Showing posts with label rice trade. Show all posts
Showing posts with label rice trade. Show all posts

Monday, December 23, 2019

Safety

Quite a lot to share this time round, so without any due, let's see what IRRI (Dec. 18) has come up with:
'After rigorous biosafety assessment, Golden Rice “has been found to be as safe as conventional rice" by the Philippine Department of Agriculture-Bureau of Plant Industry. The biosafety permit, addressed to the Department of Agriculture - Philippine Rice Research Institute (DA-PhilRice) and International Rice Research Institute (IRRI), details the approval of GR2E Golden Rice for direct use as food and feed, or for processing (FFP).
Reading the full press announcement, one notices that the Filipino procedure was just a formality it seems, If countries such as Australia, Canada, US and NZ have already verified the product, why should the Philippines lag? 
Because the prior mentioned countries will probably never ever consume the product, so their verification was easy. as suspected their approval opens the door for more approvals without carrying out significant checks. Just another step in failing to openly  discuss the strategy of giving GMO rice approval.

Range
Onwards.
There seems to be problems concerning prices on offer to farmers. The Phnom Penh Post (Dec. 11):
'Prime Minister Hun Sen on Wednesday appealed to rice millers and paddy buyers not to lower prices and to secure better rates for farmers facing difficulties in the early harvest season.
The Cambodian Rice Federation (CRF) said the low prices were due to an influx of poor quality paddy in some areas'.
It doesn't seem to have helped. VOA (Dec. 20) entirely objectively notes this:
'The Cambodian Agriculture Ministry rejected criticism circulating on social media about farmers getting low prices for their rice in the paddy-producing provinces of Battambang, Pursat and Banteay Meanchey.
The ministry released a statement on Tuesday claiming that farmers receiving low rice prices were selling poor quality rice and that prices were still within an acceptable range. Ministry officials were also working with rice mills to procure as much rice as possible from farmers.
...
However, Yaing Saing Koma, an agricultural expert, said that rice prices were low mainly because rice export to European Union is declining.
The rice export to the EU has dropped from around 170,000 tons in 2018 to 120,000 tons in 2019 for the first eight months, according to representatives of rice millers. The rice sector was also hit with tariffs for exports to the European Union earlier this year, after Italy triggered safeguard mechanisms.
“The rice exports to the EU are dropping badly so it affects the profit of the rice milling companies. They are afraid to stock a lot of rice for export,” he said.
Earlier this month, the Cambodia Rice Federation said it needed $200 million in working capital to buy rice from the farmers on account of shrinking loans available in the financial sector, with government allocating only $50 million of the required capital'.
As above, the purchasers have said it's not their fault. The Khmer Times (Dec. 20):
'The Cambodia Rice Federation (CRF) has fought back against claims that the current price of paddy is too low to sustain farmers’ livelihoods.
“Despite what people are saying on social media, the price of paddy has not decreased below market price. The current price is acceptable for farmers,” said CRF president Song Saran.
CRF comments follow viral posts on social media platforms claiming the current price level is insufficient to make a living.
...
He also suggested that the drop in the price of paddy may be the result of farmers planting lower quality varieties. He called on farmers to focus on “purer” rice types'.
A bit strange, this blame game. Surely if prices are lower, then this also spells better times for poorer citizens? A double edged sword?

Fortified
More then on the above mentioned loan scheme. The Phnom Penh Post (Dec. 8):
'The state-owned Rural Development Bank (RDB) has announced that it will distribute $50 million in loans to private rice millers to sustain the paddy market for farmers.
The Cambodia Rice Federation (CRF) said the funds will be used to purchase nearly 300,000 tonnes of paddy during the post-monsoon harvest season, which ends at the beginning of next year.
The additional loans come after the CRF asked the government to provide $200 million in loans to rice millers late last month.
...
RDB CEO Kao Thach told The Post last week that capital shortage in the rice sector is between $200 million and $250 million. To help remedy the issue, he has called on commercial banks to lend more to the sector'.
Then some news on lesser rice related news from Khmer kingdom. The Phnom Penh Post (Dec. 9) looks at the evolving Chinese market:
'China has granted an additional 18 Cambodian rice millers approval to export rice into the country, bringing the total to 44, the Chinese Embassy in Phnom Penh said on Friday.
The additional rice exporters will help the Kingdom achieve its 400,000 tonne quota of rice to China starting next year, it said.
Cambodia Rice Federation (CRF) vice-president Chan Sokheang said China’s decision comes after a CRF proposal to increase the Kingdom’s rice production capacity to supply the Chinese market.
...
According to an official report, in the first 11 months of this year, international rice exports totalled 514,149 tonnes. This was a 3.4 per cent increase compared to the same period last year, at 497,240 tonnes.
China was the Kingdom’s leading export market in the first 11 months of this year, with 195,242 tonnes. The EU imported 174,397 tonnes and the Asean region 69,239 tonnes. The remainder was exported to Africa and other destinations'.
Other markets. Phnom Penh Post (Dec. 3) on South Africa:
'Milled rice exporter Mekong Oryza Trading Co Ltd signed an export memorandum of understanding (MoU) with companies from Hong Kong and South Africa in Phnom Penh on Tuesday'.
Then concerning Nigeria, the Phnom Penh Post (Dec. 16):
'A Nigerian investor is looking to directly export rice from Pursat province to the west African country, citing the quality of Cambodia’s milled rice.
The investor’s representative, Mustapha Sammy Yaacob, the chief operating officer of SNZ Engineering Sdn Bhd, raised the subject at a meeting with Pursat provincial governor Mao Thonin on Sunday'.
Other snippets. Phnom Penh Post (Dec. 8) looks at contracts:
'Contract farming between community producers and rice millers or buyers brings growers great benefits, with an expanded market and more favourable prices, industry insiders have said.
Contract farming refers to an agreement between a company and an agricultural community regarding prices, quantities and standards of quality.
Signatures of Asia Co Ltd chairman and CEO Chan Sokheang told The Post on Thursday that contract farming in the paddy production sector would bring better prices for farmers than the market and ease concerns about market shortages and price fluctuations.
...
Signatures of Asia currently has contracts with 30 communities – consisting of nearly 4,000 families – in Preah Vihear, Banteay Meanchey, Stung Treng, Kampong Speu and Mondulkiri provinces, Sokheang said.
He said the high-quality phka malis paddy cost his company between 1,030 and 1,080 riel ($0.25 and $0.27) per kilogramme when bought from one such community on Thursday, while organic paddy goes for between 1,450 and 1,700 riel, which is slightly down on last year'.
Finally, the last bit on Cambodia's rice, the Phnom Penh Post (Dec. 19):
'The UN’s World Food Programme (WFP) announced its collaboration on Thursday with a Cambodian company to provide rural students with micronutrient-enriched school meals.
The partnership will see the WFP and Green Trade Company blend fortified rice kernels with Cambodian white rice to support the school meals programmes organised by the Ministry of Education, Youth and Sport'.
Odd, this, as me thinks that this renders Golden Rice obsolete?
State
Thailand has some rice related concerns. Quality?  Bangkok Post (Dec. 1):
'Failing to win the prize as the world's best fragrant rice for two consecutive years has come as a wake-up call for Thailand to overhaul its research and development into Hom Mali rice varieties to catch up with the changing global demand for fragrant rice.
After winning the contest for five consecutive years, Thailand's Hom Mali (jasmine) rice was beaten last year by Cambodia's fragrant rice and this year by Vietnam's ST25 variety.
"It's about time that both the government and the private sector joined hands in a more serious effort to improve the quality of Thai rice to meet the global market's expectations," said Charoen Laothamatas, president of Thai Rice Exporters Association'.
Overall rice production is down.  Bangkok Post (Nov. 28):
'Thailand's annual paddy production for both the main and second crops is forecast at 27-28 million tonnes in the 2019-20 season, weighed down by a drop in production for the second crop because of flooding and drought.
Whichai Phochanakij, director-general of the Internal Trade Department, who on Wednesday chaired a meeting of the subcommittee handling reference prices for rice price guarantees, said paddy output from the second crop is estimated at just 3.5 million tonnes, down 54% from 7.75 million tonnes the previous season, due to drought and inadequate water supply from dams'.
The Nation (Nov. 28) notes how the government is sugar coating their rural policies:
'Speaking after a meeting with the rice price guarantee committee, the Department of Internal Trade’s director-general Wichai Phochanakit revealed on Wednesday (November 27) that 90 per cent of the rice grown in crop year 2019/2020 had been harvested, but the volume had decreased drastically due to drought and floods'.
More or less what the Bangkok Post (Nov. 25) previously reported on:
'The government has set aside 70 billion baht to shore up paddy prices, as the annual harvest is scheduled to flood the market this month.
Whichai Phochanakij, director-general of the Internal Trade Department, said the latest meeting of the subcommittee handling national rice policy and management chaired by Commerce Minister Jurin Laksanawisit last week approved the schemes worth a combined 70 billion baht'.
Back on the prices subjects. Neighbour to the north (Laos) is also concerned, but to the opposite: rising prices. Phakhaolao reports (Nov. 14):
'The total yield is expected to be about 3.5 million tonnes – a downward slide from the original target of 4.4 million tonnes. Rising prices, shortages and storage issues, including difficulties in procuring rice, are worrisome for both the people and the state'.
Laos works outside world market (or nòt) thanks to their love of sticky rice. 

