| Cambodia
Local vs foreign: food for thought PPP 11th Jul 2014
After bringing Tous les Jours to Phnom Penh in 2011, CBM Corporation general director Sila Chy Thmor has also kept a steady flow of global food and beverage chains coming into the Kingdom. He now operates franchises of Singaporean eatery the Asian Kitchen, the French cafe Miam Miam and South Korean fast food restaurant Lotteria. He is also a founder of local brands BB World, Pizza World and T&C Café. The Post’s Hor Kimsay spoke to Sila Chy Thmor about the rising number of international chains setting up shop in Cambodia and how they have influenced local competitors.
Growing into the mushroom market The Phnom Penh Post 16th Jul 2014
The early days were tough going for Kim Puthkiri and his mushrooms. In 2010, Puthkiri inherited a 5,000-square-metre mushroom farm on the outskirts of Phnom Penh from his brother, who had been trained in South Korea in the art of raising the broad-topped oyster variety, a popular Chinese soup ingredient. New to mushroom farming, Puthkiri wanted to diversify his produce, and raise the more dense straw mushroom, a bulbous fungus with greater appeal in Cambodian cuisine. “We successfully grew oyster mushrooms, but Cambodian people do not like to eat oyster mushrooms, they prefer straw mushrooms. So we started to grow straw mushrooms when we did not even have the technique,” he said.
Local Corn Farmers Squeezed by Seed Giants The Cambodia Daily 10th Jul 2014
Nuon Ry, a farmer in rural Chirou village, stripped the husk off a cob of corn on Sunday to reveal a perfect set of bulging seeds and tossed it onto the golden pile of identical cobs behind her. Ms. Ry, who has been farming corn for four years, said her remarkably uniform crop is the fruit of hybrid seeds sold by Thai conglomerate Charoen Pokphand (CP). The alternative, using seeds that are openly pollinated, is not nearly as alluring. “This is what we get with regular seeds,” Ms. Ry said, holding up an anemic, patchy cob. “We can’t remain competitive with produce like that. The buyers are not interested.” Although hybrid corn seeds, which produce greater uniformity and disease resistance in crops, are nothing new in Cambodia, the market for them has been steadily expanding and has now almost fully engulfed the country’s corn industry.
Indonesia
Indonesian Coffee-Exports Drop Prompts Crop Concerns for Volcafe Jakarta Globe 8th Jul 2014
Coffee shipments from Sumatra, Indonesia, the world’s third-biggest grower of the robusta variety, dropped 41 percent in June, raising concerns about the size of the crop, according to Volcafe. About 50 to 70 percent of the nation’s highland crops were harvested and production so far appears “considerably lower, in some areas up to 35 percent,” the unit of commodities trader ED&F Man Holdings said in a report e-mailed on July 4. “There is a reluctance to sell forward among the exporters as some still have short positions to cover and others try to build a long position,” Volcafe said. “Some believe that the flow of fresh asalan will reduce considerably after Ramadan and many predict the end of season will be in August/September,” Volcafe said, referring to a type of robusta.
Indonesian election: Presidential candidates Joko Widodo and Prabowo Subianto indicate move away from reliance on Australian cattle Australia Network News 7th Jul 2014
Indonesia's presidential candidates have both indicated they would like to end the nation's reliance on Australian cattle imports, in the final debate before Wednesday's election. Indonesia's self-sufficiency policy has caused major problems for the country and Australian cattle producers. Indonesia is unable to meet its own demand for beef but attempts to restrict imports have seen prices skyrocket. The election of a new president offers a chance for import quotas to be relaxed, but in the final debate both candidates - Joko Widodo and Prabowo Subianto - indicated they would like to move towards self-supply.
