that much out there to give an informed answer to this.

What is sure though, that every company-lead intervention focuses on private profits rather than providing a public good. So there's always going to a healthy case against whatever is suggested. 

But for the moment let's just see if this will remain and keep attuned to whatever changes lie ahead.

Ignore
Properly the most important news from the Cambodian rice front was a visit and speech  from the Cambodian PM to the Cambodian Rice Forum. From the Cambodia Daily (Jan. 25):

'Speaking to industry bigwigs at the annual Cambodia Rice Forum at the Sokha hotel in Phnom Penh, Mr. Hun Sen [PM] lauded efforts to in­crease the profile of Cambodian rice abroad, but noted that stiff re­gional competition had limited the country’s export totals.
...
Eang Heang, owner of the Eang Heang Rice Mill Factory in Battam­bang City, said his inability to ac­cess an affordable supply of electricity was hindering production.
“We don’t have state-supplied elec­tricity,” Mr. Heang said, noting that his milling factory was forced to run on a generator, as Electricite du Cambodge had yet to connect it to the main grid'.

As always the problems facing exporting of Cambodia rice are limitless.  
Take for instance the currency of trade. The Khmer Times (Jan. 10): 

'As China’s currency, the yuan, falls against the US dollar and other major global currencies, Cambodian rice exporters say they will need to adjust their prices to compete in the market they have targeted for expansion.
Hun Lak, vice president of the Cambodia Rice Federation [CRF], said prices of rice exports to China will need to fall due to yuan’s depreciation, which began at the end of last year. “Thailand and Myanmar lowered their rice prices and if we don’t follow suit we cannot sell our product [in China],” Mr. Lak said.
“Fragrant rice was priced at $740 per ton on average [in China] at the end of 2015, compared to around $800 early in the year and white rice is going for $430 per ton, about $20 to $30 lower,” Mr. Lak said, noting that pricing is in US dollars'.

In the same vein, the Khmer Times (Jan. 19) reveals that the Cambodia will actually focus on exporting agricultural produce:

'The Agriculture Ministry yesterday launched a strategy for the developing the sector, aiming to expand exports of agricultural products to spur economic growth through sustainable farming practices'.

No irony is lost on the government's role, as it has actually been hindering exports ... Continuing:

'Song Saran, president of Amru Rice Cambodia, said that although it was good to have a strategic plan to develop agriculture in Cambodia, the plan is already out dated because the focus should be on rice production. Rice production and export needs to be addressed urgently, Mr. Saran said.
The government should fast-track railway rehabilitation to reduce transportation costs, lower electricity costs, offer low interest loans to the rice sector, build more storage facilities and invest in ports to ensure that Cambodian rice is competitive in export markets'.

What about the CRF itself? The Phnom Penh Post (PPP) on Jan. 13:

'The Cambodia Rice Federation (CRF), the apex body of the nation’s rice industry, is looking to bring all relevant stakeholders under one unifying vision for the sector, citing the lack of cooperation among its members as a key reason for missing last year’s 1 million-tonne milled rice export target.
...
One of the biggest challenges faced by the federation, according to Lak [CRF vice president], was managing the country’s supply and demand of rice paddy. He cited instances where millers could not purchase paddy given that the farmers desperate for cash had already sold it to millers in neighbouring countries.
To remedy this scenario and achieve the export target of 1 million tonnes of milled rice per year, Lak said the federation’s members would need about $550 million for paddy procurement'.

Again a case of trying to control the market. Better would be an export board which focuses solely on exporting the product.

A side note on the direct challenges ahead. The PPP (Dec. 25) reports on an issuance from the government warning farmers off a dry season rice crop:

'Farmers and exporters have expressed concerns over an Agriculture Ministry notice issued on Wednesday asking farmers to have only one harvest this upcoming dry season because of water shortages across the country, given that this could affect the paddy output next year'.

With very few alternatives given.

Organic rice news. The PPP (Dec. 30):

'Cambodian rice millers and exporters are increasingly eyeing the export of organic rice to the European Union and the United States, after shipments of this niche product increased this year.

...

Amru Rice, one of the major rice exporters in Cambodia, started exporting organic rice this year and has so far shipped 1,100 tonnes to the EU and US. It sees potential in this new market, according to the firm’s CEO Song Saran'.

From the VoA (Jan. 26) this revealing article on the state of ignorance on organics:

'Cambodian agricultural experts are suggesting a national standard for organic products.
Cambodian farmers are increasingly growing organic rice and vegetables in some places, but there is no official certification available.
Officials at an annual conference held by the Center for Study and Development in Agriculture, or Cedac, say such a standard would increase the market value of organic products, helping diversify the agricultural market and would also prevent the spread of fake organic products.
...
Hean Vanhorn, director of the agricultural department at the Ministry of Agriculture, said the ministry is currently focused on a wider program called “good agricultural practice,” to increase yields, rather than organics. The development sector pushes for organics, he said, but they don’t provide as much benefit as GAP, he said.
GAP products aren’t harmful, he said, “so why do we need to resort to organic products that aren’t really scientific and not as accurate as GAP?” GAP ensures that food is safe to eat, he said. “What else should we be looking for?”

Finally some investment news. The Khmer Times (Jan. 2):

'Three of China’s major companies are planning to invest some US$400 million in the construction and operation of a state rice warehouse project in Battambang, Pursat and Kampong Thom provinces'.

