May Kunmakara and Sieam Bunthy
Photo by: Will Baxter
A woman harvests rice in Siem Reap province late last year. Cambodia's rice exports have more than doubled in the first four months compared year on year.
SOMA Group forms China rice mill partnership
Cambodian consortium SOMA Group has partnered with a Chinese firm to build a rice mill in the Kingdom, according to SOMA Group project manager Poeuv Bunrith.
Construction of the mill will begin following the rainy season, with China’s Yunnan Provincial Overseas Investment Company aiming to eventually process up to 200,000 tonnes of rice per year for export to China and other international markets.
“The plant will probably be built in Takeo province, where it produces lots of rice each year, and is easy for us to collect,” he said yesterday.
The finer points of the joint venture are still being discussed, Poeuv Bunrith claimed, as he declined to reveal the cost of the project.
The joint venture parallels an agreement between Cambodia and China offering a large quota for rice exports, he said.
“We want complete this project because we want to follow policies from both countries to export more rice to China,” he said Cambodia’s largest rice exporters yesterday welcomed the agreement to create another rice mill.
Loran Import-Export Company President Lim Bun Heng said additional rice mills would increase the prestige of Cambodia’s rice, and would allow the staple crop to be milled locally instead of in Vietnam.
SOEUN SAY
Construction of the mill will begin following the rainy season, with China’s Yunnan Provincial Overseas Investment Company aiming to eventually process up to 200,000 tonnes of rice per year for export to China and other international markets.
“The plant will probably be built in Takeo province, where it produces lots of rice each year, and is easy for us to collect,” he said yesterday.
The finer points of the joint venture are still being discussed, Poeuv Bunrith claimed, as he declined to reveal the cost of the project.
The joint venture parallels an agreement between Cambodia and China offering a large quota for rice exports, he said.
“We want complete this project because we want to follow policies from both countries to export more rice to China,” he said Cambodia’s largest rice exporters yesterday welcomed the agreement to create another rice mill.
Loran Import-Export Company President Lim Bun Heng said additional rice mills would increase the prestige of Cambodia’s rice, and would allow the staple crop to be milled locally instead of in Vietnam.
SOEUN SAY
Growing demand from European markets, natural disasters and drought in rice producing countries has led to rice exports doubling in the first four months of the year, according to Ministry of Commerce officials.
Cambodia’s total rice exports reached 42,669 tonnes worth US$24,437,959 from January to April 2011, compared to 21,322 tonnes worth $12,178,797 in the same period last year.
“Demand is picking up throughout European countries because we now export directly, whereas before we just sold crops to neighbouring countries which processed for export,” said the ministry’s Director of Statistics Kong Putheara yesterday.
“Some countries, such as China experienced droughts recently, but we have not, and that’s why we need to supply more,” he said. “I think China will require more rice from us this year.”
He also highlighted growing opportunity in Europe from Cambodia’s status as a Least Developed Country.
Cambodia’s exports to the European Union do not pay tax, which provides its rice shipments with savings of about $150 per tonne, Kong Putheara added.
“You can export freely without limitation on quota,” he said.
However, many local producers still do not meet international standards of quality required by European buyers.
“We have not met our clients’ needs yet, but if we achieve this, we can sell at much higher prices.”
In the first quarter of the year, Prey Veng province rice miller Khmer Foods transported 7,180 tonnes to Europe, Managing Director Kim Savuth told The Post.
“The increase was due to a surge in demand on the global market, caused by natural disaster which affected many other agricultural producing countries,” he said.
He attributed the growth to the duty-free export of agricultural products within the European market, stating: “The EU [regulations] helps us export our crops.”
Khmer Foods plan to export an estimated 20,000 tonnes of rice to the EU this year.
The significance of Cambodia’s access to a global duty free market was also highlighted by Lim Bun Heng, Director General of Loran Import-Export Company, whose exports have also increased in the first quarter.
“Duty-free exports on the global market are a main factor for export growth, along with encouragement from the government and relevant institutions.”
He added that the company planned to export 40,000 tonnes in 2011, highlighting the EU as the major market, as well as considering China, USA and the Philippines.
Cambodian government officials have targeted 1 million tonnes of rice exports by 2015.
5 comments:
Cambodia must stride to be at least number 3 in the world biggest rice producer. So far, Thailand and Vietnam are leading the pack in this trade. Cambodia is very capable of competing with both of these leading rice exporters. White gold as they call it, is one promising income Cambodia should be tapping into. If Cambodia can produce 1 to 2 millions tons a year, this would boost Cambodia GDP by roughly $2-$5 billions dollars annually. Along with other industries, Cambodia could protentially becoming well off from being labeled as, " one of southeast Asia poorest country". I know Cambodia can be very capable. I hope Cambodian and their leader can see their potential to restore their country's image. If Cambodia's GDP is higher, more money can be allocated to education, infrastructure, economy, and military. When these are the strong foundation of a country, Cambodia neighbors to the east and west will think twice of bullying with her. Given a decade or two, I know Cambodia will progress. It wasn't easy for Singapore to become a major player in southeast Asia. With tiny land and no natural resource, Singapore was able to walk on water, figuretively speaking. If only Singapore have the resources like Cambodia. Cambodia, don't let your neighbors to the east or the west rob away your confident and potential. What you have are very intimidating and threatening to them. This is why they tried very hard to reduce you. Only you can reduce yourself. No enemy is greater than you.
Without Khmer krom land the yuon have shit to eat and sale. I want koh tral back
2:52 am, thank you for your optimism of Cambodia. As you said, Cambodia is very capable to achieve great status, just as our ancestors did during the Khmer Angkor era. Since then, it was almost like a curse, Khmer began to fall a part. It sadden and frustrating me as Khmer to see Khmer/Cambodia at this point in our history. One thing lead to another that made us became what we are today. Nevertheless, nothing last forever, in term of good or bad. Khmer had it best, now have it worse, and she will have it good, maybe not the best. Regardless, Khmer should work to achieve the respect and honor once pride the pride our ancestors because " Puoch Khmer Chea Puoch Tausu".
2:52 AM,thank you for your very powerful message to date.
Khmer are so blessed of having very vast fertile plain that easily and ready to sustain rice culture for many centuries to come. You already touch the very important aspect of the potential growth for our nation economy that rice production could translate into.
Allow me to add on the psychological valor of rice tradition. The Aryan had earned their rightful spot in human history to be the one who stop roaming around then establishing an agricultural base that would result in the excess of food storage,hence allow human some free time to think and develop further in some other aspect of life. Aryans means Farmers literally. We Khmer should honor our agrarian society especially rice farming.
I know Pen Ron song of Phka Kabbas is rhyme full but I restrained myself from playing this particular piece of music during friend and family gathering out of respect to our hard working rice producer.
In the USA before you want to be President,first you have to go to IOWA to have primary campaigning. Yes farmer is the very fist person you go to seek the support from. This is how American respect farmer.
By the robbing Kampuchea Krom, the Viet able to use the resources and make their populations exploding like rabbits.
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