The Indonesian and Thai governments agree to improve cooperation in research and development sector in order to contribute to ASEAN food security.
“We decided to make the contribution to regional food security and the cooperation in rice supplies could be continued,” President Susilo Bambang Yudhoyono said in a press conference at Merdeka Palace on Monday along with Thai Prime Minister Yingluck Sinawatra.
The president said that Thailand has an advance technology in agro industries to enhance investment cooperation in research and development.
Minister of Agriculture Suswono accompanying the President in welcoming PM Yingluck noted that Indonesia and Thailand already have a working group in research and investment and it is being developed.
Regarding the ASEAN food security, Suswono said the Association of South East Asian Nations will establish a charter on food reserve procurement during an emergency.
“There are 780 thousand tons of food for all ASEAN +3 members. The agreement will be signed in October and the reserve food only for an emergency. Indonesia has to provide 12 thousand tons and all members can access in time of need. The reserve is always available and ready,”
The reserve food is for use in an emergency such as natural disasters.
The domestic utilization of rice in ASEAN in 2009 (calendar year) was estimated at 107.3 million tons of milled rice .
The ratio of production to domestic utilization (self-sufficiency ratio) for 2009 was 117.1 percent. This implied that ASEAN as a whole produced 17.1 percent more than utilization within the region. However, on a country by country basis, Brunei, Malaysia and the Philippines have ratio less than 100 percent.
This implied that these countries produced rice not enough for their own consumption. Singapore imported all the rice for domestic consumption and for re – export. The highest ratio was in Thailand, Cambodia and Vietnam respectively.
The beginning stock of rice in 2009 was estimated at 20.8 million tons while the estimated ending rice stock of ASEAN in 2009 was 25.8 million tons. Thailand, Vietnam, Myanmar, and Indonesia carried most of the rice stock in the region. These four countries together have stock about 91 percent of the total stock in ASEAN. The ratio of beginning stock to domestic utilization (food security ratio) in the ASEAN was 19.37 which indicated that the situation is still in a good condition.Trade In 2009, ASEAN altogether exported about 16.92 million tons of milled rice.Thailand and Vietnam were the two major exporting countries which exported about 8.62 million tons and 5.96 million tons respectively.
Cambodia emerged as one of the major rice exporting country and ranked third in ASEAN in rice export amounting to 1.47 million tons. For the imports, ASEAN imported about 3.53 million tons of milled rice in 2009. The Philippines and Malaysia were the two major importing countries which imported about 1.76 and 1.09 million tons of milled rice respectively. Prices Most of the FOB prices of traded rice in exporting countries in ASEAN start rising again toward the end of 2009 after declining following the highest point in first quarter of 2008. The annual average of FOB prices of 5% rice in exporting countries in 2009, in general, were lower than 2008 prices except Thai Hommali rice.