Also reported by the PPP: 

'Given that Battambang, and other neighbouring provinces like Pursat and Banteay Meanchey account for a third of the country’s paddy output, the new warehouses were welcomed by Kann Kunthy, CEO of rice miller Brico.
However, Kunthy said it would be more useful if the warehouse were equipped with drying facilities, which would mean that fresh paddy could be dried and stored for a long period of time'.

Weather

Reuters (Dec. 25) expresses it's doubts on the Thai policy of emptying their warehouses a.s.a.p.:

'Thailand's military government will struggle to offload by a 2017 deadline some 14 million tonnes of rice in state warehouses left over from a policy of the civilian government it ousted, traders and exporters said.

...

"I don't think it's possible, but even if it is, offloading that much rice within a short time will have a negative effect on market prices," said Supachai Vorraapinyaporn, president of Tanasan Rice Group, Thailand's third-biggest rice exporter.

"It will also encourage bidders to delay bids and wait to purchase rice at even lower prices in the next auctions."

One way Thailand hopes to sell more is through government channels (Bangkok Post, Jan. 6):

'The Thai government aims to sell over 2 million tonnes of rice this year on a government-to-government (G-to-G) basis. But it admits a renewed attempt to sell rice to Iran may hit a snag because of escalating political conflict in the Middle East'. 

However there are others which would like to see the stored rice rather sooner than later. The Bangkok Post echoes (Jan. 18) business sentiments asking for the government to speed up exports (from stored rice). There seems no logic behind this call as all it seems is to expand trade at all costs, though more exports will mean lower prices so not necessarily more money ....
 
Despite previous assertions to the contrary, officials believe that the major rice growing areas will not suffer from drought during the first  months of this year (Bangkok Post, Jan. 11):

'But irrigation chief Suthep Noipairote predicted drought would not ravage the Chao Phraya plain as the rice bowl of the country will have enough water until the end of May'.

The Nation (Jan. 19) reports on government attempts to suppress production:

'Rice Farmers and traders have supported the government’s plan to reduce rice production to 25 million tonnes of paddy this year in the hope it will lead to the industry’s sustainable development and long-lasting stable prices.

Thai Agriculturalists Association president Suthep Kongmark said rice farmers had agreed to cut rice production by about 5 million tonnes this year.

The move followed a meeting of the Commerce Ministry's working committee to formulate a national rice strategy.

Despite the decision to cut production, rice farmers still expect the government to provide clear-cut measures to support farmers in the cultivation of other economic crops in a bid to reduce the hit from the drought'.

And despite this plan, I doubt it will work, as individual farmers will not participate ...
 
VoA (Jan. 20) reckons that it's not the government that will see Thai farmers through the upcoming crisis, but their own resilience :

'But growers hope to weather the hard times by drawing on years of farming experience and hopes of a revival in rice prices'. 

However the article has precious little proof that this just might happen ...

Bangkok Post notes that the future may be a little bleaker for exporters (Jan. 28):

'Rice exports are expected to have another difficult year as the world market is likely to be volatile amid foreign exchange and oil price risks, according to exporters'.

Then again the Nation (28 Jan.) leads us to believe that less production due to drought will mean higher world prices thus more export:

The Thai Rice Exporters Association (TREA) announced yesterday that Thailand should be able to export between 9.5 million and 10 million tonnes of rice this year, as drought has increased demand in many countries, while Thailand has plenty of rice stocks. TREA president Charoen Laothamatas said Thailand should be able to export at least 9.5 million tonnes of rice worth not less than US$4.77 billion (Bt165 billion). "The drought will encourage higher rice prices in the world market and domestically amid higher demand amid lower production in Thailand and many countries. In Thailand alone, rice output is expected drop by 15-20 per cent or about 2 million to 3 million tonnes from the drought," he said.

No word though on what it means for farmers themselves ....

Plans

Some more rice (trade) news from the region. 

The Vientiane Times (Jan 22) notes private initiatives:

'Phanphet Agriculture Development Farm (PADF) is preparing to sell 10,000 tonnes of rice this year after negotiating exports with international partners'.

Meanwhile Radio Free Asia reports (Jan. 24) that the Lao rice production has been a little disappointing.

'Laos’s rice production has fallen short of government targets for the second year running due to natural disasters and a seed shortage, dealing a potential blow to the Southeast Asian nation’s ambition of becoming a rice exporter.
It produced 2.70 million tons of rice in 2012, 10,000 tons short of the official goal, according to official figures'.

Only 10,000? How is that newsworthy?

The wish list of Vietnam's government (vietnam.net, Jan. 12):

'The agricultural sector plans to slash rice cultivation by 100,000 hectares in 2016 to grow other grains used to feed animals, said Minister of Agriculture and Rural Development Cao Duc Phat.  
About 7.6-7.7 million hectares of land will be set aside for rice cultivation with a total yield of 44.5 million tonnes, he stated, highlighting that the sector will enhance quality while reducing costs of rice production by using high-quality varieties with high value and applying comprehensive cultivating methods'. 

And what if the plan economy does not exist anymore?

Vietnam is worried about Thailand's bargain sale. Of course. Vientnam.net (Jan. 21):

'Huynh The Nang, chair of the Vietnam Food Association (VFA), said in the Vietnam News Agency that the sale of Thai rice would force the market price down, thus badly affecting Vietnam’s exports'.

