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Global food price volatility and implications for Cambodia (Inglês)

The global food prices have risen sharply since July 2010 to a level that already slightly surpassed the 2008 peak. The new peak has been primarily driven by sharp rises in prices of wheat and maize. Prices of rice have had a modest increase. Despite on-going concerns over soaring in global food prices, food prices in Cambodia have remained largely stable thanks in part to good harvest of rice and moderate demands from neighboring Vietnam and Thailand. Moreover, the situation for this year is different from that of 2008. The author saw domestic overheating is a factor that adds to raising prices of oil and food in 2008, but, at the moment this is not the case. In the medium term, one of the key issues for Cambodia competes for a share in international market is strengthen the capacity of rice millers and traders to be able to deliver large contracts. As a new entrant to global rice market, Cambodia has not been able to reach any Government-to-Government contracts, largely due to logistical difficulties and inability to deliver a required quantity and quality of milled rice. But, like nature of any business, importing countries always look for an alternative source of supply who can give a better deal. By then, local rice millers and traders must be ready for delivery.




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