| Regional Affairs
GOT MILK? Southeast Asia Globe 5th Aug 2014
At the end of a long, potholed road halfway up Gunung Kawi mountain in East Java lies PT Greenfields dairy farm. The farm is home to more than 6,000 imported Holstein Freisian cows, a modern milking parlour and a state-of-the-art processing facility that treats about 70 tonnes of raw milk every day. Besides supplying the local Indonesian market with single-pasteurised milk, ultra high temperature (UHT) milk, whipping cream and a range of other dairy products, Greenfields exports its products to Singapore, Malaysia, Hong Kong and the Philippines. It’s quite the logistical feat, considering the relatively remote location of the farm, but in today’s Southeast Asia, milk is big business.
Experts give ASEAN food security scheme high marks Sci Dev Net 4th Aug 2014
Two experts gave a positive assessment of food security efforts of Association of Southeast Asian (ASEAN) member countries during a forum on food security organised by SciDev.Net and the International Rice Research Institute (IRRI) last 30 July in Makati City, Philippines. Asked to rate “ASEAN food security 2015” from a scale of 0-5, with ‘5’ as the highest score, panellists from the International Rice Research Institute (IRRI) and the Philippines’ Department of Science and Technology (DOST) gave an optimistic assessment of ‘4’. “Since the global food price crisis of 2007-09, ASEAN countries have redoubled efforts to strengthen management of domestic food supplies and shore up regional arrangements to share food security information,” said Bruce Tolentino, IRRI deputy director general for communication and partnerships. He cited efforts to strengthen and expand the ASEAN Food Security Reserve, which is based on an agreement among ASEAN’s ten member countries to set aside and share rice stocks in case of contingencies such as natural calamities.
Laos
Luangnamtha: some farmers complain low latex prices KPL 6th Aug 2014
Some rubber farmers in Namtha district, Luangnamtha province have asked the NA members to help them resolve their problem of low latex price, saying the problem is affecting their production and income generation. "The main cause of the low price of the rubber latex is that the Chinese Government has given Chine se companies a limited import quota and non private companies and entrepreneurs in Laos is allowed to access major factories in China directly so the determination of latex price is made by the companies in China,"the Deputy Minister of Industry and Commerce, Mr Bounmy Manivong, said last Friday.
Malaysia
Malaysian Halal Exports Can Be Significantly Increased By Strengthening Trade Hub Bernama News 2nd Aug 2014
Malaysia's halal exports of between RM30 billion and RM32 billion a year can be significantly enhanced by strengthening the country's position as a halal trading centre and be less dependence on domestic production. Managing director/chief executive officer of Halal Industry Development Corp (HDC), Datuk Seri Jamil Bidin, said the industry was still not crowded and firms must grab the opportunities not only as manufacturers but also as trading companies. He said the country was already the world's leading exporter of halal ingredients required in various industries, such as food and beverages (F&B), cosmetics, emulsifier and medical and wellness. Jamil said to kick-start the drive, HDC has enlisted 10 anchor companies, out of 801 exporting companies registered with the agency, to lead the initiative with the corporation's guide and assistance.
Philippines
PH agriculture seen as loser in Asean bloc Inquirer.net 7th Aug 2014
The Philippine agriculture sector may end up as one of the “losers” in the forthcoming economic integration of the 10 member states of the Association of Southeast Asian Nations (Asean), unless the government is able to provide the necessary infrastructure to pump up the sector. Speaking at the ING Bank-Economic Journalist Association of the Philippines CFO forum on Wednesday, Ysmael Baysa, chief financial officer of Jollibee Foods Corp. noted that there will be winners and losers upon the establishment of the Asean Economic Community, which means that there are industries that may significantly benefit, while others may suffer from these developments. “Who are going to be the losers? It’s probably our agriculture sector if cheaper rice and sugar from Vietnam and Indonesia, for example, come to the Philippines, and [thus] farmers of those crops will suffer,” Baysa said. Although 99.6 percent of the goods are already being traded at zero tariff in the Asean, certain sectors remained protected such as rice and sugar, in the case of the Philippine agriculture. Tariff on imported rice will be slashed to 35 percent after 2015 from the current duty of 40 percent, while that for sugar will be reduced to 5 percent from 10 percent.