Malaysia
Genting Plantation to gain from ERS tie-up The Star 15th Jul 2014
Genting Plantation Bhd’s proposal to sell a 25%, or RM72mil, stake in its biodiesel plant and collaborate with Elevance Renewable Sciences Singapore Pte Ltd (ERS Singapore) will enable it to be the first to produce high-value specialty chemicals in Malaysia. RHB Research said it was positive on Genting Plantation’s proposal, which involves disposing 72 million shares in Genting Integrated Biorefinery Sdn Bhd for RM1 each, as these specialty chemical products would typically yield high double-digit margins. “We understand that margins for these products are much higher than oleochemicals and specialty fats, which generally only garner single-digit margins,” said its analyst Hoe Lee Leng in a note. Additionally, she said the RM288mil valuation for Genting Plantation’s 200,000-tonne biodiesel plant in Lahad Datu, Sabah, was seven times, or 720%, more than its original acquisition price of around RM40mil in May 2011. Genting Plantation has entered into a sale and purchase agreement as well as a master agreement with ERS Singapore, which will see a collaboration to produce high-value palm oil derivatives such as olefins, specialty chemicals and saturated methyl esters.
NGOs divided on directive to disallow vendors from selling food to Muslim before 3pm The Star 9th Jul 2014
Religious NGOs on Wednesday share divided views on the directive of a minister to disallow vendors from selling food to Muslims before 3pm. Ikatan Muslimin Malaysia (Isma) president Abdullah Zaik said that Muslims who are unable to fast due to pregnancy, illness, menstruation, old age or any other reason, can cook their own meals at home. "The directive by Minister in the Prime Minister's department, Datuk Seri Jamil Khir, does not stop people from buying raw materials from supermarkets and cooking them in their own homes. "They should learn to manage with what they have as the directive, in my opinion should not be debated at all because it serves for the wellbeing of the people and the religion," he said Wednesday.
Walmart Seeks Small Answers To Big Sales Problem Forbes 10th Jul 2014
Walmart, which has seen traffic drop for six straight quarters and same-store sales decline for five, is ramping up the rollout of smaller format stores, including its Neighborhood Market, Walmart To Go and Express concepts, to try and reinvigorate its business. The goal is for smaller stores to fill market opportunities in urban and rural areas not fully supported by the chain’s Supercenters.
McDonald’s May Sales Rise 0.9% as Asia Cushions U.S. Drop Bloomberg 9th Jul 2014
McDonald’s Corp. had sales at stores open at least 13 months rose 0.9 percent in May in Asia helped cushion a prolonged slump in the U.S. McDonald’s has struggled to attract Americans after slowing its kitchen last year with too many new and complex items. The chain also has faced more domestic competition. May’s decline marks the seventh month without domestic growth for McDonald’s. Nevertheless, sales in McDonald’s Asia Pacific, Middle East and Africa region rose 2.5 percent. Same-store sales rose 0.4 percent in Europe, except Germany where the franchise giant has had difficulty luring customers.
Philippines
CdO biz group to lead Mindanao food makers into Asean integration in 2015 Business Mirror 13th Jul 2014
The Cagayan de Oro Chamber of Commerce and Industry (Oro Chamber) is hosting the Mindanao Food Congress (MFC) in September to lead Mindanao food producers prepare for the integration of the 10-member Association of Southeast Asian Nations (Asean) into a unified regional group. The Oro Chamber, organizer of the event, said it is important for Mindanao food producers to prepare for the challenges the island faces when the Asean forms the Asean Economic Community next year. Many consider Mindanao, the second largest island of the country, as a food basket. The MFC’s theme “Aligning Mindanao Food Security in the Asean Market” will focus on products that can effectively compete in the regional market.
PHL import of US F&B breached $1 billion in 2013 Business Mirror 10th Jul 2014
THE Philippines’s import of food and beverages (F&B) from the United States (US) breached the $1-billion mark last year, latest data from the US Department of Agriculture (USDA) showed. To underscore the huge volume of the import, the USDA described their export to the country in 2013 as “enough to fill 25,000 trucks extending 300 kilometers,” according to data released recently by the US Embassy in Manila. According to the update from the USDA, between 2009 and 2012 “exports to the Philippines doubled, achieving the National Export Initiative goal to double exports two years early,” a goal of the US government under the Obama administration.
