Andy Lay

CEO – CITY RICE

Can you share your journey to becoming the CEO of City Rice?

My journey began when I returned from the U.S. after completing my MBA at Cal State Long Beach. My family has been in the rice business since the 1980s, but in 2012, I founded City Rice to focus on exports. Initially, we faced challenges adapting to international standards, but through learning from Thailand and Vietnam, we were able to grow. By 2022, City Rice became Cambodia’s largest rice exporter, shipping over 100,000 metric tons.

What are your main export markets, and how has City Rice diversified?

Our primary market is Europe, supported by the EBA (EverythingBbut Arms) agreement, which allows tariff-free exports. Europe values the low pesticide use in Cambodian rice, which helps us stay competitive. China is also a major market, accounting for about 35% of our exports. However, we are careful not to rely too heavily on any one market, so we also export to other Asian countries.

The U.S. is another market with great potential. However, shipping costs are high, and the U.S. market is quite competitive with Thai and Vietnamese rice. Right now, we’re concentrating on Europe, Australia, and nearby Asian countries where shipping times are shorter, but we remain open to exploring new opportunities in the U.S.

How has City Rice performed in 2024 given the global challenges?

Despite a few challenges, like a paddy shortage in mid-2023 and rising shipping costs, our performance has been relatively stable this year compared to 2023. Issues such as container shortages and increased freight rates, especially to Europe, impacted us, but we managed to keep our export volume steady.

What sets City Rice apart from other rice producers?

The key lies in the quality of our paddy and our location in Battambang province, known as Cambodia’s rice bowl. The region’s fertile soil and ideal climate give us an edge. We also invest heavily in technology to improve our production processes, but ultimately, the quality of the raw materials is our biggest advantage. Careful selection of every batch of paddy ensures that we maintain the high standards that have earned us global recognition, including being crowned World’s Best Rice multiple times.

Sustainability and corporate social responsibility are key topics today. Could you share City Rice’s initiatives in these areas?

Sustainability is a major focus for City Rice, especially as we look towards the next five years. Right now, we’re enhancing our factory’s capacity by expanding our dryer operations. This ensures that when farmers harvest their rice, we can buy it promptly, store it, and reprocess it efficiently to send to the market. This helps the community by providing timely market access for farmers.

At present, some of our harvested rice flows to neighbouring countries like Vietnam if we can’t process it in time. By increasing our capacity, we aim to retain more of it locally. In addition, we are working with the Ministry of Agriculture to explore contract farming, which will allow us to formalise partnerships with local farmers. For now, we rely on relationships my family has cultivated over the last 30 years.

Our goal is to have a more structured system where farmers know exactly where to sell their crops, ensuring both sustainability and market control. We’re also exploring carbon credits as a potential area for the future.

As City Rice looks ahead, what are your main objectives into 2025?

Our primary objective for 2025 is to grow our premium rice volume and contribute to Cambodia’s target of exporting 1 million metric tons of rice. Over the past five years, the country’s rice exports have hovered around 620,000 to 660,000 metric tons, but we believe we can help increase this. We’re aiming for City Rice to export around 150,000 metric tons by 2028.

Could you share a message with our readers at the Los Angeles Times?

Cambodian rice is unique because our soil is still very fertile, using fewer chemicals and pesticides compared to other regions. Our jasmine rice, including premium varieties like Phka Rumduol, is of exceptional quality.

At City Rice, we focus on both volume and quality, ensuring consistent shipments. For investors, Cambodia’s agricultural sector has immense potential. We have around 3.5 to 4 million hectares of arable land, producing approximately 12 million tons of paddy per year. There’s room for this to grow significantly with the right technology and investment.

The government is also committed to supporting the sector, offering incentives and creating opportunities for foreign investment. With political stability and an open market, Cambodia is an ideal destination for those looking to invest in agriculture. We’re ready to grow with you.