Interest from Cambodian Rice Exporters
Posted by James Plamondon on November 16, 2015 . 0 Comments
AwardBest's KickStarter campaign has triggered interest from Cambodia's top rice exporters, which may lead to their investment in AwardBest.
Cambodian rice exporters have mostly ignored the US market until now, because they had an advantage in the EU market that was big enough to occupy most of their volume. However, that advantage is about to be lost. Worse, Vietnam just signed a Free Trade Agreement with the EU -- which Cambodia does not have -- so it's a double-whammy against Cambodian rice exports to the EU. This has suddenly made the US market a lot more attractive.
However, the Thais have the US market sewn up -- at the low end, at least. Cambodia's costs are too high to undercut Thailand on price. Cambodian exporters have sent a few test-shipments to the US, but they've had to cut their prices so much that they've lost money (or darn close) on every ton.
Hence, AwardBest's "Tesla Strategy" looks pretty good: Enter the US market with an ultra-premium product that establishes a new performance benchmark, and then "price down" to enter successively lower-margin, higher-volume markets.It's a good fit with Cambodia's infrastructure constraints, which limit its ability to produce ultra-premium quality rice in high volume.
So, whether the KickStarter achieves its fundraising goal or not, it has succeeded in raising the interest of potential investors -- which was AwardBest's "Plan B" all along.
If AwardBest's KickStarter fails, but it succeeds in attracting traditional investment, then all of AwardBest's KickStarter pledges will be honored.
Thanks, Backers! YOU made it happen! :-)