One of my most cherished memories this year was taking a bumpy van ride for hours into the Cambodian wilderness, without an address or clear directions about where we were going. We didn’t even have a phone number. But my Aunt, my Father’s only family in Cambodia, had a clue, and off we went. Sure enough, by face she recognized somebody in this one street town called Sreyville, the town of my birth, and pretty soon arms were opened, tea was served and stories of youth were shared. A few minutes later I found myself in a lush green field, dotted with trees swaying in the wind.
We walked down a small path with a machete to clear brush and arrived at a clearing. It was the home of my Father’s grave. We served him food, tea and incense. I symbolically cleared brush around his lonely headstone and prayed to him. Months earlier my Mom suggested that I not risk bandits or getting lost to look for him. But Cambodia is a safer place than it used to be and in my heart, he’d been calling me there for years. In a trip filled with memories, it was my favorite one.
By An Channthla & An Sithav
Economics Today
As Cambodia’s other sectors reel from the onslaught of the global economic crisis, the agricultural sector was initially seen as a safe haven. But waning agricultural exports and falling prices have left small holders and the barons of agro-industry alike hurting and worried about the future.
According to an International Labor Organization (ILO) report, commodity prices that are dependent on international market will inevitably fall during a downturn. In Cambodia, cash crops such as maize, cassava, and pepper sold to Thailand, Vietnam and China are at risk as the global economic slowdown reduces demand for manufacturing products from these economies, leading to fewer sales at lower prices for Cambodian farmers, the report said.
Though only a fraction of the kingdom’s agricultural output is exported (about 20 percent), the farm gate price-the price paid to farmers for their produce by buyers- changes in line with export prices. Thus a fall in export demand causes a drop in the export price, and a further drop in farm gate prices.
Dr. Theng Vuthy, program coordinator at the Cambodia Resource Development Institute (CDRI), said that the prices of popular cash crops have been savaged by the economic crisis. Comparing export crop values from November, 2007 with prices from November, 2008, total soybean exports lost US$8.1 million in value, maize lost US$4.1 million, rubber US$36.9 million and cassava lost a staggering US$95.1 million. Cassava and rubber are “severely affected by the crisis,” Dr. Vuthy added.
Rice, soybean, maize, cassava and rubber have indeed plummeted in price, confirmed Chhim Vichara, deputy director of the Department of Agriculture in Battambang province. These crops were aggressively promoted as a way out of poverty for farmers, leading many to plant them. But as the economic crisis broke, demand for agricultural fell markedly, he said, especially the cassava usually exported to Vietnam and Thailand. Farmers in Battambang could unload only half of their cassava harvest, he lamented, with little chance of a sale later on because of cassava’s short shelf life.
Heng Bonhor, the director of the Banteay Meancheay Provincial Department of Agriculture, said the situation is even worse in some areas of his province. The few exports to Thailand, such as the dry cassava sent from Malai district, receive only rock bottom prices, though other areas, such as Svay Chek and Thma Puok districts, cannot find buyers at all. Rice and cassava crops are the main income for Banteay Meanchey farmers who have become used to exporting to Thailand every year, he added, leading many to rely on the income from exports.
Pao Suy, representative of farmers from Thnot commune, Prey Veng province, was familiar with such a scenario. Farmers mostly sell to neighboring countries because Cambodia lacks infrastructure to process crops, and “anyway, [farmers] grow all their crops because of foreign demand [in Vietnam],” he told Economics Today.
“Increasing agricultural outputs is [in theory] … a good thing in terms of increasing rural income,” he said. “But the most pressing problem that farmers face is that there is no market for their agricultural products.”
Yin Kimly, representative of another farmer association in Kandal province, said that the lack of a market leads around 2,500 families to leave paddies fallow in the dry season, despite their potential to deliver more than just a single harvest. “The rest of the time … they grow some vegetables to just to survive,” he said.
Withering Demand
Source: Impact of High Food Price in Cambodia, CDRI, 2008; AMO Price Bulletin, 2007-Jan, 2009
Even major exporters like Mong Reththy and TTY Tapioca complain about a slump in demand for cassava and rubber.
The price of tapioca starch this year fell by about US$185 per ton, a far cry from the US$ 330-340 per ton of 2007, said Tan Kosal, administrative director of TTY Agricultural Plant Development. The price of tapioca starch continued to increase through the first half of 2008, he added, before fading at the end of 2008. In 2007 the company exported 10,000 tons, stopping tapioca starch production in 2008 to Farmers Hit by Falling Demand, Prices Falling prices have produced a glut of cash crops like corn 18 Economy & Business April 16-30, 2009 Economics Today increase production capacity with new plant machinery. The company projects only 5,000 tons of exports this year.
