Food and Agriculture Update: Indonesia Passes Plantations Bill

FOOD AND AGRICULTURE UPDATE | OCTOBER 17, 2014
Authors: Sunita Kapoor, Kim Yaeger and Omar Qureshi
 
LOOKING AHEAD
 
 

The Council will be organizing the next Food & Agriculture Mini Mission to Vietnam (December 3, 2014) and to Thailand (second half of February 2015). Please provide your feedback/inputs on these upcoming missions to the Council’s Food & Agriculture Manager, Sunita Kapoor at skapoor@usasean.org.

 
THE COUNCIL'S TAKE
 
 
  • On September 30, Indonesia passed the Plantations Bill.  The bill aims to maximize land usage and provide more access to smallholders who want to be involved in the sector.  In its original form, the bill would have retroactively limited foreign ownership of plantations to 30 percent, down from its current level of 95 percent.  Although this controversial stipulation has been dropped in the final form of this bill, the bill still requires plantation companies to allocate 20 percent of their concessions to locals that live near the plantation while also requiring these companies to help these locals with their own plantations.  Lawmakers did suggest however that rules regarding foreign ownership of plantations may still come in the form of government regulations.  The direction of these potential regulations though, remain uncertain as the incoming Joko Widodo presidency has not made it clear if limiting foreign ownership of plantations will be pursued by his administration.
 
IN THIS UPDATE
 
 
ASEAN
ASEAN eyes funding for regional tobacco control

Cambodia
In Rice Sector, Skills to Blame for Low Yields
Cambodian livestock firm aims to double swine production in five years

Indonesia
Indonesia opens door to RP food, beverages, garments
Palm oil certification gets int’l support
Cattle markets a festive hit with Indonesians
Indonesia passes plantations bill, drops clause on foreign ownership
Indonesian Legislators Set to Approve Plantation Law Cutting Foreign Ownership
Basuki Tells Water Boss to Plug Leaks or Be Fired
Palm oil lobby eyeing more access to peat forests
Meeting an Illegal Logger

Malaysia
Malaysian halal exporters have capacity to meet global needs - Hasan Malek
Encouraging farmers, fishermen to trade directly
Malaysia Seeking to Boost Palm Oil
Agriculture Ministry to assist Sarawak in aquaculture endeavour
Rubberised roads in the offing
Wetter October seen curbing Malaysian palm oil output
Red Lobster chooses Greater KL to open first regional outlet
Planters seek more grants to aid replanting

Myanmar
KFC coming to Burma next year
Union parliament approves proposal to take agricultural loans from MEB
MPs Urge Prompt Return of Confiscated Land

Philippines
US expands importation of mangoes from PH
Agripreneurs challenged to prepare for ASEAN Integration in 2015
Farmer-scientist group slams GMO, pushes for organic farming in PH
PH rice output seen declining in 2014
The Philippines records US$447.2mn in agricultural sales in 2014
Philippines rice self-sufficiency target pushed back
PHL’s agriculture ready for Asean integration by 2015, DA says
Gov’t sets aside P86.1B for Agri Dev’t Program
Philippines sees 2 yrs of rice imports
NFA chief quits, cites health reasons

Singapore
Higher lead levels allowed in food, supplements here
Asia grapples with food safety as incomes rise

Thailand
Thailand Plans Moves to Support Rice Prices
Board to mull streamlining programme of sugar industry
Govt to set up ‘agricultural zoning’
Measures to be implemented to help rice farmers: Prayut
Thailand tipped to retake crown as world's top rice exporter
Thailand eyeing return as biggest rice exporter
Thailand Halts Buying Crops as Junta Seeks Sales

Vietnam
Vietnam to lift ban on French beef after 16 years
Food safety inspection teams set up
FDI in Vietnam's agriculture on its downtrend
Foreign fast-food chains make limited use of local suppliers
Vietnam finds heavy metals in N.Korean food supplement
Family farms key to sustainability
Feed producers exempted from registration tax
Foreign investors show declining interest in agriculture sector
Coffee crop in Vietnam expanding to almost match record
EU issues stern warning to Vietnam's veggie exporters
GM crops targeted to make up 30-50% of cultivation
Vietnamese farmers face more fruitful future in the US
Vietnamese agriculture industry plants seeds of change
Genetically modified technology no magic wand for Vietnam's agriculture
 
ARTICLE CLIPS
 
 
ASEAN

ASEAN eyes funding for regional tobacco control Asia One 27th Sep 2014
Thailand and eight ASEAN members, namely the Philippines, Indonesia, Malaysia, Vietnam, Laos, Myanmar, Cambodia and Singapore, are eyeing sustainable funding for tobacco control in the region, while the Thai Health Foundation Promotion (ThaiHealth) is seen as a role model for its work in campaigning for disease prevention and tobacco control. Deputy Public Health Minister Somsak Chunharas, who presided over the opening yesterday for the ASEAN Regional Workshop on Sustainable Funding for Tobacco Control, said ThaiHealth was a blessing for the country. The foundation gets funding of Bt3 billion or so a year from taxes on alcohol and cigarettes. Somsak added that ThaiHealth, which stemmed from close cooperation between civil and business sectors, used its funds effectively to raise awareness and promote good health. When the ASEAN Economic Community takes effect at the end of next year, member countries will need to control tobacco consumption through measures such as higher tax and the establishment of health promotion agencies, Somsak pointed out. Laos, the Philippines, Indonesia and Vietnam have already established health promotion funds along with other measures, he added.

Cambodia

In Rice Sector, Skills to Blame for Low Yields Cambodia Daily 3rd Oct 2014
A lack of skills and knowledge among farmers is to blame for the underdevelopment of Cambodia’s rice sector, as growers are unfamiliar with commercial farming methods that produce higher yields, according to a study released by the Asian Development Bank on Thursday. In a survey of 750 farms in Cambodia’s three main rice-producing provinces—Battambang, Kompong Thom and Takeo—53 percent of farmers said the main constraint to production was their limited know-how. The report, Improving Rice Production and Commercialization in Cambodia, says farmers should attempt to grow rice during the dry season, which is more productive than wet season cultivation by about 1 ton per hectare. “Rice cultivation occurs mostly in the late wet season with far fewer farms cultivating in the dry season (56% versus 13%),” the report says.

