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Strengthening Cambodian Value-Added and Diversified Rice

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Strengthening Cambodian Value-Added and Diversified Rice Value Chain Analysis Cambodia Rice Commissioned by The Centre for the Promotion of Imports from developing countries (CBI) Bastiaan Bijl Consultancy April 2019 Table of Contents 1. INTRODUCTION ...........................................................................................................................4 2. OVERVIEW OF THE CAMBODIAN RICE SECTOR ..............................................................................6 2.1 PRODUCTION ................................................................................................................................6 2.2 MILLING CAPACITY .........................................................................................................................7 2.3 STANDARDS .................................................................................................................................9 2.4 PADDY RICE EXPORTS .....................................................................................................................9 2.5 MILLED RICE EXPORTS .................................................................................................................. 10 2.6 ORGANIC RICE ............................................................................................................................ 12 2.7 BLOCKCHAIN...............................................................................................................................13 2.8 SUSTAINABLE RICE PLATFORM (SRP)................................................................................................ 13 2.9 BRANDING ................................................................................................................................. 14 2.10 SAFEGUARD MEASURES ............................................................................................................... 15 2.11 EBA ENQUIRY & LDC GRADUATION............................................................................................... 16 2.12 COMPETITIVE POSITION AGAINST VIETNAM UNDER THE EU-VIETNAM FTA .............................................. 17 2.13 APPETITE FOR DIVERSIFICATION TOWARDS HIGHER-VALUE RICE PRODUCTS ............................................... 18 3. PRODUCT SPECIFICATIONS ......................................................................................................... 20 4. WEIGHING DIVERSIFICATION OPTIONS FROM THE CAMBODIAN PERSPECTIVE ............................ 26 4.1 DIVERSIFIED PRODUCT ASSESSMENT CRITERIA ........................................................................................ 26 4.2 OUTCOME OF WEIGHING PRIORITIES .................................................................................................... 26 5. PRODUCT-MARKET COMBINATIONS WITH GROWTH POTENTIAL ................................................ 43 6. EUROPEAN MARKET CHARACTERISTICS, TRENDS AND REQUIREMENTS OF THE SELECTED VALUE CHAINS ............................................................................................................................................45 6.1 HIGHER-VALUE RICE ........................................................................................................................ 45 6.1.1 OPPORTUNITIES & THREATS ..................................................................................................................... 45 6.1.2 MARKET DEMAND .................................................................................................................................. 46 6.1.3 MARKET TRENDS .................................................................................................................................... 49 6.1.4 MARKET REQUIREMENTS ......................................................................................................................... 52 6.2 RICE FLOUR ...................................................................................................................................56 6.2.1 OPPORTUNITIES & THREATS ..................................................................................................................... 56 6.2.2 MARKET DEMAND .................................................................................................................................. 56 1 6.2.3 MARKET TRENDS .................................................................................................................................... 57 6.2.4 MARKET REQUIREMENTS ......................................................................................................................... 61 6.3 STARCH & PROTEIN ......................................................................................................................... 61 6.3.1 OPPORTUNITIES & THREATS ..................................................................................................................... 61 6.3.2 MARKET DEMAND .................................................................................................................................. 62 6.3.3 MARKET TRENDS .................................................................................................................................... 64 6.3.4 MARKET REQUIREMENTS ......................................................................................................................... 65 6.4 NOODLES, PAPER AND SNACKS .......................................................................................................... 68 6.4.1 OPPORTUNITIES & THREATS ..................................................................................................................... 68 6.4.2 MARKET DEMAND .................................................................................................................................. 69 6.4.3 MARKET TRENDS .................................................................................................................................... 71 6.4.4 MARKET REQUIREMENTS ......................................................................................................................... 73 7. STRUCTURE OF THE SELECTED VALUE CHAINS ............................................................................ 78 7.1 HIGH VALUE RICE ........................................................................................................................... 78 7.2 RICE FLOUR ...................................................................................................................................79 7.3 RICE STARCH AND PROTEIN ............................................................................................................... 80 7.4 RICE SNACKS, NOODLES AND PAPER .................................................................................................... 81 7.5 SUPPLY CHAIN RAW MATERIAL REQUIREMENTS & COSTING ..................................................................... 83 7.6 ACTORS, GOVERNANCE AND SUSTAINABILITY IN THE VALUE CHAINS ........................................................... 87 7.6.1 COMPANIES (CBI BUSINESS EXPORT COACHING PROGRAMME PROSPECTS) ..................................................... 87 7.6.2 ENABLING ENVIRONMENT ........................................................................................................................ 88 7.6.3 GOVERNANCE IN THE VALUE CHAIN ........................................................................................................... 93 7.6.4 SUSTAINABILITY IN THE CHAIN ................................................................................................................... 93 8. ISSUES AND POSSIBLE SOLUTIONS ACROSS THE VALUE CHAINS ..................................................... 95 9. CONCLUSIONS AND RECOMMENDATIONS .................................................................................. 107 ANNEX 1 – REFERENCED MATERIAL ................................................................................................ 111 ANNEX 2 – ORGANISATIONS CONTACTED ....................................................................................... 116 2 DISCLAIMER Although the contents of its market information tools have been compiled with the greatest care, the Centre for the Promotion of Imports from developing countries (CBI) is not able to guarantee that the information provided is accurate and/or exhaustive and cannot be held liable for claims pertaining to use of the information. CBI and the authors of the publications are not to be held responsible for any consequences that may arise from the use of the information. Furthermore, the information shall not be construed as legal advice. Original documents should therefore always be consulted where appropriate. The information does not release readers from the responsibility of complying with any relevant legislation, regulations, jurisdiction or changes to/updates of same. 3 1. Introduction CBI, the Centre for the Promotion of Imports from Developing Countries, is part of the Netherlands Enterprise Agency, funded by the Netherlands Ministry of Foreign Affairs. The mission of CBI is to connect small and medium-sized enterprises (SMEs) in developing countries to the European market and thereby contribute to sustainable and inclusive economic growth. For more than 40 years, CBI has specialised in supporting value-added exports from selected developing countries in selected high-potential export sectors, allowing these countries to sustainably export the associated products to the European market through capacity building, international promotion
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