x01010 MOC KH Rice Sector Profile

RICE SECTOR PROFILE

Value Chain Unit Trade Promotion Department Ministry of Commerce, Cambodia

October 2010

This Sector Profile was prepared by the members of the Value Chain Information Unit within the

Trade Promotion Department of the Ministry of Commerce.

Additional inputs were provided by a research team set up by H.E. Cham Prasith, Senior Minister,

Minister of Commerce.

- Ms. Bun Chamnan, Trade Promotion Department

- Mr. Chea Vorak, Trade Promotion Department

- Mr. Sean Sophea, Trade Promotion Department

- Mr. Tim Raya, Trade Promotion Department

- Ms. Ith Sokum, Multilateral Trade Department

- Mr. Chhean Potry, Bilateral Trade Department

- Ms. Nirng Vachna, Trade Statistics and Information Department

- Mr. Hang Vanny, Trade Preferences Systems Department

- Mr. Kann Viseth, Multilateral Trade Department

- Mr. Mom Chantra, Trade Preferences Systems Department

- Mr. Chhin Sophal, Trade Preferences Systems Department

The teams were supported by two advisers to the Trade Promotion Department:

- Dr. Michael Freudenberg, International Trade Centre (ITC)

- Dr. Ralf Mueller, Gesellschaft fuer technische Zusammenarbeit (GTZ),

Centre for International Migration and Development (CIM)

The teams carried out desk research and field visits to Battambang, Kampong Cham and Prey Veng

Provinces in March and May 2010 to better understand the domestic business environment that

affects actors in the rice value chain.

The Ministry of Commerce would like to thank the United National Development Programme (UNDP),

the International Trade Centre (ITC), and the Gesellschaft fuer Technische Zusammenarbeit (GTZ),

Centre for International Migration and Development (CIM) for financial support.

1Rice sector profile

Contents

Rice sector profileWorld market ...............................................................................................................................................................................................3

Cambodia’s exports ...................................................................................................................................................................................7

Domestic supply capacity ........................................................................................................................................................................9

Constraints ................................................................................................................................................................................................. 15

Strategies and activities ........................................................................................................................................................................ 17

Recommendations .................................................................................................................................................................................. 18

Outlook and investment opportunities ........................................................................................................................................... 20

References ................................................................................................................................................................................................. 23

List of TablesTable 1. Main paddy rice producers in the world, 2008 ..............................................................................................................4

Table 2. World market for rice products, 2008 ................................................................................................................................5

Table 3. Top exporters of rice (HS 1006), 2008 ................................................................................................................................5

Table 4. Top rice exporters in the world (world market share in %, 2008) ...........................................................................5

Table 5. Top importers of rice (HS 1006), 2008 ...............................................................................................................................6

Table 6. Top rice importers in the world, (world market share in %, 2008) ..........................................................................6

Table 7. Cambodia’s rice exports: Cambodian versus mirror statistics (USD 1,000)..........................................................8

Table 8. Top rice producing provinces in Cambodia (2008-09) .............................................................................................. 10

Table 9. Rice yields in top producing provinces (2008-2009) .................................................................................................. 11

Table 10. Yields among the main paddy rice producers in the world, 2008 ...................................................................... 12

Table 11. The largest rice mills in Cambodia ................................................................................................................................. 14

Table 12. Options for rice shipments overseas ............................................................................................................................. 14

Table 13. Attractive markets for milled rice (HS 100630), 2008 ............................................................................................. 21

Table 14. Attractive markets for brown rice (HS 100620) ......................................................................................................... 22

Table 15. Attractive markets for broken rice (HS 100640)........................................................................................................ 22

List of Figures Figure 1. Rice production in the world, 1961-2008 (million tons) ...........................................................................................3

Figure 2. Nominal price quote (USD/ton), for rice (5% broken), fob Bangkok (January 1980 – July 2010) ..............7

Figure 3. Rice production in Cambodia, 1961-2008 ................................................................................................................... 10

Figure 4. Distribution of rice production in Cambodia .............................................................................................................. 11

Figure 5. Cambodian paddy supply and rice exports, estimated for 2008-09 .................................................................. 12

2 Rice sector profile

List of Annex Annex Table 1. Main paddy rice producers in the world .......................................................................................................... 25

Annex Table 2. Top exporters of rice (HS 1006), 2008 ............................................................................................................... 25

Annex Table 3. Top importers of rice (HS 1006), 2008 .............................................................................................................. 26

Annex Table 4. Cambodia’s exports of rice, 2008 (mirror data) ............................................................................................. 26

Annex Table 5. Top exporters of paddy rice (HS 100610) in 2008 ......................................................................................... 26

Annex Table 6. Top exporters of brown rice (HS 100620), 2008 ............................................................................................ 27

Annex Table 7. Top exporters of milled rice (HS 100630) in 2008 ......................................................................................... 27

Annex Table 8. Top exporters of broken rice (HS 100640) in 2008 ....................................................................................... 27

Annex Table 9. Cambodia’s exports of paddy rice (HS 100610) by partner ....................................................................... 28

Annex Table 10. Cambodia’s exports of brown rice (HS 100620) by partner .................................................................... 28

Annex Table 11. Cambodia’s exports of milled rice (HS 100630) by partner .................................................................... 28

Annex Table 12. Cambodia’s exports of broken rice (HS 100640) ......................................................................................... 28

Annex Table 13. Top importers of paddy rice (HS 100610), 2008 ......................................................................................... 29

Annex Table 14. Top importers of brown rice (HS 100620) in 2008 ..................................................................................... 29

Annex Table 15. Top importers of milled rice (HS 100630) ...................................................................................................... 29

Annex Table 16. Top importers of broken rice (HS 100640) .................................................................................................... 30

Annex Table 17. Attractive markets for brown rice (HS 100620) ........................................................................................... 30

Annex Table 18. Attractive markets for milled rice (HS 100630) ........................................................................................... 31

Annex Table 19. Attractive markets for broken rice (HS 100640) .......................................................................................... 31

Annex Table 20. Top rice-producing provinces in Cambodia (2008-09) .............................................................................. 32


Rice sector profileWhy a sector profile on rice?

Rice is by far Cambodia’s most important agricultural product and the sector employs around 2.9 million people. Rice is the major staple food and is cultivated by the large majority of small farmers. It is crucial for human development in terms of food security and poverty reduction, especially for subsistence farmers. Estimates of rice exports – including informal exports – suggest that rice is by far the most important agricultural export product in Cambodia. Although most exports involve paddy rice, milled rice is increasingly considered to have important potential for future exports.

World market

Main producers World paddy rice production grew by a factor of three in the past 50 years, from about 200 million tons in 1961 to 680 million tons in 2009, and was forecast to reach a record 710 million tons in 2010 (Figure 1). Paddy rice production dropped by about 1 percent between 2008 and 2009, mainly due to erratic monsoon rains and the resurgence of El Niño conditions in Asia, but was expected to grow by 4 percent in 2010, again mainly due to changes in Asian countries. India in particular was expected to drive this upturn in the region, followed by the Philippines, Sri Lanka and Thailand (FAO, Rice Market Monitor, April 2010).

The main producer countries in the world are in Asia. By far the largest producers – and consumers – are China (almost 200 million tons in 2008) and India (some 150 million tons). Other important producers are Indonesia, Bangladesh, Vietnam, Myanmar and Thailand (Table 1).

With 7.2 million tons of paddy in 2008, Cambodia is the 14th largest producer in the world. Cambodia is the fastest growing among the large rice producers in the world, and is now the 14th largest producer. However, it has to be mentioned that information about Cambodia’s rice production is difficult to obtain and is sometimes crudely estimated.

Figure 1. Rice production in the world, 1961-2008 (million tons)

Source: FAO, FAOSTAT.

Rest of world

Indonesia

India

China

1961 1970 1980 1990 2000 2008

800

700

600

500

400

300

200

100

0


Table 1. Main paddy rice producers in the world, 2008

Statistics on internationally traded products

Only a small part of world production of rice is traded internationally. World trade for rice (HS 1006) amounted to about 32 million tons in 2008, or USD 22 billion (Table 2). This is less than 5 percent of total world production, partly because the main producing countries are also the main consumers and the world rice market is fairly protected.

There exist thousands of different rice varieties around the world, but a major distinction in international trade statistics is made according to the different processing steps. The Harmonized System (HS), which is an international trade nomenclature covering more than 5,000 product items at the most detailed level (6 digits), distinguishes four items of rice:

Paddy rice (HS 100610), which is also called rice in the husk or rough rice, is rice as it comes from the field and from which the inedible, protective hull has not yet been removed.

Brown rice (HS 100620) or husked rice is the least processed form of rice. It has the outer hull removed, but still retains the bran layers that give it a characteristic tan colour and nut-like flavour.

Milled rice (HS 100630), which can be semi-milled or wholly-milled rice, is also called white rice. All or part of the bran and germ is removed from the rough rice.

Broken rice (HS 100640) is low-cost rice with broken kernels. A major quality differential, besides different varieties, is the percentage of broken kernels: The more broken kernels, the cheaper the rice.

Milled rice (HS 100630) is by far the major internationally traded rice product, accounting for roughly three-quarters of total world rice trade (Table 2). In 2008, world imports of milled rice amounted to 22.5 million tons or more than USD 17 billion. Between 2004 and 2008, imports of milled rice grew on average by 5 percent per year in quantity, and by 27 percent per year in value. However, this upward trend cannot be extrapolated, as there were strong fluctuations of prices during the commodity price speculation and world food crisis.

Source: FAO. For more detailed information, see Annex Table 1.

Level 2008 Dynamism 2000-2008 (Index 2000=100)

Production(million tons)

Yield(tons/ha)

Production Yield Area harvested

1. China 193.4 6.6 102 105 972. India 148.3 3.4 116 118 983. Indonesia 60.3 4.9 116 111 1044. Bangladesh 46.9 4.0 125 115 1095. Vietnam 38.7 5.2 119 123 976. Myanmar 30.5 3.7 143 110 1307. Thailand 30.5 3.0 118 114 104(…)14. Cambodia 7.2 2.7 178 130 137World 685.0 4.3 114 111 103


Table 2. World market for rice products, 2008

Main exporters The world export supply is concentrated on a few countries. Thailand is by far the world’s largest rice exporter: its 10.2 million tons correspond to 29 percent of world exports in value in 2008. It is followed by Vietnam (14 percent), India (13 percent), Pakistan (12 percent), and the United States (10 percent). These five countries together account for more than three-quarters of world exports (Table 3).

Table 3. Top exporters of rice (HS 1006), 2008

Most world rice export consists of milled rice for which the above mentioned nations dominate. With regard to the less traded rice products, the United States are the largest exporter for paddy rice and brown rice, while Thailand is the world’s number one exporter for broken rice (Table 4).

Table 4. Top rice exporters in the world (world market share in %), 2008

Source: ITC’s Trade Map.

Products(and HS code)

Value imported(USD

million)

Quantity imported

(million tons)

Unit value (USD/ton)

Growth in value

2004-2008 (%/year)

Growth in uantity

2004-2008 (%/year)

1006: Rice 22,097 31.37 704 23 6

100610: Paddy rice 905 1.98 456 14 -3

100620: Brown rice 1,769 2.15 822 18 0

100630: Milled rice 17,554 22.51 780 27 5

100640: Broken rice 1,866 4.72 395 23 11

Source: ITC’s Trade Map. Trade for countries marked with * is estimated through mirror statistics. For more detailed information, see Annex Table 2.