Cambodian livestock firm aims to double swine production in five years Far Eastern Agriculture 30th Sep 2014
Uthai Tantipimolphan, president of CP Cambodia, said that the company will spend US$8mn to increase production from the current one million heads of swine to two million over five years. “Cambodia needs nearly 200,000 of swine per month. CP has a long vision for investment in Cambodia, because the company sees that Cambodia has very big potential to be an agricultural production base,” he added. Currently, CP Cambodia supplies some 60,000 heads of swine — both piglets and three-week-old weaning piglets — to local markets per month. According to the Cambodian Pig Raising Association, Cambodia imports more than 1,000 swine heads from neighbouring nations such as Vietnam and Thailand every month.

Indonesia

Indonesia opens door to RP food, beverages, garments The Daily Tribune 8th Oct 2014
Filipino exporters, especially of food and beverages, electronics and garments, are invited to penetrate Indonesia’s huge market. Philippine Consul General in Manado Jose Burgos said the Indonesian Ministry of Trade has officially released its updated regulations allowing for the entry of such classes of goods into Bitung Port. “This new regulation identifies Bitung Port as one of the international gateway ports of Indonesia, allowing for more liberal import/export policies and regulations and more active trade in international goods, including goods from the Philippines,” he said. For her part, Foreign Affairs Undersecretary for International Economic Relations Laura del Rosario said the new regulation was made possible due to the outstanding regional connectivity projects between the Philippines and Indonesia.

Palm oil certification gets int’l support Jakarta Post 4th Oct 2014
Indonesia, the world’s largest producer of palm oil, has launched an internationally backed nationwide program to improve the livelihoods of small-scale oil palm growers by helping them obtain national certification for sustainable practices. The Agriculture Ministry, in partnership with the United Nations Development Program (UNDP), officially launched the Sustainable Palm Oil Initiative’s (SPOI) national platform to help low-income oil palm farmers increase their productivity and improve environmental management. Agriculture Minister Suswono said the UNDP had donated US$15.5 million for the five-year program, which aims to get smallholders to abide by Indonesian Sustainable Palm Oil (ISPO) standards, a mandatory sustainability certificate introduced by the government in 2010. “The UNDP is supporting smallholders due to concerns about the sustainability of oil palm plantations and the desire to reduce poverty in the country. The program will steer these plantations toward obtaining ISPO certification,” Suswono said Friday on the sidelines of a SPOI event in South Jakarta.

Cattle markets a festive hit with Indonesians Channel News Asia 3rd Oct 2014
With the Idul Adha (also known as Hari Raya Haji) holiday around the corner, Muslims in Indonesia have found novel ways to buy and sell sacrificial animals. Muslims the world over traditionally celebrate the festival known as the Feast of Sacrifice by slaughtering cows and goats. And some entrepreneurs in Indonesia are going down the innovative route to try and cash in on the high demand for these animals. In Depok, West Java, cattle have taken over a car showroom. Where for 11 months, the space is filled with second-hand and luxury cars, during the Haj period it is thronged by buyers and sellers of cattle – making it Indonesia’s largest cattle showroom. Sales promoters here even use tablets to clarify queries from potential customers. The owner of Doni's Cattle Showroom, Haji Ramdoni, who has been selling sacrificial cattle for the past decade, said his goal was to provide customers a convenient place in the city to buy these animals, which are normally sold in the countryside. And it was a trip to Australia's cattle markets that inspired him to apply high-tech solutions to his own business.

Indonesia passes plantations bill, drops clause on foreign ownership Reuters 30th Sep 2014
Indonesia has approved a plantations bill that aims to maximise land usage and open up the sector to smallholders, a government official said on Tuesday, with a controversial foreign ownership clause dropped from the final version. The draft of the bill, which was drawn up by members of Indonesia's parliament, would have retroactively limited foreign ownership of plantations to no more than 30 percent, down from the current maximum of 95 percent. This had the potential to hurt foreign plantation firms operating in the world's top palm oil producer, including Golden Agri-Resources, Wilmar International and Sime Darby Bhd.

Indonesian Legislators Set to Approve Plantation Law Cutting Foreign Ownership Jakarta Globe 29th Sep 2014
The House of Representative is set to approve on Monday a plantation law that will significantly limit foreign ownership in new Indonesian plantation companies. The law will limit foreign ownership in Indonesian plantation companies to as much as 30 percent, reducing it from 95 percent. The new law, though, will not be retroactive, meaning that it will not be imposed to Indonesian plantation companies that are already owned by foreigners. “The draft bill will hopefully give equality in the ownership of plantation business to the local people especially planters,” Sukiman, a politician from National Mandate Party (PAN) and a member of Commission IV at the House of Representatives, said over the weekend. Sukiman said most foreign-owned companies have not paid local workers and planters fairly. “[The bill] will also push people and the country to be more involved in plantation business.”

Basuki Tells Water Boss to Plug Leaks or Be Fired The Jakarta Globe 8th Oct 2014
Jakarta’s acting governor has told the chief executive of the city’s water agency that he will be fired unless there is progress in reducing the amount of water lost to leaks and theft. “How can the amount of water leakage reach 40 percent year after year,” Basuki Tjahaja Purnama said at City Hall. “They must be allowing it to continue to happen.” Basuki has previously threatened to take a tough stance against officials at water agency Perusahaan Daerah Minum Jaya, known simply as PAM Jaya, because of what he has characterized as a failure to stop leaks that continue to threaten the economics of a water supply that was first privatized in 1993 under Suharto — and has struggled ever since. PAM Jaya owns and operates much of the infrastructure that the two private utilities use to operate the city’s water supply. The two companies are Palyja, which is majority-owned by French giant Suez, and Aetra, which counts Aburizal Bakrie and Sandiago Uno among its investors.