Derailed
Continuing on the same theme (what's happening with the neighbours), there's the never ending story of cleaning up your act. In this case is it acceptable to use what are increasingly believed to be harmful substances while maintaining you product is pure nature itself?
Concrete, use of paraquat, glyphosate and chlorpyrifos are to be axed in Thailand. Or not? Because this is after all Thailand, where anything goes.
Bangkok Post (Nov. 24) starts off:
'Opposition to the state's ban on three harmful herbicides looks set to escalate as farmers gear up to defy an order to hand over the chemicals to authorities amid plans for a rally on Tuesday.
The prohibition against the trade, use and possession of paraquat, glyphosate and chlorpyrifos -- announced late last month by the National Hazardous Substances Committee (NHSC) -- will take effect from Dec 1 but opponents are challenging its enforcement and have refused to follow orders as the deadline draws near'.
It works. The Nation (Nov. 27):
'Yielding to pressure from farmers and distributors, a government-established committee has recommended a six-month delay in the planned ban on hazardous agrichemicals paraquat and chlorpyrifos and limited continued use of a third, glyphosate.
Industry Minister Suriya Juangroongruangkit said on Wednesday (November 27) the Hazardous Substance Committee he chairs voted unanimously to postpone the ban on two chemicals and allow continued use of the third. 24 committee members casted their votes while 5 were absent.
The committee had on October 22 recommended that all three be banned.
The Department of Agriculture announced in the government gazette on November 18 that the bans would take effect on December 1.
But Suriya declared on Wednesday the ban on paraquat and chlorpyrifos would be postponed to June 1 and “the use of glyphosate will follow the commitee's guideline annouced back on May 23, 2018”'.
Then the confusion. The Bangkok Post (Nov. 28):
'Public health authorities insisted on Thursday that the National Committee on Hazardous Substances neither lifted nor eased a ban on three toxic farm chemicals, as Industry Minister Suriya Juangroongruangkit had said.Permanent secretary Sukhum Karnchanapimai and other senior health officials held a press conference at the ministry in Nonthaburi province on Thursday to refute Mr Suriya's announcement.On Wednesday Mr Suriya told journalists at the Industry Ministry that the new National Committee on Hazardous Substances had decided unanimously that day to lift the scheduled ban on the herbicide glyphosate and delay the ban on the herbicide paraquat and pesticide chlorpyrifos for six months from Dec 1'.
So despite no decision having been taken, a decision has been taken. Huh? Bangkok Post (Nov. 29) notes what's happening:
'BioThai, an anti-farm chemical pressure group, has alleged that "four major forces'' were behind the decision to scrap the ban on the herbicide glyphosate and delay the prohibitions against the herbicide paraquat and pesticide chlorpyrifos.
BioThai (Biodiversity & Food Sovereignty Action Thailand), which campaigned to have the chemicals banned, published an article titled "Analysis: 36 Days to derail the ban on glyphosate'' on its website on Thursday.
The group claimed the decision to derail the ban was the result of a joint effort by a Thai animal-feed producer, a group of herbicide producers, and two political parties in collusion with US entities'.
The Nation has more on this briefing.
Bangkok Post (Dec. 4):
'The Agriculture and Cooperatives Ministry still has no idea how it will handle three controversial toxic farm chemicals pending an official direction from the National Hazardous Substances Committee (NHSC).
Agriculture and Cooperatives Minister Chalermchai Sri-on said on Wednesday that NHSC had not sent its official resolution from its Nov 27 meeting that reviewed a proposed ban on the herbicides paraquat and glyphosate and the pesticide chlorpyrifos.
When reporters asked Mr Chalermchai what his ministry was doing with the three toxic chemicals, he said he could not relay any instructions to any organisation under his supervision pending the official conclusion from the national committee'.
Green
Phnom Penh Post (Dec. 10) has a message on an overall trade issue:
'Two more provinces have been allowed to issue the certificate of origin (CO) Form D which makes it easier for exporters to apply from their locations. In future commerce departments in each province will carry out this function.
...
With provincial departments of commerce now being able to issue the form, the application process for a CO will take just 16 hours compared to 10 days to two weeks if applied at the ministry in Phnom Penh'.
Then to the fruits. The Phnom Penh Post (Dec. 1):
'Official mango exports from Cambodia to China could begin as soon as the beginning of next year after visiting experts concluded that the fruit grown in the Kingdom is of good quality.
Officials from the General Administration of Customs of the People’s Republic of China (GACC) visited the Kingdom on November 24 to inspect Cambodian mango cultivation and determine whether to approve exports.
...
Vann Rithy, general manager of Angkor Mango, a mango buyer and exporter, on Sunday said that China is a large, high-demand and high-value market, and that official exports would greatly contribute to the growth of Cambodia’s economy.
The Kingdom’s mangoes are currently exported to China informally through Vietnam and Thailand.
“When official mango exports to China receive the green light, Cambodia will see a lot of benefits, particularly in regard to prices.
The previous need to export through neighbouring countries led to lower mango prices,” Rithy said.
He said the Kingdom would not be able to produce enough mangoes to meet the increased demand, but that yields are set to increase significantly as the approval of exports would encourage farmers in most provinces to plant more mango trees.
Chhay [Ngin Chhay, director-general of the General Directorate of Agriculture at the Ministry of Agriculture, Forestry and Fisheries] said there are currently around 60,000 to 70,000ha of mango plantations in the Kingdom'.
The Khmer Times (Dec. 20) chimes in:
'Mangoes could be one of the main agricultural products from Cambodia to be exported to foreign markets, providing high hopes for their current untapped farming potential, the government says, adding the sector is ready for new investment.
There is big scope because there are more than 100,000 hectares of land planted with the sweet, juicy fruit, which translates to at least 1 million tonnes harvested each season.
However, only a small percentage is currently exported because of poor facilities and technical knowhow for planting the trees.
...
Currently, mango fruits from Cambodia are exported to France, Spain, and Russia, Hong Kong, Thailand and Vietnam.
Last year, Cambodia exported about 50,000 tonnes of fresh mangoes to foreign markets, most of them shipped to Thailand and Vietnam.
South Korea will become a new market for mangoes by early next year, while the exporting company is working to progress the business as fast as it can'.
Phnom Penh Post (Nov. 20) on banana's:
'Yellow banana exports to China have grown since April when the Ministry of Agriculture, Forestry and Fisheries announced that the fruit can be exported directly without relying on Vietnam as an intermediary, Longmate Agriculture Co Ltd director Hun Lak said on Wednesday.
He told The Post that besides expanding its exports to China, his company is seeking to export to Japan, South Korea and the Middle East.
“In Cambodia, the climate is favourable [for yellow bananas]. It is hot and humid, and the soil is fertile and well suited to the cultivation of bananas.
...
He said Cambodia exports an average of 60 containers of bananas a month to China at a median price of between $550 and $600 per tonne.
“We have officially received approved exporter status because Chinese customs authorities and companies recognise our banana standards,” he said.
So far this year, the Kingdom had exported 127,459 tonnes of yellow bananas to China since official direct exports to the Chinese market were authorised, a report from the ministry’s General Department of Agriculture said on Friday.
According to data from the General Department of Agriculture, from the third quarter of last year, three major yellow banana farms existed in Cambodia. They are located in Ratanakkiri, Kratie and Kampot provinces and have a total area of 4,996ha – all for export'.
The Phnom Penh Post (Dec. 19) on coconut, a very overlooked crop. China seems interested:
'Coconut Palm Group Co Ltd is planning to invest in coconut plantations and set up a factory in Cambodia to produce fruit juice, said its general manager Zhao Bo at a recent meeting with Minister of Agriculture, Forestry and Fisheries Veng Sakhon.
The company is the biggest natural plant protein soft drink producer in China and specialises in processing tropical fruits such as coconuts.
...
The ministry said in 2016, coconut was cultivated on a total of 16,935ha in Cambodia, mainly in Preah Sihanouk, Kampong Speu and Kampot provinces.
...
Zhao said the Coconut Palm Group, located in Hainan, has annual revenues of $400 million and uses 600,000 coconuts a day in its production. The company also employs 6,000 workers and exports its juices to 38 countries.
The company, he said, was established 31 years ago, and in 2016, it paid 603 million yuan ($86.2 million) in taxes – 201 times more than it did in 1985. “Our company’s development has helped to promote the tropical fruits planting industry in Hainan,” Zhao said'.
Drop
Last chapter, ag issues in the wider region. Just a pair.
Phnom Penh Post (Dec. 15) reports on Vietnam's fruit trade:
'Vietnam’s fruit and vegetable exports dropped 0.6 per cent year-on-year to $3.5 billion in the first 11 months this year, data from the Ministry of Agriculture and Rural Development (MARD) shows.
The drop was attributed to falling earnings from dragon fruit, which accounted for 31 per cent of total fruit exports, (down nine per cent), durian (down 17.4 per cent), coconut (down 35 per cent), longan (down 56 per cent) and watermelon (down 26.4 per cent)'.