Source: ITC’s Trade Map. For detailed information, see Annex Table 5, Annex Table 6, Annex Table 7, and Annex Table 8.

Paddy rice(100610) (%)

Brown rice(100620) (%)

Milled rice(100630) (%)

Broken rice(100640) (%)

1. United States (84.7) 1. United States (20.6) 1. Thailand (29.7) 1. Thailand (47.8) 2. China (4.5) 2. Thailand (18.0) 2. India (15.7) 2. Pakistan (9.7) 3. France (1.5) 3. Guyana (10.3) 3. Vietnam (15.6) 3. Vietnam (7.0) 4. Paraguay (1.1) 4. Italy (9.6) 4. Pakistan (12.9) 4. Brazil (6.2) 5. Italy (1.0) 5. Uruguay (9.0) 5. United States (6.7) 5. Belgium (5.1) 6. Brazil (0.9) 6. China (7.0) 6. Italy (3.7) 6. United States (4.2) 7. Greece (0.9) 7. Spain (5.0) 7. U. Arab Emirates (2.9) 7. Italy (3.5) 8. India (0.8) 8. Argentina (4.%) 8. China (2.0) 8. Uruguay (2.6) 9. Spain (0.8) 9. Belgium (1.9) 9. Uruguay (1.8) 9. Netherlands (2.3) 10. Argentina (0.6) 10. Suriname* (1.7) 10. Brazil (1.2) 10. Spain (1.4)

27. Cambodia* (0.05) 41. Cambodia* (0.04) 52. Cambodia* (0.02) 42. Cambodia* (0.03)

Exporters Value (USD million)

Share in world exports

( %)

Unit value(USD/ton)

Growth in value

2004-2008 (%/year)

Growth in quantity

2004-2008 (%/year)

World 21,117 100.00 655 23 6

1. Thailand 6,108 28.92 598 23 2

2. Vietnam 2,896 13.71 610 26 23

3. India 2,843 13.46 804 24 2

4. Pakistan 2,440 11.55 800 30 7

5. United States 2,214 10.48 476 15 3

(..)

52. Cambodia* 4 0.02 639 4 14


Main importers There is much less concentration on the import side. The Philippines is the largest rice importer in the world (almost USD 2 billion in 2008, corresponding to a world market share of 8.9 percent), followed by countries in the Middle East (United Arab Emirates (UAE), Saudi Arabia, Iran) and Malaysia (Table 5). As a region, the European Union (EU), with its 27 member countries, is the largest importer in the world (especially the United Kingdom and France).

Table 5. Top importers of rice (HS 1006), 2008

The main importers of milled rice are roughly the same as for total rice, reflecting the importance of milled rice in total rice. However, for the three smaller rice products, the main destination markets differ strongly depending on the product (Table 6).

- For paddy rice, the main importers are Latin American countries (Mexico, Honduras, Nicaragua, Costa Rica) who arrange processing.

- For brown rice, the main consumer markets are in Europe, especially in the United Kingdom, Belgium, Netherlands, France, Germany and Italy.

- Low-cost broken rice is imported mostly by African countries, such as Senegal, Ghana, Cote d’lvoire, Guinea and Kenya.

Table 6. Top rice importers in the world (world market share in %), 2008

Source: ITC’s Trade Map. * Countries with mirror statistics. For more detailed information, see Annex Table 13, Annex Table 14, Annex Table 15 and Annex Table 16.

Paddy rice(100610) (%)

Brown rice(100620) (%)

Milled rice(100630) (%)

Broken rice(100640) (%)

1. Mexico (34.6) 1. United Kingdom (15.0) 1. Philippines (11.1) 1. Senegal (30.5)

2. Honduras* (5.6) 2. Belgium (9.3) 2. U. Arab Emirates (8.5) 2. Ghana (7.7)

3. Nicaragua* (5.3) 3. Korea (9.2) 3. Saudi Arabia* (6.5) 3. Côte d'Ivoire (7.3)

4. Costa Rica (5.2) 4. Netherlands (8.1) 4. Iran* (6.5) 4. Belgium (4.6)

5. Vietnam (4.4) 5. France (7.0) 5. Malaysia (3.7) 5. Malaysia (4.4)

6. Panama (4.3) 6. Germany (6.5) 6. United States (3.0) 6. France (3.6)

7. Guatemala (4.0) 7. Italy (5.1) 7. Benin* (2.9) 7. United Kingdom (3.6)

8. Italy (3.9) 8. Malaysia (4.2) 8. Bangladesh* (2.9) 8. Guinea (3.6)

9. El Salvador (3.4) 9. Portugal (3.4) 9. Cuba* (2.7) 9. Japan (3.4)

10. Venezuela (2.5) 10. Spain (3.0) 10. South Africa (2.5) 10. Kenya (2.2)

Source: FAO, ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through mirror statistics. For more detailed information, see Annex Table 3. a. Quantity data for Malaysia was excluded because it is wrong and affects the world total and unit values.

Importers Value (USD

million)

Share in world

imports (%)


Growth in value

2004-2008, (%/year)

Growth in quantity

2004-2008 (%/year)

Tariff faced by

Cambodia (%)

Tariff faced by

Thailand(%)

World 22,097 100.0 a 24 17 .. .. EU-27 3,124 14.1 959 .. .. 4.9 24.51. Philippines 1,957 8.9 802 52 19 50 482. U. Arab Emirates 1,517 6.9 1,172 49 20 0 03. Saudi Arabia* 1,153 5.2 988 17 -2 0 04. Iran* 1,141 5.2 931 34 5 4 45. Malaysia 812 3.7 a 49 116 40 40


Prices World market prices for rice have increased over the past decade with a dramatic increase and decrease during and after the commodity price speculation and the world food crisis. The price for Thai White Rice 5 percent broken – an international reference – has increased from a low level of around US 200 /ton in the early 2000s to about USD 450 /ton in April 2010 (Figure 2). With the world food crisis, rice prices tripled in 2008 but have returned since then almost to the levels before the crisis. Prices for some varieties can be much higher, e.g. Thai Jasmine Rice or Indian Basmati (see e.g. www.thairiceexporters.or.th/price.htm).

Figure 2. Nominal price quote (USD/ton), for rice (5% broken), fob Bangkok (January 1980 – July 2010)

Cambodia’s exports

Issues with Cambodian trade statistics

It is difficult to assess the volume and value of Cambodia’s rice exports because of a lack of reliable official data. Cambodia reported trade data to the United Nations Statistics Department (Comtrade database) until 2004, and then again in 2008, while so-called mirror statistics – those reported by Cambodia’s trade partners to the United Nations Statistics Division – are available until 2008 (and even until 2009, but without Vietnamese imports) (Table 7). The two sources can differ substantially and thus suggest different interpretations. The remainder of this sector profile uses mainly mirror statistics.

A second problem is that official statistics do not take into account informal exports and thus seriously underestimate Cambodia’s paddy rice exports. Both Cambodian statistics and mirror data suggest that Cambodia exports mainly milled rice and very little paddy rice. However, industry observers agree on the contrary that a substantial amount of Cambodian rice exports concerns paddy rice that is informally exported to Thailand and Vietnam.

Source: IMF Primary Commodity Prices (www.imf.org/external/np/res/commod/index.asp).

1980 81 82 83 84 85 86 87 88 89

1990 91 92 93 94 95 96 97 98 99

2000 01 02 03 04 05 06 07 08 09

2010

1200

1000

800

600

400

200

0


Table 7. Cambodia’s rice exports: Cambodian versus mirror statistics (USD 1,000)

Cambodia’s performance relative to its main competitors

Cambodia is still a small player in the world rice market, and is ranked in general between rank 27 and rank 50 for the various products (Table 4). However, this low ranking is partly a statistical shortcoming (for paddy) and partly subject to change (wholly and milled rice). Cambodia may well be one of the biggest paddy rice exporters in the world, even though mirror statistics suggest that Cambodian formal paddy rice exports amount to less than USD 500,000.

Cambodia’s current markets

The only Cambodian rice exports of relevance are paddy rice and milled rice. For both products it is difficult to make precise statements regarding the size of exports due to the statistical limitations described above.

- For paddy rice, it is estimated that about 1.6 million tons of paddy are exported informally to Vietnam and Thailand. With regard to varieties, Cambodian paddy exports to Vietnam consist mainly of International Rice Research Institute (IRRI) rice, while exports to Thailand are traditionally aromatic varieties, although in recent years increasing quantities of non-aromatic paddy have been exported, too.

- For milled rice, the main market has recently become the European Union (EU) with total exports of more than USD 2 million (mirror data). The main markets within the European Union are France, Italy and Germany. The strong upward trend of Cambodian wholly and semi-milled rice export, which tripled in 2009, can be attributed to the tariff-free market access granted to Cambodia by the EU under the Everything-but-Arms Agreement. For other, more traditional, markets, reliable mirror data is not available, but considerable quantities of wholly or semi-milled rice are exported to Vietnam and Thailand.

Cambodia’s market access conditions

Some major rice consuming countries in Asia have fairly protected markets, e.g. Japan and South Korea, and rice is considered a “sensitive product” under the ASEAN Free Trade Agreement (AFTA) by some ASEAN countries (the Philippines, Indonesia and Thailand) and tariffs remain high. State trading enterprises are also prevalent in some markets (e.g. Indonesia).

However, Cambodia enjoys duty-free access in a number of major importing countries, especially in the European Union (EU). Since September 2009, the EU has granted duty-free and quota-free access for rice to all least developed countries (LDCs). With previously very high Most Favoured Nation rates of EUR 145 /ton (for milled rice), Cambodia enjoys a significant advantage and is also the only LDC besides Myanmar with significant rice exports. These favourable market access conditions in Europe could bring about significant gains in Cambodia’s market share, if bottlenecks in infrastructure (especially milling facilities) are reduced. The strong increase of Cambodian rice exports to the EU over recent months demonstrates the potential for future exports to this market.


Product 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cambodian statistics

1006 Rice 2,388 4,464 643 1,924 .. .. .. 2,427 ..100610 Paddy rice 0 0 0 0 .. .. .. 478 ..100620 Brown rice 0 3,843 0 35 .. .. .. 0 ..100630 Milled rice 2,388 621 643 1,889 .. .. .. 1,937 ..100640 Broken rice 0 0 0 0 .. .. .. 12 ..

Mirror statistics

1006 Rice 1,172 4,565 2,610 3,165 2,301 3,183 1,976 4,104 12,928100610 Paddy rice 0 0 0 0 0 11 241 466 0100620 Brown rice 676 2,661 968 0 178 686 751 391 1,238100630 Milled rice 496 1,905 1,642 2,914 1,987 2,397 832 2,914 10,455100640 Broken rice 0 0 0 251 136 86 152 332 1,236


Many importing countries require non-tariff measures, particularly sanitary and phyto-sanitary (SPS) measures for rice. Even in ASEAN, trade in rice is covered by more protective AFTA conditions. For instance, China has stringent SPS measures in place, which require regular inspections by the Ministry of Agriculture, Forestry and Fisheries. The complexity of these procedures means that Cambodian exports of rice to China have effectively been suspended. In addition, many countries (e.g. India) provide price support and subsidies to domestic producers.

