Thursday, June 04, 2015

4th June (Thursday) ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Rice Paddies Can be A Source of Electricity!

Jun 03, 2015
Dutch scientists have developed a system called Plant-e, which can produce electric energy from living water-logged plants such as rice, according to AsiaOne News.The co-founder of Plant-e told reporters that the system was developed by in 2009 by the Wageningen University researchers. The system generates electricity by harnessing the excess organic matter produced by the rice plant during photosynthesis, which is expelled through the plant roots and is usually consumed by micro-organisms. Two carbon electrodes placed close to the roots will generate electricity from the roots. Electricity stops being produced if the water at the roots evaporates, dries up or freezes. Adding water would again restart the electricity-generation process, said the co-founder of the system.  
She said though generating energy from plants is not novel, the Plant-e system is non-invasive and does not damage the plants. Moreover, the power generated is clean energy. It is better than solar or wind power as it can be generated without wind and even at nights.The company, based in Netherlands, sells the Plant-e system, consisting of 60-centimeter square plastic plates containing the technology. These plates can hold the plants intact and help in uninterrupted power generation. However, the system is pretty costly and cannot be afforded by individuals. Systems covering an area of 100 square meters are priced at around 60,000 euros ($66,000). They provide power sufficient to charge a mobile phone, power some LED lights or a wireless internet access point. 
The Dutch government has already helped install two large-scale systems in the Netherlands on a road bridge and a hi-tech startup campus at a total cost of 120,000 euros (around $132,00). The founders are optimistic that with further government support, the systems can provide about 80% of the electricity needs of an average Dutch family.They say the systems are more useful for South and South East Asian countries, which are major producers of rice.

Brazil Paddy Rice Index Declines About 2.5% from Last Week

Jun 03, 2015

The Brazilian paddy rice index maintained by CEPEA reached around 33.28 real per 50 kilograms as of June 2, 2015, down about 2.5% from around 34.12 real per 50 kilograms recorded on May 26, 2015.In terms of USD per ton, the index reached around $212 per ton on June 2, 2015, down about 4% from around $221 per ton recorded on May 26, 2015.
Global Rice Quotes
June 3rd, 2015

Long grain white rice - high quality
Thailand 100% B grade          375-385           ↔
Vietnam 5% broken    350-360           ↔
India 5% broken         375-385           ↔
Pakistan 5% broken    390-400           ↑
Myanmar 5% broken   415-425           ↔
Cambodia 5% broken             430-440           ↔
U.S. 4% broken           465-475           ↔
Uruguay 5% broken    565-575           ↔
Argentina 5% broken 555-565           ↔

Long grain white rice - low quality
Thailand 25% broken 345-355           ↔
Vietnam 25% broken 325-335           ↔
Pakistan 25% broken 350-360           ↑
Cambodia 25% broken           410-420           ↔
India 25% broken       350-360           ↔
U.S. 15% broken         455-465           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd            365-375           ↔
Pakistan parboiled 5% broken stxd    410-420           ↔
India parboiled 5% broken stxd         355-365           ↔
U.S. parboiled 4% broken       555-565           ↔
Brazil parboiled 5% broken    570-580           ↔
Uruguay parboiled 5% broken            NQ      ↔

Long grain fragrant rice
Thailand Hommali 92%          845-855           ↔
Vietnam Jasmine         470-480           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             815-825           ↔

Brokens
Thailand A1 Super      315-325           ↔
Vietnam 100% broken            310-320           ↔
Pakistan 100% broken stxd    295-305           ↓
Cambodia A1 Super   350-360           ↔
India 100% broken stxd         280-290           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 365-375           ↔
Brazil half grain          NQ      ↔
All prices USD per ton, FOB vessel, oryza.com



Heat Wave and Below-Average Monsoon May Impact India's 2015 Main Rice Crop Planting, Say Analysts

Jun 03, 2015

The ongoing heat wave and expected below-average rainfall during the monsoon season is likely to delay the sowing of main/kharif (June - December) rice crop, say analysts. Though kharif rice seems to have picked up over the last few weeks, experts say it may not sustain due to excessive heat, especially in top rice-growing states such as Punjab and Andhra Pradesh, according to local sources.Andhra Pradesh rice farmers are being advised to sow shorter duration paddy varieties, typically ranging from 125-130 days duration instead of 180-one, due to persisting heat wave in the country as well as expected below average rainfall. 
Also since reservoirs are not of their full capacity, farmers will have to depend on pump irrigation, which is a costly affair. Farmers in most parts of the country are compromising with two irrigation cycles instead of six, according to the Chairman of a farmers' union.Meanwhile, in its second forecast for 2015, the India Meteorological Department (IMD) has its estimate for this year's monsoon rains to 88% of normal, from a previous estimate of 93% due to reports of a strengthening El Nino. It is expecting rainfall to be 85% of the normal in the states of Haryana, Punjab, Rajasthan and Uttar Pradesh. The IMD expects the El Nino pattern to reach to moderate to a strong one during the monsoon season. India average wholesale rice prices continued to increase for the third consecutive month in May 2015 due to expected lower production from the just being completed Rabi secondary rice crop (November - May) and expected below-average rainfall. However, adequate rice stocks are expected to fulfill the country's domestic and export needs as well as curtail excessive price hikes and inflation. 
This year's kharif rice sowing has reached around 308,000 hectares as of May 29, 2015; up about 21% from around 254,000 hectares planted during the same period last year, according to the Agriculture Ministry data.The government of India, in its third advance estimates for major crops, has estimated India's rice production for 2014-15 marketing year (October 2014 - September 2015) at around 102.54 million tons, down about 4% from an estimated 106.65 million tons in 2013-14, according to a statement from the agriculture Ministry.

Indonesia Aims to Procure 2.75 Million Tons of Rice in 2015

Jun 03, 2015
Indonesia's state logistics agency Bulog is aiming to procure 2.75 million tons of rice this year, about 14% below the initially targeted 3.2 million tons, despite an increase in the government purchase price (Harga pokok penjualan, HPP), according to local sources. Though the government increased the HPP by about 10% to around Rp7,260 per kilogram (around $577 per ton) from the existing Rp6,600 per kilogram (around $524 per ton) to encourage farmers to sell their paddy to Bulog. However, the decision failed to have a positive effect on government rice procurement. Recently, the State-owned Enterprises Minister slammed the Bulog for its slow and inefficient procurement process during the ongoing harvest. 
The government is likely to take a decision on rice imports after the Ramzan festive season in July. It initially planned to avoid imports this year. But based on slow procurement figures, it may have to reconsider its decision on imports. The Indonesian government is keen on increasing 2015 paddy rice production by about 4% to around 73.4 million tons (around 48.44 million tons, basis milled) from an estimated 70.61 million tons (around 46.65 million tons, basis milled) in 2014. Indonesia imported 425,000 tons of rice from Thailand and Vietnam in 2014. 

According to the UN's FAO, average domestic rice prices in Indonesia have been increasing since September 2014 and reached a high of around 10.375 million Rupiah (around $790) per ton in March 2015. The prices reversed slightly in April 2015 due to the ongoing procurement activity by the government. The decline continued in May as well.

Oryza Overnight Recap – Chicago Rough Rice Futures Slip Slightly Overnight, Pulled Lower by Softer Oil and Grain Prices

Jun 03, 2015
rice futures for Jul delivery are currently seen trading 0.5 cents per cwt (about $0.11 per ton) lower at $9.770 per cwt (about $215 per ton) ahead of floor trading in Chicago. The other grains are seen trading lower; soybeans are currently seen trading about 0.5% lower, wheat is listed about 0.2% lower and corn is currently noted about 0.2% lower.U.S. stock index futures traded higher on Wednesday, pointing to a positive open as investors looked ahead to U.S. economic reports amid European Central Bank President Mario Draghi's remarks.
At a press conference Draghi reaffirmed the continuation of ECB's asset purchase program and said he wants Greece to stay in the euro zone. He would not comment on the Greece debt talks. Earlier in the day, the ECB left the benchmark interest rate unchanged at 0.05%, as expected. Greek Prime Minister Alexis Tsipras will meet senior European officials later in the day in Brussels, where he is expected to hear the terms of a plan drawn up this week by top policymakers including German Chancellor Angela Merkel, Reuters said. Athens faces a 300 million euro payment deadline to the International Monetary Fund this Friday. European stocks traded higher on Wednesday, with the German DAX outperforming with a 1.3% gain, and the Greece ATHEX Composite surging 4.5%.
The Dow Jones index futures briefly extended gains to more than 110 points higher. U.S. stocks closed slightly lower on Tuesday, struggling to hold momentum. Asian shares had a mixed session, with only the Hang Seng posting gains. Other economic data out on Wednesday include the non-manufacturing report from the Institute for Supply Management (ISM) at 10:00 a.m. ET and the Federal Reserve's Beige Book at 2:00 p.m. Gold is currently trading about 0.2% lower, crude oil is seen trading about 1.6% lower,  and the U.S. dollar is currently trading about 0.3% higher at 8:15am Chicago time.

Pakistan Rice Quotes Mixed Today; Other Asia Rice Quotes Unchanged

Jun 03, 2015
Pakistan rice sellers increased their quotes for 5% broken rice and 25% broken rice by about a $5 per ton and about a $15 per ton to about $390-$400 per ton and $350-$360 per ton, respectively,  and lowered their quotes for 100% broken rice by about a $10 per ton to about $295 - $305 per ton today.  Asia rice sellers kept their quotes mostly unchanged today.

                                                       
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about a $15 per ton premium on Vietnam 5% rice  shown at around $350 - $360 per ton.
India 5% rice is indicated at around $375 - $385 per ton, about a $15 per ton discount to Pakistan 5% rice shown at around $390 - $400per ton, up about a $5 per ton from yesterday.
25% Broken Rice
Thailand 25% rice is shown at around $345 - $355 per ton, about a $20 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton.
India 25% rice is indicated at around $350 - $360, on par with Pakistan 25% rice shown at around $350 - $360 per ton, up about a $15 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton.
India parboiled rice is indicated at around $355 - $365 per ton, about a $55 per ton discount to Pakistan parboiled rice shown at around $410 - $420 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about a $5 per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton.
India's 100% broken rice is shown at around $280 - $290 per ton, about a $15 per ton discount to  Pakistan broken sortexed rice shown at around $295 - $305 per ton, down about a $10 per ton from yesterday




Oryza U.S. Rough Rice Recap - Offers Increase with Futures in Anticipation of New Iraqi Tender

Jun 03, 2015
The U.S. cash market was slightly firmer again today with offers increasing in tandem with the board while bids remained mostly flat with little demand to justify coming to seller offers.Analysts note that there is more and more confidence in the market the U.S. will get a piece of the next Iraqi Grain Board tender however they have still yet to announce this tender and there are still many who think the chance of U.S. origin being awarded is slim.