Aquino's 2015 agri budget: What's in it, what's missing Rappler 6th Aug 2014
Does the 2015 agricultural budget allocated by the Aquino administration address the many challenges Philippine agriculture faces in 2015? One of the most pressing concerns is the looming ASEAN Economic Integration which will flood the country with cheaper agricultural products from other Southeast Asian countries. The agriculture sector is also yet to reach its target of 100% rice self-sufficiency, a goal that would've been reached last 2013 if not, according to Agriculture Secretary Proceso Alcala, for the extensive damage wrought by Super Typhoon Yolanda. Farmers and fisherfolk continue to be one of the poorest in the country. Smuggling and hoarding of agricultural goods remain a rampant problem, hiking up prices for consumers and cornering markets from local farmers. With the Philippine population already at 100 million, the country has to ensure food security for the inevitable population increase in the years ahead – food security constantly threatened by yearly natural calamities that destroy millions of pesos worth of crops.
House approves Sugarcane Bill Sun Star 5th Aug 2014
THE House of Representatives approved on third and final reading on Monday the Sugarcane Bill authored by Negros Occidental Third District Representative Alfredo Benitez. Benitez, author of House Bill No. 52 or the Sugarcane Industry Development Act of 2014, made the confirmation through a text message on Monday. He said that with the approval of the lower house of the Sugarcane Bill, they now await the approval of the Senate version so that it could become a law. Senator Francis Escudero, Benitez's counterpart at the Senate, had assured industry stakeholders of the passage of the bill into law before the year ends. The law is the hope of the sugar industry to hurdle the Asean Free Trade Agreement (Afta) that will impose up to zero tariff on imported sugar and other agricultural products.
Philippines Bans Hog Products from South China Province World News Report 5th Aug 2014
Agriculture Secretary Proceso Alcala ordered a temporary ban on the importation of hog products from Jiangsu, China following a confirmed report of foot and mouth disease (FMD) outbreak in Zhoutang village in Yingtan. Under the Memorandum Order No. 13, Series of 2014 signed on 11 July 2014, Secretary Alcala directed the immediate suspension of the processing, evaluation of applications and issuance of import permits for hog products. DA veterinary quarantine officers/inspectors in all major ports were also directed to confiscate and stop FMD-prone animals from Jiangsu and their by-products from entering the country. The restriction serves as proactive measure to protect the health of the local livestock population which remains FMD-free.
Organic farmers, traders hold protest vs GMO food products Inquirer.net 4th Aug 2014
A group of organic movers, farmers and traders on Sunday staged a protest against the field trials of genetically modified (GMO) eggplants and other GMO food products during their market fair in Makati City. Led by Mara Pardo de Tavera, organic food advocate and owner of organic market pioneer Mara’s Organic Market, about 200 organic farmers and traders at the Legazpi Sunday Market asked President Aquino to order the Department of Agriculture and other government research institutions to abandon plans of field-testing the BT eggplant, which is believed to contain toxins that can cause cancer and skin diseases to humans. This potential move by the President, according to the farmers and traders, will “protect and safeguard” the health of the Filipinos. “I believe that President Aquino has a mandate under the Constitution which specifically calls on him to protect the Filipino people against health threats,” De Tavera said, adding that she was confused as to why the government, through the International Rice Research Institute and other research institutions, encourages the planting of BT eggplants. De Tavera and other organic food advocates, who were wearing custom T-shirts with the words “No to Toxic Talong,” held a short education session inside the market fair to explain to the buyers and to the public the consequences of allowing GMO eggplants to be field-tested in the country.
Philippines allots $236 million for extra rice imports Reuters 4th Aug 2014
The Philippine government has allotted a budget of 10.3 billion pesos ($236 million) to import half a million tonnes of rice via a tender rescheduled for later this month, according to a bid invitation published over the weekend. The state grains procurement agency National Food Authority (NFA) reset the tender date to Aug. 27 from Aug. 12 due to time constraint, NFA Spokesman Rex Estoperez told Reuters. Seeking to boost thin stockpiles following recent typhoons and spikes in local retail prices of the grain, the government decided to import more rice with purchases in the second half of the year, possibly reaching as much as 1 million tonnes.
Thailand
Thailand aims to sell 3-4 million tonnes of rice stocks in 6 months Business Recorder 3rd Aug 2014
The Thai government is aiming to sell 3-4 million tonnes of rice from state warehouses in government deals within six months and plans to hold talks with several buyers in Asia, a senior Commerce Ministry official said on Thursday. Traders said the plan showed Thailand's military junta was taking aggressive steps to cut the country's huge rice stocks ahead of the arrival of the year's major rice crop, which will be harvested in November.
Thai hub for organic products sought The Nation 7th Aug 2014
To support the plan, it will propose to the military's ruling National Council for Peace and Order that it provide tax privileges to support expansion of the organic industry. Malee Choklumlerd, inspector-general of the ministry, said it had five strategies to support the growth of this industry between now and 2020. The five strategies are tax privileges for organic traders and farmers; consideration of a fund to support organic farmers; enhancing consumers' knowledge and recognition of organic products; providing clear information about the trade of organic products both domestically and overseas; and finding new markets and distribution opportunities for Thai organic products and services.