Domestic supply capacityMain actors The main actors in Cambodia’s rice value chain are farmers, collectors and processors.

- Farmers: Rice is a staple food and is cultivated all over the country. Rice farmers tend to be small subsistence producers, though there are also large farms. It is estimated that there are 2.25 million rice farmers in Cambodia (Slayton, 2009), and that the rice sector employs in total 2.94 million people (DAI, 2008).

- Collectors: The paddy from the farms is sold either directly to Cambodian mills, or through a network of collectors, middlemen and traders to domestic mills or mills in Vietnam and Thailand. Collectors may be agents for millers or sell to larger merchants.

- Rice mills: Estimates concerning the number of rice mills vary substantially, from 23,000 (MIME statistics) to 47,000 (SEILA database), although there seem to be not more than 1,000 commercial mills (Slayton, 2009). Mills tend to be small by international standards, and there are only a handful of mills that can mill more than 10 tons of paddy rice per hour. Over the past two years several larger rice mills have considerably upgraded their milling equipments, in terms of both quality of milled rice and output per hour.

Seasonality Cambodia experiences distinct wet and dry seasons, and the majority of rice is cultivated during the wet season (May-November), in particular under rain-fed lowland conditions. According to USDA (2010), about 80 percent of Cambodian rice production (86 percent of total rice area) occurs in the summer monsoon wet season, while the remainder is produced in the predominantly irrigated dry winter period.

Rice varieties A myriad of varieties are used, of which some have a good international reputation. Crop scientists estimate that over 3,000 varieties of rice are cultivated in Cambodia (USDA, 2010). This “myriad of varieties” (Slayton 2009) causes problems for overseas export since it is common to mix different varieties both at the farming and collecting/trading level (many farmers plant more than one variety so as to minimize the risk of losses due to drought or flooding). Some varieties have a high international reputation for quality and provide good export opportunities.

Cultivated area, production, yield

Cambodian paddy rice production has increased rapidly in the past decade, due to an extension of the harvest area and improvements in the yield. According to MAFF, Cambodia produced 7.2 million tons of paddy rice in 2008, up from 4.0 million tons in 2000 (Figure 3). This increase is due to both an increase in the cultivated land (from 2.3 to 2.6 million ha) and an improvement in yields (from 2.1 to 2.7 tons/ha). Cambodia was a major rice supplier to international markets in the 1960s, but it took 20 years to return to pre-crisis production levels and another 10 to surpass them. Since then production has continued to grow dramatically.


Figure 3. Rice production in Cambodia, 1961-2008

The increase in Cambodia’s rice yield is due to several factors, including an expansion of irrigation infrastructure or land, increased use of high yielding varieties, and an intensification of the crop cycle through double-cropping during the main wet season (USDA, 2010). The Cambodian Agricultural Research and Development Institute (CARDI) estimated that roughly 40 percent of all rice acreage was under improved, high yielding varieties in 2008, up from about 32 percent in 2003 (USDA, 2010).

The rise in Cambodia’s rice production translates into a sizeable surplus that can be exported, though the order of magnitude is not clear. While MAFF estimates that it has an exportable surplus during 2008-09 of almost 3.2 million tons (up from about 650,000 tons in 2004), other estimates are substantially lower, possibly only half of this level (e.g. Slayton 2009).

Production in provinces

Rice is grown in all provinces in Cambodia, though there are two main corridors producing the majority of rice: in the east along the Vietnamese border (Prey Veng, Takeo, Kampong Cham, and Svay Rieng) and in the west along the Thai border (Battambang and Banteay Meanchey) (Table 8, Figure 4). The corridors produce different varieties: the eastern provinces specialise in high-yield Imidazolinone Resistant (IR) varieties; the western provinces produce aromatic rice.

Table 8. Top rice producing provinces in Cambodia (2008-09)

Source: MAFF, Department of Planning and Statistics.

Source: MAFF. For more detailed information, see Annex Table 20.

Province Production(ton)

Harvested area(ha)

Yield(ton/ha)

1. Prey Veng 994,580 322,993 3.08

2. Takeo 875,884 255,607 3.43

3. Kampong Cham 700,662 219,278 3.20

4. Battambang 672,765 249,425 2.70

5. Banteay Meanchey 549,553 216,191 2.54

(…)

Total 7,175,473 2,613,363 2.75

Source: FAOSTAT.

8

7

6

5

4

3

2

1

0

Million tons (paddy basis)

1961 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008


Figure 4. Distribution of rice production in Cambodia

Provincial and international yield differences

There are difficulties in comparing yields across provinces or countries, as rice exists in many varieties that can be produced using different techniques (e.g. rain-fed versus irrigated).

- For example, the Cambodian average of 2.7 tons/ha hides important differences between seasons: 2.5 tons/ha during the rainy season 2008 compared to 4.0 tons/ha during the dry season 2008/09 (Table 9).

- Likewise, yields among provinces (during the rainy season) range from as high as 3 tons/ha in Kampong Cham and Takeo to 2 tons/ha in Siem Reap.

- Furthermore, Eastern Cambodia and Vietnam, where low-priced IR Varieties dominate, tend to have higher average yields than Western Cambodia and Thailand (which focus more on high-priced aromatic varieties).

Table 9. Rice yields in top producing provinces (2008-2009)

Although yields have increased, they remain low; in fact, they are among the lowest in South East Asia. The Cambodian average of 2.7 tons/ha in 2008 is below levels in Thailand (3.0 tons/ha) and Vietnam (5.2 tons/ha), and even more so when compared to China (6.6 tons/ha), the largest rice producer in the world (Table 10). This is due to a number of factors, including a comparatively weak irrigation system and the low use of fertilizers even in infertile native soils in some regions.

- Concerning irrigation, according to MOWRAM, 24 percent of rice cultivation is irrigated, but effective irrigation coverage is even lower than. The National Medium-term Priority Framework (NMTPF) Cambodia 2011-2015 (MAFF and

Source: USDA (2010).

Source: MAFF. For more details, see Annex Table 20.

Province Yield during rainy season 2008

(tons/ha)

Yield during dry season 2008-09

(tons/ha)

Yield during total year 2008-09

(tons/ha)

Production during total year 2008-09

(1,000 tons)Prey Veng 2.8 4.2 3.1 995

Takeo 3.0 4.5 3.4 876

Kampong Cham 3.0 3.8 3.2 701

Battambang 2.7 4.4 2.7 673

Banteay Meanchey 2.5 3.5 2.5 550

Kampong Thom 2.2 3.7 2.4 436

Svay Rieng 2.2 4.0 2.4 418

Siem Reap 2.0 3.8 2.1 413

Kandal 2.9 4.2 3.6 364

Total 2.5 4.0 2.7 7,175


FAO) reports that “only about 1 percent [of the rice area] is fully irrigated in all seasons. In general, crop land that benefits from controlled irrigation represents less 10 percent of the total, as compared with 33.4 percent in Vietnam and 28.4 percent in Thailand. Access to irrigation systems varies geographically. In some north-eastern provinces there are virtually no irrigated areas.”

- Concerning fertilizers, FAO estimates that only about 30 percent of Cambodia’s total area receives even minimal application, which makes Cambodia’s rate of fertilizer use for rice the lowest in Southeast Asia. Furthermore, most fertilizers available in the local market are of low quality.

Table 10. Yields among the main paddy rice producers in the world, 2008

Collecting and trading

It is estimated that only about 40 percent of farmers have a marketable surplus available for collectors and traders, as most rice farmers in Cambodia are small (around 1 ha and less) and harvest losses are significant (around 18 percent). The remainder is milled at custom mills at the village level and consumed by the farmers, or used for seed retention and animal feed (DAI 2008). This surplus is estimated to be about 2.7 million tons, and is marketed through a complex system of collectors and traders.

Paddy traders tend to be considerably larger than collectors, often having large ware-houses. Paddy traders buy from both farmers and collectors and typically sell to mills. Sales of paddy can be both within one province, inter-provincial or, informally, to Vietnam and Thailand.

Especially near the borders of Vietnam and Thailand, collectors and traders have close relationships with traders or millers from these countries, with obvious consequences for the flow of paddy. It is estimated that about 1.6 million tons of paddy are exported to Vietnam and Thailand, more than half the “marketable” surplus that is not consumed by producers or at village level (Figure 5).

Figure 5. Cambodian paddy supply and rice exports, estimated for 2008-09

Source: DAI (2008) updated by Value Chain Information Unit.

Source: FAO. For more detailed information, see Annex Table 1.

Production(million tons)

Level of yield(tons/ha)

Change of yield(2000=100)

1. China 193.4 6.6 105

2. India 148.3 3.4 118

3. Indonesia 60.3 4.9 111

4. Bangladesh 46.9 4.0 115

5. Vietnam 38.7 5.2 123

(…)14. Cambodia 7.2 2.7 130

(…) 0.0

World 685.0 4.3 111

Paddy rice7,174,000 tons

(100%)

Surplus for human consumption:

5,346,000 tons (75%)

Animal feed: 215,000 tons

(3%)Seed retention:

359,000 tons(5%)Post-harvest loss:

1,256,000 tons (18%)

Marketed surplus: 2,673,000 tons (37%)

Farmers’ self-comsumption (custom mills):

2,673,000 tons(37%)

Paddy milled in domestic mills: 1,069,000 tons (15%)

= 674,000 tons milled rice

Paddy export to Thailand:

561,000 tons (8%)

Paddy export to Vietnam:

1,042,000 tons (15%)

Export: 20,000 tons milled rice

Sales on domestic market:

654,000 tons milled rice


Milling capacity Cambodia does not have the capacity to mill its annual paddy production. Most rice mills have a very small production capacity, despite increasing investments in rice mills. This is why a considerable part of Cambodian paddy is exported (informally) to Vietnam and Thailand. Reasons for the limited milling capacity include:

- Very few rice mills in Cambodia are able to process more than 2.5 tons per hour, which restricts the country’s overall ability to cope with the farmers’ increasing paddy supply (Slayton 2009);

- Rice millers are typically short of capital and face high credit costs, which restricts their ability to provide sufficient paddy at the main harvest time (November/December) to operate their mills for longer than a few months;

- Antiquated milling technologies of most Cambodian rice mills cause high processing costs and output losses which prevent these millers from paying paddy prices to farmers comparable to those offered by Thai and Vietnamese traders and millers. Recovery rates (about 63 percent of paddy) of Cambodian rice mills are among the lowest in Southeast Asia, and additional output losses are caused through high percentages of broken rice. Furthermore, high energy costs impose a further burden on milling costs, with most rice mills being fuelled with diesel.

In the past, almost all milled rice produced by Cambodian mills was marketed locally. Even larger mills had been unable to supply international markets for a number of reasons such as antiquated technology (which produces high quantities of broken rice at milling costs that are not competitive internationally), and high domestic transportation and exportation costs. Angkor Kasekam, which produces high-quality Neang Malis rice under a system of contract farming, was for years the only rice mill in Cambodia that constantly supplied international markets (especially France), albeit in very limited quantities.

