April 25, 2006

Soy prices in Cambodia surge as more farmers shift to tapioca
 

Soy prices in Cambodia are expected to increase significantly for this year's harvest, local media reported on Monday (Apr 24).

Vietnam, a key market for Cambodian and Chinese soybeans, is running short of suppliers as soybeans in Cambodia, China and Vietnam have been affected by weather and natural disasters, the Business Press quoted the Commerce Ministry as saying.

Soy prices could climb as high as US$300 / tonne during the 2006 to 2007 harvest and the price has already increased from US$270/ tonne to US$290 over the Khmer New Year period.

Cambodia exports an average of 40,000 tonnes, about 90 percent of its soybeans a year to Vietnam. About 10 percent of it is sold on the local market, especially to produce soy sauce, bean curd and food for animals.

In recent years, more Cambodian farmers have turned to tapioca because of the increasing numbers of tapioca-processing factories.