An interesting article from Anatara (Jan. 16) on how Indonesia uses imported rice solely to cushion domestic price increases and to use in case of potential domestic shortfalls in production. Wonder why this is not done on a global scale ...

Reverse gear

In the past we have looked at some of problems rubber farmers in especially Thailand have met with and how they would like to see their problems resolved. 

And their problems are the low and lessening prices with little prospect for a change. 

Farmers look to the government to resolve their problem. The government (read junta) want to look strong and thus not willing to oblige.

Let's start with a background article from the Bangkok Post (Dec. 30) on the rubber glut:

'Global demand for natural rubber, used mostly in tyres, is slowing as the economy cools in China, the world's largest buyer of new cars. Supplies are expanding after a decade-long rally in prices to a record in 2011 encouraged top producers like Thailand, Indonesia and Vietnam to plant more trees. Output will exceed use for two more years, with the surplus quadrupling in 2016, according to The Rubber Economist Ltd, a London-based industry researcher.

...

In Thailand, the local price of rubber sheet has plunged to about 37 baht a kilogramme from an average of 56 baht last year and 76 baht in 2013, according to the Rubber Authority of Thailand. The average cost of production is around 65 baht, the farm ministry estimates.

...

"For price recovery, we need to see a significant reduction in supply or a strong growth in demand," said Macquarie's Ms Kovalska. "We're unlikely to see any of that anytime soon."

Then the Bangkok Post (Jan. 7):

'Rubber planters have threatened to protest after prices plummeted to the lowest level in 10 years, saying some of them no longer afford to send their children to school. Prime Minister Prayut Chan-o-cha vowed to stand firm against the growers' growing pressure'.

Some of the demands by farmers were becoming political.

The Nation continues (Jan. 8):

'Rubber farmers in Trang province are threatening to go on a hunger strike if the government continues to ignore their plight'.

Their other solution is to ban rubber tapping and compensate the tappers.  
The article also notes how the government is mostly ignorant of the situation and seems not to tolerate discussion of their policies.

Bangkok Post (Jan. 9) headlines that the PM will rule out rubber price subsidy. It also notes that 

'... demonstrations are illegal'. 

Interesting to read in the comments that the government in the past (as recent as 2010) had put money down to encourage farmers to grow more rubber ....

However by Jan. 11 (The Nation) orders were made for ministries to buy rubber, a way out of not subsidizing but still an (idle?) hope. Even former parlementarians who are known for the silent approval of the junta were beginning to become restless.
Something similar is reported in the Bangkok Post.

The Bangkok Post reports on how the new assistance measures for rubber growers are not fully welcomed (Jan. 13):

'Gen Prayut [self-appointed junta leader] had pledged to wean rice and rubber farmers off expensive subsidies used by the government it ousted, but -- under pressure to please politically powerful farmers -- it approved more than 36 billion baht in rural subsidies last year'.

And now farmers have reportedly given the government 1 month stay, otherwise they will protest as promised.

Bangkok Post (Jan. 14) notes that the government will pay 45 Thai Baht a kg.

'The announcement drew lukewarm responses from some farmers' groups'.

The Nation reports likewise. 

The Nation (Jan. 14) also has more details on the deal for rubber farmers: 

'The government will tomorrow finalise the buying price of rubber sheets totalling 100,000 tonnes from planters hit hard by the record low price of this commodity after planters demanded a minimum price of Bt60 per kilogram to cover their production cost.
...
'However, the NFC said the PWO may run into problems because it has no experience in intervening rubber market intervention. In addition to small planters, NFC suggested that the government should also buy from farmers' organisations that currently have a large inventory'.

More info from Bangkok Post (Jan. 15). A comment to the article: 

'This government's reversal of its previous position against populist policies shows a double standard. Those in the former government are being prosecuted for the similar rice scheme while the current government will suffer a loss but remains immune'.

Totally unexpected (not), the Nation notes (Jan. 17) that the Pheu Thai party criticizes the government for leaving rice farmers (their voter base) in the doldrums, while rushing to save the rubber farmers.

Bangkok Post (Jan. 20) reports that landless rubber farmers also want aid. Of course. Apparently there are only 2 million landless rubber farmers. It's only logical to know that these farmers will be the first to suffer and carry the brunt of lower pricing and halt on collection.

Profiteering 
Wrapping up this blog entry with some miscellaneous articles from the region.
 

The Philippines based Businessworld online (Jan. 22) has news from SL Agritech, the country's premier hybrid rice company. It wants to go public and is talking up it's prospects.

'“We really hope to triple the business (in terms of volume and revenue) in the next two years,” Mr. Lim said the sidelines of the listing of its P1 billion short-term commercial paper issue at the Philippine Dealing and Exchange Corp'.

After tripling the business the stock market beckons ...

An opinion piece in the Bangkok Post (Dec. 27) concerning the GMO revolt in Thailand. It basically describes the alternative government approach:

'A helpful clarification to the public debate on the “GMO Bill” was provided in a press conference of the so-called National Confederation for Safe, Secure and Sustainable Agriculture on Friday (BP, Dec 27). The group’s name may raise suspicions, but its statements such as “if the result of growing GM crops in open fields is good and safe, I don’t see any reason why not to give the GM seeds  to give the GM seeds to farmers” and “releasing GM seeds onto the market is standard practice for a GM trial once the experiment proves there is no negative impact on the environment” show the confederation’s bias'.