However, in recent years some Cambodian rice millers, a few of them with international partners, have made considerable efforts either to improve existing rice mills or to establish new rice mills. The most prominent examples are Green Trade, Baitang Kampuchea and Golden Rice (Table 11). Some of these millers apply the latest technology from Japan or Taiwan and focus on overseas markets, especially Europe, where Cambodia has enjoyed tariff-free market access under the Everything-but-Arms Agreement (EBA) since September 2009. First shipments have been made over recent months to countries such as France, Poland and Lithuania and much larger exports are expected in the years to come.


Table 11. The largest rice mills in Cambodia

Shipments There are three options for rice shipments abroad. While exports via Sihanoukville remain costly,, exports via Vietnam seem increasingly attractive, in particular because of the new deep sea port in Cai Mep (Table 12).

Table 12. Options for rice shipments overseas

1. Sihanoukville 2. Via Vietnam (Saigon/Cai Mep)

3. Via Thailand (Laem Chabang or Bangkok)

For whom? Shortest distance for rice grown in central Cambodia,

but long domestic (land) transport for rice grown near Thai or Vietnamese border.

Especially an option for rice grown in the Eastern provinces of Cambodia.

Only an option for rice grown in the western provinces near the Thai border.

Infrastructure and cost

High (but improving) shipment costs, but this avoids cross-border procedures/costs in Thailand or Vietnam.

Transport by river from Phnom Penh or Neak Leung to Mekong Delta.

Requires road transport (a railway connection is currently not available but reconstruction is planned in coming years).

Comment This option appears to be increasingly attractive,

with the new deep sea port in Cai Mep.

Political tensions caused temporary border closures,

but any long-term problems with this export gateway are very unlikely.

Rice mill(Province)

Milling capacity

(tons/hour of paddy)

Paddy processed

in 2009(tons)

Technology / Equipment

Export experience

Golden Rice(Kampong Speu)

15 tons .. .. ..

Ying& Yang Rice Head Quarterz Co. Ltd (Sihanoukville)

13 tons .. .. ..

Vin Cheang Rice Mill Co.Ltd. (Kampong Cham)

12 tons 500-600 tons

Dryer, polisher, color sorter, broken sorter.

No, but plans to export soon.

Angkor Kasekam Roongroeung Co., Ltd. (AKR) (Kandal)

10 tons 20,000 tons

Utilizes color sorters, and burns the rice husk using co-generation technology.

Exports especially to France.

Green Trade(Phnom Penh)

10 tons .. Six mills (one of which with Satake technology), comprehensive modernization in 2009.

Exports to various markets; joint-venture with Vietnamese for large-scale exports.

QC Rice Co. Ltd (Kampong Cham)

10 tons 2,000 tons Old equipment, now comprehensive modernization.

Dryer, stone sorter, |color sorter, polisher, broken sorter.

Exports to France, Portugal, Italy, Germany, Switzerland (via agent).

Baitang Kampuchea Plc. (Battambang)

30 tons (planned for 2011)

In 2009 not yet

operating

Latest technology from Japan (Satake) and Tai-wan, from cleaner to packager.

Exports to Germany, Australia, France and Italy.


Constraints

Constraints Farmers Collectors/traders Processors

Knowledge / Management / Entrepreneurship

Farmers have very limited cultivation skills (maintenance, crop rotation, diseases) and post-harvesting techniques (high post-harvest losses up to 20 percent).

Limited knowledge about inputs (seeds, fertilizers, pesticides) and how to use them (often no product description in Khmer).

Lack of experience in management of modern rice mills.

Limited knowledge about selection and application of appropriate processing technologies.

Limited experience in marketing and exporting.

Material inputs Most inputs available in the domestic market are of low quality (inappropriate seeds, fertilizers, pesticides).

High input costs as most inputs are imported.

Degradation of seed quality, when farmers retain some of their harvest as seed.

Small paddy collectors often do not keep the varieties separate, but aggregate them into a mixture.

Difficult to find high quality paddy rice (often rice is badly dried and different varieties are mixed).

Competition with foreign buyers (from Thailand and Vietnam) to buy paddy rice.

Land Small plot size limits farms mechanization (e.g. planters, harvesters).

Limited irrigation allows only one to two harvests per year.

Unclear land ownership (only about 10 percent of farmers have land titles) discourages long-term investments, e.g. irrigation.

Technology Most farmers use traditional tools for cultivation and harvesting, often on a subsistence level.

Most rice mills are still small scale and apply outdated technology, despite recent investments in modern milling equipment and expanded milling capacities.

All milling machinery needs to be imported.

Finance Unfavourable credit conditions (high interest rates, limited loan scale, complicated and long credit procedures, strict collateral requirements in the absence of land titles for most farmers) limits especially small farmers’ access to finance.

High credit costs and absence of credit on the basis of crops as collateral (warehouse receipt inventory finance system) restrict traders’ ability to buy paddy from farmers.

Lack of affordable credit leads to under-investment in the expansion and modernization of milling capacity and limits the capacity to buy and store paddy rice (and run the rice mill all year).


Constraints Farmers Collectors/traders Processors

Infrastructure High energy costs restrict possibilities for mechanization and irrigation.

Inadequate agricultural crop extension programs lead to limited on-farm technology transfer.

Limited funding for scientific agricultural research leads to dependency on international donors for crop research.

High formal and informal transportation costs (with the result that collectors/traders reduce paddy prices offered to farmers).

High energy costs lead to high milling costs (few mills use husk gasifiers to save energy).

High transportation cost (including informal road fees) and long documentation procedures are significant burden for overseas rice export.

Technical standards, quality

No product standards existing in Cambodia.

Too many varieties: Many farmers plant more than one variety to minimize the risk of losses due to drought or flooding.

Collectors/traders offer no or little price incentives for better quality (moisture content).

Collectors fail to keep different paddy varieties separate.

Due to the lack of standards and grading system, rice millers often fail to provide their customers with consistent rice quality.

Inconsistent quality between different mills prevents them from cooperating to meet large-scale orders that cannot be served by individual mills.

Weak quality management (high broken content, mix of varieties, insect contamination, etc.) prevents even many of the larger rice mills from international market access.

Non-tariff trade barriers (such as SPS requirements) in many importing countries erect significant barriers to Cambodian rice.

Marketing and distribution channels

Price information often comes from buyers that have an interest in low prices (government-initiated information services such as CAMIS and EMCS are little known).

High informal export costs.

Long process of exporting.

Very limited international marketing experience (no Cambodian export network due to long-term dependency on Vietnam and Thailand as export gates for Cambodian rice).

Cambodian rice lacks a well-known brand.

Source: Adapted from DTIS (2007), Trade SWAp Pillar II Rice Task Team (2008), DAI (2008), Slayton (2009), USDA (2010), and own research and interviews with stakeholders.


Strategies and activities

The Royal Government of Cambodia

The Cambodian Government intends to expand the country’s production and export capacity and to make it a major rice export nation. According to Prime Minister Hun Sen, Cambodia wants to double rough rice production by 2015 to approximately 15.0 million tons (9.45 million milled basis) and export 8.0 million (5.0 million tons milled rice) (USDA, 2010).

Irrigation: The Government has made a concerted effort to acquire international loans and grants to expand the reach of the national irrigation infrastructure, and this effort has borne fruit in the rice sector. USDA (2010) reports that the Ministry of Water Resources and Meteorology (MOWRAM) brought approximately 650,000 ha of rice area under irrigation between 1996 and 2007, and has plans to irrigate an additional 800,000 ha over the next decade.

Finance: The Government has provided capital to rice millers. The credit of USD 10.5 million provided by Rural Development Bank (RDB) to the NCRMA is intended to enable rice millers to purchase more paddy and invest in modernization of milling technology. This improved significantly Cambodian millers’ ability to conduct milled rice export; however, given the magnitude of the millers’ capital constraints, more funds need to be mobilized in the years to come.

Formal exports – Current policy: Following the food crisis in 2008, exports of quantities larger than 100 tons without special government permission were granted solely to Green Trade and the NCRMA. This prompted Angkor Rice to protest and gain similar authority. According to Green Trade, a requirement for a permit for exports above the equivalent of 1,200 tons of paddy was introduced in 2009, but it could allow other exporters to use its export authorization (presumably for a fee). Angkor Rice reported that it also had a blanket approval, while other exporters indicated that they were not concerned about the difficulty in obtaining this permission. (Slayton, 2009). In 2010, the Prime Minister announced that exports by smaller rice mills would be eased further in order to cope with growing domestic paddy surplus and the international demand for Cambodian rice.

Prime Minister Hun Sen presented Cambodia’s new rice export strategy on 17 August 2010.

Development partner s

Various technical assistance programmes are already in place. Most constraints have been addressed by those programmes, but the need for technical assistance is still high.

Several important programmes addressing constraints such as cultivation skills, irrigation, access to quality inputs, milling quality, market information and access are addressed by organizations such as AFD (Agence Française de Développement), AusAID (Australian Agency for International Development), EU (European Union), FAO (Food and Agriculture Organization of the United Nations), IFC (International Finance Corporation), and JICA (Japan International Cooperation Agency).

Other programmes with impact on rice have started or are about to start soon, including those by CAVAC (Cambodia Agricultural Value Chain Program) and CAASP (Cambodia Agriculture and Agribusiness Support Programme).

The System of Rice Intensification (SRI) is a set of innovative rice cultivation methods. Introduced in Cambodia by CEDAC (Cambodian Center for Study and Development in Agriculture) in 2000, the programme has grown from 28 rice farmers from 18 villages in 2000 to over 60,000 farmers from about 2,600 villages today.


Constraints Possible solution Illustrative interventions National partners for implementation

Cross-cutting issues

Overcome fragmentation in the rice support system.

Develop a joint and comprehensive strategy that involves all stakeholders and coordinates technical assistance.

Royal Government, private sector (incl. NGOs)

Strengthen the Government’s awareness of constraints and challenges of private sector in rice sector.

Establish a permanent Rice Export Working Group (or Rice Export Committee) that

- provides a forum to listen to constraints and needs of the private sector;

- supervises progress in Cambodia’s rice exports;

- proposes actions and policy reform to further strengthen the rice sector.

Royal Government, research, private sector

Knowledge / Management / Entrepreneurship

Improve training and advice services to farmers.

Start a gradual but strong and coordinated effort to establish an effective farmer extension service network. Start with pilot provinces and extend the system gradually nationwide.

MAFF, private sector, Agro-NGOs (e.g. CEDAC)

Promote Business Development Services to professionalize rice farming (commercial farms) and rice milling for international market.

MIME, MAFF, private sector

Involve more farmers in contract farming systems.

Provide clear legal framework (law and/or sub-decree on contract farming) and supporting training programs for contract farming (start with pilot provinces).

MAFF, private sector

Material inputs Promote better access to appropriate agricultural inputs (fertilizer, seeds, etc.) for improved cultivation.

Enforce effective control on imports of agro-inputs (and stop inflow of illegal low quality products such as high-poisoning fertilizers and pesticides or fake products).

MEF, MoC, MAFF

Promote the importation of quality inputs (seed strains, fertilizers, insecticides, pesticides, etc.) through tax incentives.