Palm oil lobby eyeing more access to peat forests New Straits Times 5th Oct 2014
Indonesia’s latest stance on peat conservation could cause the country to miss out on some US$12 billion (RM39.10 billion) in potential export revenue per year, according to the Association of Palm Oil Companies in Indonesia (Gapki). The new regulation could also lead to 240 trillion rupiah (RM65.17 billion) in losses from potential plantation investment, Gapki secretary general Joko Supriyono said on Friday. “The government’s new law on peat lands, if implemented, would also affect the future of around 400,000 plasma farmers in Indonesia,” said Joko. The government issued its newest regulation on the conservation and management of the nation’s peat ecosystem last month, according to the country’s forestry minister Zulfikli Hasan.

Meeting an Illegal Logger Mongabay 27th Sep 2014
It took five hours by boat from Kepayang in the Indonesian province of South Sumatra to arrive at this remote river community, where most of the residents are illegal loggers. Sembilang National Park is another hour by river to the north. South Sumatran environmental NGOs and government park rangers express fear at the rising rate of illegal logging in the areas bordering the park. They worry that unchecked the logging will soon encroach upon the park, putting its rich flora and fauna at risk. It's villagers from this community and others nearby that are threatening the protected preserve and feeding Indonesia's massive market in illegally harvested wood. An estimated $2 billion of government revenue was lost annually in Indonesia between 2003 and 2006 because of illegal logging, corruption, and mismanagement in the forestry sector, according to a 2009 report by Human Rights Watch. That amount dwarfs the annual budget of the Ministry of Health and could potentially provide health care services to millions of poor Indonesians.

Malaysia

Malaysian halal exporters have capacity to meet global needs - Hasan Malek Pattaya Mail 15th Oct 2014
Malaysia exported halal products worth RM9.2 billion in the first quarter of this year, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek. He said this showed that local companies involved in the manufacturing of halal products had the capability and capacity to cater to the needs of the global market. "Malaysia is already the world's leading exporter of halal ingredients required in various industries such as food and beverages (F&B), cosmetics, medical and wellness," he said when addressing the National Conference on Marketing Halal and Funding Solutions 2014 here Tuesday. Hasan pointed out that the halal F&B continued to be the leading sector, with exports valued at RM3.5 billion or 39.9 per cent of total halal exports.

Encouraging farmers, fishermen to trade directly The Sun Daily 15th Oct 2014
The government is attempting to eliminate the practice of selling produce through middlemen as it severely affects farmers and fishermen. Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob said middlemen typically take a considerable cut of their profits in return for their services. "For example, most fishermen also purchase their boats from middlemen, or rent it from them, so they have to give part of their catch to the middlemen and that reduces their income," Ismail Sabri told reporters at the Malaysia Agro Exposition Park Serdang (MAEPS) today. To combat the practice, he said the government had set up collection and distribution centres since early this year so farmers and fishermen can sell their produce to consumers directly. He said the government faces an uphill battle in eliminating the practice as it is already ingrained in the industry. "We will only know how effective it is when the Agriculture Research and Innovation Institute (Mardi) compiles all the relevant data at the end of the year.

Malaysia Seeking to Boost Palm Oil Bloomberg 13th Oct 2014
Malaysia’s extension of tax-free exports of crude palm oil until the year-end is intended to support prices and curb the buildup of reserves, said Plantation Industries and Commodities Minister Douglas Uggah Embas. “We hope this will continue to prevent any drastic fall in the price,” Uggah said in an interview after the government announced the decision for November and December in the budget on Oct. 10. “There is a need to give time for the exporters to organize the whole machinery including shipping and so on and so forth. Now we’re giving them an additional two months.” Futures lost 18 percent this year amid a global glut in edible oil supplies, hurting producers’ profits in Malaysia and Indonesia, the two largest suppliers. The Malaysian government initially waived the export tax for September and October after prices dropped to a five-year low, and Indonesia’s tariff was also set to zero for this month, boosting competition. While some Malaysian growers including Sime Darby Bhd. (SIME) welcomed the extension, the decision was criticized by a refiners’ group.

Agriculture Ministry to assist Sarawak in aquaculture endeavour Borneo Post 10th Oct 2014
The Agriculture and Agro-based Industry Ministry will assist the Sarawak state government in its endeavour to turn the Bakun Dam area into an aquaculture zone. Its deputy minister Datuk Tajuddin Abdul Rahman said the ministry would engage with the state Fisheries Department in the area of training and studies on the water quality at the dam prior to implementing the project. “I understand that the department has applied through the Economic Planning Unit for an allocation of RM31 million for the purpose and we will support the request,” he said. He was responding to a question from Wilson Ugak Kumbong (BN-Hulu Rajang) at the Dewan Rakyat here yesterday. He said the ministry would build the necessary infrastructure including access route and jetty for the local fishermen to facilitate freshwater fish rearing activities there.

Rubberised roads in the offing New Straits Times 8th Oct 2014
If the price of rubber continues to remain sluggish, there is a possibility that the commodity could be used to make rubberised roads, besides its traditional use for tyre manufacture. "It is very interesting. Thailand have done some trials. In Malaysia, there is a lot of potential to use this," said Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas. He said the Malaysian Rubber Board would be directed to work together with the Thai Ministry of Agriculture and Cooperative on how this potential could be explored further.

Wetter October seen curbing Malaysian palm oil output The Malaysian Insider 7th Oct 2014
Malaysia's palm oil output may ease in October as wet weather delays harvesting and reduces oil extraction rates from fresh fruit bunches, planters and traders said, indicating production growth could have peaked two months ahead of schedule in August. Lower output by the world's No.2 palm oil producer may help eat into stockpiles that have spilled over the 2 million tonne mark recently and underpin prices of the tropical oil that have slumped 18% this year amid a global glut of edible oils. "Looking at the rainfall, I doubt palm oil production will peak in October," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari. "I think the best we saw was August. From September, it's on the downward trend," he added.

