CP makes case for regional export collaboration [-Just like Vietnam, Thailand is eyeing agrocultural land concessions in Cambodia]

Asean cooperation as food demand grows

11/04/2012
Bangkok Post

Cambodia allows foreigners to invest in rice cultivation via 99-year leaseholds.

Thailand should join forces with other Asean countries to supply raw materials to global food businesses and to push for an increase in the supply of Asean farm products in world markets.

Ajva Taulananda, vice-chairman of the CP Group, said cooperation could be accomplished by identifying potential export products from each country. For example, for Thailand it may be chicken and rice while for Malaysia it could be palm oil.

He said regional collaboration makes sense, especially in the case of palm oil, because the world’s population over the next 50 years will increase to 9 billion, the production of fossil-fuel generated energy will drop and the world will face more environmental problems as a result of global climate change and natural disasters.

“For all these reasons, the shortage of food will be severe in the future, providing a good opportunity for Asean to strengthen its potential to supply food to the world,” said Dr Ajva.

Vichai Poonpiriyasup, senior vice-president of Charoen Pokphand Seeds Co, said the company has succeeded in developing maize seed in Asean and reports wide cultivation in Myanmar and Cambodia. Maize plantations were developed to support the feed industry.

The company believes that the future is in the rice seed industry as Asean members produce a huge amount of rice. It has focused specifically on rice seed in Thailand due to the prohibition on the export of paddy.

Mr Vichai said the CP Group has invested in rice seed research and development and just last year launched a new pure variety that allows farmers to keep the seeds for the next planting.

The company aims to supply seeds to Central Basin farms with a total of 300,000 rai of irrigated land.

The company is interested in accessing the market in Vietnam, which allows for the import of seeds. Vietnam is currently sourcing seeds from China.

Myanmar has a policy of providing incentives encouraging local companies to jointly invest in seed development and in the importation of machinery. The Myanmar government also provides irrigation-related support.

Cambodia allows foreigners to invest in rice cultivation via 99-year leaseholds.