Oryza Afternoon Recap - Chicago Rough Rice Futures March Higher; Wheat Rallies in Early Trade but Retraces to Settle Slightly Lower

Jun 03, 2015
Chicago rough rice futures for Jul delivery settled 9 cents per cwt (about $2 per ton) higher at $9.865 per cwt (about $217 per ton). The other grains finished the day with mixed results, after trading over 2% higher wheat gave back early gains to close slightly lower; Soybeans closed about 0.6% lower at $9.3525 per bushel; wheat finished about 0.3% lower at $5.1075 per bushel, and corn finished the day unchanged at $3.5900 per bushel.U.S. stocks traded higher on Wednesday as investors looked for signals in economic data that could strengthen the case for tightening and awaited developments in the Greek debt talks. After mixed morning data, investors awaited the 2:00 p.m. release of the Beige Book, the Federal Reserve's latest report on the U.S. economy. The Dow Jones industrial average pared gains to trade about 80 points higher. The Dow transports traded more than 1% higher.
Earlier, the blue chip index gained more than 150 points and the Nasdaq Composite topped its record close of 5,106.59. Greek Prime Minister Alexis Tsipras agreed in a telephone conversation with German Chancellor Angela Merkel and French President Francois Hollande on the need for an immediate solution involving a lower primary budget surplus target for Greece, a Greek official said in a Reuters report. European stocks closed mostly higher as investors eyed Greece negotiations and unchanged central bank policy. U.S. data continued to show moderate growth in the second quarter.
The ISM non-manufacturing index for May came in at 55.7, nearly a year low. Analysts expected the figure to slip to 57 in May from 57.8 in April. The U.S. Markit PMI Services read for May showed a slight decline from April and came in below expectations at 56.2. The Dow Jones Industrial Average traded up 80 points, or 0.44%, at 18,090. The S&P 500 traded up 4 points, or 0.22%, at 2,114, with telecommunications leading seven sectors higher and utilities the greatest laggard. The Nasdaq traded up 19 points, or 0.38%, at 5,095. Gold is trading about 0.9% lower, crude oil is seen trading about 2.8% lower, and the U.S. dollar is seen trading about 0.4% lower at about  1:00pm Chicago time.Tuesday, there were 707 contracts traded, down from 1,052 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday increased by 45 contracts to 12,232.



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3rd June (Wednesday) ,2015 Daily Global Rice E-Newsletter by Riceplus Magazine

Dutch 'paddy power' pulls electricity from rice fields 

Agence France-Presse, Wageningen, Netherlands | Business | Wed, June 03 2015, 12:01 PM
Dutch scientists have developed a revolutionary system that could one day help isolated villages around the world steadily generate electricity from mundane water-logged plants such as rice growing in paddy fields."It's based on the principle that plants produce more energy than they need," said Marjolein Helder, co-founder of Plant-e, which makes products that harvest energy from living plants."The advantage of this system over wind or solar is that it also works at night and when there's no wind," she told AFP.Founded in 2009, Plant-e is perfecting a system originally dreamt up at Wageningen University and patented in 2007.All that the system requires to produce electricity is a plant growing in water, be it mangrove swamps, rice paddies, bogs or simply in a pot or your garden.
"It's just the beginning and lots of things still need to be greatly improved, but the potential is enormous," said Jacqueline Cramer, professor of sustainable innovation at Utrecht University and former Dutch environment minister."If the system becomes good enough, it could provide electricity for isolated areas or even be installed in our cities and countryside to produce clean electricity," she told AFP.The technology harnesses the excess organic matter produced by the plant during photosynthesis, which is expelled through the plants roots and consumed by micro-organisms.That consumption frees up electrons, which can then be harvested by placing carbon electrodes close to the roots to generate electricity.
Getting power from plants is not new, "but here we don't need to damage the plant, it's a non-invasive system," said Helder.Electricity stops being produced if the water evaporates or freezes, but "you just need to add water or wait for the ice to melt," she said."In many parts of the world they don't have this kind of problem."Plant-e, based in Wageningen in the eastern Netherlands, currently sells a system consisting of 50-centimetre (around 20-inch) square plastic plates containing the technology that can slot together and hold the plants.This system is designed for parks or rooftops, but comes with a hefty price tag: 60,000 euros ($66,000) to cover 100 square meters.But the flagship product is still being developed: tubes that can be quickly and easily submerged to start generating electricity in a watery area.
The system's potential is vast, but particularly suited to Southeast Asia, with its rice fields, mangrove swamps and other wetlands where electricity is often unavailable.Less than a third of the population of Cambodia has access to electricity and less than half in Myanmar. In Bangladesh, 55 percent of people have electricity and in Laos 66 percent, according to the World Bank.But Plant-e, which manages to survive thanks to subsidies, still has a long way to go: the product's cost and efficiency must be vastly improved.Currently, a 100-square metre system provides enough electricity to charge a mobile phone, power some LED lights or a wireless Internet access point.But in "a few years", Plant-e hopes that a similar-sized system will provide 2,800 kilowatt-hours, or around 80 percent of the electricity needs of an average Dutch family of 2.2 people.
Two large-scale systems have been installed in the Netherlands on a road bridge and a hi-tech startup campus at a total cost of 120,000 euros, with the support of municipal authorities."We wanted to help develop this technique which has enormous potential," said Bas Boeker, who manages state-owned properties including the startup campus.Initial results are encouraging, say the developers, and the problems are not necessarily those you would expect: the LED lamps on the road bridge project have already been destroyed by vandals

 

Thai rice export this year to reach 10 million tons


BY EDITORON 2015-06-03THAILAND
Rice export this year to reach 10 million tons
Description: 5-19-2015-10-28-29-AM-wpcf_728x413.jpg
BANGKOK: — Rice export this year is expected to reach 10 million tons, Commerce Minister Gen Chatchai Sarikulya said.
Gen Chatchai was confident in the rice export as within the next few months three million tons will be sold. He said the Department of Foreign Trade will announce auction of one million tons of rice in government stockpiles this month.The one million tons of rice consists of both quality rice and substandard rice.He believed the lot will be sold out due to high demand in the market following the end of the off-season rice cultivation period.Gen Chatchai said since the beginning of this year, close to three million tons of rice has been released from the government’s stockpile.He said in July this year, Thailand will also sell one million tons of new rice and one million tons of old rice to China on a G2G contract.Thailand has already delivered 400,000 tons of rice to China under a previous contract for the purchase of one million tons of rice that was signed last year.
Another 100,000 tons will soon be delivered in accordance with this contract.With the high demand in the market, the commerce minister expressed confidence that rice exports would reach 10 million tons this year.
Source: http://englishnews.thaipbs.or.th/rice-export-this-year-to-reach-10-million-tons

PAKISTAN’S BASMATI RICE NEEDS PROTECTION: FPCCI

Amanullah Khan

Wednesday, June 03, 2015 - Karachi—Abdul Rahim Janoo, Sr. Vice President of The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Federal Commerce Minister, Engr. Khurram Dastgir Khan, to thwart the Indian move to get its Basmati Rice registered and protected in global trade. Taking note on an article published in a newspaper, The FPCCI Sr. Vice President in his letter has warned the Commerce Ministry, “This is a high time for the Ministry to pre-empt the Indian move because in case if India succeeds, Pakistan will not be able to export its Basmati Rice in the name, style and title of BASMATI”.Rahim Janoo further added that it would have a far-reaching negative impact on Pakistan’s economy as rice holds an extremely important position in national economy. He elaborated that Pakistan had earned $ 2.1 billion dollar foreign exchange through exports of rice in the year 2014, which is the second highest export item from Pakistan after Textiles.
“Pakistan is the world’s fourth largest producer of rice after China, India and Indonesia and millions of farmers rely on rice cultivation as a major source of employment”, he informed. Rahim, therefore, underscored the need for taking necessary measures to safeguard the interest of indigenous Basmati Rice farmers and exporters in general and national economy in particular in the said matter. http://pakobserver.net/detailnews.asp?id=265466

Thai rice export this year to reach 10 million tons
BY EDITORON 2015-06-03THAILAND
Rice export this year to reach 10 million tons
Description: 5-19-2015-10-28-29-AM-wpcf_728x413.jpgBANGKOK: — Rice export this year is expected to reach 10 million tons, Commerce Minister Gen Chatchai Sarikulya said.Gen Chatchai was confident in the rice export as within the next few months three million tons will be sold. He said the Department of Foreign Trade will announce auction of one million tons of rice in government stockpiles this month.The one million tons of rice consists of both quality rice and substandard rice.He believed the lot will be sold out due to high demand in the market following the end of the off-season rice cultivation period.Gen Chatchai said since the beginning of this year, close to three million tons of rice has been released from the government’s stockpile.He said in July this year, Thailand will also sell one million tons of new rice and one million tons of old rice to China on a G2G contract.Thailand has already delivered 400,000 tons of rice to China under a previous contract for the purchase of one million tons of rice that was signed last year.Another 100,000 tons will soon be delivered in accordance with this contract.With the high demand in the market, the commerce minister expressed confidence that rice exports would reach 10 million tons this year.
Source: http://englishnews.thaipbs.or.th/rice-export-this-year-to-reach-10-million-tons
PAKISTAN’S BASMATI RICE NEEDS PROTECTION: FPCCI
Amanullah Khan
Description: A-new-rice-varietyWednesday, June 03, 2015 - Karachi—Abdul Rahim Janoo, Sr. Vice President of The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Federal Commerce Minister, Engr. Khurram Dastgir Khan, to thwart the Indian move to get its Basmati Rice registered and protected in global trade. Taking note on an article published in a newspaper, The FPCCI Sr. Vice President in his letter has warned the Commerce Ministry, “This is a high time for the Ministry to pre-empt the Indian move because in case if India succeeds, Pakistan will not be able to export its Basmati Rice in the name, style and title of BASMATI”.
Rahim Janoo further added that it would have a far-reaching negative impact on Pakistan’s economy as rice holds an extremely important position in national economy. He elaborated that Pakistan had earned $ 2.1 billion dollar foreign exchange through exports of rice in the year 2014, which is the second highest export item from Pakistan after Textiles. “Pakistan is the world’s fourth largest producer of rice after China, India and Indonesia and millions of farmers rely on rice cultivation as a major source of employment”, he informed. Rahim, therefore, underscored the need for taking necessary measures to safeguard the interest of indigenous Basmati Rice farmers and exporters in general and national economy in particular in the said matter. http://pakobserver.net/detailnews.asp?id=265466

First-crop paddy production stands at 550,000 tonnes —Sowing of second crop already underway

SOME 98 per cent of the 97,000 hectares of rice lands under cultivation for the first crop of 2015 has been harvested to date; and production stands at 550,000 tonnes of paddy, from which 360,000 tonnes of rice have been processed. The two per cent of rice lands still to be harvested are in Regions Five (Mahaica/Berbice) and Six (East Berbice/ Corentyne).Head of the Guyana Rice Producers Association (RPA), Mr Dharamkumar Seeraj, in an invited comment yesterday, told the Guyana Chronicle that the average yield to date is 5.7 tonnes of paddy per hectare, and that this is a record high. He said that prices being paid to farmers are as follows: the extra A-grade quality rice is attracting sums of between $3,200 and $3,300 per bag, while the lowest graded quality of rice is being sold at prices of between $2,400 and $2,600 per bag. Rice that has been graded at A, B and C are priced at between $2,800 and $3,300 per bag.Last year was another record-breaking year for the rice industry. Production was recorded at 635,238 tonnes, of which 501,208 tonnes were exported. Production in the final crop of 2014 surpassed that of the first crop, which recorded just over 300,000 tonnes. Comparatively, the first crop of 2015 has been significantly better.