Phakhaolao (Nov. 14) sees problems with the Lao coffee production:
'Champassak is suffering the effects of a 28 percent decrease in the price of coffee exports compared to last year, with the price now standing at 1,800 kip per kilogram compared to 2,500 kip. The province's Industry and Commerce Department said that in the first nine months of this year 17,993 tonnes of coffee was exported, a drop of 28 per cent compared to last year'. 

Thursday, August 3, 2017

Risky

The Guardian (Jul. 15) has an interesting article on what may lie ahead in terms of dealing with climate change directly. 
The study mentions does limit itself to maize, but one can imagine that if wheat would likewise become vulnerable, it could well have direct effect on rice / rice prices as rice will become a substitute crop:
'Governments may be seriously underestimating the risks of crop disasters occurring in major farming regions around the world, a study by British researchers has found.
...
The group found there is a 6% chance every decade that a simultaneous failure in maize production could occur in China and the US – the world’s main growers – which would result in widespread misery, particularly in Africa and south Asia, where maize is consumed directly as food.
...
Having studied the risks facing maize production, the group is now following up this work by studying climate impacts on the world’s other staple crops – in particular rice, wheat and soya beans – in order to assess how weather extremes could affect their production'.
Furthermore as most rice growing areas are grown in low lying  areas, indirectly higher rainfall and higher sea levels will affect rice output. A double whammy?

