Although demand is rising in China for Cambodian rice, the Eurozone remains the top market for the commodity, according to data released yesterday.
Cambodia exported 83,577 tons of rice to China in the first 10 months of this year. In total, exports of milled rice rose to 408,169 tons, with about 65 percent going to Europe, according to official figures.
Mr. Hun Lak, vice president of the Cambodia Rice Federation, said the figures show China is the top destination for Cambodian rice in terms of single countries, but it has not surpassed the European market as a whole.
“China has the most potential as a market for Cambodia ... but China cannot replace the European market,” he said. “Maybe 33 per cent of rice exports went to China or other Asian countries, but the rest went to Europe.”
Cambodia exports two types of rice, white and fragrant. Cambodian white rice is more expensive. It sells for $420 a ton in Europe, compared to $370 to $380 a ton for rice from neighboring countries, Mr. Lak said. The price of Cambodian fragrant rice is similar to the price of fragrant rice from other exporters, however.
“The federation is creating a work team to deeply study the [pricing] problem so that we can solve it,” Mr. Lak said. China imports 2 million tons of rice annually, mainly from Thailand, Vietnam, Myanmar and Pakistan, Mr. Lak said. “Most rice exports to China are ordinary [white rice] because we can harvest it twice a year, but fragrant rice is harvested just once a year,” he said, adding that a new agreement for China to import 100,000 tons of rice from Cambodia begins at the end of this month.
Khan Kunthy, CEO of rice exporter Brico, is optimistic about China’s market due to its size and the amount of rice its people consume. “China is a good market for Cambodian rice ... China’s population is huge and they consume rice daily, unlike Europeans,” Mr. Kunthy said.
He said more than 100,000 tons of Cambodian rice had been exported to China since late 2014 and that the amount will rise. “In the short term, China cannot replace Europe because they limit 100,000 tons [per year] for imports from Cambodia,” he said. That quoata may rise in the future, he added.
Song Saran, chairman of Amru Rice (Cambodia), agreed that China has great potential as a market for rice. Cambodian rice is acquiring brand recognition there and the amount China buys supports the entire value chain here, from farmers to millers and exporters, Mr. Saran said, adding that Cambodian exporters are facing severe competition for the European market.
“There is a long-term commitment from China to support the Cambodian government. The price is more or less same as the price in the European market,” Mr. Saran said. He also expressed confidence that Cambodia will be able to supply the 100,000 tons China will buy from the end of this month, saying there is a production surplus here.