Vietnam is the largest export market for TTY’s tapioca starch, with China, Indonesia, Malaysia, Philippine, Korea and European countries smaller buyers. The far lower prices offered by Vietnamese buyers for tapioca starch, led Tan Kosal to voice concern over the amount of money lost. Future prices and market demands are unclear, he said.
Plummeting oil prices have caused a sharp contraction in Chinese demand for cassava used to produce ethanol fuel, said Chan Sophal, president of the Cambodian Economic Association (CEA). Most Cambodian cassava export to Thailand and Vietnam also ends up in China for fuel so these markets will also dry up, he added.
The crash in the automotive industry has sent the demand for rubber skidding downwards, so rubber exporters such as Cambodia should expect the industry to shrink, said Chan Sophal. Cheaper crude oil has also led many factories to use oil-derived raw materials instead of rubber, further reducing demand and driving down prices.
Sowing the Future
Source: AMO Price Bulletin, 2007-Jan 2009, MAFF
With around 80 percent of the population farmers and agro-industry hoped to be one of the few areas of Cambodia’s narrow industrial economy to survive the crisis, experts are concerned about the possible consequences of sustained low prices.
Many local farmers borrowed money from microfinance institutions (MFIs) to increase production and replant fallow land. Much of this year’s agricultural harvest has gone unsold, leaving many farmers with debts, said Heng Bonhor.
Unfortunately, Cambodia cannot intervene in the short-term to increase prices and boost agricultural exports because of its free market economy, where everything is driven by market demands, said economists.
The World Bank has advised that finding a “market for the crops is very significant while the other sectors (garments, tourism and construction) are affected from the global economic crisis.”
In the short-term, “developing countries have to seize opportunities for agricultural products in both ASEAN markets and other developing countries”, said the Sustaining Rapid Growth in a Challenging Environment report. “For the long-term, expand the range of options by upgrading [infrastructure and skills].”
For Dr. Vuthy, Cambodia’s underutilized, sparsely populated land holds great promise. “There is significant potential to expand production areas,” he said. “Like most developing countries, Cambodia’s endowment structure is characterized by a relative abun
dance of natural resources and unskilled labor and a scarcity of human and physical capital … Downturn in other sectors may provide labor for the agriculture sector so Cambodia now has potential to boost economic growth.” Finding additional markets through bilateral agreements with Middle Eastern and African countries, and nations in East Asia will also be crucial, he stressed.
Chan Sophal also cited the potential but said that irrigation, roads, affordable credit, machinery and know-how will be the necessary foundations for any agricultural revolution. Some projects already agreed upon are lagging, he continued. “Cambodia has … 65 land economic concessions with the total area granted are about 1 million hectares [but] most companies have not yet implemented their projects.”
In the medium- to long-term, Cambodia must expand its secondary industries so that crops can be refined and processed domestically, said Son Chhay, a parliamentarian for the opposition Sam Rainsy Party. The kingdom should try to avoid depending on neighboring countries in future, he added.
Farmers’ representative Pao Suy agreed. Markets in countries besides Thailand and Vietnam are needed before Cambodians will receive a fair price for their products, he said. Currently, he claimed, agricultural products are sold to Vietnam through Cambodian middlemen who pocket most of the profits. 
Editor’s Note: This article was originally published in Economics Today, a publication based in Phnom Penh, Cambodia. Reprinted with permission.
Photo: Falling prices have produced a glut of farm products, like corn.
Credit: Economics Today
We were delighted to see that the White House now has its own Flickr stream, with intimate Presidential photos courtesy of White House photographer Peter Souza, available online. More evidence that this President intends to open government up for public inspection and enjoyment.
Visit: White House Flickr Photo Stream
Photo: President Obama greets “Bo”, a Portuguese Water puppy. The new member of the White House was given to the family by Senator Ted Kennedy and was introduced to the nation on Easter Surprise.
Credit: Pete Souza, White House photographer, via Flickr CC.
Author Michael Lind, of Foreign Policy, makes some bold predictions about a post-recession global economy. The good news? America is well positioned to benefit from a predicted resurgence of commodity prices, and overall we’ll adapt to a scaled back global marketplace pretty well. The bad news? New York City is expected to continue its economic decline, due to our reliance on the financial and publishing industries.