MoC, MEF

Ensure that sufficient product information is available for agro-input (in Khmer language).

MAFF

Promote and control input suppliers at provincial and district level: provide training to input suppliers (on quality inputs and its application) and withdraw business licenses of those who sell illegal, fake or diluted products.

MAFF

Land Increase security of land ownership.

Distribute more land titles in order to enable farmers to make long-term investments in their plots.

Ministry of Land Management, Urban Planning and Construction

Promote more small-scale irrigation schemes and ensure that farmers can manage maintenance.

MOWRAM

RecommendationsThe following table summarizes the main action points for the Government, development partners and the private sector to address specific constraints.


Constraints Possible solution Illustrative interventions National partners for implementation

Technology Strengthen mechanization of rice farming.

Support business development services that advise armers on long-term investment (see also Entrepreneurship, Management, Knowledge).

MAFF

Attract lead invest-ment (domestic / international) in rice milling.

Provide incentives on investments in rice milling, such as nil import tax on rice milling technology or subsidized credit for high rice milling investment or modernization (see also Finance).

MEF, CDC

Finance Improve financial infrastructure for rice-related business.

Enforce existing laws and draft and pass new laws in order to introduce appropriate new financial products to finance agro-business (e.g. warehouse receipt finance system, leasing).

MEF

Support micro-finance through improved capitalization (subsidized credit to micro-finance institutions).

MEF, National Bank of Cambodia

Infrastructure Improve port infrastructure.

Continue modernization and expansion of Sihanoukville port.

Strengthen capacities of Phnom Penh port and negotiate favourable conditions for exports of milled rice via Vietnam (Ho Chi Min City / Cai Mep).

MoC

Ease export proce-dures (reduce time and expenditures).

Establish One Window Office at the national level for rice export procedures (with branch offices in key rice export provinces such as Kampong Cham and Battambang).

MoC, MEF, MAFF

Reduce energy costs.

Promote renewable energy technologies (husk-gasification).

MIME

Improve domestic transportation.

Rehabilitate railway system to Sihanoukville. Close road and river checkpoints.

Technical standards, quality

Provide interna-tionally recognized SPS certificates.

Establish infrastructure (laboratories) and capacity (train staff) to issue internationally recognized SPS certificates.

MAFF

Supply consistent quality in line with international standards.

Establish a nationwide system of grading in line with international standards: provide training to traders and millers, especially through national and provincial rice miller associations, in order to follow and implement these standards.

MIME (Cambodia Standard Institute), private sector

Marketing / Distribution channels

Provide access to new markets.

Negotiate for favorable market access of Cambodian rice in key rice markets (e.g. Middle East, Philippines).

MoC

Provide market information.

Establish a Cambodian Rice Exporter Association that is open to any potential rice exporting company and that provides its members with services, such as information on international rice markets (potential markets, quality requirements), information on export-relevant processing technologies, and assistance in export procedures.

MoC

Conduct market study trips for Cambodian rice millers and exporters to “attractive markets” (e.g. Middle East, Africa, Europe, Russian Federation).

MoC

Create reputation for Cambodian rice.

Develop trademarks and geographical indications (GI) that could strengthen Cambodia’s competitiveness for a number of rice products and, as a result, be endowed with a unique “Cambodian” competitive advantage.

MoC, MAFF


Outlook and investment opportunitiesOutlook The long-term outlook for the world market is favourable. According to USDA’s Rice Market

Outlook, import demand by some of the major consuming countries is expected to increase over the next decade. This is especially true of Bangladesh and Indonesia, where demand is increasing due to population growth and there is little area for expansion of production.

Cambodia could find successful export opportunities in niche markets. Specialty rice, such as Basmati or Thai Jasmine is becoming more and more popular in Western countries. Market access conditions in these markets are good, often with zero tariffs (e.g. European Union and Russia), although most offer no preferential access for Cambodian rice compared to rice from other major exporters. As Cambodia already produces high-value varieties, there could be significant potential in such markets.

For Cambodia, there is room for an increase in overall production. However, whether Cambodia will be able to export substantial amounts of milled rice depends on adequate milling facilities, reduced domestic transportation and exportation costs, and improved access to finance by millers so that they can buy sufficient paddy to operate a mill all year.

More modern milling facilities would allow more direct exports to overseas markets and more value added in Cambodia. More milling facilities could lower dependence on Thai or Vietnamese millers, and reduce the market power of Thai and Vietnamese buyers of Cambodian rice. This would also benefit rice farmers who suffer from the fact that their paddy is transported to neighbouring countries for milling, which reduces their paddy prices. Cambodian farm gate prices are estimated to be 35-40 percent lower than those in Vietnam and Thailand (Slayton, 2009).

Prospects for better milling facilities are uncertain. According to consultants in the field, it will probably be many years until there is enough capacity to process Cambodia’s paddy surplus. As long as this situation prevails, any government measures that tried to enforce the official ban on paddy exports (to support local millers) would necessarily harm rice farmers, as the ban depresses paddy prices. However, measures could be undertaken to attract more (foreign) investments in large-scale rice mills for direct exports to the world market, which would be able to compete against mills in Thailand and Vietnam.

Investment opportunities

The Cambodian rice sector offers opportunities for both domestic and international investors.

Production increase

There is a potential to further increase production, as plenty of arable land is available and there remains room for yield improvements. Cambodian agricultural development officials claim that the rice area could be expanded to 3.5 million ha, an increase of roughly 1.2 million ha from current levels (USDA, 2010). An even larger increase could come from improvements in yields through improved irrigation systems, the use of high-yielding varieties, more and better fertilizers, and improvements in farming practices. As a result, Cambodia could harvest two or even three times per year on the same land areas (Im, 2008).

Contract farming

There are significant opportunities for agri-business investment in integrated contract farming and milling operations. While returns to agri-business are highly variable depending on year or season, consistent profits can be made through vertical integration, according to DAI, ADI and IDE (2008).

Rice milling investments for export

Even though Cambodia has a constantly growing paddy supply and favourable access to various international markets (including. tariff-free access to EU and Russia) comparatively few exports of milled rice have been achieved. This provides excellent opportunities for international rice milling investors to fill this gap.


Niche markets

There is significant potential in the production and export of organic and/or fair trade rice. Several development agencies (e.g. GTZ, CEDAC, Oxfam Quebec) have promoted the production of organic rice. Organic rice can strengthen food security as farmers are enabled to grow their crop without chemical fertilizer (purchasing fertilizer imposes a significant financial burden on small-scale farmers with limited financial means). In international markets, organic rice provides premium prices for producers. Another specialized rice product not yet supplied by Cambodia is “fair trade rice”.

Potential future markets for Cambodia to diversify its rice exports

In order to identify promising markets to diversify Cambodia’s exports, the International Trade Centre (ITC) developed a Market Attractiveness Index that takes into account three dimensions: the size of importing markets; the dynamism of imports over the past five years; and the market access conditions that apply to an exporter country and its main competitors. Applied to Cambodia, the following markets are considered most attractive.

For milled rice, the most attractive markets are in the Middle East (United Arab Emirates, Iran, Saudi Arabia) followed by the Philippines, the largest importer in the world, the United States and Malaysia (Table 13). Some of these countries apply 0 percent tariff for milled rice from Cambodia (e.g. United Arab Emirates, Saudi Arabia, United States, South Africa). In contrast, others apply much higher tariffs, such as the Philippines (50 percent) and Malaysia (40 percent). Though Cambodian exporters are disadvantaged compared to domestic (e.g. Filipino) rice producers, they enjoy the same market access conditions as their main international competitors in those markets (e.g. Thailand, Vietnam). Cambodia has a substantial tariff advantage in the Russian market: 0 percent for Cambodia compared to 21 percent on average for Thailand, Vietnam and China. In 2008 Cambodia exported to only two countries among the 20 most attractive markets in the world: Malaysia and Singapore.

Table 13. Attractive markets for milled rice (HS 100630), 2008

For brown rice, the most promising markets are in Europe: Netherlands, Italy, France, United Kingdom, Germany and Belgium (Table 14). For example, the Netherlands is one of the largest importers in the world (market share of 8 percent), it is dynamic (average annual growth between 2004 and 2008 of 43 percent), and it offers favourable market access conditions for Cambodian exporters (tariff applied to Cambodian brown rice is 7 percent, which is 4 percentage points lower than the average tariff that is applied to Cambodia’s main competitors on that market, such as India, Thailand and Guyana). Other attractive markets for brown rice are Korea and Malaysia. It is interesting to note that currently Cambodia does not export to any of the 10 most attractive markets for brown rice in the world, except Malaysia.

Source: ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through mirror statistics. For more detailed information, see Annex Table 18.

Market Share of market in

world imports

Market growth

2004-2008 (% per year)

Tariff applied to Cambodia

(%)

Cambodia’s tariff

advantage (+) or disadvantage

(-) (%)

Main competitors in this market

1. U. Arab Emirates 9.0 40 0 0 India, Pakistan, Thailand2. Iran* 6.6 33 4 0 UAE, Pakistan, Uruguay3. Saudi Arabia* 6.8 21 0 0 India, Pakistan, USA4. Philippines 11.6 65 50 0 Vietnam, Thailand, USA5. United States 3.2 20 0 1 Thailand, India, China6. Malaysia 3.9 48 40 0 Thailand, Vietnam, Pakistan7. Benin 3.0 48 10 0 Thailand, Brazil, Pakistan8. Bangladesh 3.0 29 5 0 India, Thailand, Pakistan9. South Africa 2.7 22 0 0 Thailand, India, China10. Oman 2.1 52 0 0 Pakistan, Thailand, UAE


The main attractive markets for broken rice are in Africa: Ghana, Senegal, Côte d’Ivoire (Table 15). A few other countries apply a 0 percent tariff for broken rice from Cambodia (United States, United Arab Emirates, South America and Australia), while some countries apply much higher tariffs, in particular Japan (827 percent) and Malaysia (40 percent). In 2008, Cambodia exported to only to one country among the 20 most attractive markets in the world: Germany.

Table 14. Attractive markets for brown rice (HS 100620)

Table 15. Attractive markets for broken rice (HS 100640)



world imports (%)

Market growth

2004-2008 (% per year)


(%)

Cambodia’s tariff advantage (+) or disadvantage (-)

(%)


1. Ghana 7.7 High 20 0 Thailand, USA, Vietnam2. Côte d'Ivoire 7.3 32 10 0 Thailand, Vietnam, Pakistan3. Senegal 30.3 25 10 0 Thailand, Vietnam, Brazil4. Belgium 4.5 38 14 2 Netherlands, Thailand, Pakistan5. Malaysia 4.4 116 40 0 Thailand, Vietnam, Pakistan6. Mauritania 3.8 51 13 0 Thailand, Brazil, Belgium7. Guinea 3.6 26 10 0 Thailand, Pakistan, Vietnam8. France 3.6 22 14 -5 Thailand, Spain, Italy9. United Kingdom 3.6 16 14 -3 Spain, Thailand, USA10. Mali 2.1 39 10 0 Thailand, Japan, India



world imports (%)

Market growth

2004-2008 (% per year)


(%)

Cambodia’s tariff

advantage (+) or disadvantage (-)

(%)


1. Netherlands 8.1 43 7 4 India, Thailand, Guyana2. Italy 5.1 26 7 5 India, Pakistan, Thailand3. France 7.0 20 7 5 India, Thailand, Italy4. Korea 9.3 29 5 0 United States, China, Thailand5. United Kingdom 15.1 17 7 5 India, Pakistan, United States6. Germany 6.5 18 7 4 India, Uruguay Thailand7. Belgium 9.3 15 7 -4 Italy, Spain, India8. Portugal 3.4 23 7 7 Guyana, Dominic, Uruguay9. Malaysia 4.2 88 40 0 Thailand, Vietnam, Singapore

10. Canada 2.4 36 0 0 United States, India, Pakistan


ReferencesMain references

USDA United States Department of Agriculture (2010), “Cambodia: Future growth rate of rice production uncertain,” (www.pecad.fas.usda.gov/highlights/2010/01/cambodia).