Aquino import policy blamed on rising cost of agri products Business Mirror 7th Jul 2014
THE import liberalization policy of the Aquino administration is to blame for the skyrocketing prices of rice, garlic, ginger and other agricultural products. Party-list Rep. Neri J. Colmenares of Bayan Muna made this claim over the weekend as he noted that more and more farmers are being forced to abandon the cultivation of rice, garlic and other crops since the government has been dismantling tariff walls that protect domestic food producers. Worse, figures culled from the files of the National Food Authority (NFA) indicated that Filipino farmers are granted P400 in subsidies annually compared to $900 in Thailand and $800 in Vietnam. These figures pale in comparison to the $90 billion in subsidies extended to US farmers, in clear violation of the rules against protectionism established by the World Trade Organization (WTO). The National Economic and Development Authority has also described irrigation as some form of subsidy that must be dismantled in conformity with the WTO mantra and the advice of the water experts of the Asian Development Bank who assert that state-initiated irrigation projects had not contributed to agricultural growth in Asia in the past 40 years.
Typhoon Rammasun's economic impact seen as small Market Watch 15th Jul 2014
Typhoon Rammasun's economic punch is expected to be felt mainly in the agriculturally rich Bicol region of the Philippines, around 415 kilometers southeast Manila. The typhoon is expected to hit land--most likely in Bicol's Albay province--early Tuesday evening, local time. About half of Bicol's economic output is agricultural, primarily products such as corn, rice and coffee. The local economy also depends on fishing, which may suffer a blow as the typhoon batters fishing boats. Overall, though, Typhoon Rammasun's impact on the broader Philippine economy is expected to be small.
Philippines Mulls Replacing Direct Price Support to Rice Farmers with Production Support Oryza 15th Jul 2014
The Philippines government is planning to remove price support to rice farmers in the form of Procurement by the National Food Authority (NFA) and provide support to enhance paddy yield and lower the cost of production, according to local sources. Currently, the Philippines government provides price support to rice farmers through the National Food Authority (NFA), which buys paddy rice from rice farmers at reasonable prices to ensure minimum profits to them. However, the NFA's debts due to this procurement policy have been surging and are currently at around P160 billion (around $3.67 billion). Consequently, the fiscal burden on the government has been increasing due to subsidizing the NFA's debts.
Benguet farmers confront competition as PHL lifts restriction on US veggies Business Mirror 13th Jul 2014
FRESH vegetables that are difficult to grow locally in the Philippines will now be available from the United States and “will relieve shortages and deepen agricultural ties between the two nations,” the US embassy in a statement said over the weekend. Vegetable growers from Benguet Province will now have to contend with fresh celery, lettuce, cabbage and other cruciferous vegetables from the US as the Philippines formally lifted restrictions on the import of these temperate climate vegetables last month. “American producers previously enjoyed only limited access to the Philippine vegetable market, exporting $57,000 of such products [mostly celery] in 2013,” the statement said. The statement added that trade experts predict open-market access would see these sales reach $1 million within two years.
The battle for enough rice Business Mirror 11th Jul 2014
THE Vietnamese newspaper Thanh Nien summed up our situation well in an article, titled “Philippines abandons time frame for rice self-sufficiency.” But do not think that this article was all negative about the Philippines’s inability to grow enough rice.“That will be welcomed by key supplier Vietnam,” Thanh Nien said. Further, “it could also be good news for Thailand, which wants to off-load rice from a controversial stockpiling scheme.” Vietnam and Thailand are not the only ones taking this development in stride. “I’m happy with 90-[percent] to 95-percent self-sufficiency [in 2016] and then we import the rest,” said Francis Pangilinan, head of food security for the Philippines. We fully understand that our head of food security is not “happy” with the current state of affairs in our agricultural sector. We know that he means that he is happy that rice production is not any worse. Further, we welcome former Senator Pangilinan’s appointment to the position and completely support his efforts to get this situation resolved.