To confirm
A possible major breakthrough. Bangladesh may well be interested in Cambodian rice (Daily Star, Jul. 27), large scale. The only thing btw, counting in Cambodia's favour is it's lower price. The Khmer Times (Aug. 1) is pretty sure:
'Cambodia will reach an agreement with Bangladesh tomorrow for the kingdom’s rice to be exported to the South Asian country, according to an official in the Commerce Ministry.
“Under the deal, Bangladesh will import 1 million tonnes of milled rice from Cambodia for 5 years,” said Soeung Sophary, the ministry’s spokesperson yesterday'.
Other rice business news. The Phnom Penh Post (Jul. 12) reports on the exports obtained:
'Cambodian rice exports increased marginally during the first half of the year as export companies push to fulfil higher quotas destined for China.
Rice exports totalled 288,562 tonnes in the first six months of the year, an increase of 7.6 percent compared to the same time last year, according to the latest data published by the Secretariat of One Window Service for Rice Export Formality.
Exports to China accounted for 94,000 tonnes compared to France’s 37,000 tonnes and Poland’s 25,000 tonnes.
Despite the uptick in growth, Hean Vanhan, undersecretary of state at the Ministry of Agriculture, admitted that the figures showed a slow growth trend. He urged the private sector to increase capacity and secure more international orders to strengthen export potential'.
The China Daily (Jul. 8) chimes in but somehow is more upbeat:
'Cambodia exported 94,720 tons of milled rice to China in the first six months of 2017, up 101 percent compared to the same period last year, according to a government report on Friday'.
Elsewhere on the rice business front. The Phnom Penh Post (Jul. 12):
'Amru Rice, one of Cambodia’s largest rice exporters, signed a contract farming purchase agreement with 4,000 organic rice farmers in Preah Vihear province, reserving about $7 million to purchase nearly 20,000 tonnes of organic paddy during the upcoming harvest season, according to a press release yesterday'.
Then some sideline business. 
The Phnom Penh Post (Jul. 6) reports this curious note:
'The Preah Vihear Provincial Agriculture Department on Monday ordered its staff to help farmers by buying up invasive golden apple snails that are currently destroying their rice fields, according to the head of the department'.
While the Khmer Times (Jul. 3) shows how Sino-Cambodian rice business is dealt with:
'A feasibility study into the possibility of establishing a series of warehouses and kiln for rice farmers is exploring how to improve the quality of storage in the industry.
...
Mr Lak [vice president of Cambodia Rice Federation] could not confirm where the first warehouse and kiln will be located, but according to Jin Yu Hui, vice governor of Jilin province, Battambang is the priority area'.
Up
As is seen by the above the region has also been counting how much rice was exported in the first half of the year and simultaneously spinning some other rice news.