SECOND CROP UNDERWAY

Seeraj noted that, with only two per cent of the rice crop left to be harvested, land preparation for the second rice crop of 2015 has been completed in most of the rice producing regions. “Land preparation continues in Regions 5 and 6,” he said.He also said that sowing has commenced in Regions 2 (Pomeroon/Supenaam), 3 (Essequibo Islands/West Demerara) and 4 (Demerara/ Mahaica). “So far, we have sown 1,900 hectares in Region 2; another 2,100 hectares in Region 3; and 3,700 hectares in Region 4. In Regions Five and Six, 27,200 hectares and 4,000 hectares has been sown respectively,” Seeraj said.The RPA Head noted that, given the weather conditions, the high levels of rainfall, “minor” losses of rice is expected in Region 2, which traditionally starts and ends its rice crop earlier than the other regions.“We will lose some rice — not much — in Region 2. It will be the early rice,” he said.

EXPORTS

On the question of exports, Seeraj disclosed that hiccups with shipping, in particular the discharge process, has somewhat slowed exports to Venezuela; but exports to that country are otherwise on track. As per the most recent agreement, exports to that neighbouring country will include 120,000 tonnes of paddy and 74,000 tonnes of rice.He added that private rice exporters have also sent off shipments to Panama. Guyana currently has export agreements with several countries in the Caribbean.Also, given the continuous success of the rice industry, efforts are being made to secure a greater foothold in Nicaragua and other Central American countries, including Belize and Panama. Markets in Africa are also being courted.The target for rice exports in 2015 is some 514,000 tonnes, while the target for rice production is 618,000 tonnes.

By Vanessa Narin
http://guyanachronicle.com/first-crop-paddy-production-stands-at-550000-tonnes-sowing-of-second-crop-already-underway/

BRIEF-Spain's Ebro Foods buys US rice business RiceSelect for $45 mln

JUNE 3
Ebro Foods SA :
* Says buys RiceTec AG and RiceTec Inc. through its US unit Riviana Foods Inc for $45 million
* Says 42 workers related to this rice business join the company's US unit Riviana Foods Inc
* Acquisition covers a premium rice brand RiceSelect and a factory in Alvin, Texas
Source text for Eikon:
Further company coverage: (Gdynia Newsroom)
http://www.reuters.com/article/2015/06/03/idUSFWN0YP01220150603

PhilRice studying heat-tolerant rice in the Philippines

Wednesday, 03 June 2015 12:50

Philippines Rice Research Institute (PhilRice) is currently analysing a heat-tolerant rice variety, in a bid to address climate-change ready technologies in the country's predominant rice growing areas

Certain rice breeding lines exhibit tolerance to drought and stress, which might lead to the development of new rice varieties. (Image source: Zuki/Flickr)

Description: rice-zuki-flickrThe research is titled Screening of rice-induced mutants for heat and drought tolerance.Researchers have identified promising breeding lines that exhibit tolerance to drought and heat stress, which will pave the way for development of new varieties that address the effect of climate change on rice.Lead researcher Thelma Padolina said that although rice normally grows at temperatures between 20 and 35°C, its at its most sensitive during the booting and flowering stages. Hence, even short-duration chronic dry spells occurring during these stages will result in substantial yield loss.Padolina and her team began screening rice in 2012 where 817 mutant lines were initially tested for drought stress and leaf blast, and later with emphasis on heat stress. Mutant lines are valuable genetic variations for crop improvement. They are the results of induced mutation where one or two of their major traits such as plant height and resistance to biotic and abiotic stresses, were altered.PhilRice researchers said that promising lines were exposed to temperatures ranging from 21.1°C to 34.4°C at field trials, and 34°C to 38°C at screenhouse trials for three consecutive seasons to test and validate their grain fertility and pollen viability.

http://www.fareasternagriculture.com/index.php?option=com_content&view=article&id=5893:philrice-studying-heat-tolerant-rice-in-the-philippines&catid=1083&Itemid=98

Scientists generate electricity from rice fields

Wed, 06/03/2015 - 11:49am
Agence France-Presse
Description: Dutch scientist Marjolein Helder, co-founder of Plant-e, which makes products that harvest energy from living plants, poses for a photo in Wageningen.Dutch scientist Marjolein Helder, co-founder of Plant-e, which makes products that harvest energy from living plants, poses for a photo in Wageningen.Dutch scientists have developed a revolutionary system that could one day help isolated villages around the world steadily generate electricity from mundane water-logged plants such as rice growing in paddy fields."It's based on the principle that plants produce more energy than they need," said Marjolein Helder, co-founder of Plant-e, which makes products that harvest energy from living plants.
"The advantage of this system over wind or solar is that it also works at night and when there's no wind," she told AFP.Founded in 2009, Plant-e is perfecting a system originally dreamt up at Wageningen University and patented in 2007.All that the system requires to produce electricity is a plant growing in water, be it mangrove swamps, rice paddies, bogs or simply in a pot or your garden."It's just the beginning and lots of things still need to be greatly improved, but the potential is enormous," said Jacqueline Cramer, professor of sustainable innovation at Utrecht University and former Dutch environment minister."If the system becomes good enough, it could provide electricity for isolated areas or even be installed in our cities and countryside to produce clean electricity," she told AFP.
The technology harnesses the excess organic matter produced by the plant during photosynthesis, which is expelled through the plants roots and consumed by micro-organisms.That consumption frees up electrons, which can then be harvested by placing carbon electrodes close to the roots to generate electricity.Getting power from plants is not new, "but here we don't need to damage the plant, it's a non-invasive system," said Helder.Electricity stops being produced if the water evaporates or freezes, but "you just need to add water or wait for the ice to melt," she said."In many parts of the world they don't have this kind of problem."Plant-e, based in Wageningen in the eastern Netherlands, currently sells a system consisting of 50-centimetre (around 20-inch) square plastic plates containing the technology that can slot together and hold the plants.This system is designed for parks or rooftops, but comes with a hefty price tag: 60,000 euros ($66,000) to cover 100 square metres (around 1,000 square feet).
But the flagship product is still being developed: tubes that can be quickly and easily submerged to start generating electricity in a watery area.The system's potential is vast, but particularly suited to Southeast Asia, with its rice fields, mangrove swamps and other wetlands where electricity is often unavailable.Less than a third of the population of Cambodia has access to electricity and less than half in Myanmar. In Bangladesh, 55 percent of people have electricity and in Laos 66 percent, according to the World Bank.But Plant-e, which manages to survive thanks to subsidies, still has a long way to go: the product's cost and efficiency must be vastly improved.Currently, a 100-square metre system provides enough electricity to charge a mobile phone, power some LED lights or a wireless Internet access point.But in "a few years", Plant-e hopes that a similar-sized system will provide 2,800 kilowatt-hours, or around 80 percent of the electricity needs of an average Dutch family of 2.2 people.Two large-scale systems have been installed in the Netherlands on a road bridge and a hi-tech startup campus at a total cost of 120,000 euros, with the support of municipal authorities.
"We wanted to help develop this technique which has enormous potential," said Bas Boeker, who manages state-owned properties including the startup campus.Initial results are encouraging, say the developers, and the problems are not necessarily those you would expect: the LED lamps on the road bridge project have already been destroyed by vandals.
http://www.ecnmag.com/news/2015/06/scientists-generate-electricity-rice-fields



Riviana Foods Buys RiceTec's RiceSelect Brand
Consumer favorite
MADRID, SPAIN -- Ebro Foods, parent company of Riviana Foods, Inc., announced today it has acquired the U.S. consumer rice business division of RiceTec AG and RiceTec, Inc. which manufactures and markets products under the brand RiceSelect® in a deal valued at $45 million.The transaction includes the brand and certain other assets of the business, including a production plant in Alvin, Texas and a workforce of 42 employees.
 "The RiceSelect business is a perfect complement to Riviana's portfolio," the company said in a press release announcing the acquisition. "It will boost the company's development in the fastest growing segments of the North American rice market...furthering its investment in high value added products and achieving significant positioning in the healthy foods segment through new concepts."
Contact:  Michael Klein (703) 236-1458
Rice Foundation Accepting Applications for 2016 Rice Leadership Development Program
Session One includes a tour of the LSU Rice Research Station. STUTTGART, AR -- The Rice Foundation is accepting applications for the 2016 Rice Leadership Development Program. Rice producers or industry-related professionals between the ages of 25 and 45 are eligible to apply for the program. The application deadline is October 3. The Rice Leadership Development Program provides a comprehensive understanding of the rice industry, with an emphasis on personal development and communication skills. During a two-year period, class members attend four one-week sessions designed to strengthen leadership skills through studies of all aspects of the rice industry. The class is comprised of five rice producers and two industry-related professionals chosen by a committee of agribusiness leaders. The committee evaluates the applications of all candidates, reviews letters of recommendation, and conducts personal interviews with the finalists. Interviews will be conducted at the USA Rice Outlook Conference in New Orleans, Louisiana, in December. The program is sponsored by John Deere Company, RiceTec, Inc., and American Commodity Company through The Rice Foundation and managed by the USA Rice Federation. Additional information on the Rice Leadership Development Program and an application form can be found on the USA Rice website.

Contact:  Chuck Wilson (870) 673-7541

CCC Announces Prevailing World Market Prices
WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop, which became effective today at 7:00 a.m., Eastern Time (ET).  Prices are unchanged from the previous announcement.

World Price
MLG/LDP Rate

Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
14.93
9.67 
0.00
Medium-/Short-Grain
14.55
9.80 
0.00
Brokens
  9.01
----
----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates:

U.S. Milling Yields
Whole/Broken
(lbs/cwt)
Loan Rate
($/cwt)
Long-Grain
57.21/12.55
6.64
Medium-/Short-Grain
61.89/8.83
6.51

The next program announcement is scheduled for 
June 10, 2015.    


CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 3
Month
Price
Net Change

July 2015
$9.865
 + $0.090
September 2015
$10.140
+ $0.090
November 2015
$10.415
+ $0.090
January 2016
$10.670
+ $0.090
March 2016
$10.860
+ $0.100
May 2016
$10.860
+ $0.100
July 2016
$10.860
+ $0.100

Researchers, rice industries exchange information at annual meeting

Posted: Wednesday, June 3, 2015 12:00 am
By Fred Miller, Cooperative Extension Service, U of A System Division of Agriculture 
Producing high-quality rice is a team effort and the annual Rice Processing Program Industry Alliance meeting is where industry leaders compare notes, research and resources.Hosted by the University of Arkansas System Division of Agriculture in the nation’s No. 1 rice producing state, more than 100 industry representatives, rice growers, equipment suppliers and consultants attended this year’s meeting, May 20 and 21.“This is a signature event for our Rice Processing Program,” said Terry Siebenmorgen, university professor of food science and director of the University of Arkansas System Division of Agriculture’s Rice Processing Program. “Not only does the industry support us with funding and equipment, but they also provide us important end-user feedback.”Siebenmorgen said the Rice Processing Program team investigates a wide range of topics from kernel development to consumer wants. The team’s expertise includes plant physiology, carbohydrate chemistry, process engineering, plant pathology and sensory analysis.
With alliance support, program scientists are tackling some of the biggest challenges in the rice industry. One of the best examples of this partnership, Siebenmorgen said, has been the discovery and understanding of the role nighttime air temperatures play in determining rice processing quality.For many years, rice companies experienced unexplained variability in the processing quality of Mid-South rice. Head rice yield—the number of kernels that remain intact during milling—would vary from one year to the next.In addition, processors found that in some years, rice had to be cooked at higher temperatures or for longer times during the manufacture of food products. This slowed production and drove up energy costs.

A decade of research revealed that high nighttime temperatures during kernel development disrupt the formation of starch in the rice kernel. Starch becomes less densely packed in the seed, resulting in a chalky texture with an undesirable appearance and weaker kernels that tend to break during milling. The chalky structure also changes the way rice cooks.Division scientists believed the problem lay in the agricultural timeline, Siebenmorgen said, and began by looking at the chemical and physical properties of rice. Differences in the geographic distribution of the problem began to suggest temperatures contributed to the problem.The causes were pinned down thanks to nature—observations during a particularly cool summer compared to those during a record-breaking hot summer—and critical industry support.

Texas-based RiceTec gave division scientists access to their Phytotrons—essentially huge growth chambers in which environmental variables, including nighttime air temperatures, could be controlled. The company also gave Nora Cooper, a master’s degree student in food science, an internship that allowed her to run the needed tests.The entire Rice Processing Program team contributed to the many pieces of information that collectively identified high nighttime air temperatures as the culprit, Siebenmorgen said, and the Division of Agriculture’s relationship with rice processing companies was a valuable asset during their investigation.The relationship continues to be valuable as the program looks into solutions for mitigating the nighttime temperature problem—Siebenmorgen said development of new rice varieties with improved heat tolerance is most promising—as well as other information and new technologies that will help the industry improve its products.Ongoing research includes increasing understanding of the rice kernel’s chemistry and physical development; improving rice drying, storage and processing; sensory perception and consumer satisfaction of rice foods; and other areas that will lead to high quality and sustainable food products.

Smith noted the Division of Agriculture Rice Processing Program Industry Alliance Meeting was growing while other industry meetings were fading. “I think the attendance testifies to how this meeting makes a difference for the industry,” he said. “If it didn’t, we wouldn’t come.”“This meeting promotes a relationship that allows university scientists to understand the industry and allows us to tap into research that can affect changes that result in the best products,” said Michael Smith, vice president of quality and innovation for Riceland Foods of Stuttgart and Jonesboro. “The research helps us better understand rice and how processing affects it, and also helps us contain costs so that we can offer products that satisfies changing consumer preferences.”Smith said the annual meeting also offers a venue for rice companies, farmers and scientists to interact. “This meeting allows the industry to come together as a community focused on rice,” he said

http://www.hpj.com/crops/researchers-rice-industries-exchange-information-at-annual-meeting/article_2b91e307-3690-540f-a9a7-c990f236ada8.html

Heart of Louisiana: Conrad Rice Mill

Posted: Jun 02, 2015 5:36 PM PDTUpdated: Jun 02, 2015 8:04 PM PDT
Written by: Dave McNamara, Heart of Louisiana

 
"There were rice mills before us, but they all ceased to exist. He built this thing in 1912.” (FOX 8 Photo)
NEW IBERIA, LA (WVUE) -
Description: "There were rice mills before us, but they all ceased to exist. He built this thing in 1912.” (FOX 8 Photo)The belts that turn the wheels and pulleys in this rice mill are made out of leather. That's how this machinery worked when it was installed a century ago by P.A. Conrad of New Iberia."There were rice mills before us, but they all ceased to exist. He built this thing in 1912,” said Mike Davis, a former teacher and farmer who bought the rice mill from the Conrad family in 1975. Since then, he's been milling mostly brown rice.“We have these elevators that literally elevate the rice to the third floor and then we drop it down from one machine to the next by gravity, and then we bring it back up,” Davis said.
 “We figured one day that the rice travels a couple of miles before it gets out of here.”In this machine, the rice hulls are shaken loose and separated from the grains of brown rice. The 100-year-old process creates a product that is growing in popularity.“We are really lucky that there is a move in the country where natural foods are very much on the inside. And that's what we're geared towards,” Davis said.The products are gluten-free and certified non-GMO, or free of genetically modified organisms. And Davis is expanding his Konriko brand beyond his popular wild pecan brown rice."This is where we make the crackers,” Davis said. “We make our whole grain crackers.There are rice snacks, sauces, marinades and seasonings. The mill can package a thousand cases of chipotle seasoning in a day.
And something else that's sold here - tours of the rice mill. Davis says he got the idea from the Jack Daniel's distillery in Tennessee.“So we built a tourist reception center, which gets almost 50,000 people a year,” Davis said. “We were able to get on the National Register.”It's only a short distance to the mill from the rice fields of Southwest Louisiana.“Every grain of rice that runs through Conrad Rice Mill is from the state of Louisiana. Every grain,” Davis said.As Davis approaches his 70th birthday, he's planning no retirement for himself or his old rice mill.“And people kept saying, ‘so what are you going to do? When are you going to retire?' And my answer is, when the local funeral home comes here with the gurney and carries me out, I'm retired,” Davis said. “Because this is fun.”And it's a bit of Louisiana history, that's still creating products found on supermarket shelves across the country.
http://www.fox8live.com/story/29223481/heart-of-louisiana-conrad-rice-mill?utm_source=USA+Rice+Daily%2C+June+3%2C+2015&utm_campaign=Friday%2C+December+13%2C+2013&utm_medium=email

Dutch ‘paddy power’ pulls electricity from rice fields

AFPWednesday, Jun 03, 2015
The Plant-e system's potential is vast, but particularly suited to places such as rice fields, mangrove swamps and other wetlands where electricity is often unavailable.

Description: Dutch ‘paddy power’ pulls electricity from rice fieldsWAGENINGEN, Netherlands - Dutch scientists have developed a revolutionary system that could one day help isolated villages around the world steadily generate electricity from mundane water-logged plants such as rice growing in paddy fields."It's based on the principle that plants produce more energy than they need," said Marjolein Helder, co-founder of Plant-e, which makes products that harvest energy from living plants."The advantage of this system over wind or solar is that it also works at night and when there's no wind," she told AFP.Founded in 2009, Plant-e is perfecting a system originally dreamt up at Wageningen University and patented in 2007.
All that the system requires to produce electricity is a plant growing in water, be it mangrove swamps, rice paddies, bogs or simply in a pot or your garden."It's just the beginning and lots of things still need to be greatly improved, but the potential is enormous," said Jacqueline Cramer, professor of sustainable innovation at Utrecht University and former Dutch environment minister."If the system becomes good enough, it could provide electricity for isolated areas or even be installed in our cities and countryside to produce clean electricity," she told AFP.The technology harnesses the excess organic matter produced by the plant during photosynthesis, which is expelled through the plants roots and consumed by micro-organisms.

That consumption frees up electrons, which can then be harvested by placing carbon electrodes close to the roots to generate electricity.Getting power from plants is not new, "but here we don't need to damage the plant, it's a non-invasive system," said Helder.Electricity stops being produced if the water evaporates or freezes, but "you just need to add water or wait for the ice to melt," she said."In many parts of the world they don't have this kind of problem."

Long way to go
Plant-e, based in Wageningen in the eastern Netherlands, currently sells a system consisting of 50-centimetre (around 20-inch) square plastic plates containing the technology that can slot together and hold the plants.This system is designed for parks or rooftops, but comes with a hefty price tag: 60,000 euros ($66,000) to cover 100 square metres (around 1,000 square feet).But the flagship product is still being developed: tubes that can be quickly and easily submerged to start generating electricity in a watery area.The system's potential is vast, but particularly suited to Southeast Asia, with its rice fields, mangrove swamps and other wetlands where electricity is often unavailable.Less than a third of the population of Cambodia has access to electricity and less than half in Myanmar. In Bangladesh, 55 per cent of people have electricity and in Laos 66 per cent, according to the World Bank.But Plant-e, which manages to survive thanks to subsidies, still has a long way to go: the product's cost and efficiency must be vastly improved.
Currently, a 100-square metre system provides enough electricity to charge a mobile phone, power some LED lights or a wireless Internet access point.But in "a few years", Plant-e hopes that a similar-sized system will provide 2,800 kilowatt-hours, or around 80 per cent of the electricity needs of an average Dutch family of 2.2 people.Two large-scale systems have been installed in the Netherlands on a road bridge and a hi-tech startup campus at a total cost of 120,000 euros, with the support of municipal authorities."We wanted to help develop this technique which has enormous potential," said Bas Boeker, who manages state-owned properties including the startup campus.Initial results are encouraging, say the developers, and the problems are not necessarily those you would expect: the LED lamps on the road bridge project have already been destroyed by vandals.

http://news.asiaone.com/news/science-and-tech/dutch-%E2%80%98paddy-power%E2%80%99-pulls-electricity-rice-fields#sthash.TtlWQtAF.dpuf

PhilRice studying heat-tolerant rice variety as it pushes climate change-ready technologies