The confederation seems a near fascist approach to PR the government.

The trials and tribulations of growing agricultural produce. Growing is not the hard part. Getting your money's worth is. 
Vientiane Times (Jan. 7) on the growers of cassave who are doing everything correct, but still have little to show for:

'Cassava growers of Sangthong district in Vientiane still haven't been paid by Lao-Indochina Group Public Company for debts dating back to the 2012-2014 period. 
...
Information regarding the matter was sent to the government for resolution last year but there has been no answer yet and some local people were wondering if the factory was still operating or not, the district authorities reported.  
...
The company still owed about 13.5 billion kip to local cassava growers who supplied them with the crops, after paying almost 4 billion kip of the total 17.5 billion kip owed, he said last year.
The company wanted to be in a position to pay all the money it owes to farmers in April last year, according to a rep ort provided to the government.
However, cassava farmers in Sangthong district have not received any money yet from the company or an answer from the government'.

The Nation (Jan. 13) has an article on a seminar by Local Action Link which took a look at Thai farmer debt. And farmers debt leading to loss of land. Not really new(s) at all.

Seized

Reaping funds
The Cambodian Rice Federation (CRF) seems to be in the business of self-interest. The Cambodian Daily (Feb. 7) has this information on how the CRF hope to raise funds:

'The Cambodian Rice Federation (CRF) plans to borrow at least $400,000 for international marketing campaigns if it fails to meet its goal of raising $777,000 for the plans through imposing export fees on its members, the organization’s president said Friday at CRF’s annual conference.  

On Monday, the CRF voted to require its members pay an export fee of $0.50 per ton of long-grain white rice and $1 per ton of fragrant rice in order to raise the funds to educate local farmers and market Cambodian rice overseas'. 

Now does there need to be a marketing campaign? Or does the CRF have the authority to impose such a fee? And if so, would this not hurt exports? And how will the money be spent? 
The article then also has this info: 

'Also at Friday’s conference, Commerce Minister Sun Chanthol said the ministries of finance and commerce would borrow $300 million from China to build 40 warehouses and kilns for farmers to dry their rice.
“We will sign a [memorandum of understanding] with China Exim Bank soon, with leadership from the Finance Ministry,” he said.Mr. Chanthol said the move would help to avoid paddy outflow to neighboring countries such as Thailand and Vietnam.
A lack of industry capital in Cambodia has long left farmers unable to have their rice processed domestically for export, meaning that they miss out on adding value to their crop and are often pressured to accept lower prices offered by foreign traders'. 

Only to be offered lower prices by national traders?

With this being the year the Cambodian government has meant that it will export 1 million tonnes of rice, the Cambodian Daily (Jan. 19) takes stock. No secret that this export target will not be reached.

'According to an October economic update from the World Bank, significant gains were made in the ensuing years.

“[Cambodia’s] modern rice milling capacity (i.e. the larger mills) increased sevenfold, from 96 tons per hour (tph)…in 2009 to over 700 tph in late 2013,” the report says.

It adds that paddy production more than doubled from 2003 to 2013, from 4.3 million tons to 9.3 tons, and notes that Cambodia’s jasmine rice has been repeatedly named the world’s best rice by the World Rice Conference.

Another industry development came in May, when the country’s myriad miller and exporter associations united to form the Cambodia Rice Federation (CRF), electing Sok Puthyvuth, the son of Deputy Prime Minister Sok An and CEO of local conglomerate Soma Group, as its president.

Upon being elected, Mr. Puthyvuth said the two greatest obstacles to increasing exports were a lack of available funds and the quality of crops'.

However, dropping prices and intense competition have been of little assistance.

'But Cambodia still lacks the transport infrastructure, facilities and capital to guarantee the supply necessary for major trade deals, David Van, executive director of rice miller and exporter Boost Riche Cambodia, said last week.

...

The World Bank’s October report also notes that high fuel and electricity costs in Cambodia make milling 30 percent more expensive than in Vietnam and Thailand.

...

An area in which Cambodia has made particularly slow progress is in forming institutions to certify and test crops before shipment.

According to a report released last week by the Geneva-based International Trade Center, this was an impediment to trade for 89 percent of agriculture exporters in the country last year.

“Few agencies in Cambodia are capable of testing and certification of products for export,” the report says'.

Somehow this small piece of national news hardly registered in the Cambodian press. So from oryza.com (Jan. 29): 

'In a letter adressed to the Prime Minister, a group of opposition leaders noted that declining prices of rice, rubber and mung beans have been significantly impacting the lives of farmers'. 

The blame Thai and Vietnamese traders. Goevernment says they are doing their best. Politics.

In other national news Phnon Penh Post (Feb. 5) has this piece of business info:

'Local rice miller and exporter, QC Rice Company, signed a memorandum of understanding (MoU) yesterday with Chinese agricultural firm, Rizhao Rui Energy Trading Company, a partnership that will see the two businesses trade in rice and agricultural machinery.

The deal sees Rizhao Rui Energy Trading Company agree to import 250,000 tonnes of Cambodian rice from QC Rice, while the Cambodian rice producer has agreed to import $4 million worth of farm machinery from its Chinese partner'. 

