Cambodia shares borders with sea and has potential to produce salt. Kampot and Kep have land for salt production in big size and Koh Kong produce salt in family manner. Currently, Cambodians consume about 70,000 to 80,000 tons of salt which is less than the total amount of produced salt per year. However, it is reported that this year Cambodia could not produce enough salt to satisfy domestic demand due to weather factor in the rainy season. Because of this, price of salt increases and Cambodia imports salt from Thailand, its neighbor country. The shortage of domestic salt supply and the import of salt make salt price increase. I, therefore, think that you should think of this and take opportunity to invest in salt production and sell for profits.

Cambodia has about four thousand hectars in Kampot and Kep and produces more than 80,000 tons of salt. Cambodia’s salt has mixed with Iyod. This salt is strongly encouraged to sell in market. However, it is also seen that other imported salt, particularly from Thailand, is also in market. The imported salt is not a big size and has lower price. The salt import will lower price of salt as Cambodian salt producer/sellers have to reduce salt price, otherwise they could not compete with the imported salt.

However, as economic growth and population increases, the demand for salt will also increase. If Cambodia faces with whether hindrance, and can not increase its salt productivity, then salt price may be higher. But, this will become true only if the import salt has high price. Due to tendency today, I think that the salt price will increase from time to time. Why?

I think salt may be the same case to sugar. Sugar price is now increasing as demand for sugar is higher. Today, though Cambodia could produce sugar, sugar is still imported from Thailand. Today, Thai investors, including Cambodian tycoons, invest huge amount of money to plant sugar palm tree (Ampov) in Koh Kong in order to produce sugar. Taking example from sugar business, you can see that other necessary goods made from or used natural resources will have higher demand from year to year. Salt is a necessary goods like sugar.

Thailand is increasing its expenditure to invest in bio-fuel while keeping land for producing rice. The limited land areas means that it is hard to expand land areas for salt production because some countries may need land for bio-fuel and rice production rather than for salt production.

I think in short run, the shortage of salt may make salt price rise a little bit. But in long run, this salt price will increase like what you can see the high price of rice today. Thus, if you think of longer future period, it is right time if you could invest in salt production.

Salt production in Cambodia is mainly based on whether. If there is no rain or not heavy rain, then Cambodia can produce salt well, over domestic demand. Thus, high technology will help increase salt productivity. I am not sure about this yet, but everything will be improved if you use high tech.

I myself wish to invest in salt production, but I do not have enough capital, time and experiences in real business. What I think is about theory and thoughts. But I hope that this would help you and my blog readers with some ideas about what types of business should you take opportunity and gain benefits from current trends in food security and high price.

Therefore, how do you think? Will you invest in salt production?