Red Lobster chooses Greater KL to open first regional outlet The Star 6th Oct 2014
Red Lobster, the world’s largest seafood restaurant company, has chosen Greater Kuala Lumpur to open its doors on Oct 1, 2014 at The Intermark. This marks the first Red Lobster restaurant to open in South-East Asia. Teaming up with Malaysian-owned Secret Recipe F & B Group, Red Lobster will grow its range of restaurants in this country. Secret Recipe has agreed with US company, Darden Restaurants Inc, to develop three brands - Red Lobster, Olive Garden and Longhorn Steakhouse restaurants in Malaysia and also has rights to develop these brands in neighboring countries such as Singapore and Indonesia. Darden Restaurants Inc, the multinational, has located its Asian region headquarters in Greater Kuala Lumpur. Together, Darden and Secret Recipe aim to develop those restaurants in Malaysia, and the opening of those chains will lead to the creation of 30 managerial positions and over 400 restaurant staff positions within the next 8 to 10 months. Along with the expansion plans this will move Malaysia closer to its goal of becoming a high-income nation through the creation of high-value regional job.

Planters seek more grants to aid replanting New Straits Times 6th Oct 2014
It is crucial for the government to increase its rubber and palm oil replanting programme grants, said Felda Global Ventures Holdings Bhd (FGV) group president and chief executive officer Mohd Emir Mavani Abdullah. He said the current allocation of RM297 million given under the Entry Point Projects (EPP) for replanting and new planting schemes to be carried out by 2020 was only sufficient for about 15,000ha. “It is estimated that 200,000ha needs be replanted in Malaysia. Therefore, the need to increase allocation is crucial,” he said. Mohd Emir said to boost the rubber sector, the industry would need to be further diversified, with emphasis on high value-added and high technology rubber products, especially for engineering, construction and marine applications.

Myanmar

KFC coming to Burma next year Democratic Voice of Burma 14th Oct 2014
American fast-food chain KFC, formerly known as Kentucky Fried Chicken, will be coming to Burma in the very near future. KFC and its parent company, Yum Brands, appear set to become the first Western fast food chain to operate inside Burma following the lifting of most international sanctions more than two years ago. The franchisee in Burma will be Singapore-listed Yoma Strategic Holdings, controlled by Sino-Burmese businessman Serge Pun. “Chicken is a staple protein in Myanmar [Burma] and our people recognise the KFC brand and Colonel Sanders’ secret Original Recipe of 11 herbs and spices,” said Pun in a statement released by Yoma on Monday. Yoma’s Head of Business Development, JR Ching, told DVB on Monday that the launch date for KFC’s first store in the country has yet to be finalised but restaurants will be opening at some point in Rangoon next year. “Yum has a very strong track record of growth and expansion in the emerging market and they’ve been very successful in launching the KFC brand around the world,” said Ching.

Union parliament approves proposal to take agricultural loans from MEB Eleven 5th Oct 2014
The Union Parliament has approved a proposal for Ks 500 billion of agricultural loans from Myanmar Economic Bank (MEB) on Friday. The President sent a message to the Speaker of the Union Parliament to take the monsoon agricultural loan from the MEB instead of the Central Bank. On May 26 this year, the President sent a message to the Speaker to seek approval from parliament for a loan from the Central Bank. Parliament approved the proposal on May 28. This proposal was approved because the MEB did not have enough capital deposited with the Central Bank at that time. But now, MEB deposits at the Central Bank amount to Ks 1,774.497 billion – enough for loan disbursement to the Myanmar Agricultural Development Bank (MADB).

MPs Urge Prompt Return of Confiscated Land Irrawaddy Magazine 26th Sep 2014
Lawmakers in Burma’s Parliament have urged relevant government ministries to swiftly facilitate the return of unused land that had been confiscated from farmers, or to compensate them fairly. The parliamentary Farmlands Investigation Committee presented a report to MPs in Naypyidaw on Monday which outlined concerns over delays in returning confiscated land and urged the government to address the issue. The commission said that only 583 complaints out of 2,689 sent to the Defense Ministry had been addressed, while only 299 complaints out of 6,559 submitted to state and regional governments were settled.

Philippines

US expands importation of mangoes from PH Inquirer 16th Oct 2014
The United States (US) has expanded the importation of mangoes from the Philippines allowing mango farms all over the country to export to US. Previously, only mangoes grown in the province of Guimaras can be exported to the US mainland because only these are recognized as free from small beetle-like pests known as weevils. Mangoes grown from other parts of the Philippines were suspected to have weevils and can be exported only to Guam and Hawaii. Now, the US Department of Agriculture (USDA) has declared the entire Philippines, except the province of Palawan, as free from pests including weevils. “The decision to expand the list of allowable mango-producing areas to export to the US to almost the entire Philippines can be expected to result in more investments in the sector and at the same time encourage new entrants to allow domestic production to fully satisfy demand,” Philippine Ambassador to the US Jose Cuisia Jr. said in a statement Thursday.

Agripreneurs challenged to prepare for ASEAN Integration in 2015 Asian Journal 16th Oct 2014
The Philippine agriculture sector is expected to benefit from the upcoming ASEAN economic community integration provided that the government and the agriculture sector players have sufficient preparations. The country’s agriculture sector is currently not competitive compared to the markets of Indonesia, Vietnam and Thailand. Poor farm-to-market linkages, failure to modernize and specialize make the Philippines’ agricultural industry unable to cope with the ASEAN free market. To help address these concerns, the 2nd Philippine Small and Medium Enterprise Business Expo (PhilSME) 2014 with the tagline “Boost Your Business” is conducting an SME Agri-Forum, a seminar designed to enhance knowledge and prepare agricultural entrepreneurs for success in the local and regional market place. “It is imperative and urgent that our government and agri-businessmen must start working closely together as the Thais are doing. Believe me, I have not seen this. If we do not act soon, much of our agriculture will perish, poverty will increase, and we will have the opposite of the government-proclaimed goal of inclusive growth,” business tycoon Manuel Pangilinan said during the World Economic Forum.