Now I can understand buying rice and selling this into a market such as China, but does Cambodia really need the machinery supplied from China? And how can an industry cash-starved rely on the potential hope of selling a machine to ensure some cash flow?

Another hitch comes in the form of import restrictions for rice in China from Cambodia:

'China’s import quota of 100,000 tonnes of rice from Cambodia is something Kong [CEO of Rui Energy International] said the company would be seeking to lift in order to allow the 250,000 tonnes anticipated in the deal'. 

Note that neither company have a high internet profile ...

More substantive information. The Phnom Penh Post (Feb. 13) reports that organic exports of rice from Cambodia are in high demand:

'Organic rice miller CEDAC is aiming to double its exports this year as competition in the niche organic rice market heats up.
... 
CEDAC buys its organic rice for an average price of 1,650 riel ($0.41) per kilogram, as much as 50 per cent more than the 1,100 riel nonorganic rice farmers receive per kilo.
But CEDAC is not the only firm eyeing Cambodia’s organic rice market for rapid expansion.
Non-organic rice miller and exporter AMRU Rice in September signed a deal with eight farmer cooperatives in Preah Vihear province to purchase 2,500 tonnes of organic fragrant paddy rice for export to the EU and US markets'.

Free press

The hacks over at Bangkok Post (Jan. 28) have a very insightful article on the current status quo of rice trade in Thailand and also how  the former PM's recent impeachment due to irregularities in the rice pledging scheme is to blame. As is customary there, there's a lot of applauding the junta while deriding the previous democratic government.

Just some excerpts:

'The biggest exporter stockpiled 17.8 million metric tonnes after former prime minister Yingluck Shinawatra spent $27 billion since 2011 buying at above-market prices to aid farmers. The move threatened the nation's credit rating and helped fan months of protests'. 

Wrong, the protesters were personal, irrespective of whatever policy was or was not in vogue.

'Ms Yingluck was impeached on Jan. 23 for failing to heed warnings about the spiralling cost of rice subsidies, which the FAO said were unsustainable'. 

So if the FAO say they were unsustainable, then that must be true. What's more the former PM was impeached by a military junta whose sole purpose was to get her suspended from any future political activities.

'[Junta] Prime Minister Prayut Chan-o-cha is seeking to clear the warehouses without torpedoing the market, saying on Jan 26 the government wants to accelerate sales to reduce inventory costs while ensuring prices are acceptable'. 

Prices since have dropped by 35% thus resulting in a loss for government. But more importantly farmers are highly affected by this selling resulting in lower prices now.

'A decline in the quality of the stockpiles also may limit the impact of sales on prices, which reflect food-grade grain. An audit in 2014 found about 80% was substandard and almost 4% was poor quality, destined for non-food uses.

Most is still food-grade quality and can be sold as long as it's kept dry and fumigated, said Somkiat Makcayathorn, secretary-general of the Thai Rice Exporters Association'. 

So the former PM is impeached because of the findings of the government buying and storing rice with low quality. But they still are saleable as food. It can't be both?

Thai government wants to cut rice production so reports the Bangkok Post (Feb. 2): 

'Rough-rice output may be cut to 33.73 million tonnes by 2016-17, down from an average of 35.11 million over the past six years, according to Apichart Pongsrihadulchai, vice agriculture minister. Growers will be encouraged with incentives including soft loans to shift from rice to sugar cane or to mixed farming with livestock, Mr Apichart said in an interview'. 

This is again an ill-conceived idea. Farmers respond to price incentives and opportunity. If sugar growing were a viable alternative, farmers would have switched long ago. They aren't. And with sugar prices dropping, there will be precious few who will change. 
Add to the price problems, the poor post-harvest processing (trucks unavailable, long waits for factories) and overall incompetence which results in low pay-outs to farmers with little alternatives, well one can hardly blame farmers for noting wanting to change.

Hotline
Marketing problems galore.

A very strange article in the Bangkok Post (Feb. 9) concerning sales of rice berry, which I am lead to believe is something akin to black rice.

'A group of farmers who delivered their crops of a new strain of grain, Rice Berry, to a wholesaler but did not get paid have finally received the first down payment on their harvests'. 

The article then continues to note that despite the farmers not getting their money, local officials have managed to sell more of their crop and thus all is not lost. 
But the farmers were scammed, how is this positive news? 
All the hoopla: 

'Rice Science Centre then-director Apichart Vanavichit earlier said the new strains, Rice Berry and Sin Lek, were full of anti-oxidants, iron and magnesium substances based on a clinical test by Kasetsart University. The bran and bran oil of Rice Berry contained lupeol that could help prevent cancer cell development or even kill the cells, he said'.

In Laos there's an article from the Vientiane Times (Jan. 27) on the problems with the marketing of corn:

'Sweetcorn growers in the northern province of Huaphan are finally being paid for the crops they sold to a state food enterprise through a middleman, after months of delay.

Acting Director General of the Domestic Trade Department under the Ministry of Industry and Commerce, Mr Bounthiene Keosipha, confirmed the payments at a press conference recently.

He spoke to local media in response to a question raised through the telephone hotline of the recent ordinary session of the National Assembly.

Through the hotline, a corn grower had called for the authorities to push for payments amounting to 320 million kip for about 600 tonnes of corn, which farmers had sold to a middleman.

...