FoodCon to address challenges in the 2015 Asean integration Sun Star 11th Jul 2014
FOOD security and other related issues essential to the growth of the country as it prepares for the Association of Southeast Asian Nations (Asean) integration next year were the highlights during the media launch of the upcoming Mindanao Food Congress in September 25-26, 2014 at the Lim Ket Kai Luxe Hotel held on Tuesday. This year’s congress theme is “Aligning Mindanao Food Security in the Asean Market.” Heads of various economic and commodity sectors in the region engaged in a discussion with the press. Heading the conference was Oro Chamber of Commerce and Industry (Oro Chamber) president Efren Uy, Mindanao Food Congress chairman Ruben Vegafria, with experts from the Department of Trade and Industry (DTI), Department of Agriculture (DA), Mindanao Development Authority (MinDA) and the Chamber of Agriculture, Fisheries and Food Industries in Northern Mindanao (CAFFI NorMin).
There’s money in agriculture phil Star 7th Jul 2014
It is now July and we are getting closer to our first Agri-Negosyo Summit on July 25 at the World Trade Center, Pasay City. We aim to promote the agricultural sector as it is filled with agri-business opportunities that also promote the countryside and regional development. We believe in the saying “There’s money in agriculture” and for many Filipinos, even those in the provinces, the opportunities and resources are all around us; we just have to open our eyes to how we can start an interesting agri-negosyo model close to our hearts and sharpen our pencils.
Thailand
Thailand Rice Agencies Collaborate to Enhance High Quality Rice Seeds Production and Distribution Oryza 9th Jul 2014
Six Thailand rice agencies - The Rice Department, Bank for Agriculture and Agricultural Co-operatives (BAAC), Thai Rice Foundation under Royal Patronage, National Science Technology and Innovation Policy Office (STI), The Agricultural Research Development Agency (ARDA) and National Science and Technology Development Agency (NSTDA) - have collaborated to enhance production and distribution of high quality rice seeds in the country, according to BioSpectrum Asia. All the six agencies have signed a Memorandum of Understanding (MoU) to develop a network of seed producers and distributors, improve the system of production and certification of high quality seed as well as ensure aequate supply of rice seeds to meet the growing demand in the country. It will also include training program to increase high quality rice seed production, develop more rice seed certification centers, increasing rice seed awareness among farmers, developing rice seed value chain and providing adequate financial resources for farmers to invest in high quality rice seed production systems.
Thai cities coping with climate change and urbanisation Bangkok Post 9th Jul 2014
ACCCRN planners selected different urban contexts to examine how cities cope with problems produced by climate change. Collectively, assembling the different experiences of the participating cities will widen the understanding of how they might cope with not only current but future consequences of climate change. Each city goes through a process of intensive capacity development, research and multi-stakeholder dialogue to generate a locally-owned Climate Resilience Strategy. With this strategy in hand, civic projects are prioritised. In some cases, the foundation complements local resources. In Thailand, many of these projects focus on flood management, ecosystem restoration and land-use planning. The work is carried forward by city governments, research centres and NGOs. Ultimately, the plan is sequenced over four phases. In its final phase the ACCCRN network will have produced hands-on methods applicable across hundreds of other rapidly growing cities in Asia. The pioneering efforts in Chiang Rai and Hat Yai are intended to catalyse a national effort in Thailand in the years ahead.