Farmer-scientist group slams GMO, pushes for organic farming in PH Inquirer 16th Oct 2014
A group of farmers and scientists slammed Thursday the proliferation of genetically modified food products in the country as it urged Filipino farmers to practice organic agriculture. In a program conducted to celebrate the 2014 World Food Day, the Magsasaka at Siyentipiko para sa Pag-unlad sa Agrikultura (Masipag) said that genetically modified organisms (GMOs) are potentially hazardous to the consumer’s health and only benefits companies promoting transgenic crops. “GMOs are a technological fix that is meant to address complicated problems with just a single solution. Consider the Golden Rice – it is only meant to address Vitamin A Deficiency when in fact, the problem on malnutrition involves other nutrients as well, which is caused by the lack of access to safe and sufficient food,” said Dr. Chito Medina, national coordinator of Masipag. The Department of Agriculture and the Philippine Rice Institute promote the use of “Golden Rice” in the country. “Golden Rice” contains beta-carotene, a source of Vitamin A. The farmers and scientists group alleged that GMOs also endanger the environment which will largely hit the livelihood of poor farmers.

PH rice output seen declining in 2014 Inquirer 16th Oct 2014
The Philippines’ palay output is projected to decline this year for the first time in five years by one percent to settle at 18.6 million tons, according to the Food and Agriculture Organization. By volume, the reduction is expected at 10.3 million tons of palay, equivalent to seven million tons of milled rice. In its latest Rice Market Monitor report, the FAO said the forecast assumed that the wet-season harvest would be about the same as the 2013 volume. Still, “the final outcome of the season will depend on the rainfall performance in the coming months, which will in turn determine the availability of water for irrigation of off-season crops,” it added. The United Nations agency noted that the area planted to rice or palay in the Philippines was reduced by 11 percent to 775,000 hectares, due to the late onset of rains and inadequacy of irrigation water supply. “Cuts were widespread, but they were particularly concentrated in Western Visayas, Central Luzon, Bicol and Mimaropa,” the FAO said.

The Philippines records US$447.2mn in agricultural sales in 2014 Far Eastern Agriculture 8th Oct 2014
The NEDA’s research revealed that the Philippines has registered a 20 per cent growth in agro-sales from 2013. This is largely due to favourable performances from all major sub-groups such as coconut products, fruits and vegetables and sugar products. Arsenio M Balisacan, economic planning secretary of the Philippines, said, “The exports outlook for agricultural products is bullish. We are intensifying efforts to implement programmes to help areas vulnerable to dry spells and coconut-scale insect infestation. This would propel sales of coconut-based commodities, of which the Philippines is a major exporter.”

Philippines rice self-sufficiency target pushed back Asia One 7th Oct 2014
The Philippines has pushed back its 2013 target to attain self-sufficiency in rice production by another two years, an official said Tuesday, adding that the country will likely have to import hundreds of thousands of tonnes next year. "We're pretty set at 1.7 million metric tonnes" of rice imports for this year, said Francis Pangilinan, an adviser to President Benigno Aquino on food security. Asked if the Philippines planned to import even more than 1.7 million tonnes next year, Pangilinan said: "That's a possibility". He said the Philippines is now aiming to end rice imports in 2016 - three years later than its original 2013 target. Last year the Philippines imported a million tonnes of rice, making it the eighth largest importer in the world, according to the US agriculture department.

PHL’s agriculture ready for Asean integration by 2015, DA says Business Mirror 13th Oct 2014
THE government has been working to better prepare the country’s agriculture and fishery sectors for fast-liberalizing global trade, including the much-anticipated Asean economic integration by end-2015, the Department of Agriculture said. In a statement, Agriculture Secretary Proceso Alcala said his department has intensified the small farm-clustering initiative and its focus on postharvest technology and collective marketing as part of its Agri-Pinoy commodity programs.

Gov’t sets aside P86.1B for Agri Dev’t Program Philippine star 13th Oct 2014
The Aquino administration has earmarked P86.1 billion for the Agricultural Development Program, designed to ensure food security and further improve self-sufficiency. According to the Department of Budget and Management, the P86.1 billion budget would be used to beef up rice production and for irrigation, buffer stocking and research and development (R&D). A big chunk of the funds or P26 billion has been set aside for agriculture infrastructure, focusing on the top 33 rice-producing provinces which will cover 20,650 hectares with new irrigation and drainage areas. The government will also restore existing ones in 23,200 hectares in line with its goal to produce 4.48 metric tons of rice per hectare.

Philippines sees 2 yrs of rice imports Bangkok Post 8th Oct 2014
The Philippines has pushed back its 2013 target to attain self-sufficiency in rice production by another two years, adding that the country will likely have to import hundreds of thousands of tonnes next year. "We're pretty set at 1.7 million metric tonnes" of rice imports for this year, said Francis Pangilinan, an adviser to President Benigno Aquino on food security. He said the Philippines is now aiming to end rice imports in 2016 - three years later than its original 2013 target. Last year the Philippines imported a million tonnes of rice, making it the eighth largest importer in the world, according to the US agriculture department. During the global food crisis in 2008, the Philippines imported a record 2.34 million tonnes of rice, the largest for any country. Bad weather, including frequent typhoons and floods, had repeatedly stymied the country's efforts to produce enough rice, Mr Pangilinan said.

NFA chief quits, cites health reasons Manila Bulletin 26th Sep 2014
Confronted with extortion allegations, National Food Authority (NFA) chair Arthur Juan has quit his post on Thursday due to poor health conditions. “It is with regret and sadness that we received yesterday afternoon (Sept. 25) the irrevocable resignation of Mr. Art Juan. He cited failing health as the reason for his stepping down,” Presidential Assistant on Food Security Francis Pangilinan said. Pangilinan said he has informed President Aquino about the resignation of Juan early Friday morning. “He replied saying that we will meet as soon as possible to discuss and decide next steps,” the former senator added.