Philippine EnviroNews Wednesday 3 June 2015
Researchers identified promising breeding lines that exhibit tolerance to drought and heat stress that will pave way to the development of new varieties that addresses climate change in the country’s major rice-growing areas.Thelma Padolina, lead researcher of the study entitled, “Screening of rice-induced mutants for heat and drought tolerance,” presented at the 23rd Federation of Crop Science Societies of the Philippines, Inc.Scientific Conference in Clark Zone, Pampanga last month, said although rice normally grows at temperatures between 20 and 35°C, it is at its most sensitive during the booting and flowering stages.
Hence, even short-duration chronic dry spells occurring during these stages will result in substantial yield loss.Padolina and her team started the series of screening in 2012 where 817 mutant lines were initially screened for drought stress and leaf blast, and later with emphasis to heat stress. Mutant lines are valuable genetic variations for crop improvement. They are the results of induced mutation where one or two of their major traits, for instance plant height and resistance to biotic and abiotic stresses, were altered.The researchers said promising lines were exposed to temperatures ranging from 21.1°C to 34.4°C at field trials, and 34°C to 38°C at screenhouse trials for 3 consecutive seasons to test and validate their grain fertility and pollen viability.
On the other hand, the Philippine Rice Research Institute (PhilRice) has produced an information kit to equip  farmers with information on how they can better adapt to the impacts of  climate change.Said info kit is a “ready-to-print” material that contains a list of climate change-ready technologies the farmers can use for rice and rice-based farming systems. It includes the recommended varieties that can withstand different climate-related stresses such as drought, salinity, and flood.For water-saving technologies, PhilRice recommends the alternate wetting and drying (AWD) and low-cost drip irrigation system (LDIS) technologies.AWD guides farmers when to irrigate (or not) the rice field.  Hence, this prevents wasteful use of water.  PhilRice studies show that use of AWD also minimizes greenhouse gas emissions in paddy fields.LDIS is also for efficient use of water and is recommended for irrigating rice-based crops. Meanwhile,  fossil fuel-free technologies such as the rice hull gasifier-pump system, windmill- pump system, rice hull stove, and carbonizer are also featured.
The rice hull gasifier-pump system uses rice hull instead of gasoline or diesel in  pumping water from the ground.  It is recommended for rainfed areas where fuel expenses are high. The wind mill-pump system is applicable in areas where wind energy is abundant.A device called rice hull carbonizer is for processing the rice hull into biochar (charcoal). Aside from being used as soil conditioner, biochar is also popularly used as main ingredient in producing organic fertilizers thus reducing dependence on synthetic fertilizers.Additionally, the kit also features Palayamanan Plus, an integrated and diversified farming system, and some harvest and postharvest technologies. Farmers, extension workers, or anyone interested may download the kit from the PhilRice website.
http://www.eco-business.com/news/philrice-studying-heat-tolerant-rice-variety-as-it-pushes-climate-change-ready-technologies/

Thailand: Roi Et rice traders convince Singaporean importers of high quality Thai rice

6/2/2015 
Thai News Service
Jasmine rice suppliers in Roi Et, led by provincial governor Somsak Changtragul, had a meeting with the manager of Yijia Import And Export Co., Ltd., a Singaporean riceimporter as the latter visited the province on Saturday. Mr.Somsak said that Thai entrepreneurs had convinced Singaporean importers of the quality of Roi Et Jasmine rice. The visit followed a roadshow to Singapore that the Thai government conducted on 16-17 May 2015."I believe that business matching between Roi Et rice traders and Singapore importers will happen very soon, possibly in November this year," said Mr.Somsak.Roi Et Province has so far been successful in growing Jasmine rice particularly at the once-barren zone known as Thung Kula Rong Hai. The area currently becomes the best zone for growing Jasmine rice.
http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2376435351

Import Duty Scam: Rice Importers To Refund N25bn

 
The House of Representatives Ad hoc Committee on Rice Quota and Duty Payments on Rice Imports has recommended that all importers involved in the alleged import duty scam refund N25 billion to the federal government. The Leo Ogor-led House Committee also recommended that the Nigeria Customs Service (NCS) should close down the warehouses of importers reportedly linked with the rice import duty fraud.Also in the report yet to be laid before the House, it was recommended that the suspects should be interrogated by the Economic and Financial Crimes Commission (EFCC) immediately.Another major area that the report focused on was the 2015 rice import allocation and it recommended that it should be cancelled to avoid a recurrence of the massive fraud that engulfed it. The former minister of agriculture, Akinwunmi Adesina, again raised the issue of monies owed the federal government by the importers which is to the tune of N36 billion.
Description: bags-of-rice 

Press Release

  1400 Independence Ave., SW

Washington, DC 20250

USDA

Farm Service Agency

_________________________

Program Announcement Mark Simone

(202) 720-5653

Mark.Simone@wdc.usda.gov

PREVAILING WORLD PRICES AND LOAN DEFICIENCY PAYMENT RATES

WASHINGTON, June 3, 2015-The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop, which will become effective today at 7:00 a.m., Eastern Time (ET). Prices are unchanged from the previous announcement.

--------World Price------- MLG/LDP Rate

Milled Value Rough Rough

($/cwt) ($/cwt) ($/cwt)

Long Grain 14.93 9.67 0.00

Medium/Short Grain 14.55 9.80 0.00

Brokens 9.01 ---- ----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates:

U.S. Milling Yields Loan Rate

Whole/Broken

(lbs/cwt) ($/cwt)

Long Grain 57.21/12.55 6.64

Medium/Short Grain 61.89/8.83 6.51

The next program announcement is scheduled for June 10, 2015.

Janoo for protecting Basmati rice against Indian move

June 03, 2015
RECORDER REPORT
Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Senior Vice-President Abdul Rahim Janoo has urged Federal Commerce Minister Engr Khurram Dastgir Khan to thwart the Indian move to get its Basmati rice registered and protected in global trade. In a letter to the Commerce Minister, he called for pre-empting the Indian move because in case if India was succeeded, Pakistan would not be able to export its rice in the name, style and title of 'BASMATI'. 
Janoo further said that it would have a far reaching negative impact on Pakistan's economy, as rice held an extremely important position in the national economy. Elaborating, he said that Pakistan had earned $2.1 billion foreign exchange through rice export in the year 2014, which made it the second highest export item after textiles. "Pakistan is the world's fourth largest producer of rice after China, India and Indonesia and millions of farmers rely on rice cultivation as a major source of earning," he added.He underscored the need for taking necessary measures to safeguard the interests of indigenous Basmati rice farmers and exporters in general and national economy in particular.-PR 

WWW.BUSINESSRECORDER.COM

Priority areas in Balochistan’s agricultural budget

MOHIUDDIN AAZIM — PUBLISHED JUN 01, 2015 06:35AM
Description: http://i.dawn.com/primary/2015/05/556b4ae9a0ebe.jpg?r=1562961323
BALOCHISTAN’S agriculture sector is set to get larger allocations in FY16, with focus on crop raising, mechanisation of farm and livestock activities and the development of fisheries.In FY15, the provincial government had set aside Rs6.35bn for agriculture; Rs2.6bn for livestock; Rs758m for forestry and Rs550m for fisheries.Balochistan government officials say in FY16, a modest increase is expected in the budget for these areas adding that the province also expects some special initiatives from the federal government to promote farming and fisheries.These officials are anticipating full or part federal financing of a Gwadar-related fisheries development scheme and phase II of an ongoing plan to provide solar-powered tube wells to farmers of remote areas of the province.
The province itself plans to promote fishing and fish processing in and around Gwadar for which sufficient funds are being allocated.In the crop sector, some incentives are being considered for boosting cotton production from the current 77,000 bales to 100,000 bales and for promoting Basmati rice cultivation, provincial officials say without giving details. Funds are also being allocated to help farmers get certified seeds of wheat and pulses; in FY16 budget special focus would be made on encouraging producers of vegetables and fruits.

Balochistan is a food-deficit province, and the food storage issue is expected to get more

attention in the new budget

An ongoing Rs50m project for apples’ grading and packaging is expected to get more funds. The project has so far benefited apple growers in Ziarat and Kalat districts and bigger fund allocation is expected to extend the programme to some other districts as well.Sizable funds are likely to be set aside for setting up a dates processing and packaging unit in the Makran region where the best varieties of dates are grown.
 The provincial government is also planning establishment of a tomato paste plant to cut post-harvest losses and boost its’ value-added production.Officials say that a Rs70m olive cultivation project in arid and semi-arid areas would possibly get more funds out of the next annual development plan.Some specific projects in agricultural research are also likely to be announced in the next year’s budget with an aim to improve supply of certified seeds and increase per-hectare crop yields of various crops. These projects include not only provision of research facilities but also construction of research centres in less-developed districts of the province.In livestock sector, the Balochistan government is going to set up a meat processing and packaging plant in Quetta at a cost of Rs50m.
This would help livestock breeders of the province to get a fair price for their animals besides opening up opportunities for better local marketing and export of processed meat. Some other measures are being considered for ensuring availability of animal and poultry vaccine at affordable prices to livestock and poultry breeders. On agenda is also the construction/upgrading of veterinary hospitals for livestock development research facilities.To combat shrinking grazing fields and higher mortality of animals, the growing of forage crops in various districts, particularly in lower Balochistan would also come under focus in the new year’s budget.
With the help from the federal government, financial assistance may also be offered for setting up environmentally-controlled sheds for poultry birds.In the pre-budget session of Balochistan assembly, the issue of Balochistan’s share in federal annual development fund was raised and Chief Minister Dr Abdul Malik informed the house that he had sought Rs15bn additional funds out of the federal PSDP.Officials say the federal initiatives may or may not have an impact on the ongoing projects in social sector, but in agriculture, however, the federal support will come in crops raising, livestock, fertiliser and green energy--- the areas that have the federal blessing.Balochistan is a food-deficit province, and the food storage is expected to get more attention in the new budget.
Officials of Balochistan’s agriculture and cooperative department say the provincial government may come up with projects for food storage similar to the one recently concluded with the help of the US department of agriculture. Under that project, 78 cold storage houses and banana ripening units and drying tunnels have already been constructed by some of Balochistan’s farming organisations,“Using this model, more of food and fish storage facilities can be built. In the next year’s budget some financing would be made in this and similar projects as well,” according to a source privy to the budget making process.Establishment of flake ice units for fish preservation, provision of financial and technical help to inland fish farmers and allocation of funds for repairing or replacement of old fishing boats are being considered for enhancing fish hauling from Balochistan’s coastal areas.
Published in Dawn, Economic & Business, June 1st, 2015

Riviana Foods Inc. Adds Popular Aromatic Rice Varieties to Minute® Rice Line of Staple Products

* Reuters is not responsible for the content in this press release.

