Thursday, August 25, 2011

Historical rice deal - Angkor Rice goes to China

Historical event - Zhou Yongkang, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC), Cambodian Prime Minister Hun Sen , and other senior Ministers of Cambodian government, witness the historical rice trade deal between Cambodia and China in Phnom Penh, Aug. 20, 2011. (picture by AKR)

20 August 2011

COFCO, a leading grain, oils and foodstuffs import and export group in China and the biggest rice importers and exporters, signs a rice deal to buy the first Cambodian rice from Angkor Rice to China. The first shipment is 100% Neang Malis Fragrant rice, which is the best quality rice available from Angkor Rice.

The contract between the two companies indicates that "it is the first rice business between China and Cambodia".
"COFCO has developed wide sales channels and networks all over China and possesses the top brands of rice and other grain products in domestic market. In order to promote Cambodian rice in China, COFCO will make the full use of its leading position and brand awareness, strengthen the input of marketing and sales promotions, and make their best efforts to gain the accpetance of Cambodian rice among Chinese consumers". 
Angkor Rice is a reputable rice producer who produces the best quality fragrant rice. It regularly exports rice to Europe, Hong Kong and Australia. The process to select only the best fragrant rice paddy without mixing cheap rice and its own contracted farmers make the producer different from the other local rice traders in Cambodia. Angkor Rice is expanding its milling capacity and the fragrant rice growing area, with participation in Clean Development Mechanism (CDM) intend to reduce green house gases that warming the globe.

Rice is a major stable for Chinese consumers. Although China can produce a lot of rice every year (see stat from USDA), but the volume is still not enough for the domestic consumption especially for the high quality fragrant rice, which can be grown only in some area in Thailand and Cambodia. China imports quality fragrant rice from Thailand approximate 200 millions dollars per year.

The main issue to export to China is not the problem about agricultural pests which can be easily controlled. But the issue is the dishonest sellers who mix low quality rice,but look similar, to high quality fragrant rice and brand it as 100% fragrant rice, Mr. Chieu Hieng, CEO of Angkor Rice said. "They just pack it and brand it as good rice but instead it is cheap rice", he added.

Mr. Chieu Hieng (right) shows Neang Malis fragrant rice to COFCO officers, leaded by vice president Mr. Lv Jun (2nd from left). The trade envoy Mr. Zhou Shanqing (3rd from left), Director of the Dept. of Foreign Trade MOC. PRC. also accompany the group.

Mr. Chieu said that, the buyer is very confident in Angkor Rice, and both of the parties understand very well the commitment to deliver only the top quality rice to the consumers. He also mention about the Cambodian government rice policy that, "I believe with the true intention of Somdech Hun Sen to push for the rice industry that benefit a large scale of Cambodian people will be eventually successful.". (read more about the Cambodian rice policy here)

Source of video clip - TVK News - 20 August 2011