Singapore

Higher lead levels allowed in food, supplements here The Straits Times 8th Oct 2014
regulations allow slightly higher lead levels in food and health supplements than those of some other countries. The difference was brought to light last week after a health scare over lead levels contained in a popular traditional Chinese medicine. The Bo Ying compound is sold by traditional Chinese medicine retailer Eu Yan Sang. Singapore permits higher levels of lead in health supplements than the United States (see table). For food ingredients, Singapore permits higher levels than, for instance, the European Union (EU). Should people be concerned? No, says the Health Sciences Authority (HSA). Its spokesman told The Straits Times: "Although different jurisdictions have limits that vary relative to each other, the absolute difference between these limits is actually minimal, due to the scale of measurement in parts per million."

Asia grapples with food safety as incomes rise The Economic Times 5th Oct 2014
Every morning, food samples are laid out on a long table at a pristine laboratory run by a German firm in Singapore -- but they're not meant for chefs or gourmets. Testing company TUV SUD is watching out for contaminants that could harm consumers in Singapore and other parts of Asia, which has recently been rocked by food-safety scandals. Sales of US fast food giant McDonald's in China were hammered this year following news reports alleging that a supplier mixed expired meat with fresh deliveries. A Taiwan company is currently embroiled in a widening scare after it was found selling hundreds of tonnes of waste "gutter oil" to food makers, bakeries and restaurants forcing the recall of cakes, bread, instant noodles, cookies, dumplings and other food items at home and in Hong Kong. On a recent visit by AFP to the TUV SUD lab in Singapore, chemists in white gowns carried out a battery of tests on milk powder from the Philippines, seafood from Indonesia, Vietnam and Malaysia and locally processed food for consumption in the city-state as well as other Asian countries.

Thailand

Thailand Plans Moves to Support Rice Prices Wall Street Journal 6th Oct 2014
Thailand’s national rice policy committee said it plans to introduce measures to delay the sale of some rice from the coming harvest to try to support prices. Local farmers would be offered low-interest loans in exchange for keeping their Hom Mali—commonly called Thai jasmine rice—and parboiled rice, to be harvested in November and December, in storage, Deputy Prime Minister Pridiyathorn Devakula told reporters after the committee’s meeting. The goal is to prevent rice prices from falling, said Mr. Pridiyathorn, a member of the committee. Supplies of fresh, newly harvested rice tend to pressure the price of older grain. The measures include lending farmers most of the price they would receive if they sold their rice, and giving millers loan incentives to encourage them to buy and store lower-grade white rice—different than jasmine and parboiled rice—until the prices are favorable. The measures, to be proposed to the Cabinet on Tuesday, are expected to be approved. Prime Minister Gen. Prayuth Chan-ocha, who led a military coup d’etat that ousted Yingluck Shinawatra ’s government in May, chairs the rice committee.

Board to mull streamlining programme of sugar industry The Nation 14th Oct 2014
The sugar industry's liberalisation plan for launching refineries has been submitted to the Office of the Cane and Sugar Board. Industry Minister Chakramon Phasukvanich said yesterday that the OCSB would consider whether streamlining the setting up of sugar plants is possible and analyse the plan's possible impacts. In the future, developing a sugar plant would just require a regular factory permit and no longer the Cabinet's approval, he said. This would boost competition and benefit both the sugar refiners and cane growers, since the factory permit process would be simplified, while planters could choose to sell their crops to plants that offer the best prices, and could lower their transport costs.

Govt to set up ‘agricultural zoning’ MCOT 7th Oct 2014
The interim government of Prime Minister Gen Prayut Chan-o-cha will set up ‘agricultural zoning’ for growing rice, rubber and other agricultural products to persuade growers to use less land area and water but which offers higher yields. Gen Prayut told journalists after chairing a National Rice Policy Committee meeting on October 6 that the Interior Ministry has been assigned to establish a joint committee with other government agencies to specify ‘agricultural zones’ as well as finding ways to persuade people around the world to consume more rice, which would help boost sales of Thai rice. Money to be handed out by the government to poor rice farmers at Bt1,000 per rai is “not a populist program,'" he said, "but rather on solving problems urgently.”

Measures to be implemented to help rice farmers: Prayut The Nation 7th Oct 2014
Measures will be implemented as part of long-term efforts to help protect farmers from the continued low price of rice - including developing farmland and advanced planning through the cooperation of relevant agencies, Prime Minister Prayut Chan-o-cha said yesterday. There would be no campaign to convince farmers to give up rice farming, as Northeast farmers had suggested after citing speculation in the media. The junta chief said the focus would be on utilizing less farmland and water while at the same time increasing productivity.

Thailand tipped to retake crown as world's top rice exporter The Economic Times 5th Oct 2014
Two years after losing its place as the world's biggest rice exporter, Thailand is eyeing a return to the top spot as the impact of a bungled subsidy scheme eases and it sells cheaper grain to a grateful global market. The subsidy, which offered farmers up to 50 per cent above market rates for their rice, helped former premier Yingluck Shinawatra win the rural votes she needed to take office in 2011. But it also sent tremors through the world market before spectacularly unravelling, leaving Thailand with around 18 million tonnes of over-priced rice and Yingluck skewered by a corruption charge. India and Vietnam moved swiftly to gobble up Thailand's crumbling market share, with the Indian government rapidly releasing more of their own rice for export. Thailand's junta, which seized power in May, ended the rice scheme soon after the coup and is flogging stockpiles to soften the price of Thai rice to around $450 a tonne -- comparable to India and Vietnam. Many now predict the kingdom's industry is again set to surge. "I'm sure we can get back our world title this year," said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. From January until September 2, the kingdom sold seven million tonnes of the grain -- already more than for the whole of 2013 -- according to Chookiat.