Vietnembreakingnews (Jul. 6) kicks off:
'Vietnam’s rice output during the winter-spring crop was estimated at 19.1 million tonnes, a year-on-year decrease of 1.5 percent, according to the Ministry of Agriculture and Rural Development'.
Oddly the Bangkok Post (Jul. 6) reports on Vietnam:
'Vietnam has outlined plans to boost revenues from rice exports over the next decade by focusing on a higher quality product and selling more outside Asia.
The world's third-biggest rice producer wants to boost production of higher-quality 5% and 10% broken rice and decrease output of 15% broken rice, according to a paper published on the government's website.
...
Last year, the country's total rice exports fell by 27% to 4.8 million tonnes as it faced rising competition from Asian rivals, as well as policy changes in China and a fall in domestic production due to drought and high water salinity.
Exports rebounded 14% in the first half of this year to an estimated 2.96 million tonnes'.
Continuing with Vietnam, Vietnamnet (Jul. 9) reports which seems to disregard the above that already 4.8 million tonnes are being exported:
'Vietnam aims to export 4 million tonnes of rice in 2030 under a 2017-2020 rice export development strategy with a vision to 2030 recently approved by Prime Minister Nguyen Xuan Phuc'.
What am I missing?
Then the Bangkok Post (Aug. 2) reports on Thailand: 
'Thailand is likely to export 11 million tonnes of rice this year, higher than its target, Commerce Minister Apiradi Tantraporn said on Wednesday.
"Thailand is negotiating rice deals with many countries such as Sri Lanka and Bangladesh," Ms Apiradi told reporters.
"This will help improve Thai rice prices and push our export volume up to 11 million tonnes," she said.
Thailand, the world's second-biggest rice exporter after India, set an export target of 10 million tonnes for 2017.
It has exported 6.3 million tonnes of rice so far this year, an increase of 16% from the same period last year'.
Hurts
Away from the data news, the region has more to note on rice growing and business in general.
The Vientiane Times (Aug. 1) realizes that dealing with China is not so easy:
'Rice exports from Laos to China have been affected by the high standard conditions formulated by Chinese authorities, according to a leading Lao rice producer.
...
A Chinese company ordered 7,200 tonnes of rice last year but the country was unable to supply this amount as the standard required by Chinese buyers is very high, the Ministry of Industry and Commerce reported'.
Agriculture.com (Jul. 6) blames lower prices on the Thai junta's policy of pushing foreign workers out:
'"Prices have gone down because the baht has weakened," a trader in Bangkok said. The mass exodus of migrant workers since June 23 following the introduction of new labour regulations by the Thai military government has also hit the Thai rice industry with labour shortages.
"The shortage of workers at warehouses and at the docks has led to delay in the loading of shipment and this has hurt exporters' confidence in their ability to fulfil shipments," said another Bangkok-based rice trader.
More than half of the labour force in the Thai rice industry are migrant workers from neighbouring Cambodia and about three quarters of this workforce have left the country, said Chookiat Ophaswongse, president of the Thai Rice Exporters Association.
The Thai government has since delayed parts of the new labour law, but many migrant workers have yet to return.
"Thai exporters hesitate to take new order because of the labour shortage and many potential international buyers are thinking twice about buying Thai rice because of this uncertainty," Chookiat said.
The labour shortage could raise the cost of production of Thai off-season crop, he said, which is expected to arrive from around August to September'.
Vietnamplus (Jul. 4) shares with us, news from Thailand:
'Thailand’s rice insurance scheme for this year’s first crop began on July 3 after it was approved by the cabinet last week.
The programme, worth 2 billion THB (around 58.84 million USD), will be run by the Bank for Agriculture and Agricultural Cooperatives (BAAC).
It is expected to be applied on 25-30 million rai (40.000- 48.000 square kilometres) of rice farmland and cover insurance for natural disasters, including floods, droughts, storms, cold, hail and fires'.
Counter
While the Thai nation is waiting to be brought up to terms with what punishment the junta will implement on it's democratic predessor (for a popular free hand-out to all rice farmers), The Nation (Jul. 15) opens up about current practices in the rice business:
'Govt accused of rice sale irregularities 
MEMBERS of the Pheu Thai Party have asked the Auditor General to investigate the government’s programme of rice auctions dating to the 2014 coup, alleging irregularities that have caused losses to the state.
The party members led by Yuttapong Charasathein, a former deputy minister of agriculture and Cooperatives, yesterday filed a complaint with the Office of the Auditor General over the alleged irregularities.
Chief among their concerns is that rice fit for human consumption had been declared low grade, and was auctioned off for animal feed and industrial purposes. The sale of rice stocks classified in that category fetched lower prices and, the MPs claim, resulted in reduced government revenue.
...
Deputy director-general of the Foreign Trade Department, Keerati Rushchano, yesterday denied an allegation made by the Pheu Thai members that that the irregularities in the government’s rice auctions had caused losses of around Bt10 billion.
He said department did not approve a bid to pay Bt11.25 per kilogram for food-grade rice at one auction because the offer did not meet minimum price threshold set by the authorities. While authorities approved Bt 6.10 per kilogram in a later round auction because the bulk of that rice was not food grade.
...
Meanwhile, Somporn Isvilanonda, a rice expert and member of the committee examining rice quality, said that the Pheu Thai politicians might be trying to play political games with their complaint to the Auditor General. He assured that the rice auctions were transparent'.
Extraordinarily the Bangkok Post (Jul. 19) follows suit and tries to expand on the Nation:
'Even though the military government has vowed to push for reforms in a number of key areas, it seems to have overlooked a critical issue also in need of reform: The management of the state's rice stockpiles.
...
For decades, the Department of Foreign Trade, under the Commerce Ministry, annually called for bids for state rice stocks to unload pledged rice kept in government warehouses under the rice subsidy policy of previous governments.
Scandals have similarly arisen regarding the ministry's rice-bidding scheme almost every year. Rice auctions under this government are no exception. So what, exactly, is going on?
Taking a closer look at the political interests as well as established personal connections within the realm of rice trading helps shed light on the problem.
Rice is always a valuable political commodity frequently exploited by politicians as a tool to woo votes from farmers. Moreover, numerous politicians or their relatives are rice traders or exporters themselves.
While there are many players in the domestic rice trade, many of them are in fact from the same group. For example, several companies participating in the same state auctions for agricultural products have been found to be subsidiaries of the same major rice-exporting corporations.
In addition, some major rice traders have strong ties with political players. They have long developed close relationships with state officials, potentially influencing their decision-making process.
...
A recent controversy over "the unfair disqualification" of a bidder in the latest round of rice auctions, exposed to the media by former Democrat MP Watchara Petchthong, is telling.
TPK Ethanol Co, earlier filed a complaint with the Central Administrative Court accusing the Department of Foreign Trade of unfairly disqualifying its winning bid in a 525,000-tonne rice auction in April, even though it offered the highest price.
The court late last month issued an injunction order to suspend the Department of Foreign Trade's auctions for 2.7 million tonnes of inedible rice which was meant to go to the animal feed industry.
In a written response to the company, the department said that Prime Minister Prayut Chan-o-cha, as the national rice policy committee chairman, and Agriculture and Cooperatives Minister Gen Chatchai Sarikulya, as the deputy chairman, had approved the disqualification.
The department's director-general Duangporn Rodphaya said TPK Ethanol had been ruled out because one of its managers served as a director at two companies which had been found to have breached a contract with the department 20 years ago in a cassava price-pledging scheme.
...
In response, TPK Ethanol executives submitted a letter to the Supreme Administrative Court countering the department's appeal.
The company claims the department's move was discriminatory and applied a "double standard", saying there were three other companies which were not eligible for the auction but were allowed to take part in it anyway.
The first company is comprised of a group of rice traders who were also found to have breached an auction contract last year under a different business entity. The company's board of directors is the same as those of the previous entity, the letter said.
The second company, it alleges, was implicated by the National Anti-Corruption Commission (NACC) for its involvement in a corruption case related to the government-to-government rice trading scheme implemented by the former government. One of the company's directors is even a suspect facing charges by the NACC, the letter said.
The third one is a rice company which had a dispute with the department over rice auctions but was allowed to join the auction after registering itself under a new company name, said TPK Ethanol.
...
Another allegation, raised by some Pheu Thai Party members, regarding the rice bidding management scheme under this government, is also awaiting a clear-cut response.
Pheu Thai Party members, led by Yuttapong Charasathein, former deputy agriculture and cooperatives minister, accused the military government of selling 2.14 million tonnes of fragrant rice as animal feed at a knockdown price.
Some traders proposed to buy rice from the government at 11.25 baht per kilogramme but their proposals were declined. But the state later sold the rice at 6.10 baht a kilogramme. This problem existed in 18 warehouses, they claim.
This practice has caused heavy losses in the government's rice stock disposals, while the buck has been passed to the last government, they said.
Although the department claims that the rice was sold at such a low price because its quality had deteriorated and was thus inedible, it has yet to provide the public with a satisfactory answer'.
Bangkok Post (Jul. 31) notes :
'Government spokesman Sansern Kaewkamnerd has accused politicians and rice mill owners who are calling for a new inspection of rice stocks under the controversial rice-pledging scheme of being part of a politically-motivated movement. 
...
Previously, the owners of eight rice warehouses had called on the government to conduct a new round of quality checks on rice under the scheme, saying they weren't confident in the results of past
inspections conducted by officials. According to warehouse owners, normal rice was auctioned along with rice used for producing animal feed, which is a waste of money. They claimed they weren't aware of the government's intention to sell the rice as ingredients in animal feed until the days on which the auctions were held. They added their move should help prevent further losses that could be worth several billion baht'.
After this come a couple of examples and legal arguments'.
So even if convicted, it seems that there will be no end to popularizing and using rice as a stick with which to hit political opponents. Why I beg, should the government be meddling not only in setting prices but in trade as well?