He [Mr Oudsy Vongkham,Deputy Director of the Industry and Commerce Department in Huaphan province] said a Viet namese company gave the money to the province's state food enterprise to buy the corn from farmers in Sone – a newly-built district in the province. The crop was destined for Vietnam.

The state food enterprise then contracted with a local businessman nicknamed Mr Khamtui to purchase the crop from local farmers.

“The businessman later gave the money to other middlemen to help with the purchase of the crop, but those men didn't pay the farmers,” Mr Oudsy said, adding that the corn was sold last fiscal year.

After learning about the problem, the department contacted police officials in charge of economic affairs, asking them to look into the matter and identify the responsible parties.

Mr Khamtui has now had his assets seized in a bid to accelerate the payment of the outstanding money to farmers and this is now being carried out'.

Tackling
To corner the rubber market, Thailand needs to get an agreement with Malaysia and Indonesia. The Nation (Jan. 31):  

'PRIME Minister Prayut Chan-o-cha told Malaysia yesterday that a tripartite meeting should be held as soon as possible between Thailand, Malaysia and Indonesia to find urgent ways to tackle the falling price of rubber'. 

It's so strange, the former Thai government had an ill-conceived plan to corner the rice export market, fails and then is seen as criminals for trying. Current government does the same, the new heroes?

Cambodia Daily (Feb. 6): 

'Cambodia’s rubber export volume increased by about 33 percent last year compared to 2013, while the value of rubber decreased by about 9 percent during the same period, according to figures released by the Ministry of Commerce on Thursday.

...

Ly Phalla, who heads the Agriculture Ministry’s general directorate of rubber, said the increase in exports last year was likely the result of plantations hurrying to offload their excess stock'.

Obvious

Schocking
Probably the most important news this month is the report published by GRAIN conerning issues of land grab. 
With the increased agricultural prices of the last few years, land grabbing has become a pandemic which seems to be never-ending. From the summary:

'Despite the inherent shortcomings of the data, we feel confident in drawing six major conclusions:

1. The vast majority of farms in the world today are small and getting smaller
2. Small farms are currently squeezed onto less than a quarter of the world's farmland
3. We are fast losing farms and farmers in many places, while big farms are getting bigger
4. Small farms continue to be the major food producers in the world
5. Small farms are overall more productive than big farms
6. Most small farmers are women.

Many of these conclusions might seem obvious, but two things shocked us. One was to see the extent of land concentration today, a problem that agrarian reform programmes of the 20th century were supposed to have solved. 
... 
The other shock was to learn that, today, small farms have less than a quarter of the world's agricultural land ...'. 

The report is a damning of current policies driving farmers off their land, mostly for the acquired land to be distributed to wealthy investors who struggle to meet the efficiencies of those farmers who have been displaced. When, if ever, will this stop?

Pay-back

With prices for rice dropping, inevitably victims are falling. 

Victim 1? Apparently the Cambodian company named Megagreen Imex Cambodia was in line for fame and especially fortune in the nation's rice export dream. Phnom Penh Post (Jun. 6):

'In December 2011, the managing director of Megagreen Imex Cambodia, Renne Outh, proudly announced that his firm had inked a $21 million deal to be the first to ship Cambodian rice to the Philippines.

Nearly two and a half years on, not a single Cambodian grain has reached Manila. Export figures for the first five months of 2014 show that Megagreen, once among the top 10 rice exporters in the country, has fallen to 48th out of 84.

The failed Philippines deal marks a pattern of broken promises, as the agricultural wholesaler now finds itself besieged by creditors and lawsuits seeking damages in excess of $1 million, with flawed agreements from one end of the supply chain to the other'.

Lower prices have meant that Cambodia's rice millers are left with unsold produce. And supposedly banks with unpaid loans. Phnom Penh Post (June 18) hints why:

'Cambodian rice currently trades at $440 per tonne. Meanwhile, rice in Thailand and Vietnam is selling for $385 per tonne and $405 per tonne respectively.

With the next harvest season due to begin in just three months, Lim Bun Heng, chairman of rice export firm Loran Group, said that millers had been pressuring his company to find buyers for Cambodian grain.

...

A rice mill owner, who asked not to be named for fear of damaging his business’s reputation, said that he had more than 2,000 tonnes of rice waiting for a buyer in Battambang province.

The mill owner added that he had accrued over $400,000 worth of bank loans to buy the rice off local farmers in the hope of selling it on to exporters for overseas markets.

“To pay back the bank only, I am forced to sell the paddy off at a lower price than what I bought it for,” he said'.

Expect the bill for these losses to be passed on to farmers come next harvest 

Another loser in the making? Vietnamnet reports (June 6) on the countries dealings with the Philippines: 

'Vinafood 1 and Vinafood 2 have been severely criticized for offering overly low bids in an effort to obtain the contract with the Philippines. Analysts believe that Vietnam made a major mistake when analyzing the situation, which then led to the wrong decision. Tuan of Thinh Phat [company] pointed out that Thailand was the major rival of Vietnam in the bid for the rice export contract because it was nearer to the Philippines than India and Pakistan, which allows savings on transportation costs. However, Tuan said Thailand should not have been considered a threat to Vietnam. NFA said that the Philippines would only accept rice harvested no earlier than four months ago. Thailand stopped collecting rice in February 2014. “This means that Thailand only had rice harvested in 2012 and 2014, and that Vietnam was the only seller in the market,” Tuan said'.