Riviana Foods Inc. Adds Popular Aromatic Rice Varieties to Minute® Rice Line of Staple Products

Industry Leader in Instant Rice Category Expands Product Line to Include Two Globally-Inspired Varieties

PR Newswire
Description: Riviana Foods Inc., America’s leading rice company, announced today the launch of two new globally-inspired aromatic products to the Minute® Rice family – Minute Thai Jasmine Rice and Minute Basmati Rice. Minute Rice products are developed to provide ease and convenience for consumers, and now, the two latest products bring the brand’s trademark quality to the growing number of consumers looking for authentic, international flavors.HOUSTON, June 2, 2015 /PRNewswire/ -- Riviana Foods Inc., America's leading rice company, announced today the launch of two new globally-inspired aromatic products to the Minute® Rice family – Minute Thai Jasmine Rice and Minute Basmati Rice. Minute Rice products are developed to provide ease and convenience for consumers, and now, the two latest products bring the brand's trademark quality to the growing number of consumers looking for authentic, international flavors.

Minute Thai Jasmine Rice is an aromatic long grain rice from the high plateaus of Thailand. For centuries, Jasmine Rice was cultivated for the royalty of the kingdom of Siam. When cooked, this fluffy, white rice has a sweet – yet subtle – buttery flavor and fragrant aroma, all very pleasing to the palate. Minute Thai Jasmine Rice uses only the finest Thai Hom Mali variety, which boasts an internationally renowned reputation for its superior quality and aroma. The taste of this rice goes perfectly with both Asian and traditional dishes.  Minute Basmati Rice, an aromatic long grain rice, is grown in the foothills of the Himalayas.
 It is known as the prince of rice because of its fragrance and distinctive, delicate and nutty flavor. The grains of Basmati Rice are long and slender when cooked and stay separate and fluffy once prepared. This rice is the perfect accompaniment for Asian, Middle Eastern and traditional dishes. "We've listened to our customers and are thrilled to be able to offer them these two new products, which combine the same great quality and convenience that they've come to expect from Minute Rice with the distinct flavors and textures from the aromatic varieties," said Paul Galvani, Senior Vice President of Marketing, U.S, Riviana Foods Inc. "Jasmine and Basmati Rice are two of the most popular globally-inspired types of rice, and we hope that by offering them, our customers will be able to create even more versatile and unique recipes to share with their families, or plus up their families' favorite dishes."
Description: Sweet and Spicy Apricot Chicken with the new Minute Thai Jasmine RiceThe new Minute Thai Jasmine Rice and Minute Basmati Rice, which are extensions of the brand's flagship line, are packaged in pre-portioned bags for additional convenience. Gluten-free and with a cook time of 10 minutes, Minute Thai Jasmine Rice and Minute Basmati Rice are available in select stores located in Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire, Maine and New York.The Riviana test kitchen developed an assortment of internationally-inspired recipes featuring the two new Minute aromatic products, showcasing inventive and deliciously satisfying ways to incorporate rice into different meal occasions. From quick salads to rice puddings and side dishes, there are a variety of Minute Rice recipes to appease consumers' global appetite. To learn more about the newest Minute Rice products, delicious recipe ideas and other varieties within the Minute Rice family of products, visitwww.minuterice.com.
Ingredients
Makes 4 servings
·         2 bags Minute® Thai Jasmine Rice
·         2 Tbsps olive oil, divided
·         2 boneless skinless chicken breasts, cut into small strips
·         1/4 tsp salt
·         1/4 tsp ground black pepper
·         1 pkg (16 oz.) broccoli slaw
·         1/2 cup carrots, cut in matchstick strips
·         2 Tbsps light soy sauce
·         1 tsp ground ginger
·         1 tsp cayenne pepper
·         1/2 tsp red pepper flakes (optional)
·         3/4 cup apricot preserves
·         1/2 cup water
Cooking Directions
·         Prepare rice according to package directions.
·         Heat 1 tablespoon oil in large skillet over medium heat. Lightly season chicken with salt and pepper and add to pan. Stir frequently to break up chicken and cook until completely done, about 5 minutes. Drain and set aside. Turn heat to medium-high and add remaining oil. Add broccoli slaw and carrots; saute for about 3 minutes. Push vegetables aside and add soy sauce, spices, preserves and water to skillet. Stir in chicken, bring to boil and simmer to heat through.
·         Place rice in serving dish, make large well in center and pour chicken mixture into well.
Description: Summer Corn and Rice Salad with the new Minute Basmati Rice
Ingredients
Makes 4 servings
·         1 bag Minute® Basmati Rice
·         1/2 cup vinaigrette dressing
·         1/2 cup minced fresh basil
·         1 cup frozen corn, thawed
·         2 Roma tomatoes, seeded and chopped
·         1/2 cup red onion, diced
·         2 green onions, chopped
·         salt and ground black pepper, to taste
Cooking Directions
·         Prepare rice according to package directions. Cool.
·         In a medium bowl, combine dressing, basil, corn, tomatoes, and red and green onions.
·         Fold in rice.
·         Serve room temperature or chilled.
·         Stir in ideas: add diced fresh mango, ground cumin, or grated fresh ginger (optional)
About Minute® Rice and Riviana Foods Inc.
Minute® Rice is distributed by Riviana Foods Inc., one of America's largest processors, marketers and distributors of branded and private label rice products. Its principal brands include Minute®, Success®, Mahatma®, Carolina®, Comet®, Adolphus®, Blue Ribbon®and Gourmet House®. The company has been an industry leader since 1911.
Riviana Foods Inc. is a wholly-owned subsidiary of Ebro Foods, S.A., the leading Spanish food group, with interests in rice and pasta products. It is the world leader in the rice sector and is the world's number two pasta manufacturer. Ebro's other subsidiary in the U.S., New World Pasta Company, offers such well-known brands as Healthy Harvest® , Ronzoni® , San Giorgio® , Creamette® , American Beauty® , Skinner® , No Yolks® ,  Prince® , Catelli® and Lancia® .
Reuters.com

Mexico keen to expand bilateral framework with Pakistan: Ulesis

·         INP
·         June 03, 2015
Description: http://www.dailytimes.com.pk/print_images/456/2015-06-03/mexico-keen-to-expand-bilateral-framework-with-pakistan-ulesis-1433282547-5186.jpg 

ISLAMABAD: Pakistan and Mexico enjoy cordial bilateral ties and have huge potential to improve their economic relations especially in service delivery and manufacturing, said Awais Leghari, Chairman Foreign Affairs Committee of the National Assembly in a meeting with Mexican Ambassador.The Mexican envoy for Pakistan, HE Ulesis Canchola paid a courtesy call on Leghari here at Parliament House. The Ambassador was also accompanied by Trade and Investment Officer for the Middle East Juan Antonio Cepeda GutiƩrrez. The Ambassador said Mexico granted Pakistan very important place in its foreign policy and wishes to reinvigorate the bilateral ties with her.
The Ambassador, who also looks after Pakistan from Mexican Embassy in Tehran, informed the Chairman that Mexico was in middle of the process to reopen its embassy in Islamabad which was closed in 2009 owing to financial restraints. Chairman Awais Leghari ensured him of any cooperation needed in the process.The visiting Ambassador also wished to widen the existing legal bilateral framework between two countries which consists of six mutual agreements and three MoUs in different areas of economic and diplomatic ties.Discussing the need to grow Pak-Mexican ties stronger, Chairman Leghari said Pakistan was looking to boost its trade relations with Latin America, Africa and Far East countries.
The Ambassador noted that the current leadership in Mexico holds a similar stance and is keenly pursuing diversification of its foreign policy in South and Central Asia.Leghari said that Pakistan is keen to cooperate with like-minded nations on multilateral forums.The two sides discussed the prospective reform of the United Nations Security Council and vowed to cooperate with each other in this regard.Leghari and Excellency Canchola also exchanged views on Afghanistan’s security situation in wake of withdrawal of international forces and the recent spring offensive of Taliban. Chairman Leghari hoped that international community will not forget Afghanistan like it did in past at end of cold war.
He observed that the centre of terrorism was shifting to Middle East from this region. The two also discussed the role of United States in the region.The ambassador called the economic progress of Pakistan despite hardships as a model for other weak economies across the world. He invited the Chairman to visit Mexico.Currently, the two-way trade between both nations is nearly $181 million USD. Mexico’s main import products from Pakistan include textiles, long grain rice and cotton while Pakistan imports plastic industrial tubes and automotive parts from Mexico.

http://www.dailytimes.com.pk/national/03-Jun-2015/mexico-keen-to-expand-bilateral-framework-with-pakistan-ulesis

APEDA INDIA (NEWS)


International Benchmark Price
Price on: 02-06-2015
Product
Benchmark Indicators Name
Price
Garlic
1
Chinese first grade granules, CFR NW Europe (USD/t)
2100
2
Chinese Grade A dehydrated flakes, CFR NW Europe (USD/t)
2000
3
Chinese powdered, CFR NW Europe (USD/t)
1800
Ginger
1
Chinese sliced, CIF NW Europe (USD/t)
4600
2
Chinese whole, CIF NW Europe (USD/t)
5100
3
Indian Cochin, CIF NW Europe (USD/t)
3000
Guar Gum Powder
1
Indian 100 mesh 3500 cps, FOB Kandla (USD/t)
2250
2
Indian 200 mesh 3500 cps basis, FOB Kandla (USD/t)
2095
3
Indian 200 mesh 5000 cps, FOB Kandla (USD/t)
3195
Source:agra-net
For more info
Market Watch
Commodity-wise, Market-wise Daily Price on 02-06-2015
Domestic Prices
Unit Price : Rs per Qty
Product
Market Center
Variety
Min Price
Max Price
Rice
1
Cachar (Assam)
Other
2000
2500
2
Jhagadiya (Gujarat)
Other
1950
3100
3
Chala (Kerala)
Other
2450
3000
Wheat
1
Bayad (Gujarat)
Other
1300
1400
2
Bonai (Orissa)
Other
1450
1600
3
Alwar(Rajasthan)
Other
1350
1630
Grapes
1
Thodupuzha (Kerala)
Other
2500
2700
2
kalanwali(Haryana)
Other
1500
1500
3
Nagpur(Maharashtra)
Other
2200
3800
Cabbage
1
Chala (Kerala)
Other
2500
2550
2
Bonai (Orissa)
Other
3000
3000
3
Gumla(Jharkhand)
Other
1400
1600
Source:agra-net
For more info
Egg
Rs per 100 No
Price on 02-06-2015
Product
Market Center
Price
1
Pune
362
2
Mysore
370
3
Ajmer
290
Source: e2necc.com
Other International Prices
Unit Price : US$ per package
Price on 02-06-2015
Product
Market Center
Origin
Variety
Low
High
Potatoes
Package: 50 lb cartons
1
Baltimore
Idaho
Russet
26
26
2
Dallas
Nevada
Russet
23.50
23.50
3
Detroit
Wisconsin
Russet
19
19.50
Cucumbers
Package: cartons film wrapped
1
Baltimore
Maryland
Long Seedless
10
10
2
Chicago
Canada
Long Seedless
22
22
3
Detroit
Canada
Long Seedless
6
8
Apples
Package: cartons tray pack
1
Baltimore
Washington
Red Delicious
22
25
2
New York
Pennsylvania
Red Delicious
14
14
3
Philadelphia
Washington
Red Delicious
18
22.50
Source:USDA