Fairness
Back to Cambodia, where prices of corn have lead to protests. The Cambodia Daily (Jul. 17):
'After about 500 protesting farmers blockaded a national road in Battambang province last week, local authorities in neighboring districts are now making efforts to placate hundreds of other farmers also restless over depressed corn and cassava prices.
In Banteay Meanchey province’s O’Chrou district, district governor San Sien Ho said yesterday that he had been pre-empting possible protest by visiting local families and asking for patience, though he admitted there was little authorities could do.
...
On Thursday, corn farmers in Battambang’s Kamrieng district blocked National Road 57B for more than eight hours and called on the government to find a solution to their plight. The following day, farmers and local officials met for six hours, and tycoon Phou Puy offered to buy their corn and dry it himself. Farmers, however, said the offered price of 3.4 baht, or about $0.10, per kilogram wasn’t enough'.
Phnom Penh Post (Jul. 17) reports on the same:
'Farmers in two Battambang districts shut down major roads over the weekend, in protest of low corn prices, according to local officials.
Song Sopheak, Phnom Proek district police chief, said that around 100 families blocked the roads in his district on Saturday for more than two hours. Sopheak said the villagers drove tractors onto national roads 59B and 57, demanding authorities help negotiate a better price.
“They said this year the corn price is down, so they want the authority to help them negotiate with the broker. They said this year the broker only gives them 3.1 baht [around $0.09] per kilo of corn. So now the villagers want 3.4 baht, and the dealers agreed to buy with this price,” Sopheak said, adding that last year corn was sold for 4 baht per kilo.
Kim Ponlork, Sopheak’s counterpart in Kamrieng district, said around 100 villagers protested in his jurisdiction on Friday as well'.
Then the solution. The Cambodia Daily (Jul. 19):
'Following corn farmers’ protests over low prices last week, the Rural Development Bank has proposed using a government rice subsidy to purchase corn and shore up demand.
...
Yesterday, Kao Thach, the RDB’s chairman, said the bank’s board had met earlier in the day to discuss the proposal for corn, and it was now sending it to the Finance Ministry for approval. Last week, about 500 farmers in Battambang province’s Kamrieng district blocked a national road to protest low prices, and authorities met with corn traders hoping to negotiate better deals. The traders refused to budge, however, from the originally agreed price of 3.5 baht per kg, or about $0.10.
...
Many crops in Cambodia are produced for export to only a few markets, mainly Thailand or Vietnam, limiting farmers’ options when buyers’ demand flags, he said.
“They only come to buy from us when they don’t produce enough for their use,” Mr. Ngeth added. The issue was exacerbated by Cambodian farmers overproducing crops that did well the previous year, leading to an oversupply, he said. Un Sreyoun, a 40-year-old corn farmer from Kamrieng district, said she hoped for more local buyers to drive up corn prices.
“If more Cambodian traders came, Thai dealers would not dare to lower the price,” Ms. Sreyoun said.
But Mong Reththy, chairman of agro-industrial conglomerate Mong Reththy Group, said his company had bought 1,000 tons of corn from Battambang almost every day this year for his livestock feed factory, and argued that current prices were fair.
“The price [offered] is already good enough for the farmers. Good deal, indeed,” Mr. Reththy said'.
Spirited
Other non rice news.
The Phnom Penh Post (Jul. 27):
'In an agreement mediated by the International Finance Corporation’s watchdog mechanism, a controversial Vietnamese rubber firm has reached a deal with 11 ethnic minority villages affected by its Ratanakkiri operations to return nearly 20 community “spirit mountains”, restore streams filled or polluted by its activities and repair roads and bridges'.
One needs to note that those companies not with a World Bank interest, can cheat landowners fair and square, no worries.
Rubber is actually on the up. The Phnom Penh Post (Jul. 20):
'Cambodian rubber exports surged 37 percent during the first half of the year, compared to the same period in 2016, as the Kingdom’s rising harvest capacity coincided with firmer global demand for rubber products.
Local producers exported 70,000 tonnes of rubber during the first six months of 2017, compared to 51,000 tonnes during the same period a year earlier, an agriculture official said yesterday.
Pol Sopha, general director of the Rubber Department at the Ministry of Agriculture, said prices also improved during the first six months of the year, with the median export price on natural rubber rising 76 percent year-on-year to $1,771 per tonne. He said the improved prices should help plantation owners and farmers offset some of their losses from recent years, when prices nosedived on slower demand and a glut in world supply'.
An interesting article from the Phnom Penh Post (Jul. 6) on the pepper business:
'Cambodia rice mogul Song Saran, the CEO of one of the Kingdom’s top rice exporters, will diversify his agricultural business interests with the construction of a factory to clean and process locally grown pepper, he said yesterday.
The new factory is being built on 3,000 square metres of land in Memot district of Tbong Khmum province, which accounts for over 70 percent of Cambodia’s pepper harvest.
Its pepper cleaning and processing line is scheduled to open next month and reach its full capacity of 15 tonnes per day by January.
Saran, CEO of Amru Rice and three other sister companies engaged in rice production and export, said the new $400,000 factory is an investment by Amret Rungroeung Group Ltd, a trading firm he established in 2009.
...
He said the company would initially focus on processing black pepper, but it could eventually add separate production lines for other spices, such as ginger and turmeric.
“We’ll focus on black pepper first as we’ve seen the pepper industry grow very rapidly and we cannot depend only on Thailand and Vietnam as buyers,” he said. “We need to build up our own market and connect to the world.”
According to Saran, this will be only the second processing factory to set up in the pepper-growing region. Buyers in the EU and Dubai have already agreed to purchase shipments of 2,000 to 3,000 tonnes per year, he added'.
It's questionable whether or not Cambodia needs to scale up it's pepper business. But it seems inevitable.