Re-wiring

The rice pledge scheme in Thailand. As it's now being wrapped up by the junta, there are a few articles concerned. first, the Nation (May 25) mentions that 

'The ousted government was able to pay about Bt100 billion to the farmers until now, but another Bt90 billion is still owed to 80,000 farmers'. 

The only reason for the outstanding amounts not to be made was that the prevoius government was a caretaker government. Luckily the junta has no law to uphold so can do as it pleases. Another PR activity.

The Bangkok Post (May 26) however mentioned that farmers were happy (who isn't nowadays?) as stalled payments were now being paid.

Thai farmers now having been paid, want new handouts. So mentions the Bangkok Post (June 2): 

'Songpon Poonsawat, chairman of the Council of Farmers in Ang Thong province, said his organisation would propose short-term assistance packages for the NCPO [the junta] to consider, to help farmers suffering as a result of lower prices. Mr Songpon suggested the intervention be carried out for the next two crops, until the market price of rice returns to normal'.  

But what is normal?

Then some confusing news. The Nation (June 5) has a short item on the end of the rice-pledging scheme: 

'Former Democrat MP Warong Dechgitvigrom Thursday called on the National Council for Peace and Order to end the controversial rice-pledging scheme'. 

It has already ended.

'He said the NCPO should replace the scheme with a rice price guarantee'. 

In other words: a rice pledging scheme!

And on June 8, farmers came up with a new proposal (Nation): 

'Rice farmers yesterday proposed that the National Council for Peace and Order set a price for rice based on the average production cost plus a 40 per cent profit margin so they can survive'. 

That also looks like a rice-pledging scheme. The Bangkok Post notes (June 10) that the military are unsure what to do. Going by previous experiences they fail to take decisions unless you criticize them... They prefer to shoot the messenger of bad news.

The junta has spoken and there will be a new subsidy scheme. The Bangkok Post (June 18): 

'Gen Chatchai said that participants agreed with the idea of a "cultivation subsidy" and soft loans for rice growers nationwide in the 2014/2015 crop season. The subsidy was set at 500 baht per rai (1,600 square metres) for up to 15 rai (24,000 square metres) per family, based on rice growers' estimated cultivation costs of about 4,000 baht per rai'.

One problem will be the way the subsidies will be doled out, probably through subsidies to ag input sellers. While there may be limitations on hand-outs per family, there will be all of a sudden be a lot more families in Thailand ....

Top dog
The bargain sales have resulted in Thailand returning to the top of the rice exporting nations. The first five months of this year have seen this sale recapture the buyers spirits and Thailand is yet again the no. 1 exporter in terms of tonnage. Bangkok Post (June 4): 

'Somkiat Makcayathorn, secretary-general of the Thai Rice Exporters Association, said on Wednesday that from Jan 1 to May 20, 2014, Thailand exported a total of 3.93 million tonnes, surpassing India (3.74 million tonnes) and Vietnam (2.4 million tonnes) in the same period'.  

Hurrah! Back to no. 1. But why obsess with who is no. 1? Surely it should be the income generated for the nation which should count. The article continues to assist the junta's PR machine: 

'The fall happened when the Yingluck Shinawatra government increased the price of Thai rice through its loss-ridden rice-pledging scheme, which promised over-market  prices to farmers. Many were never paid'. 

It appears that the exporters and general traders and millers are the ones cheering. Farmers are a lot more quiet ...

Meanwhile, Channelnewsasia (June 4) reports on the Thai Rice Exporters Association's prediction of a 20% rise in exports for Thailand this year.

Est
The Bangkok Post has the story on the losses of the old rice-pledging scheme (May 28): 

'Estimated losses from the previous five crops under the Yingluck Shinawatra government’s rice-pledging scheme could be lower than 500 billion baht, says the Finance Ministry'. 

Or 15 billion US$! Inflation? PR? Hmmm, ...

The previous government and their sceme (-ing?)? They should be tried: 
* loss of nearly 3 million tonnes (swept under the carpet?), 
* poor quality and 
* failure to calculate what the loss was. 
The Bangkok Post (June 10) reports that the former government want a quick resolution on the charges. As everything is in a flux, there probably can't be any conviction unless one based on politics.

As Thailand has no clue as to what they have stockpiled in the past it comes as no surprise that the Bangkok Post reports (June 13) that an audit will take place. We also know that the audit will find less rice than expected ...

National affairs

The Cambodia Daily (June 3) sees the positives in a 1% rise in rice exports from Cambodia. Quite confusing as it also mentions rising imports to or from Thailand?

But ..., the problems in Thailand have had an impact on Cambodian direct exports to Thailand. They have nearly disappeared, so reports the Phnom Penh Post (May 29).

Real growth lies elsewhere. Via Phnom Penh Post (May 19) it is reported that Cambodian organic rice is finding a market in Hongkong:

'While the US and Germany have traditionally been the key markets for Cambodian organic rice, with about 300 tonnes sent there last year, CEDAC president Yang Saing Koma told the Post that his organisation has exported 30 tonnes to Hong Kong this year, as the market for the Kingdom’s natural produce expands'.