Thailand eyeing return as biggest rice exporter New Straits Times 5th Oct 2014
Two years after losing its place as the world’s biggest rice exporter, Thailand is eyeing a return to the top spot as the impact of a bungled subsidy scheme eases and it sells cheaper grain to a grateful global market. The subsidy, which offered farmers up to 50 per cent above market rates for their rice, helped former premier Yingluck Shinawatra win the rural votes she needed to take office in 2011. But it also sent tremors through the world market before spectacularly unravelling, leaving Thailand with around 18 million tonnes of over-priced rice and Yingluck skewered by a corruption charge. Thailand was pushed off the top spot by India in 2012 as buyers hit back at its attempt to fund the costly subsidy by driving up global prices through grain hoarding.

Thailand Halts Buying Crops as Junta Seeks Sales Bloomberg 2nd Oct 2014
Thailand’s junta is changing tack on agricultural policy, saying it will eschew buying farm products directly from growers as state purchases spur overproduction, distort the market and create stockpiles that are hard to sell. The government will instead look at measures to support earnings, based on incomes plus the payment of a sum to ensure farmers are able to make a living. There’ll also be incentives for growers to switch crops to curb oversupply, notably rice to sugar. “In the past three to four years, we have lots of bad rice because of the policy of buying every grain,” said Petipong. Thailand needs to produce quality products instead of quantity products, and to lower production costs, he said.

Vietnam

Vietnam to lift ban on French beef after 16 years Thanh Nien News 9th Oct 2014
The central government has instructed relevant agencies to lift a ban on French beef over 16 years after Europe's mad cow epidemic inspired the restriction. Deputy Prime Minister Hoang Trung Hai instructed the Ministry of Agriculture and Rural Development to issue the directive according to a government release. The ministry will have to coordinate with relevant agencies and French exporters to solve possible problems and create favorable conditions for bilateral beef deals. Hai also instructed the Ministry of Agriculture and Rural Development to work with French agencies to begin apple imports.

Food safety inspection teams set up Saigon Daily 8th Oct 2014
The National Food Safety Inter-Department ordered the provincial & city's people’s committees nationwide to tighten management over food safety to protect consumers’ health and ensure obedience of the law. Accordingly, local governments have to set up food safety inspection teams to keep an eye on importers, manufacturers of additives, preservatives and flavorings. Especially health watchdogs should pay attention to small packaging businesses and take samples for testing quality. Violators will receive harsh penalties and the name of the violating companies will be publicized in media.

FDI in Vietnam's agriculture on its downtrend Shanghai Daily 8th Oct 2014
Foreign direct investment (FDI) in Vietnam's agricultural sector witnessed a sharp decline in the past 15 years and is on its downtrend, according to figures from the Foreign Investment Agency under the Ministry of Planning and Investment. FDI in Vietnam's agriculture accounted for 15 percent of the country's total registered FDI 15 years ago, but in the past three years it declined to 0.5 percent, local Vietnam News daily reported Wednesday, quoting data from the foreign investment agency. Figures from the agency revealed that as of August 2014, there are 512 on-going FDI projects in the agricultural, forestry and fishery sector with a total registered capital of 3.4 billion U.S. dollars, accounting for 3.03 percent of the total FDI projects and 1.4 percent of the total registered capital, and ranking 10th among 18 economic sectors attracting the FDI.

Foreign fast-food chains make limited use of local suppliers Vietnam Net 5th Oct 2014
Nguyen Huy Thinh, managing director of McDonald’s Vietnam, said looking for domestic food supply sources that could satisfy the company’s requirements was “a major headache”. Since McDonald’s made its debut in the country earlier this year, Da Lat has been the only vegetable supply source, while all of the burger buns served at the two McDonald’s shops are from the ABC Bakery in Vietnam. When asked about McDonald’s’ standards, Kao Sieu Luc, general director of ABC Bakery, said the US fast food giant was the choosiest client he had ever met. ABC Bakery has been supplying products to many fast food chains since 1996, including Jollibee Vietnam, Lotteria, KFC and Burger King. However, the company had to import more machines and equipment in order to satisfy the requirements set up by McDonald’s.

Vietnam finds heavy metals in N.Korean food supplement Thanh Nien News 27th Sep 2014
On Tuesday, the Drug Administration of Vietnam announced tests found excessive levels of lead, mercury and arsenic in samples of Angung Uhwang Hwan – a product advertised as assisting in the treatment of cerebral diseases, aneurisms, strokes, blood pressure issues and heart disease. The food supplement was produced by Korea Mannyon General Health Corporation and imported to Vietnam by Vietnam Mannyon Trading Co.Ltd.

Family farms key to sustainability Viet Nam News 15th Oct 2014
Sustainable family farming could help solve hunger and food production problems in Viet Nam, UN food security officials said during a celebration yesterday of the 34th World Food Day in the northern province of Quang Ninh's Hong Phong Commune. The commune, where many households farm together and women play an important role, embodied this year's theme: Family Farming: Feeding the World, Caring for the Earth. The Ministry of Agriculture and Rural Development, the Food and Agriculture Organisation of the United Nations (FAO) and UN Women in Viet Nam hosted the celebration. He also defined family farming as the smallest production unit in agriculture, which is better equipped to suit specific local conditions and include female farmers than a bigger producer. Many family farmers, especially subsistence producers, are among the 70 per cent of rural residents worldwide who lack food security.

Feed producers exempted from registration tax Viet Nam News 8th Oct 2014
Prime Minister Nguyen Tan Dung has approved the Finance Ministry's proposal to remove the business registration tax to reduce difficulties of companies engaged in livestock feed and aquatic food production. The ministry's proposal forms part of its draft of a revised Tax Law. Under the revised law, enterprises in livestock feed and aquatic food production will be exempted from the current 5 per cent tax rate. The Prime Minister ordered concerned ministries and agencies to co-operate in completing the revised law and submitting the draft to the National Assembly Standing Committee for review and approval by the end of this month.