Third state rice auction later this month

The government is scheduled to call a third bid to sell 1 million tonnes of its rice stocks by the middle of this month. The auction will mainly be for high-quality grades of grain.Commerce Minister Chatchai Sarikulya said the time was right for the bid, given the relatively low supply of rice during the off season.The ministry has delayed the third auction since March as suggested by exporters and millers because it was waiting for new supply from the second crop to enter the market, as this would depress rice prices.The ministry has called two auctions for a combined 2 million tonnes of state rice stocks this year as it tries to offload some 17 million tonnes built up under a controversial subsidy scheme.
It plans to sell 10 million tonnes in 2015 and 7 million next year.A total of 496,243 tonnes worth 7.85 billion baht were sold in the first auction and 780,000 tonnes worth an estimated 8 billion in the second.Gen Chatchai said the Thai government was also preparing to sell rice in an auction next week set by the Philippines for 300,000 tonnes. Thailand will continue to ship outstanding orders of a 1-million-tonne deal with China struck by the Yingluck Shinawatra government. Thailand has already delivered 400,000 tonnes as part of that deal.A separate deal saw Thailand and China sign a memorandum of understanding last December for 1 million tonnes each of old and new grains along with 200,000 tonnes of rubber.Deliveries are set for this year and next.The latter contract will be made through the China National Cereals, Oils and Foodstuffs Corporation, the giant state enterprise that oversees rice imports, to ensure transparency.

Ricegrowers : Download 3 June 2015: Rice Profitability 2015 Analysis PDF Document


06/02/2015 | 08:12pm US/Eastern
2015 INDEPENDENT SOUTHERN NSW IRRIGATED CROP OPTIONS ANALYSIS
PREPARED BY
www.boothassociates.com.au

2 June 2015
Dear Grower
In mid-2014 SunRice commissioned Booth Associates to carry out an Independent Southern NSW Irrigated Crop Options Analysis. The analysis was carried out for typical irrigation farm businesses in the Murrumbidgee and Murray Valleys using realistic production costs and revenue based on a medium grain rice price (Reiziq) of $300 per tonne; a cotton price of $475 per bale and maize at $300 per tonne.

The mid-2014 analysis clearly demonstrated that the rice farming system is not only competitive with othersummer crop based systems, but it generates superior profit, return on capital and cashflow and balance sheetadvantages for most farm businesses.Superior profit and return on capital based on the above prices is
demonstrated in Table 1.
Table 1: Profit and Return on capital based on 2014 Analysis
Murrumbidgee
Murray
Farm System Return on
Profit $K Return on Capital Profit $K Capital
Rice/winter crop
$263
4.1%
$82
3.1%
Cotton/winter crop
$222
3.0%
$41
1.3%
Maize/winter crop
$130
1.8%
$55
1.9%
Crop prices for rice and cotton have improved significantly since the mid-2014 analysis was carried out. SunRice therefore commissioned Booth Associates to carry out additional analysis on the same typical irrigation farm businesses in the Murrumbidgee and Murray Valleys using current production costs and improved prices for rice and cotton (maize and soybean prices have remained reasonably stable). A medium grain rice price (Reiziq) of $360 per tonne and a cotton price of $520 per bale were used.
The analysis again demonstrated that the rice farming system continues to be not only competitive with othersummer crop based systems, but it generates superior profit, return on capital and cashflow and balance sheetadvantages for most farm businesses.
Superior profit and return on capital from the recent analysis is demonstrated in Table 2.
Table 2: Profit and Return on capital based on 2015 Analysis
Murrumbidgee
Murray
Farm System Return on
Profit $K Return on Capital Profit $K Capital
Rice/winter crop
$385
5.9%
$119
4.5%
Cotton/winter crop
$331
4.5%
$74
2.4%
Maize/winter crop
$130
1.8%
$55
1.9%
Sydney Office
Level 24, MLC Centre 19 Martin Place Sydney | NSW 2000
PO Box Q166 QVB Post Shop | NSW 1230
T +61 (0)2 9268 2000 | F +61 (0)2 8916 8360
Registered Office
NIP 37 Yanco Avenue Leeton | NSW 2705
Locked Bag 2 Leeton | NSW 2705
T +61 (0)2 6953 0411 | F +61 (0)2 8916 8350
1
www.sunrice.com.au
Ricegrowers Limited ABN 55 007 481 156 trading as SunRice
The conclusion I draw from the analysis over two years is that the rice farming system is clearly the first choice summer crop for our region.
We recently advised the C2014 return will be better than $380/t. When I take into account that the rice price used in the 2015 analysis - medium grain (Reiziq) at $360/t - has already been exceeded, the conclusion is even stronger.
Please consider the analysis in the Booth Associates 2015 Independent Southern NSW Irrigated Crop Options

Analysis and support your industry and company by making rice your major summer crop in the season ahead.
If you would like a member of the SunRice Grower Services technical team to interpret the analysis for your farm business, please contact Grower Services on 1800 654 557 or at growerservices@sunrice.com.au
Yours sincerely

Rob Gordon
CEO
SunRice

2
2015 INDEPENDENT SOUTHERN NSW IRRIGATED CROP OPTIONS ANALYSIS
This independent analysis report by Booth Associates was prepared for SunRice. Booth Associates have long- standing experience across all irrigated industries, including cotton and rice, and do not favour one over the other. Booth Associates advocate best business practice and believe diversity in cropping systems is essential for Southern NSW.
Introduction
Both the 2014 and 2015 analysis investigated typical irrigation farm businesses in the Murrumbidgee and Murray
Valleys with the characteristics outlined in Table 3.

Table 3: Typical Irrigation Farm Business Characteristics
Area Cropped General Security Average Average Annual
(ha) Entitlements (ML) Allocation Allocation (ML)
Murrumbidgee
750
4,500
60%
2,700
Murray
500
1,200
70%
840
Crop Gross Margins
Crop gross margins are outlined in Table 4.
Table 4: Crop Gross margins
Crop Crop Agronomics Yield Price $/T, $/B or Gross Margin Gross Margin
T/ha or B/ha $/ML $/Ha $/ML
Rice - Murrumbidgee
Medium grain sod sown
12.0
360
2,984
213
Cotton - Murrumbidgee
Roundup Ready & Bollgard
11.0
520
3,162
287
Rice - Murray
Medium grain sod sown
11.0
360
2,682
206
Cotton - Murray
Roundup Ready & Bollgard
10.0
520
2,718
272
Wheat A
After rice
6.0
250
833
416
Wheat B
Rotated with canola
6.0
250
786
196
Wheat C
After cotton
4.0
250
430
215
Canola A
After rice
3.0
475
792
396
Canola B
Rotated with wheat
3.0
475
765
191
Soybeans
Edible on beds
3.5
600
1,500
188
Maize
Grit on beds
11.0
300
1,886
189
Annual sale of allocation
Only dry wheat
50
50
Wheat - Dry
2.0
250
287
Note: figures in bold only have changed from the 2014 report

3 Prepared by www.boothassociates.com.au
While gross margins provide a direct comparison of per hectare and per megalitre returns possible for various crop options, they do not take into account:
· Crops grown in rotation (eg wheat using residual moisture after rice);
· Cashflow and operating funds needed;
· Overheads and unallocated costs;
· Capital investment, equipment and renewal needs;
· Strategic planning;
· Risk; and
· Lifestyle and commercial satisfaction.
Gross margins therefore need to be considered in the context of the full farm system and the whole farm budget outcome to determine and compare farm profit.
Farm Profit
To determine whole farm profit, a whole farm budget was prepared for the farming systems in Table 5.
Table 5: Farming System Details
Crop
Murrumbidgee (2,700ML) Murray (840ML)
Crop
Rice System Cotton System Maize System Rice System Cotton System Maize System
Canola - irrigated
70
-
80
22
-
24
Wheat - irrigated
100
210
115
34
70
36
Wheat - dryland
410
330
360
388
360
380
Rice
170
-
-
56
-
-
Cotton
-
210
-
-
70
-
Maize
-
-
195
-
0
60
Total
750
750
750
500
500
500
The whole farm budget outcomes in Tables 6 and Table 7 take into account the whole of business running costs including overheads, variable and unallocated costs, capital renewal and the capacity for debt servicing.
Table 6: Whole Farm Budget - Murrumbidgee
Murrumbidgee
Rice System
Cotton System
Maize System
Revenue
Summer Crop Revenue
$729K
$1,377K
$636K
Revenue
Winter Crop Revenue
$454K
$375K
$466K
Revenue
Other Revenue
$26K
$28K
$25K
Revenue
Total Revenue
$1,210K
$1,779K - up 47%
$1,127K - down 7%
Expenses
Allocated Expenses
$305K
$765K
$374K
Expenses
Unallocated Expenses, Staff and
Overheads
$320K
$342K
$331K
Expenses
Finance/ Capital Renewal
$141K
$281K
$232K
Expenses
Management
$60K
$60K
$60K
Expenses
Total Expenses
$825K
$1,448K - up 75%
$997K - up 21%
Profit
$385K
$331K - down $54K
$130K - down $255K

4 Prepared by www.boothassociates.com.au
Table 7: Whole Farm Budget - Murray
Murray
Rice System
Cotton System
Maize System
Revenue
Summer Crop Revenue
$222K
$422K
$198K
Revenue
Winter Crop Revenue
$276K
$250K
$278K
Revenue
Other Revenue
$16K
$16K
$16K
Revenue
Total Revenue
$514K
$688K - up 34%
$492K - down 4%
Expenses
Allocated Expenses
$137K
$288K
$165K
Expenses
Unallocated Expenses, Staff and
Overheads
$153K
$180K
$166K
Expenses
Finance/ Capital Renewal
$58K
$98K
$58K
Expenses
Management
$48K
$48K
$48K
Expenses
Total Expenses
$396K
$614K - up 55%
$437K - up 10%
Profit
$118K
$74K - down $44K
$55K - down $63K
The analysis in Table 6 and Table 7 clearly shows that returns from cotton and maize are not as attractive as rice at the assumed farm scale. The primary differences between systems include:
The lower gross margin for rice (Table 4) is offset by reduced overall costs with full provision for whole of farm running costs;

· There is increased revenue from cotton but reduced winter crop revenue in the cotton system. This is
due to very little available soil moisture after growing a cotton crop and often there are delays in sowing a winter crop after an extended period of harvesting, mulching and pupae busting after cotton harvest. Alternatively winter crops can be sown relatively quickly after rice harvest (so long as the ground is trafficable);
· The residual moisture remaining after rice can be used effectively to kick-start a winter cropping program and with well-timed spring irrigation, good yield results are achievable;
· Costs involved in the production of intensive row crops (cotton and to a lesser extent maize) are significantly higher than rice;
· Allocated and unallocated expenses are greater in cotton and maize systems as the crops are more
expensive to grow;
· Overhead and management costs are the same between systems; and
· Finance and capital renewal expenses are commonly more in cotton and maize systems due to more technical row crop configurations and the need for more crop specific machinery (particularly cotton).

