Wednesday, October 06, 2010

Thailand's No. 1 rice position under threat [-Thailand versus the Indochinese Federation?]

6/10/2010
Phusadee Arunmas
Bangkok Post


Thailand's position as the world's leading rice exporter will come under threat from Vietnam in the next 10 years.

Vietnam's rice exports are expected to average 7.5 million tonnes annually, while Thailand's will remain around 8.6 million tonnes in that period, said the Center for International Trade Studies at the University of the Thai Chamber of Commerce.

Vietnam's rapidly increasing rice exports are attributed mainly to relatively cheap prices and improved quality.

The UN Food and Agriculture Organisation predicts Thailand will ship about 10 million tonnes of rice this year, with Vietnam exporting 6 million tonnes.

Aat Pisanwanich, director of the centre, said Thailand needed to improve its competitiveness, particularly in the Asean market, where Vietnam has a 59.9% share and Thai rice represents 39.6%.

The centre's latest study shows Thailand cannot compete with Vietnam in rice exports because of 10 factors including lower productivity, higher production costs, lower prices and fragmented marketing.

Vietnam's rice productivity in the current season averages 862 kilogrammes per rai, the highest rate in Asean, while Thai rice productivity averages only 448 kg per rai, lower than that of Cambodia, Laos and Burma. Thai productivity is also well below the world average of 680 kg.

The study found that production costs of Vietnamese rice at Can Tho, 169 kilometres from Ho Chi Minh City, were 4,979 baht per rai in 2008, while Thai production costs in Ayutthaya province were as high as 5,800 baht a rai.

More importantly, Vietnam encourages its farmers to cut the use of chemical fertilisers, pesticides and rice seeds, while its government has extended co-operation with neighbouring countries by, for instance, setting up the Cambodia-Vietnam Food Co (Cavifoods) in Cambodia to operate a comprehensive rice business. It plans to expand the joint venture to Burma.

Mr Aat said the Vietnamese government had also cut farmers' production costs with policies such as subsidising loan interest for buying raw materials and equipment. It tries to ensure its farmers enjoy profits of at least 30% of production costs.

Vietnam has established a rice-trading market in Hau Giang province, set up a large warehouse covering 100 rai in Vinh Long province and extended partnerships with several countries to set up warehouses.

As well, it has only one marketing team for two state enterprises.

7 comments:

Anonymous said...

In the next ten years Khmer Kampuchea Krom will get there own depedence from ah Youn. So let see how are Youn gonna product all those kind of rices from?

Anonymous said...

I don't gainst Vietname rice, it is cheap but not delicous like Rice from Khmer or thail, that is my view. Maybe use a lot of chemical

Anonymous said...

Thailand is stil top producer of prostitutes and ids/hiv in the world.
Prostitution is an unspoken royal sponsored institution in Thailand after the mono-money-archy.

Anonymous said...

ពួកអាឆ្កួតឯងនិយាយតែអំពីរាជរដ្ធាភិបាលខ្លួនឯង
ឥញ្ចឹងវាត្រឹមត្រូវហើយបើពួកឯងយករឿងម៉ែឪ
របស់ពួកអាឆ្កួតឯងមកបើកត្រដាងឲ្យគេឭនោះ
គឺពិតជាល្អម៉ែនទែន។ដួចជានិយាយប្រាប់គេថា
ប្រពន្ធមានសាហាយរាប់មិនអស់កូនស្រីមានប្រុស
រាប់រយកូនប្រុសមានស្រីរាប់មិអស់ក្នុងមួយខែ
ទល់មួយខែនោះពិតជាមានឈ្មោះល្បីមិនខាន។

Anonymous said...

Will Khmer rice should be there #1 or #2 if ours sorry government would focus on helping the country.

Anonymous said...

Khmer don't eat rice, we eat shit, shit and more shit

Anonymous said...

i told you, nothing last forever! you(thailand) may be # one once, now, it's other countries in the region. can't stay # one forever, you know! god bless cambodia.