Foreign investors show declining interest in agriculture sector Viet Nam News 8th Oct 2014
Foreign direct investment (FDI) in Viet Nam's agricultural sector witnessed a sharp decline in the past 15 years, according to figures from the Foreign Investment Agency (FIA). In spite of this, FIA officials noted, agriculture remained as the primary economic sector, contributing 20 per cent of the country's gross domestic product per year and 70 per cent of the country's total employed workforce. The agency pointed out that foreign investors were hesitant to pour investments in the sector because of the heavy dependence on natural conditions and small-scale and dispersed production, as well as the shortage of infrastructure. In addition, the country lacked a long-term strategy to attract FDI into agriculture, and current regulations, policies and incentives for investments in agriculture remained vague. To address the alarming FDI decline in agriculture, a project to boost FDI in the agriculture, forestry and fishery sectors has been proposed.

Coffee crop in Vietnam expanding to almost match record Thanh Nien News 8th Oct 2014
Coffee growers in Vietnam, the biggest producer of robusta beans used by Nestle SA, are set to reap an almost record harvest, helping to ease a global shortage. Futures fell the most in about two weeks. Output will probably reach 1.69 million metric tons in the year started Oct. 1, according to the median of 10 trader estimates compiled by Bloomberg. That’s more than the 1.65 million tons predicted in a survey last month and compares with 1.71 million tons a year earlier, an all-time high. Unsold reserves with farmers at the end of September totaled about 3 percent of the previous crop, the estimates showed. “A few months ago, we still had to worry about factors such as weather, pests and disease,” said Phan Hung Anh, deputy director of Dak Lak-based Anh Minh. “There’s not much uncertainty now, so we can be confident with higher estimates.”

EU issues stern warning to Vietnam's veggie exporters Thanh Nien News 7th Oct 2014
The European Union Consumer Protection Agency has warned Vietnam that it will ban certain vegetable imports if the country doesn't clean up its act. Since February 1, European authorities have flagged three shipments of Vietnamese basil and bitter melon due to the presence of harmful bacteria, according to the European Commission’s Directorate General for Health and Consumers, better known as DG SANCO. DG SANCO set a limit of five safety violations within a single year before the EU stops accepting produce imports from Vietnam. The commission warned that an EU ban won't just hurt revenues from the European market but damage Vietnam’s international reputation.

GM crops targeted to make up 30-50% of cultivation VietNamNet 6th Oct 2014
The Government wants to start cultivating new strains of genetically-modified (GM) crops next year with a target to expand the area under cultivation of GM crops to between 30% and 50% of the total farmland by 2020, said an agriculture researcher. Pham Van Toan, head of the Vietnam Academy of Agricultural Sciences under the agriculture ministry, told a conference last week in Hanoi that the target was aimed to increase the yield of grains to make animal feed for the husbandry industry. The local livestock industry is facing tremendous pressure due to the lack of material for making animal feed, especially corn and soybeans, and the country has to import large volumes of corn and soybeans in recent years, Toan told the conference on the role and impact of the media on the development of GM crops in Vietnam. Despite differing opinions around the use of GM crops for livestock and humans, the Ministry of Agriculture and Rural Development in August approved the use of four strains of GM corn to produce food for humans and feed for livestock.

Vietnamese farmers face more fruitful future in the US VietNamNet 29th Sep 2014
Viet Nam will be exporting lychee and longan to the United States and is preparing to export more fruit when it joins the ASEAN Economic Community (AEC) next year. Viet Nam has been importing 400,000 tons of fruit from other countries and exporting 1.3 million tons of fruit to other countries every year. This means annual exports are often three times higher than annual imports. The issue here is how Viet Nam should organize production to meet the demand of importing countries which follow strict standards on quality, food hygiene and safety. This leads to an increase in the consumption of farmers, as well as in export volume. Viet Nam has to meet these standards first to increase its fruit exports to other countries. In the future, Viet Nam will restructure its plantations to further improve the quality and production efficiency of fruits, and thereby increase the quantity and value of its fruit exports.

Vietnamese agriculture industry plants seeds of change VietNamNet 28th Sep 2014
Viet Nam aims to improve agricultural products by implementing technology, but capital, land and infrastructure are major obstacles. Applying technology to the agriculture sector is a key part of Viet Nam's socio-economic development strategy. However, the country faces a number of challenges in attracting investors. Currently Viet Nam has 29 designated high-technology agricultural zones in 12 cities and provinces, including Ha Noi and HCM City as well as Hai Phong, Lam Dong and Hau Giang, according to the Ministry of Agriculture and Rural Development. "However, the operation of these zones remains limited because of the lack of incentives for investors," said Nguyen Van Tien, head of Agriculture and Rural Department under the Central Committee of the Economy. The State should also permit enterprises to rent land to farms that invest in high-technology agriculture. The authorities should withdraw land from enterprises that have not paid land-use taxes and use it for high-tech farming projects. Because farming enterprises remain small in both scale and capitalization, they found it difficult to get loans for high-tech projects, said Nguyen Van An, general director of Hoa Viet Nam Group Joint Stock Company.

Genetically modified technology no magic wand for Vietnam's agriculture VietNamNet 27th Sep 2014
Scientists warn that genetically modified (GM) technology is not the “magic wand” that many people assume will increase crop yield and save domestic agricultural production. The GM maize MON 98034, for example, has been granted a certificate of biosecurity which could pave the way for the import of the maize variety in large quantities for large-scale cultivation in Vietnam. Dr. Tran Hong Uy, former head of the Maize Research Institute, an arm of the Ministry of Agriculture and Rural Development (MARD), said it would be a blunder to import GM maize varieties to grow in Vietnam now. “GM maize varieties will not help solve existing problems, because they can’t improve productivity, and are not drought-resistant. They are weed- and insect-resistant, but these are not big problems for Vietnam,” he added. Uy also thinks that hybrid maize varieties that Vietnamese scientists have found are the solution for the animal husbandry sector. According to Uy, the varieties have outstanding advantages, including reasonable seed prices, high yields, and high-quality produce. They are also easily adaptable to different land areas and can be stored for a long time.