Agriculture ministry approves master plan for fishery workers Pattaya Mail 7th Jul 2014
The Agriculture and Cooperatives Ministry as well as state officials and the public sector involved in Thailand’s fishery industry on Saturday approved a master plan designed to solve problems for workers engaged in the industry. The master plan was agreed on only two weeks after the US downgraded the kingdom, after accusing Thailand of allowing forced labour and human trafficking to remain unresolved. The plan was approved by representatives of state officials and the public sector during a meeting chaired by Permanent Secretary for Agriculture and Cooperatives Chavalit Chukajorn.
Volume of missing rice climbs to 290k tonnes Phuket Gazette 7th Jul 2014
Military officials yesterday continued to inspect state rice stockpiles stored in provincial granaries and again found evidence that large quantities were missing or in poor condition. The rice inspection follows the junta's order two weeks ago to close all granaries nationwide in a bid to check the size and quality of the stockpiles. Granaries at Pathum Thani province were among several facing closer checks. "After finding 90,000 sacks of missing rice at [Pathum Thani] granaries, I have ordered officials to investigate more thoroughly into reasons for the missing rice today," said Deputy National Police Chief Pol General Ake Angsananont.
Rice probes unveil two cases of fraud Bangkok Post 7th Jul 2014
Legal action is being pursued against suspects in two cases after three days of rice warehouse inspections turned up evidence of fraud, deputy police chief Aek Angsananont said yesterday. The first case was reported in Pathum Thani where a rice inspection team consisting of provincial administration officials and the 1st Army found up to 90,000 sacks of rice missing from a warehouse, Pol Gen Aek said. The second case was reported in Phichit's Bang Mun Nak district where another inspection team found rice stored at one warehouse was of a lesser quality than claimed in its report, he said. Phichit's provincial governor has been assigned to file a complaint with police regarding the discoveries, Pol Gen Aek said. Inspections continued yesterday in Phichit as teams visited three warehouses where rice pledged under the Yingluck Shinawatra government scheme was stored.
Chamber to offer rice plan Bangkok Post 15th Jul 2014
The Thai Chamber of Commerce tomorrow will outline for the junta ways to strengthen the Thai rice industry as part its overall agriculture-reform plan. Chamber chairman Isara Vongkusolkij will make the presentation to the Public Private Partnership Committee headed by Gen Prayuth Chan-ocha, chief of the National Council for Peace and Order, discussing appropriate zoning of rice cultivation, improvement of irrigation systems and value chains, and flood prevention. Mr Isara said he hoped the plans would support the intention of the NCPO to strengthen the Thai agricultural sector and develop food and energy security in the country.
Vietnam
US may slash anti-dumping tax for Vietnamese pangasius Tuoitre News 11th Jul 2014
The U.S. Department of Commerce (DOC) has planned to reduce its anti-dumping tax for more Vietnamese pangasius exporters after the most recent administrative review on anti-dumping tax rates for imported goods, according to a state agency under the Vietnamese Ministry of Industry and Trade. Accordingly, after the 10th preliminary results of administrative review (POR10), 24 local pangasius exporters will enjoy a tax cut for shipments to the U.S. from August 1, 2012 to July 31, 2013, said the Competition Management Department. This means that they will receive a refund for any taxes paid in that period above the new tax line.
Vietnamese rice exports to regain traditional markets in H2 Global Post 11th Jul 2014
Vietnamese rice exporters are expecting the return of several traditional markets in Asia in the second half of 2014 after seeing declines in rice exports in the first half, said Vietnam Industry and Trade Information Center ( VITIC) under Vietnam's ministry of industry and trade on Friday. Vietnam Food Association (VFA) was quoted by VITIC on Friday as saying that in the first six months, Vietnam exported over 3 million tons of rice to earn 1.29 billion U.S. dollars, down 13.71 percent in volume and 13.77 percent in value year-on-year. During six-month period, China remained Vietnam's largest importer of rice despite decreases in April and May. Other traditional markets of Vietnamese rice including Singapore, China's Hong Kong, Malaysia, Cote d'Ivoire, Algeria and Indonesia also experienced decline in the past few months due to fierce competition from Thai rice.
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