With rice losing favour, the rural sector is losing a taste for alternatives. The Cambodian Daily (May 27) notes that cassave exports are also down:

'Cassava exports dropped by about $25 million during the first four months of 2014 compared to the same period last year, according to figures provided by the Ministry of Commerce on Monday.

From January to April this year, Cambodia exported 203,934 tons of cassava, worth about $13 million, the figures show. In the corresponding period last year, 273,415 tons, worth about $38 million, were exported'. 

A typical double whammy: lower prices and less production. This contrasts heavily with black pepper. Cultivated in patches near the coatsal towns of Kep - Kampot as well as near Kampong Cham, production was on the up, so reported the Phnom Penh Post (May 27):

'Kampot pepper has the WTO’s geographical indication (GI) status linking the quality of the product to its origin. Exports and prices have been on the rise since receiving the status in 2010.

The total cultivated area of GI Kampot pepper reached 90 hectares this year, twice that of 2013 – but it will still be years before many of these plants mature and are ready for harvest.

Him Anna, a pepper farmer in Kampot, told the Post that she had exported 3 tonnes of pepper this year and the market was hungry for more. “There is huge demand in the market with a very good price, but until now we still have a problem with supply.”' 

Let's just hope that prices remain attractive and markets can deal with the upsurge in acreage from Cambodia. It remember that the Malaysian state of Sarawak had the intention of cornering the pepper market, however expansion didn't reap rewards.

Well with farmers being caught with increased corporisation, they are now urged to go green, so reports the Phnom Penh Post (May 23): 

'Officials from the Ministry of Agriculture have called on farmers to cease using chemical pesticides and adopt environmentally friendly methods in an effort to increase yields and reduce damage to produce. Hem Em, a farmer with 7 hectares of pepper-growing land in Kampong Cham, said he had spent more than $300 on pesticides this season to ward off pests.

“If we do not use pesticide, we will not be able to harvest crops because the insects destroy the flower and our crops give no fruits,” he said'.

It wouldn't hurt if green produce was paid more, but that's probably not the message.

Founding father
The Phnom Penh Post (May 23) on the new Cambodian Rice Federartion (CRF). An interview with  CRF’s newly elected president and CEO of SOMA Group, Sok Puthyvuth. Some of the Q and A's:

'How is your rice body going to represent farmers?
This is the foundation of the rice sector. If the foundation is not strong, forget about the millers or exporters.

One of our major priorities is to really look at the foundations of the sector, how have the farmers been doing? Whether the access to all this support, like finance, fertiliser or techniques are up to date? 

...

Your father is the deputy prime minister. Have your family ties helped you land the CRF job?
I am the new generation. You could say it is a coincidence that I happen to be in this position, but it was not appointed. We went through an election. I don’t think people voted for me because of who I am. If they feel that I am someone who doesn’t know what I am talking about, I don’t think they would have voted for me'.

An earlier article by Phnom Penh Post (May 20) also noted that his father-in-law is the PM himself ..., so that might help, certainly with the election process. It also noted that all other industry bodies would be dissolved ...

The Phnom Penh Post (May 30) has an interesting coverage of a rice industry workshop:

'The rice industry's quest for greater quality at lower cost reached a dead end yesterday at a conference in Phnom Penh, with exporters and farmers polarised on how to achieve greater returns for the industry.

The workshop, titled "Improving Rice Value Chain and Enhancing Farmers’ Livelihoods", was attended by more than 70 farmer representatives, businesses and government officials. On one side exporters want farmers to provide a better-quality rice grain, but on the other, farmers cannot afford the premium to pay for the higher-quality seed ... Kan Vesna, a farmers representative from Battambang province, rebutted the millers concerns, saying millers systematically reducing prices across the industry created little incentive for farmers to improve their crops'.

With prices dropping and companies feeling the pinch, no doubt lower prices for farmers will be the indiustry's answer to their problems (passing on the buck).

The Cambodian Daily comes with a farmer based article (May 30) concerned with the same workshop:

'Cambodia’s rice farmers are being neglected amid the government’s push to ramp up exports of milled rice to one million tons by the end of next year, a goal that will only be reached with improved cultivation, agriculture experts and farmers said Wednesday at the Royal University of Phnom Penh'.

Mitigating

The World Bank has some bad news: world food prices are going up (source). We never see this sort of alarmist news when prices are dropping (though we never notice it in the shops  ..., lower prices mean more profit for end-use companies ...). The price rise is lead by rises in wheat and maize, due to political instability in Ukraine and wider implications of the conflict. Only rice prices were dropping ... The report also notes: 

'Food price shocks can both spark and exacerbate conflict and political instability, and it is vital to promote policies that work to mitigate these effects'. 

The only way forward is to reverse policies on creation of national reserves. For years the World Bank has been advocating selling of strategic stocks thus exacerbating price rises! Another hmmmm

World prices seem to be on the drop at least in the short term. India has announced to offload it's reserves on the internal market so as to drive down prices and thus inflation (source). But that means less exports further on down the road and eventually higher prices.

King

Meanwhile farmers are proving to spoil local markets in Laos. According to Vientiane Times (May 23):

'The price of rice in the markets of Borikhamxay and Luang Namtha provinces increased 500 kip per kilogram this week, while staying the same in most other provinces. The price rise is believed to be caused by some farmers stocking their rice to consume through the wet season, causing a shortage in the markets'. 

Oddly the article features no official response to the price rises. Are Lao farmers king?