“New York, London, and other financial centers were heavily dependent on financial-sector profits. Throw in the technology-driven collapse of the publishing and broadcast industries headquartered in such places, and those cities are likely to suffer devastating blows. Capitals of both politics and commerce, such as Paris and Tokyo, will adjust the best in the new state-capitalist world. Purely commercial centers such as New York and Frankfurt will suffer the most. Without the obscenely rich investment bankers and the legions of well-paid retainers who supported their lifestyles, formerly flourishing parts of these former financial capitals may become as derelict as Detroit or the crumbling industrial towns of northern Britain and Germany’s Ruhr region.” Source: Michael Lind, Foreign Policy
We’re certainly not as bearish about New York City as Mr. Lind. In the first place, a definition of New York City as a ‘purely commercial center’ wholly ignores the uniqueness of NYC as a social, cultural, political and artistic destination. While not as lucrative as Wall Street, there are other reasons for people to live here than the Financial District. Yet his case for the rest of the country and the world is quite lucid, and for those who agree with his analysis, is a good road map of what to expect macro-economically in the next few years.
The wines are ranked in order from “must taste at least once” to “good, but expensive”. All are available for purchase or special order from New York’s venerable Sherry-Lehmann.
Sean Thackrey Orion Old Vines Blend 2004, $109.95/750ml
Orion is the wine that Sean Thackrey is best known for, and it was the best of the wines tasted. Since 1992 Sean has been producing this wine from organically grown grapes cultivated by St. Helena’s Rossi Vineyard, which was planted in 1905. Orion is also his smallest batch wine, with only 300 cases per year. Bright, clear jewel-like purple color. On the nose, classic spicy Syrah, with notes of black pepper and floral aromas of beach roses. This food-friendly wine is bone dry, with smooth, well-integrated tannins and a medium finish.
Sean Thackrey Petite Sirah “Sirius” 2004, $79.95/750ml
Produced with grapes from Eaglepoint Ranch in Mendocino—“Basically, any black grape out of the field that we don’t have another name for”. This inky purple, almost black wine was the most interesting of the five tasted. On the nose, aromas of black fruits (black currants, black cherry, blackberries) and dried apricots. On the palate, this wine is bone dry with challenging, rough tannins, and surprising flavors of banana, Concord grape, blackberry and black cherry, with a medium. A whopping 15.3% ABV, this challenging wine was an eye-opener but quite pleasurable to taste.
Sean Thackrey Aquila Sangiovese 2002, $64.95/750ml
First released in 2000, Aquila is also produced from grapes grown at Eaglepoint Ranch in Mendocino. This wine was the trickiest of the lot—if I had tasted it blind I would have sworn it was a Tuscan Sangiovese. Dark ruby in color with signature orange tints. On the nose, woodsy aromas of cedar and pine, with fruity notes of cherry and plum. Dry and medium-bodied on the palate, with flavors of dried cherries and a sappy finish. Food friendly for sure, the Aquila would pair well with a nice, big plate of Bucatini all’Amatriciana, fire-roasted sausages and crispy, griddled pizza (if you’re one of those people who drinks a $65 bottle of wine with pizza, that is).
Sean Thackrey Pleiades Old Vines N.V. Lot XVII, $32.95/750ml
“It’s always an improvisation.” A blend of Sangiovese, Syrah, Viognier, Mourvedre, Rousanne, Barbera and Carignane (!!!), this wine has only been in the bottle for two weeks! Clear, bright garnet in color, with a watery rim. On the nose, spicy notes of cedar, cherry, red currant and dillweed. Bone dry on the palate, with distinctive, sandy tannins. Flavors of red cherry, red currant and baking spices, with a spicy finish. This is a surprisingly light, easy-drinking, food friendly wine, with a cheerful personality in the glass. I recommend that everybody buy at least 1 bottle for educational purposes—it’s worth it.
Sean Thackrey Andromeda Pinot Noir 2004, $83.95/750ml
This single vineyard wine from Devil’s Gulch Ranch in Marin County is made from organically farmed grapes. Medium ruby in color with a pink rim. On the nose, foggy notes of violets, black pepper, tobacco leaf and smoke—once the wine warmed up, it smelled like cherry Twizzlers (for real). A classic Pinot Noir on the palate, bone dry with fruity, floral flavors. Well balanced despite the high ABV, with a long finish. This wine ranks last not for it’s quality, but because it’s price point is prohibitive—you can get other very good Pinots for less money (although this wine is organic).
Useful Links
Sean Thackrey
Terroir Wine Bar
Where to Buy: sherry-lehmann.com
Terroir Manager David Flaherty’s Wine Blog
Mind-Made Media’s documentary about Sean’s life and work.
After years of reading (and drinking) the amusing and always informative wine lists created by Paul Grieco (the sommelier’s sommelier), I have come to learn that when Paul puts together a tasting, it behooves one to attend. Thus, when it was announced that cult winemaker Sean Thackrey would be making his first New York City appearance in a decade at Terroir Wine Bar, I had to be there.
