Duxton’s Agri Bits and Pieces Vol. 283

QUOTE OF THE WEEK

This week’s quote comes from the Rabobank Report ‘Building a smarter food system’ and captures the overarching macro trend in the agriculture sector.

“Change is inevitable. The combined need to improve resource efficiency and profitability, as well as the need for increased food availability, signals the direction of change.”

Read the report here: http://goo.gl/deRJo0


COFFEE CROPS DIE IN VIETNAM, THAI RICE YIELD SHRINKS

Across much of central and north-eastern Thailand, Laos, Cambodia and Vietnam’s Mekong Delta rice bowl, temperatures are soaring into the 40s, and are likely to stay there until around the middle of next month.

A second year of summer drought has been exacerbated by the El Nino effect. Vietnam’s coffee growers have suffered, as have Thailand’s rice farmers. But while a supply dip could raise coffee prices, rice prices might not be affected, analysts say.

Scientists say the good news is the El Nino effect will start fading towards the end of next month and annual monsoon rains will begin.

How bad the impact of the drought will be on agricultural output – not just of rice in Vietnam and Thailand but of…

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Vietnam Update – Mar 2016

ECONOMIC UPDATE

Vietnam’s economic growth came in lower than the expectation as agricultural production heavily affected by the ongoing drought.

Vietnam’s GDP grew by 5.46% YoY in the first quarter of 2016, lower than the growth of 6.12% YoY in the same period last year1. The agriculture, forestry and fisheries sector was the main reason for the slowdown with a negative growth of 1.23% for the first time in over 15 years as drought and salinity dampened production in the Mekong Delta, while the service sector posted the strongest growth of 6.13% YoY since 20121.

Growth in the industry and construction sector remains firm at 6.72% YoY for the first quarter of the year. Consistently, Nikkei released the Purchasing Manager Index (PMI) of 50.7 in March, up slightly from 50.3 in February, driven by the acceleration of both output and new orders. The Industrial Production Index in the first quarter of 2016 also rose 6.3% YoY, of which manufacturing posted positive growth of 7.9% YoY1.

March’s Consumer Price Index (CPI) rose 0.57% MoM and the headline inflation settled at 1.69% YoYRead More

Duxton’s Agri Bits and Pieces Vol. 282

QUOTE OF THE WEEK

This week’s quote comes from a ‘climate and weather impacts on UK viticulture’ study and highlights how risks associated with investing in agriculture can be mitigated. The study also finds that increasing growing season average temperatures will continue to threaten viticulture productivity in the UK.

“Critically, we have demonstrated that vulnerability to climate variability has increased…For those investing, viticulture climatic risks may be ameliorated through management strategies, market forces and their ability to cope with lower yielding years.”

Read the research here: http://goo.gl/eBmNp7


LOW RAIN FORCES THAI RICE FARMERS TO CONSIDER GROWING OTHER CROPS INSTEAD

Thailand has long served as one of the globe’s main rice bowls, but chronic water shortages are pushing the country to move away from a grain that dominates its fields and has defined a way of life for generations.

Laddawan Kamsong has spent the past forty years coaxing rice from her plot in central Thailand, but she is tired of watching her farmland squeezed dry by increasingly severe droughts. “I plan to replace some rice paddies with limes,” she said after attending a government-run workshop urging farmers to diversify…

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