Payback
Other crops, other problems. 
The Bangkok Post (Jul. 25) reports on the continuing saga of sugar:
'Sugar prices will be closely monitored despite the government's commitment to the World Trade Organization to free up the production and trading system of the commodity by December, says the Ministry of Commerce. 
Permanent secretary Wiboonlasana Ruamraksa said sugar is on the ministry's control list -- goods whose retail prices are not allowed to be increased -- and is expected to remain so after Dec 1 when the government is due to liberalise the sugar system'.
Bangkok Post (Jul. 10) is less enthusiastic on rubber:
'Discontent among southern rubber farmers against the government has grown even as the government explained it has done its best to ease their woes stemming from plummeting rubber prices.
Government spokesman Sansern Kaewkamnerd said on Monday it was imperative that farmers understand world rubber prices were dictated by economic factors such as interest rates and oil prices. In the first five months of this year, exports of natural rubber jumped 63.6% to $2.8 billion. Rubber product exports such as tyres and gloves also surged 59% to $4 billion and the momentum continues, he said.
But southern farmers are taking issue with Prime Minister Prayut Chan-o-cha, who said last week 3 million rai of forests had been encroached to grow rubber trees, resulting in a glut'.
Vientiane Times (Jun. 27) has an insight on how coffee trade is undertaken:
'Dao-Heuang Group will seek to repay the money it owes the country’s coffee farmers as soon as possible after the company fell several months behind in payments for the raw beans. 
The company now owes farmers a total of 27 billion kip after it paid off significant debts according to the Champassak provincial Industry and Commerce Department.
...
The remaining 27 billion kip is owed to almost 2,000 farming families, he said.
Dao-Heuang Group is the largest coffee buyer in Laos, leaving many coffee growers with few alternatives to sell their product as demand from other companies remains limited. The company has confirmed that it will pay all money to farmers but not the timescale.
Coffee remains a key commercial export crop in Laos, and the nation’s product continues to be popular among people from home and abroad while increasingly well-accepted in the international market. The challenges for the industry carry on as the world price for coffee has dropped significantly over the past few months.
According to the Lao Coffee Association, robusta beans are down from US$2,100 in March to US$2,014 this month. 
Falls have been even more spectacular for the higher grade Arabica, which was selling at US$ 3,100 in March before falling to US$2,500 a tonne this month.
The value of coffee exports through the Lao Coffee Association has reached 21,000 tonnes worth more than US$50 million.
This figure is expected to increase in terms of volume and value for the current year'.