It was not surprising when Paul introduced Sean Thackrey—charming, articulate and completely idiosyncratic—with the amusing caveat that Mr. Thackrey does not produce “cult wines”; instead, he is a “cult wine-maker”. I was however, shocked when Mr. Grieco, a passionate “terroirist” who believes deeply and passionately in terroir’s importance to the quality, understanding and enjoyment of wine, went on to explain that his guest, Mr. Thackrey, vehemently detests the notion of terroir. In fact, the controversial winemaker has been known to compare terroir to overpriced real estate and dog poo. Why invite a philosophical arch-nemesis into one’s temple to wine’s sense of place? Because opinions aside, the man makes really interesting, really unique wines.
Entirely self-taught, Sean Thackrey is perhaps the most well-read winemaker in the United States and perhaps the planet, when it comes to the history of winemaking. Fluent in ancient Greek and Latin (not to mention five other languages), the vast majority of the books Thackrey has devoured in the pursuit of historical traditions, ideas and inspiration were not written in English, or even in this century. Yet they are filled with fascinating advice on how to properly handle wine.
A centuries-old French sommelier’s guide for example, recommends that if you care anything at all about the quality of your wine, the last thing you will ever do is age it in French Oak—instead, German Oak is highly praised.
Passionate about the unrecognized value such tomes could offer to today’s modern winemaker, Thackrey tirelessly translates each text to himself, and hopes someday to offer English translations of these ancient texts on his website, The Thackery Library: An Archaeology of Pleasures.
“For me, using old texts gives you a background for how rich and complex winemaking is. I mean, people have been making wine since 10,000 B.C.—it would be nice to know how they did it.”
An art dealer by training, Sean fell in love with wine in the mid-70s, when he purchased his self-described “rural slum” in Bolenas, and decided to plant grapevines along his fence. He created his first wine in 1979 from Cabernet Sauvignon and Merlot grapes he purchased from Stags Leap Vineyards, and from there began purchasing grapes from growers in Napa Valley, Marin County and Mendocino. The highly experimental “Pleiades” was one of Thackrey’s first commercial bottlings. Made from up to seven different grape varieties (both white and red), the recipe changes every year, depending on the mood of the winemaker and the fruit from his growers. “It disobeys all of the rules of the wine world, and I love it,” says Thackrey. “It’s whatever I want to put in there.”
Thackrey names all of his wines after constellations. “I don’t know why I name them this way—I think a constellation looks like a cluster of grapes, but nobody in the U.S. has heard of these constellations, so I’m going to call my next wine “Big Dipper”, so that way people will understand.” Today, with production at 5,000 cases per year, Mr. Thackrey compares his role as a winemaker to that of a chef.
“I am a craftsman—I try to produce something that is really delicious…it’s just got to be something that I really want to drink. It’s like a chef in that way. If you like their style, then you’re going to like their food. If you like my style, then you’re going to like my wine. I try to buy the best produce, and I try to make wines that are pure pleasure”.
Mr. Thackrey is infamous for flouting traditional winemaking methods and for breaking many, if not most of the accepted rules for harvesting, fermentation and aging. He compares oenology courses to food science courses and asks how either result in a better winemaker or chef. “The absence of defects are not the presence of virtues,” he likes to say.
While Mr. Thackrey’s competitors in Mendocino & Napa Valley harvest their grapes before dawn, rushing them to the winery where they are immediately pressed to obtain the freshest juice possible, Mr. Thackerey takes a medieval approach, allowing his just-harvested grapes to rest anywhere from 24 hours to 3 days before pressing them. And that’s just the beginning of this cult winemaker’s topsy-turvy approach to creating wines that are big, high alcohol, roughly tannic, and full of intense flavors. The results may be sipped and savored in-person or through special order at New York’s venerable Sherry-Lehmann. According to Matt Wong, the General Manager, “That guy is way out there—but I like him, and his wines.”
A documentary about Sean’s work is currently in post-production and scheduled for release in late 2009 or 2010.
The Review: A Constellation of Wines by Sean Thackrey by Jacqueline Lombard.
Photo: ‘Terroirist’ Paul Grieco with nemesis Sean Thackrey at the Terroir Wine Bar, April 22nd, 2009
Credit: Jacqueline Lombard
Embattled Thai Prime Minister Abhisit Vejjajiva put his domestic troubles aside as he welcomed the heads of Southeast Asian nations to the 14th ASEAN Summit and Related Summits at the Royal Cliff Beach Hotel in Pattaya. He set an auspicious tone by presenting Cambodian Prime Minister Hun Sen with stolen Khmer artifacts that Thai police recovered. Later, on the sidelines, the two leaders, which are embroiled in a border row surrounding the Preah Vihear Temple, agreed to mend fences.
photo: Cambodian Prime Minister Hun Sen (left) shake hands with Thailand Prime Minister Abhisit Vejjajiva. The two agreed to stand down over the Preah Vihear Temple area border dispute. Still from Thai television