5 Prepared by www.boothassociates.com.au
Cashflow Comparisons
Cashflow is more important than a simple annual profit and loss analysis. The timing of cashflow drives the timing of what can be done, both when and how. The calendar of operations and cashflow timing for rice and cotton are shown in Table 8 and Table 9.
Table 8: Rice Calendar of Operations Table 9: Cotton Calendar of Operations

The farm profit analysis outlined in Table 6 and Table 7 was based on an assumed fixed land area and water entitlement. The resultant crop areas differ between rice and cotton (Table 5) due to the higher water use per hectare of rice.
To compare the same crop area and provide a concise comparison of cashflow between rice, cotton and maize, the cashflow for a farm business growing 170 ha of any of these three crops in rotation with winter crops was assessed. Note that this assessment differs from the farm profit analysis in Tables 6 and 7 as summer crop areas are kept constant at 170 ha to provide a direct comparison for identical crop areas. In this circumstance, the results in Table
10 are achieved.

Table 10: 170 ha Crop Comparison
Cotton
Rice
Maize
Water required
1,870ML
2,380ML
1,700ML
Yield
11.0 B/ha
12.0 T/ha
11.0 T/ha
Gross Margin
$537,469
$503,618
$320,650
Gross Margin/ML
$287
$213
$189
Growing Costs
$589,206
$227,052
$240,350

6 Prepared by www.boothassociates.com.au
Graph 1 shows the cashflow impact of growing each crop over a period of 14 months to capture all costs and revenue.
400
Graph 1: Cashflow Comparison
200
0
-200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
-400
-600
-800
Rice Cotton
Rice with Grower Deduction Authorities Cotton with Crop Lien
Maize
Graph 1 illustrates a full farm system in rotation with winter crop and importantly includes benchmarked allocated and unallocated costs, overhead and finance costs, together with appropriate management drawings and capital renewal costs. The growing costs of cotton are substantial and often by the time revenue from the cotton crop is realised there are already expenses incurred in planting a winter crop and preparing ground for the subsequent cotton crop.
The green line in Graph 1 represents the benefit Grower Deduction Authorities provide to reduce the cashflow burden on rice growers. The purple line represents the use of a crop lien facility to help with cotton cashflow.

Cotton income can flow in relatively quickly once the crop is ginned. Rice payments are staggered and can therefore provide some constraints to cashflow post-harvest. In particular, this can be an issue where rice areas vary significantly year-to-year, as a result of varying water allocations. There are however, early payment options available for rice. Maize payments are assumed to be 30 days post-harvest, hence the positive cashflow in Graph 1. Maize marketing can be complicated by credit risk, which is an issue across the grains industry. Prudent
management of creditor risk is essential to avoid exposure to revenue loss for delivered grain.
7 Prepared by www.boothassociates.com.au
When analysed over a four year timeframe, the 170 ha summer crop comparison of cashflow (based on quarterly apportionment) is illustrated in Graph 2.
Graph 2: Four Year Cashflow Comparison
1,500
1,000
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-500
-1,000
Rice Cotton Rice - Early Payment Maize
Note that Graph 2 includes a bad summer crop year in year 2 (summer crop revenue down by 25%) to demonstrate the resilience of each crop system. The option to take early pool payments for rice is included in Graph 2.
The rice system at the assumed scale shows greater returns and resilience than maize and cotton. A poor year in the cotton system is difficult to recover from.
It is important to remember this is a 170 ha comparative analysis that assumes only cotton, rice or maize is grown as a summer crop. A full transition from say rice to cotton may not be practical, and initially an area of both crops may be produced. This may buffer the detrimental effects of poor seasons in one or the other crop. In the interests of reducing complexity this has not been considered in this analysis.
In situations where crop returns are suppressed due to combinations of low yield and price, and debt servicing costs are high for irrigation redevelopment and equipment finance, the businesses capacity to cope can be
significantly compromised.
8 Prepared by www.boothassociates.com.au
Cashflow and Crop Expansion
Analysis of the implications of ramping up crop area is illustrated in Graph 3.
Graph 3: Cashflow Comparison - Expanding Scale
2,500
2,000
1,500
1,000
500
0
-500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-1,000
Rice Cotton
The comparison in Graph 3 shows the impact on cashflow of expanding crop areas. In many instances the majority of profit in a year is reinvested to cover the growing costs of the expanded enterprise scale. Cotton systems only begin to show merit when grown on a greater scale.
Return on Capital and Sensitivity Analysis
A healthy farm balance sheet is critical to business success and business resilience. If equity is stressed there can be constraints on cashflow to grow a crop and the capital expenditure requirements to set up a farming system properly form the start can be inhibited.
Costs to convert from rice layout to row crop can be in the order of $500/ha to $1,000/ha, or greater subject to the extent of field supply and drainage requirements. Land value appreciates with irrigation development, but commonly no more than 50% of the capital expenditure associated with land development (lasering, irrigation structures, pivots, etc) goes to the balance sheet as an increase in assets.
In situations where a high quality rice layout is converted to a row crop layout there is significant sunk capital and the benefit of the irrigation redevelopment to the balance sheet may be as low as 10%. In other words, land values may only increase by a relatively small amount in such circumstances.
Plant and equipment requirements for row cropping and more specifically cotton are substantially higher than for rice systems. The specialised nature of cotton operations, especially harvest, means the equipment may be used on
farm for cotton only whereas a header can harvest a range of crops including rice.
9 Prepared by www.boothassociates.com.au
To provide a comparison of a typical balance sheet, the 750 ha Murrumbidgee and 500 ha Murray farm examples
(Table 5) are used and summarised in Table 11.

Table 11: Balance Sheet Comparison
Crop
Murrumbidgee Murray
Crop
Rice Cotton Maize
Rice System Cotton System Maize System System System System
Assets
$6.50M
$7.34M
$7.14M
$2.63M
$3.08M
$2.91M
Liabilities
$0.45M
$0.90M
$0.70M
$0.15M
$0.28M
$0.15M
Net Worth
$6.05M
$6.44M
$6.44M
$2.48M
$2.80M
$2.76M
The difference between the systems within each valley relates to the type of irrigation development and plant and equipment. When the rice, cotton and maize system returns in Tables 6 and 7 are analysed in relation to their respective balance sheet positions, the subsequent return on capital results are provided in Table 12.
Table 12: Farm System Return on Capital
Return on Capital Rice Cotton System Maize System
System
Murrumbidgee - 750ha
5.9%
4.5%
1.8%
Murray - 500ha
4.5%
2.4%
1.9%
Note: Figures in Table 12 are EBIT yield (Earnings Before Interest and Tax)
Sensitivity Analysis
A sensitivity analysis was undertaken to test the resilience of each crop to yield and price. The results are summarised in Tables 13 and 14.
Table 13: Sensitivity Analysis - Murrumbidgee
Rice
Cotton
Maize
10T/ha @ $320/T = 3.1%
10 Bales/ha @ $480/B = 1.9%
10T/ha @ $275/T = 0.4%
12T/ha @ $360/T = 5.9%
11 Bales/ha @ $520/B = 4.5%
11T/ha @ $300/T = 1.8%
13T/ha @ $400/T = 8.2%
12 Bales/ha @ $560/B = 7.3%
13T/ha @ $325/T = 4.2%
12T/ha @ $300/T = 4.1%
11.0 Bales/ha @ $450/B = 2.3%
11T/ha @ $275/T = 1.1%
12T/ha @ $350/T = 5.6%
11.0 Bales/ha @ $500/B = 3.9%
11T/ha @ $320/T = 2.4%
12T/ha @ $400/T = 7.2%
11.0 Bales/ha @ $550/B = 5.4%
11T/ha @ $350/T = 3.3%
10T/ha @ $320/T = 3.1%
10 Bales/ha @ $520/B = 3.1%
10T/ha @ $300/T = 1.1%
12T/ha @ $320/T = 4.7%
12 Bales/ha @ $520/B = 5.9%
12T/ha @ $300/T = 2.6%
13T/ha @ $320/T = 5.5%
13 Bales/ha @ $520/B = 7.4%
13T/ha @ $300/T = 3.3%

10 Prepared by www.boothassociates.com.au
Table 14: Sensitivity Analysis - Murray
Rice
Cotton
Maize
9 T/ha @ $320/T = 2.3%
9 Bales/ha @ $480/B = 0.5%
10T/ha @ $275/T = 1.8%
11T/ha @ $360/T = 4.5%
10 Bales/ha @ $520/B = 2.4%
11T/ha @ $300/T= 1.9%
12T/ha @ $400/T = 6.3%
11 Bales/ha @ $560/B = 4.6%
13T/ha @ $325/T= 3.7%
11T/ha @ $300/T = 3.1%
10 Bales/ha @ $450/B = 0.8%
11T/ha @ $275/T= 1.3%
11T/ha @ $350/T = 4.3%
10 Bales/ha @ $500/B = 2.0%
11T/ha @ $320/T= 2.3%
11T/ha @ $400/T = 5.4%
10 Bales/ha @ $550/B = 3.1%
11T/ha @ $350/T= 3.0%
10T/ha @ $320/T = 2.9%
9 Bales/ha @ $520/B = 1.3%
10T/ha @ $300/T= 1.3%
12T/ha @ $320/T = 4.2%
11 Bales/ha @ $520/B = 3.6%
12T/ha @ $300/T= 2.4%
13T/ha @ $320/T = 4.9%
12 Bales/ha @ $520/B = 4.7%
13T/ha @ $300/T= 3.0%
· The sensitivity analysis in Tables 13 and 14 shows:
· Rice is the least sensitive crop to a reduction in yield and price, and has significant upside; and
· Cotton is the most sensitive crop to a reduction in yield and price but has solid upside in the when yield and prices are good.


Conclusion
The decision of which crop to grow should be based on best whole farm return and alignment with your:
· Skills;
· Business resources including capital and operating funds;
· Business and personal goals;
· Business strategy; and
· Preferred risk profile
Avoid making decisions based on gross margins alone, which don't provide the level of detail required to address these key business drivers.
11 Prepared by www.boothassociates.com.au

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