Saturday, April 1, 2017

Suffer

Thinking globally. Grain.org (Mar. 13):
'The agricultural seed and pesticide market is already extremely concentrated. Three impending mergers between six of these corporate giants (Bayer/Monsanto, Dow/DuPont, and ChemChina/Syngenta) will further consolidate market and political power, leading to even greater corporate control of our farms and plates'.
It then presents 5 reasons why we should oppose seed and agrochemical mergers currently being lined up.
  • These mergers will harm farmers and ranchers.  
  • Consumers will see increases in food prices. 
  • Workers will suffer. 
  • Environmental damage from industrial agriculture will increase. 
  • The “lock-in” of industrial agriculture will prevent the expansion of food systems that work for people, pollinators, and planet.
More from the same source on the same subject. Grain.org (Mar. 27):
'More than 200 organisations have today raised their objections to the planned mergers of six giant agriculture corporations.
The farmer, farmworker, beekeeper, religious, international development, and environmental groups claim that the three resulting companies will concentrate market power and “exacerbate the problems caused by industrial farming – with negative consequences for the public, farmers and farm workers, consumers, the environment, and food security” in an open letter to the European Commission and Competition Commissioner Margrethe Vestager.[1]
The European and national organisations – together representing millions of members – state that the proposed mergers of Dow Chemical with DuPont, Monsanto with Bayer AG, and Syngenta with ChemChina will lead to an unacceptable monopoly, with three companies controlling around 70% of the world’s agro-chemicals and more than 60% of commercial seeds.[2]'
Limits
The next article seems to contrast the quotes of an article following this. The IRRI.org (Mar.  28):
'An important strategy to reduce reliance on chemical pesticides in Cambodia is steadily moving through a project that encourages the use of environment-friendly biological control agents (BCA).
Over the last decade, Cambodian rice farmers have mainly relied on chemical pesticides as a major method for controlling pests and diseases. Experts warn that the rampant use of toxic chemicals is likely to lead to numerous long-term effects on the health of farmers and the environment. Integrated pest management (IPM) and BCA provide an alternative to chemical pesticides. BCAs include insects, fungi, and other natural products to manage pests'.
Cambodia Daily (Mar. 29):
'The government has ordered a nationwide recall of the fungicide tricyclazole to keep its rice exports eligible for the important E.U. market, but said it might not get the chemical out of its supplies in time to meet the bloc’s July deadline.
The E.U.’s new threshold is 0.01 milligrams of tricyclazole residue per kilogram of rice paddy, down from the current cutoff of 1 milligram.
...
Phou Puy, a member of the Cambodia Rice Federation, was more optimistic [than the government]. Mr. Puy said most of Cambodia’s rice farmers were still chemical-free and so would not be hit by the new limits on tricyclazole.
“I am not worried about this because our country does not use a lot of chemicals. Most of our rice farmers remain organic,” he said'.
Either there is a lot of pesticides usage. Or there isn't. Or the quotes simply fit the need of the day.
Xinhua (Mar. 10) notes that exports to China are gearing up:
'Cambodia had exported 46,387 tons of milled rice to China in the first two months of 2017, up 127 percent over the same period last year, according to a government report released on Friday.
China is the top buyer of Cambodian rice, followed by France, Poland, Britain and the Netherlands, said the report compiled by the Secretariat of One Window Service for Rice Export'.
Qualified
It's less than rosy for Vietnamese exports. Vietnamnews (Mar. 27):
'Việt Nam exported an estimated 1.28 million tonnes of rice in the first three months of the year, earning US$570 million. But the exports were 18 per cent lower in volume and 17.3 per cent lower in value compared to the same period last year. This was reported last week by the Ministry of Agriculture and Rural Development'.
From Thailand news on how to get rid of rice. Bangkok Post (Mar. 11):
'The government has imposed strict criteria for bidders interested in participating in the state's first auction of 3.66 million tonnes of rice unfit for human consumption to ensure the grains are not sold on the normal rice market. According to the terms of reference revealed yesterday, qualified bidders are required to be juristic persons with an industrial factory licence, explain the purpose the rice will be used for, and guarantee it will only be used for industrial purposes'.
A central rice market for Thailand Bangkok Post (Mar. 20):
'The government is expected to decide on the venue for a central market for milled rice as a distribution channel for traders and farmers by mid-year, at a cost of 300-400 million baht.
...
Although Thailand is a leading producer and exporter of rice, averaging 20 million tonnes of milled rice a year, it has no central market for trading milled rice thus far. Such a marketplace would enable importers, wholesalers and retailers to shop for different grains'.
Currently the junta lead country only has a central market for paddy.
Spillage
A wrap up of off topic, but nonetheless interesting articles on agriculture and rural development in the region. 
Starting off with the less exciting news from the Phnom Penh Post (Mar. 22) on agricultural waste:
'Villagers in Pailin province’s O’Tavao commune say they filed a complaint to the provincial environmental department last week about the alleged dumping of cassava waste by agricultural company Khmer Viniyok Kasekam, prompting a cleanup effort by the company.
Improperly processed cassava can be toxic, and locals yesterday said runoff from the company had killed animals and caused skin irritation among children who had swam in the river, though the firm denied it had intentionally released the waste into the waterway.
...
When contacted yesterday, company manager Ok Samphors, 39, denied villagers’ allegations of dumping waste. He said that his company, acknowledging the environmental risks, had constructed two ponds in which to deposit the waste.
“However, it has rained continuously for a week, so the ponds became full and the waste spilled into the river. The company did not dump it [into the river],” Samphors said.
He added that the company retrieved the waste from the riverbank on Monday after receiving advice from authorities.
Pailin provincial environment department director Kem Sokha corroborated Samphors’s account, agreeing that the incident was unintentional'.
More waste issues. The Cambodia Daily (Mar. 30) reports on more fish deaths, this time attributed to sugar waste. 
'The Environment Ministry is studying water samples from Preah Vihear province to find out what has been killing thousands of fish in the Stung Sen River, where villagers are reportedly blaming a sugarcane plantation.
A report posted to the National Police website Wednesday’said locals living along the river have accused Rui Feng, one of several Chinese-owned plantations in eastern Preah Vihear growing sugarcane, of dumping chemicals into the waterway and killing the fish. The report said the water had turned black and smelled bad'.
And then the shocker:
'Rui Feng [Chinese-owned plantation] could not be reached for comment. Though providing jobs for some locals, the company has also attracted its share of critics.
One of five parent companies investing about $360 million to grow, process and export sugar, it has been locked in a land dispute with hundreds of local families since it started clearing the ground in 2013.
Last month, police said they had started an investigation into allegations that the Chinese managers of another of the five companies, Heng Rui, had severely beaten three workers for stealing oil and fertilizer, one of whom later died of his injuries'.
Land issues. The Cambodia Daily (Mar. 24):
'A long-running land dispute between 175 Koh Kong farmers and two sugarcane firms accused of stealing their land came a step closer to conclusion on Thursday after 73 of the farming families accepted compensation, a government official said.
...
Phav Nhoeung, a representative of the villagers and one of those seeking compensation, said the remaining 102 families had rejected the offer because the land was too far from their homes.
“We reject this option because we are living far away from that area…. It is more than 10 km from our houses,” Ms. Nhoeung said'.
Glass half full, half empty?
However more conflicts on the horizon? The Phnom Penh Post (Mar. 16):
'Cambodia's five major sugar producers exported just 4 percent of the country’s planned refined sugar capacity to the international market last year, equalling only 80,000 tonnes, a sign that government officials said means the sector still has ample room for growth as sugar companies push for higher yields.
According to data in the yet-unpublished annual report of the Ministry of Industry and Handicraft, nearly 100,000 hectares has been earmarked for sugarcane plantations with a planned capacity of 1.8 million tonnes of refined sugar per year. However, just a small portion of this land is currently under cultivation by five producers: Rui Feng and its four sister companies, Kamadhenu Ventures (Cambodia) Ltd, Phnom Penh Sugar Co Ltd, Yellow Field International Ltd, and Koh Kong Sugar Industry Co Ltd'.
Phnom Penh Post (Mar. 15 ) concerning import substitution:
'Chip Mong Group is the latest conglomerate to invest into local production of animal feed, announcing this week that it will sink $60 million into building a large-scale feed mill and industrial piggery, a move that agricultural experts welcomed but said would still not be able to curtail the Kingdom’s dependence on imported feed.
Sen Sovann, director general of the Ministry of Agriculture’s animal production and health department, said Cambodia imported over half of its animal feed last year at a cost of $135 million. It spent another $100 million to import some 400,000 pigs from neighbouring countries to meet local demand for pork meat.
...
Mong Reththy Group, which inaugurated its own $10 million feed mill last December, has the capacity to produce 60,000 tonnes of animal feed a year from locally grown corn and paddy rice. The plant currently supplies the 100,000 pigs on its pig farm in Preah Sihanouk province, as well as 100 nearby family-owned farms'.
Pepper prices following the global trends. Phnom Penh Post (Mar. 17):
'Pepper prices in the Kingdom’s largest pepper producing region have fallen over 30 percent in the last year due to growing international supply that is leading to higher competition in the market, an industry expert said yesterday.
Hong San, president of the Dar-Memot Pepper Agricultural Development Cooperative in the Tboung Khmum province, said prices have fluctuated since the harvesting season started earlier this month with pepper selling at 20,000 riel ($5.03) per kilogram yesterday, up from 17,000 riel earlier this week.
The volatile prices are far below those seen last year, when pepper was selling at prices ranging from 30,000 riel per kilogram to as high as 40,000 riel.
...
Data from the Ministry of Agriculture shows Cambodia produced a total of 11,819 tonnes of black pepper in 2016, a 20 percent year-on-year increase, with the Tboung Khmum province accounting for 8,566 tonnes of the overall harvest.
“Even if the prices are lower than last year, we are not experiencing losses at this point, only decreased profits,” San said. “It is not a big concern for us because our pepper is still of a high quality compared to Vietnam, which is struggling because they rely on chemicals.”
Vietnamese news outlets reported this week that pepper prices in the country were at a five-year low, currently standing at around $4.28 per kilogram. The decrease was attributed to a growing supply and stagnant demand.
Chhay Sor, a small-scale pepper farmer, explained that local pepper prices were unstable because Cambodian farmers rely on Thai and Vietnamese brokers to sell their products to the wider market'.
Mongabay has an article (Mar. 24) on how expanding cultivation of palm oil is cutting into protected peat land areas in southern Thailand. Part of the problem is the lack of law enforcement: 
'Thai media have blamed investors and local politicians have for using farmers as proxies by which to encroach upon protected land (Mongabay was unable to independently verify these allegations). This practice has been alleged elsewhere in Southeast Asia, where private investors distanced themselves from the process and aftermath of oil palm farming, leaving local farmers responsible for the damage.
Bribery and corruption often affect land ownership in Thailand, with the Department of Land ranked the most corrupt in the Thai bureaucracy, according to a survey done by Chulalongkorn University in 2014. Local Land Offices, which come under the Department of Land, are the key agencies for all transactions and documentation involving the sale or purchase of land, and can charge a fee for their services. But the survey revealed that land officials often demand extra money to speed up work or legalize documentation'.