cassava export: partnership with chinese company

China National Food Industry Group yesterday signed an agreement with Cambodian agricultural firm Ly Ye Rubber Company, aiming to import large quantities of cassava from Cambodia. Cai Yong Feng, chairman of the Chinese firm, said cassava is a quickly expanding industry in Cambodia. ‘If the dry cassava from Cambodia has high enough quality standards for the Chinese market then we will buy other products,’ he said.

Source: Phnom Penh Post

Vietnamese rice exporter face challenges from foreigners in Cambodia

Vietnamese rice exporters will face tough competition from foreign countries looking to exploit advantages that Cambodia presents as a beneficiary of the the EBA (Everything But Arms) initiative, says an Econet report.

Under the EBA, Cambodia, as a least-developed-country, enjoys zero tariffs and no quotas for exporting its farm produce, especially rice, to the EU. Read more of this post

Building water links from Cambodia to Vietnam

Authorities are planning upgrades to effectively double the capacity of boats travelling from Phnom Penh Autonomous Port to Vietnam, according to port Director General Hei Bavy.

A 2009 agreement with Vietnam authorities allows ships travelling down the Mekong from Cambodia to off-load at Cai Mep deepwater port near Ho Chi Minh City, and re-load onto larger vessels to make the trip overseas. Although the agreement has led to a large increase in shipments from Phnom Penh Autonomous Port (PPAP), experts say more could be done to improve the link. Read more of this post

Natural rubber Price hike continues

The Association of Natural Rubber Producing Countries (ANRPC) has estimated total world natural rubber (NR) production this year to be at 9.95 million tonnes, up by 4.9% from 9.49 million tonnes last year.

In spite of the higher forecast, the association said NR supply was seen moving up slowly over the past quarters, thus triggering continued recovery in rubber prices.

“The slow growth in supply, high oil price and strengthening of the baht, rupiah and ringgit can help NR prices to stay strong but the short-term outlook is clouded by uncertainties from the debt crisis in the United States and the eurozone,” said the ANRPC in its latest July report.

Members of ANRPC Thailand, Indonesia, Malaysia, India, Vietnam, China, Sri Lanka, the Philippines and Cambodia controlled about 92% of the commodity’s global supply. Read more of this post

Phnom Penh Port sees growth for freight

Freight shipments through Phnom Penh Autonomous Port increased 31 percent for the first seven months of the year, compared with the same period in 2010. The port handled 43,859 20-foot equivalent units (TEUs) from January to June this year, from 33,364 TEUs in the same period 2010. The increase came through increased imports and exports of agricultural products, textiles and raw materials for the garment industry, and construction materials, said port Director General Hei Bavy. “With the government policy pushing for rice exports, we see that increased agricultural production this year has led to growth in shipments through the port,” he said.

Source: Phnom Penh Post


More competition from Thai rice millers

Thai government proposals to pay above market prices to rice farmers could complicate Cambodia’s goal of becoming a major milled rice exporter, according to industry insiders.

Pheu Thai party leader Yingluck Shinawatra has announced plans to buy rough rice for a guaranteed price of 15,000 baht (US$505) a tonne, more than 50 percent above current rates. Read more of this post

PetroVietnam Fertiliser and Chemicals Co. launch its branch in Cambodia

PetroVietnam Fertiliser and Chemicals Joint Stock Company, one of the largest firms traded on the Ho Chi Minh Stock Exchange, has officially launched its first Cambodian branch. The company had been operating a representative office in the Kingdom since last May, but aimed to expand its services to domestic farmers with the new branch. Read more of this post

Microfinance up on agriculture advance

The Kingdom’s growing agricultural sector is leading to more loans and deposits at microfinance institutions.

The small-scale lenders also credit the boost in Cambodia’s agro-industry for declining non-performing loans rates.

“We see that political stability and our economy are offering a strong climate for opening businesses or enlarging the businesses, leading to more demand for loans,” said Sathapana Microfinance Chief Executive Officer Bun Mony. “We don’t have any major challenges, as our performance has improved after being hard hit by the crisis.”

The MFI’s lending totalled $51 million to 4,900 borrowers at the end of June, whiles its NPL rate declined to 0.7 percent from 0.9 percent at the end of December 2010. Read more of this post

Coffee development in Cambodia

Coffee plantations in Cambodia’s northeast are struggling to keep up with rising international demand for the increasingly lucrative beans, farmers and traders said.

Orders for Cambodian-grown coffee beans from countries such as Japan and Korea as well as domestic demand has increased rapidly, while prices have jumped nearly 40 percent since 2009, traders said. 

Higher prices are ushering more farmers into the market, but supply from Mondulkiri province’s roughly 30 hectares of coffee plantation is falling short.

Im Saroeun, a farmer at the Coffee Plantation Resort in Mondolkiri province, said his plantation is turning down contracts from foreign importers. It simply cannot fill the orders, he said. Read more of this post

Malaysian interest up in Cambodia’s land concessions

Lion Forest Industries Berhad will seek to acquire a 9,995 hectare concession in Cambodia, the latest in a number of Malaysian firms eyeing the Kingdom to increase land banks this year.

The firm aims to cultivate rubber and palm oil on the proposed concession in Preah Vihear province, with a total investment of 11.77 million ringgit (US$3.9 million), according to a filing on the Bursa Malaysia late on Wednesday.

Lion Forest halted its operations in Malaysia and China and is seeking to tap into a new core business and diversify its earnings stream, the statement said.
“For investors looking to grow and process crops, Cambodia is an ideal location as it has plenty of land available for agricultural concessions,” it said. Read more of this post