DAI, ADI and IDE (2008): “Cambodia SME Development in Selected Agri-Sectors/Value Chains, Final Scoping and Design Report”, July 2008. A report prepared for the International Finance Corporation/Mekong Private Sector Development Facility (IFC/MPDF) by Development Alternatives Inc (DAI) in association with Agricultural Development International (ADI) and International Development Enterprises (IDE).

Eick R. and R. Mueller (2010), Making Cambodia a Reliable Rice Supplier to EU, Presentation, March.

Slayton T. (2009), “A Roadmap for Cambodian Rice Exports.”

Trade SWAp Pillar 2 Rice Task Team (2008), Export Supply Constraints and Strategy for Technical Assistance: The Rice Sector, Presentation, October.

Further readings

ADI Agricultural Development International (2009), “Potential for Agribusiness Investment in the Cambodian Rice Industry,” Presentation by Sok Muniroth and Tim Purcell, October.

CEDAC (2009), “Cambodia: Prices remain stable,” Rice Outlook March 2009.

Ear S. (2009), “Sowing and Sewing Growth: The Political Economy of Rice and Garments in Cambodia,” Stanford Center for International Development, Working Paper No. 384.

FAO Food Outlook – Global Market Analysis (December 2009), (www.fao.org/docrep/012/ak341e/ak341e06.htm).

FAO Rice Market Monitor, (www.fao.org/economic/est/publications/rice-publications/rice-market-monitor-rmm/en/).

Im S. (25 April 2008), Cambodia wants to be big rice exporter.

Im S. (6 May 2008), Rice Export Association Encourages Increase in Supply.

ITC International Trade Centre (2007), Export Potential Assessment in Cambodia.

Junning Cai, Luyna Ung, Sununtar Setboonsarng, Ping Sun Leung (2008), “Rice Contract Farming in Cambodia: Empowering Farmers to Move Beyond the Contract Toward Independence,” ADB Institute Discussion Paper No. 109.

MAFF Ministry of Agriculture, Forestry and Fisheries (2008), Agricultural Statistics Bulletin, Statistics Office, Department of Planning and International Cooperation.

MAFF Ministry of Agriculture, Forestry and Fisheries (2008), Global Economic Crisis: Impact, Issues and Opportunities for Agriculture and Food Security. Presentation by General Directorate of Agriculture, MAFF.


Mekong Times Daily (16 July 2008), “Cambodia aims to become major rice exporter.”

Ministry of Commerce and United Nations Development Programme (UNDP) Cambodia (2007), Cambodia’s Trade Integration Strategy: Executive Summary and Action Matrix, Prepared under the Trade Related Assistance for Development and Equity (TRADE) Project, December.

Srey V., Heung C., Bun C. (2008), Policy Measures and Economic Constraints Affecting Exports of Paddy Rice, part of the Trade Analysis and Reform Project (TARP) funded by AusAID.

The Cambodia Daily (8 September 2009), “Cambodian Rice Mills Need Investment.”

UNDP Cambodia (2009), Cambodia Country Competitiveness: Driving Economic Growth and Poverty Reduction, Discussion Paper No. 7.

USDA US Department of Agriculture, Foreign Agricultural Service (2010), “Cambodia: Future Growth Rate of Rice Production Uncertain,” Commodity Intelligence Report (www.pecad.fas.usda.gov/highlights/2010/01/cambodia/).

Yang Saing Koma (2008), Proposed Strategies to Utilize the Potential of Rice Production in Cambodia, CEDAC Agriculture and Rural Development Discussion Note.

Yim Sok Sophors and Nhep Mengcheang (2009), “Rapid Market Appraisal on Rice: 29 villages across 8 communes of 4 districts, Kompot Province,” CEDAC Cambodian Center for Study and Development in Agriculture.

Websites FAO Food and Agriculture Organization, FAOSTAT (http://faostat.fao.org/site/339/default.aspx).

IMF International Monetary Fund, IMF Primary Commodity Prices (www.imf.org/external/np/res/commod/index.asp).

IRRI (International Rice Research Institute), Rice Knowledge Bank (www.knowledgebank.irri.org/rice.htm). Includes Good Agricultural Practices (GAP) for irrigated and rain-fed rice.

ITC International Trade Center, Trade Map and Market Access Map (www.intracen.org/marketanalysis).

MAFF Cambodia Ministry of Agriculture, Forestry and Fisheries (www.maff.gov.kh/eng/statistics/index.html).

Thai Rice Exporters Association. See www.thairiceexporters.or.th/price.htm for export price statistics of Thai rice and useful links to other price sources.


Annex Table 2. Top exporters of rice (HS 1006), 2008

Source: ITC’s Trade Map.Trade for countries marked with * is estimated through mirror statistics.

Exporters Value (USD million)


( %)

Trade balance(USD million)

Quantity (1,000 tons)

Unit value(USD/ton)

Growth in value2004-2008 (%/year)

Growth in quantity

2004-2008 (%/year)

World 21,117 100.00 -980 32,255 655 23 61. Thailand 6,108 28.92 6,097 10,216 598 23 22. Vietnam 2,896 13.71 2,853 4,745 610 26 233. India 2,843 13.46 2,843 3,536 804 24 24. Pakistan 2,440 11.55 2,438 3,050 800 30 75. United States 2,214 10.48 1,616 4,655 476 15 3 EU-27 1,857 8.80 -1,267 1,714 1,084 .. ..6. Italy 818 3.87 643 805 1,017 18 27. U. Arab Emirates 519 2.46 -999 525 988 53 298. China 481 2.28 298 969 497 25 99. Uruguay 444 2.10 444 745 596 24 410. Brazil 312 1.48 86 518 602 109 65(..)52. Cambodia* 4 0.02 -4 6.4 639 4 14

AnnexAnnex Table 1. Main paddy rice producers in the world

Source: FAO.

Rank in production

Level in 2008 Index 2008 (2000=100)

Area harvested (million ha)

Yield(tons/ha)

Production (million tons)

Area harvested Yield Production

World 159.0 4.3 685.0 103 111 1141. China 29.5 6.6 193.4 97 105 1022. India 44.0 3.4 148.3 98 118 1163. Indonesia 12.3 4.9 60.3 104 111 1164. Bangladesh 11.7 4.0 46.9 109 115 1255. Vietnam 7.4 5.2 38.7 97 123 1196. Myanmar 8.2 3.7 30.5 130 110 1437. Thailand 10.2 3.0 30.5 104 114 1188. Philippines 4.5 3.8 16.8 110 123 1369. Brazil 2.9 4.2 12.1 78 139 10910. Japan 1.7 6.5 11.0 96 97 9311. Pakistan 3.0 3.5 10.4 125 116 14512. United States 1.2 7.7 9.2 98 109 10713. Egypt 0.7 9.7 7.3 113 107 12114. Cambodia 2.6 2.7 7.2 137 130 17815. Korea, Rep. of 0.9 7.4 6.9 87 110 9616. Nepal 1.5 2.8 4.3 99 103 10217. Nigeria 2.4 1.8 4.2 108 117 12718. Sri Lanka 1.0 3.8 3.9 124 109 13519. Iran 0.6 5.6 3.5 118 151 17820. Madagascar 1.2 2.5 3.0 101 120 121


Annex Table 3. Top importers of rice (HS 1006), 2008

Exporters Value exported in 2008

(USD 1,000)


(%)

Trade balance in 2008

(USD 1,000)

Quantity exported in 2008 (tons)


Annual growth in value

2004-2008 (%)

Annual growth in quantity 2004-2008

(%)World 877,853 100.00 -27,436 2,063,545 425 20 41. United States 744,440 84.86 744,299 1,862,403 400 20 52. China 39,643 4.52 38,193 22,438 1,767 33 153. France 13,170 1.50 7,202 23,514 560 -1 -184. Paraguay 9,705 1.11 9,435 28,735 338 46 245. Italy 8,446 0.96 -27,181 11,354 744 8 -56. Brazil 8,060 0.92 -8,928 17,595 458 220 2187. Greece 7,491 0.85 5,627 12,680 591 598 3478. India 7,380 0.84 7,380 22,306 331 43 299. Spain 6,799 0.77 4,186 10,311 659 73 5610. Argentina 5,418 0.62 5,320 7,353 737 -8 -33(..)27. Cambodia 466 0.05 426 695 671 .. ..

Annex Table 5. Top exporters of paddy rice (HS 100610), 2008


Annex Table 4. Cambodia’s exports of rice, 2008 (mirror data)


Product label Export value(USD 1,000)

Trade balance (USD 1,000)

Growth in value 2004-2008

(% p.a.)

Growth in quantity

2004-2008(% p.a.)

Growth of world imports

2004-2008(% p.a.)

Cambodia’s rank in world

exports

Cambodia’s share in world

exports (%)

1006 Rice 4,104 -3,713 4 14 .. 51 0.02100630 Milled rice 2,914 2,198 -8 9 28 52 0.02100640 Broken rice 332 -6,729 7 .. 23 42 0.03100620 Brown rice 391 391 .. .. 18 41 0.04100610 Paddy rice 466 426 .. .. 14 27 0.05

Source: FAO, ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through mirror statistics. a. Quantity data for Malaysia are obviously wrong and affect the world total as well as unit values. They were excluded.

Importers Value (USD million)

Share in world

imports (%)

Trade balance

(USD million)

Quantity imported in 2008

(1,000 tons)


Growth in value

2004-2008, (%/year)

Growth in quantity 2004-2008 (%/year)

Tariff faced by

Cambodia (%)

Tariff faced by

Thailand(%)

World 22,097 100.00 -980 a a 23 6EU-27 3,124 14.10 -1,267 3,260 959 .. .. 4.9 24.51. Philippines 1,957 8.86 -1,954 2,439 802 52 19 50 482. U. Arab Emirates 1,517 6.87 -999 1,294 1,172 49 20 0 03. Saudi Arabia* 1,153 5.22 -1,153 1,167 988 17 -2 0 04. Iran* 1,141 5.16 -1,140 1,225 931 34 5 4 45. Malaysia 812 3.67 -811 a a 49 116 40 406. Senegal 646 2.92 -635 1,013 638 22 2 10 107. United Kingdom 638 2.89 -574 630 1,013 19 3 4.9 24.58. United States 597 2.7 1,616 632 945 22 11 0 1.49. France 542 2.45 -453 508 1,066 15 2 4.9 24.510. Bangladesh* 520 2.35 -512 1,300 400 46 21 5 5


Annex Table 8. Top exporters of broken rice (HS 100640), 2008

Source: ITC’s Trade Map. Countries marked with * did not report in 2008 and their trade is estimated through mirror statistics.