Sugar piling up in Thailand Rakyat Post 7th Aug 2014
Thailand, the world’s second-largest sugar exporter after Brazil, will be forced to cut prices further to lure consumers as more than a third of the country’s output of its recent record crop remains unsold, industry sources said today. Thailand’s supply overhang could cap global prices even as the market is expected to shift to being balanced in the coming 2014/15 crop year – after four straight years of surplus. After harvesting a record 11 million tonnes in the just-ended 2013/14 season, Thailand faces fierce competition not only from rival Brazil but also from India.
Beverage excise should be fair, Ichitan boss says The Nation 2nd Aug 2014
An excise tax on ready-to-drink beverages should be equalised to keep competition fair, says a top player in this industry. Tan Passakornnatee, chairman of Ichitan Group, urged fair practice in the collection of excise tax on the ready-to-drink segment, especially on 111 products that have received tax exemptions. He said that if tax collection was not carried out fairly and targeted particular manufacturers, it would lead to unfair competition in the marketplace.
Rice exports in July could hit 900,000 tonnes The Nation 2nd Aug 2014
After surging 59.2 per cent in the first half of this year, Thailand's rice exports may have touched 900,000 tonnes in July, given its lower prices than rivals' and tightening rice supply in Vietnam, said the Thai Rice Exporters Association. As of July 30, in FOB (free-on-board) terms, the Thai export price of 5 per cent broken white rice was lower than competitors' at US$432 per tonne. Based on oryza.com data on the same date, the Vietnamese export price of 5 per cent broken white rice was $465-$475 per tonne. India's and Pakistan's export prices of the same quality rice were in the range of $435-$445 per tonne.
Vietnam
Vietnam Could Become World’s Largest Coffee Producer and Exporter Vietnam Briefing 7th Aug 2014
Vietnam could be poised to become the world’s largest producer and exporter of coffee. Currently, the country is the world’s second largest coffee exporter, behind only Brazil. However, many experts believe that Vietnam has the potential to overtake Brazil thanks to its favorable climate conditions, lower cost production and a bumper coffee crop. The main challenge that Vietnam must overcome before it reaches the top position is the need to improve its product quality by investing more in research, harvest technology and processing facilities. In recent years, coffee has become one of Vietnam’s key agricultural export products – with 95 percent of output being shipped abroad. Per year, on average, coffee exports from Vietnam bring in around US$3 billion in revenue to the country. According to a report issued by Vietnam’s Ministry of Agriculture and Rural Development, in the first seven months of 2014, Vietnam exported 1.12 million tons of coffee beans, worth US$2.31 billion. When compared to the same period last year, coffee exports increased by 26.8 percent in volume and 21.9 percent in value.
Shrimp producers face more scrutiny for chemical usage Vietnam News 6th Aug 2014
The Prime Minister has directed the concerned ministries and agencies to monitor shrimp production and trade more strictly, according to the Government's news portal chinhphu.vn. Under Directive 20/CT-TTg issued late last week, the PM asked the chairpersons of coastal provinces and cities with large seafood production and trading activities, such as Ca Mau, Bac Lieu, Soc Trang and Kien Giang, to increase the supervision and inspection of seafood production, processing and trade to prevent the contamination of the products with banned chemical residues. Those violating the rules will be strictly punished in accordance with Decree 178/2013/ND-CP, under which the production and business licences can be withdrawn and the cases can be made public through mass media.
Vietnamese rice exporters face risks in US market VietnamNet 4th Aug 2014
Vietnam rice exporters face a risk of being sued because of their low selling prices in the US market. Local newspapers have quoted Lawyer Ngo Quang Thuy as reporting that the US House of Representatives’ Finance & Tax Committee, unofficially representing USRPA (the US Rice Producers’ Association), on May 15 filed a petition to the International Trade Commission (ITC) requesting an investigation of the competitiveness of rice imports against domestic rice.
Vietnam: Bright prospect for dragon fruit exports Fresh Plaza 1st Aug 2014
Vietnam now has more opportunities to ship dragon fruit, to some choosy markets such as the US, Japan, the Republic of Korea (RoK) and China’s Taiwan in the coming time as local scientists have found a new way to protect the fruit from melon fly disease, a local newspaper reported. According to the Saigon Times Daily, the Plant Protection Department is cooperating with local scientists in a study on sterilizing male flies which harm the dragon fruit.
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