Presentation on theme: "The End of Cheap Rice Developments affecting the Cambodian rice market – an overview prepared by Winfried Scheewe, DED Marketing Advisor to CEDAC Revised."— Presentation transcript:
The End of Cheap Rice Developments affecting the Cambodian rice market – an overview prepared by Winfried Scheewe, DED Marketing Advisor to CEDAC Revised 03 May 2008
What happened? Soaring rice prices are hurting especially the poor Staple food for more than half the earth's population, causing political unrest Prices for wheat and corn also up Supply bottlenecks Sometimes draconian moves by governments to protect domestic stocks
Price development in Phnom Penh (02 January to 30 April 2008) Note: On 26 March the Cambodian government issued an export ban for rice.
Where does the paddy go? Based on estimates by MAF, CEDAC and World Bank The informal exports cause loses to the economy and could pose a threat to food security. There is a lack of capital for stocks and storage facilities.
Rice world market facts Annual production: 645 million tons of paddy (=430 million tons in milled rice) 114 producing countries in 2007 For 3 billion-plus people rice is the basic staple Seven (7) percent of the rice production worldwide is traded internationally (= 30 million tons) (17 percent of the global wheat production is traded internationally.) Changes in supply and demand have drastic effects on the rice prices in most countries, affecting the lives of billons.
Major exporting countries (2007) If Cambodia’s rice exports would be properly accounted for, it could rank next to China.
Major importing countries (2007) Many countries import rice, often relatively small quantities. Currently the Philippines is the biggest importer.
Consumption exceeds production Worldwide, during several years, consumption exceeded the production. Consequently the available rice (here - year-end stocks) declined.
Declining stocks Stocks worldwide are currently on the lowest level since 25 years and are expected to fall below 70 million tons. When stocks were at a low point, the ending stocks were good for only 79 days.
Another green revolution - or sustainable livelihoods? IRRI and others proclaim the need for another Green Revolution. raise funds for research Companies promote hybrid and GMO seeds Ignoring farmers’ innovations such as the Systematic Rice Intensification (SRI) and the MASIPAG rice breeding program
Enhancing food security Support farmers to enhance their skills and capacity to cope with the challenges Capital (soft loans) for investments in rice stocks, warehouses and mills Farmer’s groups can be enabled to keep and store paddy for several months. Farmers’ organizations and networks need to monitor prices, and to provide their communities with relevant market information
Utilizing export markets Cambodia produces a considerable surplus of rice Production can be increased, esp. fragrant rice Foster partnerships with rice traders abroad Challenges: capital, procurement, grain quality Need to ban GMO rice seeds