Exporters Value exported in

2008 (USD 1,000)

Share in world

exports (%)


(USD 1,000)



Annual growth in

value 2004-2008 (%)


(%)World 1,188,105 100.00 -678,221 2,540,463 468 22 51. Thailand 567,538 47.77 567,413 1,249,945 454 21 32. Pakistan 114,815 9.66 114,807 217,223 529 329 343. Vietnam 83,918 7.06 82,344 196,338 427 4 -54. Brazil 73,029 6.15 72,836 167,073 437 65 335. Belgium 60,158 5.06 -25,136 88,952 676 77 656. United States 49,774 4.19 26,801 162,480 306 10 97. Italy 41,653 3.51 34,301 66,062 631 12 -28. Uruguay 31,320 2.64 31,320 70,971 441 27 69. Netherlands 27,470 2.31 -5,225 37,286 737 16 1410. Spain 17,134 1.44 9,168 29,679 577 7 -3(…)42. Cambodia* 332 0.03 -6,729 605 549 7 ..

Annex Table 7. Top exporters of milled rice (HS 100630), 2008



2008 (USD 1,000)

Share in world

exports (%)


(USD 1,000)



Annual growth in

value 2004-2008 (%)


(%)World 18,044,450 100.00 490,300 26,037,090 693 24 61. Thailand 5,358,502 29.70 5,348,392 8,672,447 618 23 22. India 2,830,071 15.68 2,830,030 3,497,748 809 24 23. Vietnam 2,805,338 15.55 2,803,147 4,535,529 619 27 254. Pakistan 2,318,952 12.85 2,317,376 2,828,905 820 28 55. United States 1,212,421 6.72 680,283 2,226346 545 12 36. Italy 671,188 3.72 629,680 621,160 1,081 16 07. United Arab Emirates 515,328 2.86 -983,655 521,657 988 ‘.. ..8. China 370,351 2.05 192,981 799,474 463 25 89. Uruguay 318,642 1.77 318,619 501,526 635 25 710. Brazil 219,286 1.22 64,061 319,454 686 170 144(..)52.Cambodia* 2,914 0.02 2,198 4,425 659 -8 9

Annex Table 6. Top exporters of brown rice (HS 100620), 2008



2008 (USD 1,000)

Share in world

exports (%)

Trade balance in

2008 (USD 1,000)



Annual growth in

value 2004-2008 (%)


(%)World 1,006,729 100.00 -761,776 1,519,689 662 18 -11. United States 207,282 20.59 165,049 403,908 513 13 -32. Thailand 181,531 18.03 181,292 293,649 618 31 103. Guyana 103,492 10.28 103,465 62,676 1,651 22 -274. Italy 96,820 9.62 6,002 106,071 913 43 305. Uruguay 91,124 9.05 91,106 164,018 556 32 106. China 70,554 7.01 70,169 145,426 485 23 137. Spain 50,397 5.01 -3,480 53,506 942 -13 -288. Argentina 46,662 4.64 46,636 100,312 465 19 39. Belgium 18,942 1.88 -145,356 12,850 1,474 20 1310. Suriname 16,827 1.67 16,531 23,993 701 24 4(..)41.Cambodia* 391 0.04 391 702 557 .. ..


Annex Table 11. Cambodia’s exports of milled rice (HS 100630), by partner


Importers 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total 496 1,905 1,642 2,914 1,987 2,397 832 2,914 10,455France 0 143 132 647 394 1053 564 1,849 8,739Malaysia 496 370 240 0 316 108 69 599 0Italy 0 371 0 0 0 13 5 234 0Germany 0 0 13 0 0 6 12 121 92Singapore 0 0 0 0 0 0 32 86 0Poland 0 0 0 0 0 0 0 17 .. Belarus 0 0 0 0 0 0 0 8 0Philippines 0 0 0 0 0 0 0 0 587Romania 0 0 0 0 0 0 0 0 476Spain 0 0 0 0 0 773 0 0 365Lithuania 0 0 0 0 0 0 0 0 97Bulgaria 0 0 0 0 0 0 0 0 33Australia 0 19 10 84 11 0 13 0 24Netherlands 0 0 0 35 0 0 0 0 23Thailand 0 0 0 0 0 0 0 0 14China 0 0 0 0 0 0 0 0 5Belgium 0 938 1,103 1,814 1,222 325 0 0 0Canada 0 0 0 1 0 0 80 0 0Hong Kong (SARC) 0 46 140 316 0 0 0 0 0Chinese Taipei 0 0 0 0 0 8 46 0 0New Zealand 0 18 0 0 0 0 0 0 0United Kingdom 0 0 4 0 0 0 0 0 0United States 0 0 0 17 44 0 9 0 0Vietnam 0 0 0 0 0 0 2 0 .. Saudi Arabia 0 0 0 0 0 111 0 .. ..

Annex Table 12. Cambodia’s exports of broken rice (HS 100640)


Importers 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total 0 0 0 251 136 86 152 332 1,236Singapore 0 0 0 0 0 0 13 268 71Germany 0 0 0 0 0 0 0 64 0France 0 0 0 251 136 77 133 0 247Italy 0 0 0 0 0 9 0 0 0Thailand 0 0 0 0 0 0 6 0 20Philippines 0 0 0 0 0 0 0 0 898

Annex Table 9. Cambodia’s exports of paddy rice (HS 100610), by partner


Importers 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total 0 0 0 0 0 11 241 466 0Vietnam 0 0 0 0 0 0 0 466 ..Malaysia 0 0 0 0 0 5 241 0 0Thailand 0 0 0 0 0 6 0 0 0

Annex Table 10. Cambodia’s exports of brown rice (HS 100620), by partner

Importers 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total 676 2,661 968 0 178 686 751 391 1,238Malaysia 676 2,661 968 0 178 87 478 391 1,059France 0 0 0 0 0 0 0 0 179Italy 0 0 0 0 0 599 273 0 0


Annex Table 13. Top importers of paddy rice (HS 100610), 2008

Source: FAO, ITC’s Trade Map and Market Access Map. * countries with mirror statistics.

Importers Value imported in 2008

(USD 1,000)

Share in world

imports (%)


(USD 1,000)

Quantity imported in 2008 (ton)


Annual growth in

value 2004-2008

(%)

Annual growth in quantity

2004-2008 (%)

Tariff faced by

Cambodia

Tariff faced by the US

World 905,289 100 -27,436 1,984,299 456 14 -3 .. ..1. Mexico 312,900 34.56 -312,900 716,491 437 19 4 0 02. Honduras* 50,419 5.57 -50,338 126,132 400 8 -7 22.5 22.53. Nicaragua* 48,060 5.31 -47,962 120,217 400 11 -4 22.5 22.54. Costa Rica 47,376 5.23 -46,954 102,594 462 8 -8 17.5 17.55. Vietnam 39,356 4.35 -39,316 58,694 671 16 9 20 206. Panama 38,513 4.25 -38,513 96,535 399 44 18 45 457. Guatemala 36,423 4.02 -36,275 76,389 477 17 0 23.7 238. Italy 35,627 3.94 -27,181 46,767 762 32 1 5.7 28.59. El Salvador 31,132 3.44 -31,132 71,098 438 16 -1 20 2010. Venezuela 22,398 2.47 -22,398 36,972 606 360 435 10 10

Annex Table 14. Top importers of brown rice (HS 100620), 2008

Source: FAO, ITC’s Trade Map and Market Access Map.


(USD 1,000)

Share in world

imports (%)


(USD 1,000)


Unit value

(USD/ton)

Annual growth in

value 2004-2008

(%)


2004-2008 (%)

Tariff faced by

Cambodia


World 1,768,505 100 -761,776 2,151,611 822 18 0 .. ..1. United Kingdom 266,060 15.04 -263,229 241,849 1,100 15 -4 2 9.72. Belgium 164,298 9.29 -145,356 182,600 900 15 1 2 9.73. Korea 162,384 9.18 -162,313 261,414 621 24 10 5 54. Netherlands 143,481 8.11 -136,446 155,227 924 36 15 2 9.75. France 123,390 6.98 -109,646 130,785 943 16 0 2 9.76. Germany 115,145 6.51 -100,709 128,605 895 17 1 2 9.77. Italy 90,818 5.14 6,002 103,254 880 23 13 2 9.78. Malaysia 74,485 4.21 -74,450 .. .. 122 .. 40 409. Portugal 60,646 3.43 -60,359 98,047 619 18 3 2 9.710. Spain 53,877 3.05 -3,480 67,778 795 49 32 2 9.7

Annex Table 15. Top importers of milled rice (HS 100630)

Source: FAO, ITC’s Trade Map and Market Access Map. * countries with mirror statistics.


(USD 1,000)

Share in world

imports (%)


(USD 1,000)


Unit value

(USD/ton)

Annual growth in

value 2004-2008

(%)


2004-2008 (%)

Tariff faced by

Cambodia


World 17,554,150 100 490,300 22,514,400 780 27 5 .. ..1. Philippines 1,951,063 11.11 -1,950,361 2,432,686 802 52 19 50 502. U. Arab Emirates 1,498,983 8.54 -983,655 1,278,230 1,173 .. .. 0 03. Saudi Arabia* 1,147,656 6.54 -1,147,540 1,160,806 989 17 -2 0 04. Iran* 1,133,698 6.46 -1,133,451 1,213,308 934 40 -3 4 45. Malaysia 653,763 3.72 -653,199 1,293,836 505 41 .. 40 406. United States 532,138 3.03 680,283 532,571 999 22 8 0 17. Benin* 504,594 2.87 -504,536 956,867 527 44 19 10 108. Bangladesh* 503,975 2.87 -498,757 1,290,212 391 46 21 5 59. Cuba* 470,435 2.68 -470,435 568,296 828 24 22 15 1510. South Africa 446,339 2.54 -437,673 626,429 713 20 -1 0 0


Annex Table 17. Attractive markets for brown rice (HS 100620)

Source: ITC’s Trade Map and Market Access Map. Calculations by ITC.

