Bangsue Chia Meng Rice Mill may not ring a bell with many Thais, but the company's Hong Thong (Golden Phoenix) premium rice brand has been well known for a long time.
The business was founded in 1937 by Bau-Lim Sae-Kho under the corporate name Chia Meng Rice Partnership. In those days the company produced rice for the domestic market only.
In 1955, the company invented a method for milling and producing pure Thai Hom Mali rice for export under the brand Golden Phoenix (Kim Hong brand). Since then, Golden Phoenix has been recognised as a superior quality of Thai Hom Mali rice by consumers around the world.
After 31 years of growth, the business changed its name to Bangsue Chia Meng Rice Mill Co (BSCM). In 1994, Chia Meng Marketing Co was formed to handle the distribution of the Golden Phoenix brand in the Thai market.
In 2009, the company initiated the development of a Thai Hom Mali rice project in Isan to sustain the quality of the rice. Three years later, it established BSCM Foods Co to diversify the business into a new age of food and rice drink products.
LOFTY GOALS
BSCM is now engaged in all major stages of rice value chain, from rice seeds to the dining table. The company produces and exports about 100,000 tonnes of high-quality rice annually to more than 20 nations.
Last year, BSCM revenue increased by 25% to 5.6 billion baht, with exports accounting for 55%, or 3.1 billion, and domestic sales providing 45%.
The company aims to increase its revenue by 10% this year, driven largely by rising demand and a weak baht.
In addition, BSCM wants to become the country's leading premium rice exporter, with revenue reaching 8 billion baht in five years.
Vallop Manathanya, company chairman, said revenue is no longer the sole goal as BSCM now pays more attention to farmers to help them reduce production costs, increase income, and retain the quality of Thai Hom Mali rice.
As a rice miller and exporter, BSCM has been developing rice seeds for more than a decade on 3,000 rai of land in Amnat Charoen province.
DIRECT SEEDING
The company also started a direct seeded rice field scheme in Sri Sa Ket and Ubon Ratchathani, with plans to expand the scheme to Roi Et province this year.
Direct seeding involves the sowing of seeds directly into the soil to achieve germination and establishment. It can be achieved mechanically or by hand to recreate virtually any mix of vegetation.
Mr Vallop said BSCM hopes at least 10% of the participants in the scheme will enlist in the Hong Thong direct seeded field project, which currently has roughly 3,000 members.
"The direct seeding method will help Thai farmers to significantly reduce their production costs compared with the existing broadcasting seed technique, under which seeds are directly drilled in the fields," he said.
"The company will also share knowledge with farmers that can reduce their production costs by 20% while increasing productivity by 20%."
The direct seeding method helps farmers reduce the use of seedlings per rai to only 8-10 kilogrammes, down from 25-30kg per rai, said Mr Vallop.
HELPING FARMERS
He said the company also established a centre for the development and improvement of Hom Mali rice cultivation, focusing on how to grow the grain in a manner that increases its fragrance and yield.
BSCM found that rice plantations that alternate wetting and drying water management systems and use klaeng din (tricking the soil, or soil aggravation) with fertiliser could increase the yield by 70-80%.
Klaeng din is a technique initiated by His Majesty King Bhumibol Adulyadej, which consists of alternately drying out and wetting the land to accelerate the soil's chemical reaction and raise the acidity to the maximum. The soil is then de-acidified through various techniques such as controlling the groundwater level to prevent the release of sulphuric acid, applying liming materials at 1-4 tonnes per rai, and washing away acidity with water.
According to Mr Vallop, this was discovered during a trial in Sri Sa Ket last year where the rice yield on a two-rai field increased from the normal 500kg per rai to 800-900kg per rai.
This year, he said the knowledge gained will be promoted and shared with farmers who work with the company to cultivate rice in this manner.
Six farmers in Ubon Ratchathani have applied for the scheme, with the company helping by investing in digging farm ponds and installing solar cells in exchange for their output.
This experiment aims to increase farmers' income and profitability, as well as improve the fragrance of rice, said Mr Vallop. In addition, he said the use of alternate wetting and drying water management systems and the klaeng din technique can reduce methane emissions, helping in the effort against climate change.
"The company's focus on developing the upstream business to make farmers more sustainable, increase productivity and competitiveness, and improve their income will help ensure the long-term viability of the business," said Mr Vallop. "We must help farmers grow so our business can grow as well. We have been doing this for more than 10 years and we are committed to maintaining the quality of our products."