Market Cambodia’s export to

the market(USD

1,000 )

Market total

imports from the

world

Share of market

in world imports

Market growth in

value (relative change)

Market growth in

value (absolute change)


(%)

Cambodia’s tariff

advantage (+) or

disadvan-tage

(-) (%)


1. Netherlands 0 142,065 8.1 42.7 107,837 7 4 India, Thailand, Guyana2. Italy 0 90,820 5.1 26.2 54,971 7 5 India, Pakistan, Thailand3. France 0 123,387 7.0 19.9 63,618 7 5 India, Thailand, Italy4. Korea 0 164,004 9.3 28.9 104,634 5 0 United States, China, Thailand5. United Kingdom 0 266,060 15.1 16.7 122,556 7 5 India, Pakistan, United States6. Germany 0 115,145 6.5 18.3 56,386 7 4 India, Uruguay Thailand7. Belgium 0 164,297 9.3 14.8 69,838 7 -4 Italy, Spain, India8. Portugal 0 60,647 3.4 23.1 34,198 7 7 Guyana, Dominic, Uruguay9. Malaysia 391 74,484 4.2 88.1 68,529 40 0 Thailand, Vietnam, Singapore10. Canada 0 42,988 2.4 36.4 30,585 0 0 United States, India, Pakistan11. Spain 0 38,990 2.2 52.4 31,757 7 5 Uruguay, United States, France12. United States 0 42,231 2.4 13.1 16,435 0 2 India, Pakistan, UAE13. Jamaica 0 46,731 2.6 31.5 31,121 25 -20 Guyana, United States, Suriname14. Haiti 0 19,404 1.1 40.9 14,484 3 0 United States, Guyana15. Brazil 0 53,297 3.0 -1.4 -2,986 10 -10 Argentina, Uruguay, Italy16. Poland 0 16,994 1.0 107.4 16,076 7 -4 Germany, Italy, Guyana17. Belarus 0 20 0.0 High 20 0 17 Pakistan, Switzerland18. Libya 0 4,744 0.3 283.2 4,722 0 0 Egypt, Italy19. Niger 0 8,904 0.5 446.3 8,894 10 0 Thailand, India, Indonesia20. Papua N. Guinea 0 3,067 0.2 High 3,067 0 0 United States, China, Thailand

Annex Table 16. Top importers of broken rice (HS 100640)

Source: ITC’s Trade Map and Market Access Map.


(USD 1,000)

Share in world

imports (%)


(USD 1,000)


Unit value

(USD/ton)

Annual growth in

value 2004-2008

(%)


2004-2008 (%)

Tariff faced by

Cambodia


World 1,866,326 100 -678,221 4,719,577 395 23 11 .. ..1. Senegal 568,427 30.46 -557,050 895,381 635 19 0 10 102. Ghana 144,265 7.73 -144,265 277,978 519 -7 20 203. Côte d'Ivoire 136,296 7.30 -134,400 214,248 636 34 14 10 104. Belgium 85,294 4.57 -25,136 154,192 553 42 31 5.2 265. Malaysia 82,764 4.43 -82,764 105,775 782 62 20 40 406. France 67,978 3.64 -65,317 101,098 672 22 8 5.2 267. United Kingdom 67,308 3.61 -61,367 110,381 610 14 2 5.2 268. Guinea 67,222 3.60 -67,222 176,463 381 17 -4 10 109. Japan 63,900 3.42 -63,896 108,412 589 7 -6 827 82710. Kenya 40,612 2.18 -40,398 123,242 330 14 4 75 75


Annex Table 19. Attractive markets for broken rice (HS 100640)



the market(USD

1,000 )

Market total

imports from the

world

Share of market

in world imports

Market growth in value (relative change)

Market growth in value

(absolute change)


(%)

Cambodia’s tariff

advantage (+) or

disadvantage (-) (%)


1. Ghana 0 144,265 7.7 High 144,265 20 0 Thailand, United States, Vietnam2. Côte d'Ivoire 0 136,297 7.3 31.7 90,958 10 0 Thailand, Vietnam, Pakistan3. Senegal 0 568,428 30.3 25.1 336,368 10 0 Thailand, Vietnam, Brazil4. Belgium 0 85,293 4.5 38.4 62,036 14 2 Netherlands, Thailand, Pakistan5. Malaysia 0 82,764 4.4 116.2 78,973 40 0 Thailand, Vietnam, Pakistan6. Mauritania 0 72,317 3.8 51.0 58,419 13 0 Thailand, Brazil, Belgium7. Guinea 0 67,221 3.6 25.9 40,431 10 0 Thailand, Pakistan, Vietnam8. France 0 67,977 3.6 21.9 37,230 14 -5 Thailand, Spain, Italy9. United Kingdom 0 67,308 3.6 16.2 30,358 14 -3 Spain, Thailand, United States10. Mali 0 40,287 2.1 39.3 29,588 10 0 Thailand, Japan, India11. Japan 0 63,900 3.4 13.0 24,733 827 0 Thailand, United States, China12. United States 0 22,973 1.2 114.2 21,882 0 1 Thailand, Mexico, China13. Niger 0 16,600 0.9 119.7 15,887 10 0 Thailand, Pakistan, Vietnam14. UAE 0 7,617 0.4 110.5 17,555 0 0 Pakistan, Thailand, India15. Indonesia 0 28,974 1.5 36.0 20,511 22 0 Thailand, Vietnam, Pakistan16. Germany 64 28,484 1.5 26.5 17,346 14 -1 Netherlands, Thailand, United States17. South Africa 0 12,436 0.7 61.4 10,604 0 0 Vietnam, Thailand, India18. Australia 0 13,064 0.7 45.3 10,136 0 0 Thailand, United States, Pakistan19. Thailand 0 126 0.0 High 126 3 25 France20. Chile 0 14,064 0.7 68.8 12,330 6 -1 Argentina, Brazil, Uruguay 21. Singapore 268 7,216 0.4 13.1 2,800 0 0 Vietnam, Thailand, Myanmar

Annex Table 18. Attractive markets for milled rice (HS 100630)



the market(USD

1,000 )

Market total

imports from the

world

Share of market

in world imports

Market growth in

value (relative change)

Market growth in

value (absolute change)


(%)

Cambodia’s tariff

advantage (+) or

disadvantage (-) (%)


1. U. Arab Emirates 0 1,498,984 9.0 40 813,356 0 0 India, Pakistan, Thailand2. Iran 0 1,113,584 6.6 33 444,401 4 0 UAE, Pakistan, Uruguay3. Saudi Arabia 0 1,145,412 6.8 21 612,550 0 0 India, Pakistan, USA4. Philippines 0 1,951,065 11.6 65 1,688,738 50 0 Vietnam, Thailand, USA5. United States 0 532,139 3.2 20 274,881 0 1 Thailand, India, China6. Malaysia 599 653,763 3.9 48 517,485 40 0 Thailand, Vietnam, Pakistan7. Benin 0 499,827 3.0 48 396,467 10 0 Thailand, Brazil, Pakistan8. Bangladesh 0 503,015 3.0 29 319,772 5 0 India, Thailand, Pakistan9. South Africa 0 446,339 2.7 22 244,044 0 0 Thailand, India, China10. Oman 0 350,841 2.1 52 285,569 0 0 Pakistan, Thailand, UAE11. Yemen 0 224,496 1.3 55.6 186,241 0 0 Thailand, India, Pakistan12. Kuwait 0 243,706 1.5 32.6 163,846 0 0 India, Pakistan, Thailand13. Côte d'Ivoire 0 331,958 2.0 18.8 165,219 10 0 Thailand, Vietnam, Pakistan14. Qatar 0 137,143 0.8 73.7 122,092 0 0 Pakistan, India, Thailand15. Australia 0 157,603 0.9 40.2 116,868 0 0 Thailand, India, Pakistan16. Russian Fed. 0 162,630 1.0 18.2 79,413 0 21 Thailand, Vietnam, China17. Canada 0 240,711 1.4 15.7 106,265 0 0 USA, Thailand, India18. Hong Kong 0 254,142 1.5 13.4 100,722 0 0 Thailand, China, Australia19. Singapore 86 219,009 1.3 18 106,975 0 0 Thailand, India, Vietnam20. Libya 0 112,023 0.7 75.8 100,238 0 0 Thailand, Egypt, Taiwan21. France 1,849 344,568 2.1 14 137,167 17 -10 Italy, Thailand, Spain22. Belarus 8 25,419 0.2 30.7 16,704 0 17 Pakistan, Vietnam, India23. Germany 121 225,388 1.3 19.5 115,008 17 -6 Italy, Thailand, Netherlands24. Italy 234 41,508 0.2 31.8 27,736 17 3% Thailand, Germany, France25. Poland 17 64,225 0.4 10.4 20,944 17 -8% Greece, Italy, Vietnam


Annex Table 20. Top rice-producing provinces in Cambodia (2008-09)

Source: MAFF.

Province / City Rainy season 2008 Dry season 2008-09 Total year 2008-09

Harvested Area (ha)

Product output

(ton/ha)

Production Yield (ton)

Harvested Area (ha)

Product output

(ton/ha)


Harvested Area (ha)322,993

Product output

(ton/ha)


Prey Veng 250,339 2.754 689,434 72,654 4.200 305,146 322,993 3.079 994,580Takeo 181,383 2.987 541,853 74,224 4.500 334,031 255,607 3.427 875,884Kampong Cham 166,285 3.009 500,352 52,993 3.780 200,310 219,278 3.195 700,662Battambang 244,586 2.664 651,551 4,839 4.384 21,214 249,425 2.697 672,765Banteay Meanchey 213,841 2.532 541,445 2,350 3.450 8,108 216,191 2.542 549,553Kampong Thom 164,279 2.186 359,114 20,468 3.744 76,627 184,747 2.359 435,741Svay Rieng 160,250 2.244 359,573 14,828 3.950 58,570 175,078 2.388 418,143Siem Reap 178,778 1.971 352,347 16,000 3.800 60,800 194,778 2.121 413,147Kandal 43,507 2.926 127,304 57,170 4.145 236,996 100,677 3.619 364,300Kampong Chhnang 105,222 2.584 271,940 22,914 3.827 87,692 128,136 2.807 359,632Kampot 125,605 2.748 345,105 2,375 3.797 9,018 127,980 2.767 354,123Pursat 98,810 2.624 259,262 3,465 3.253 11,272 102,275 2.645 270,534Kampong Speu 105,141 2.335 245,504 146 3.000 438 105,287 2.336 245,942Kratie 29,778 2.581 76,857 13,979 2.518 35,196 43,757 2.561 112,053Oddar Meanchey 50,390 2.074 104,509 57 -- -- 50,447 2.072 104,509Preah Vihear 37,624 2.000 75,248 18 2.111 38 37,642 2.000 75,286Stung Treng 23,045 2.500 57,613 -- -- -- 23,045 2.500 57,613Rattanakiri 24,346 1.862 45,332 -- -- -- 24,346 1.862 45,332Preah Sihanouk 12,732 2.500 31,830 -- -- -- 12,732 2.500 31,830Mondulkiri 16,392 1.826 29,932 -- -- -- 16,392 1.826 29,932Koh Kong 9,619 2.341 22,518 -- -- -- 9,619 2.341 22,518Phnom Penh 5,031 3.402 17,116 200 5.250 1,050 5,231 3.473 18,166Pailin 2,750 3.116 8,570 1,950 3.500 6,825 4,700 3.276 15,395Kep 3,000 2.611 7,833 -- -- -- 3,000 2.611 7,833

Total 2,252,733 2.540 5,722,142 360,630 4.030 1,453,331 2,613,363 2.746 7,175,473

United Nations Development Programme

Pasteur Street, Boeung Keng Kang P. O. Box 877, Phnom Penh, CambodiaTel : (855) 23 216 167 or 214 371Fax : (855) 23 216 257 or 721 042E-mail : [email protected]: //www.undp.org

Ministry of Commerce

Lot 19-61,MoC Road (113 B Road), Phum Teuk ThlaSangkat Teuk Thla, Khan Sen Sok, Phnom PenhKingdom of CambodiaTel : (855) 23 213 067 http: //www.moc.gov.kh

x01010 MOC KH Rice Sector Profile

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