14th November,2018 Daily Global Regional Local Rice E-Newsletter

Rice Issues Abound in South Korea  

By Sarah Moran

SEOUL, KOREA -- Last week's Agricultural Trade Mission (ATM) to Korea gave USA Rice the opportunity to highlight strong market opportunities for U.S. rice but also to underscore continued obstacles put in our way by Korea's government.  

Jim Guinn, USA Rice director of Asia Promotion Programs, participated in the ATM organized by the U.S. Department of Agriculture (USDA) along with 49 companies, commodity trade associations, two regional trade groups, and representatives from four state Departments of Agriculture.  The mission was led by USDA's Foreign Agricultural Service Administrator Ken Isley.  

USA Rice delivered to Isley and to the Office of Agricultural Affairs personnel stationed in the U.S. Embassy in Seoul the concerns of the U.S. rice industry relative to the Korean rice import regime.  Isley was also briefed by USA Rice staff on those issues prior to the start of the trade mission.  

"South Korea offers a multitude of opportunities for U.S. agricultural exports due to the lack of arable land, just 17 percent, and the small size of the average farm, just 4 acres," said Guinn. 

While most agricultural products were covered in the U.S.-Korea free trade agreement (KORUS), rice was specifically excluded, and agriculture was not part of the recently concluded update of the agreement.  

Guinn explained that "the U.S. rice industry has three issues with the Korean rice import scheme as it is currently being implemented.  First, the U.S. and several other rice exporting countries have never agreed to the calculated over quota tariff of 513 percent, which is indefensibly high.  Second, the U.S. does not support the elimination of country specific quotas and elimination of the table rice provision.  And, third, the suspension of table rice auctions has made it extremely difficult for retailers to satisfy demand by regular customers of U.S. rice creating an artificial shortage resulting in price increases.  It also goes against the spirit of the agreement and is discriminatory since it does not affect Thai rice."  

"In short," Guinn said, "the industries using U.S. rice would like better and more consistent access to U.S. rice."

End users of U.S. rice for both table rice and rice for processing have expressed concerns about the import regime in South Korea since all imports are implemented by a sole entity tied to the Korean government.  

Guinn said, "Retailers have had great difficulty in maintaining access to U.S. rice.  In September 2017 the government suspended auctions of U.S. table rice, reportedly due to political pressure because of a large local harvest, and did not resume auctions until April 2018.  Auctions since then, however, have been so delayed that as of September 2018, only 45 percent of the 2016 table rice quota had been auctioned.  Furthermore, in September 2018 the government again suspended table rice auctions for U.S. rice."  

While USA Rice made its case in Seoul, officials from USDA and the Office of the U.S. Trade Representative met separately with Korean government officials in Washington, DC last week to discuss a range of market access issues, including rice.  

"The terms of rice access in Korea have been uncertain since 2015," said Bob Cummings, USA Rice COO.  "And we've made clear to the Administration that it's time to restore certainty and access to this market."  

Rice Prices

as on : 13-11-2018 12:57:22 PM

Arrivals in tonnes;prices in Rs/quintal in domestic market.

	Arrivals			Price
	Current	% change	Season cumulative	Modal	Prev. Modal	Prev.Yr %change
Rice
Pilibhit(UP)	600.00	-76	15513.50	2290	2380	2.23
Bharthna(UP)	420.00	7.69	6052.50	2455	2450	-
Gondal(UP)	181.50	30.11	11216.50	2470	2470	16.51
Bahraich(UP)	128.50	77.24	7495.30	2350	1680	5.38
Allahabad(UP)	80.00	-11.11	1223.00	2300	2325	-
Naugarh(UP)	55.00	120	1085.20	2255	2270	8.67
Vasai(Mah)	37.00	5.71	1758.00	3250	3490	12.07
Lakhimpur(UP)	35.00	29.63	928.00	2230	2310	2.76
Honnali(Kar)	32.00	-57.89	600.00	1730	1775	-
Panchpedwa(UP)	32.00	23.08	608.00	2210	2220	-
Jayas(UP)	27.00	170	2189.00	1925	1950	-1.28
Saharanpur(UP)	27.00	-10	1429.00	2620	2650	10.78
Vilthararoad(UP)	20.00	100	451.00	2000	2150	-6.98
Ghatal(WB)	18.00	38.46	353.00	2500	2500	2.04
Ahirora(UP)	16.00	45.45	287.15	2300	2300	10.05
Badayoun(UP)	15.00	NC	785.00	2250	2260	-
Vishalpur(UP)	14.00	16.67	671.00	2350	2400	-
Muzzafarnagar(UP)	12.00	9.09	249.50	2630	2655	-
Khurja(UP)	11.50	-30.3	1070.00	2600	2600	-
Auraiya(UP)	10.00	566.67	773.50	2200	2260	NC
Farukhabad(UP)	10.00	-33.33	468.60	2340	2350	5.88
Gopiganj(UP)	10.00	-50	320.00	2400	2400	-
Ruperdeeha(UP)	10.00	66.67	298.00	1600	1600	-
Mugrabaadshahpur(UP)	8.00	33.33	202.30	2350	2300	-
Atarra(UP)	7.50	50	330.00	2200	2200	10.00
Kosikalan(UP)	4.50	12.5	198.10	2500	2560	-
Kasganj(UP)	4.00	-20	120.50	2530	2510	-
Tundla(UP)	4.00	-13.04	188.50	2460	2500	-
Dibrugarh(ASM)	3.50	-2.78	768.70	2920	2920	29.78
Jahangirabad(UP)	2.00	-20	200.00	2550	2560	8.51
Bangarmau(UP)	1.80	20	51.00	2275	2300	10.98
Doharighat(UP)	1.50	NC	39.00	2000	2000	-
Kalimpong(WB)	1.20	-14.29	47.20	4600	4600	76.92
Jambusar(Kaavi)(Guj)	1.00	-	2.00	2700	-	-6.90
Penugonda(Mah)	1.00	NC	20.00	4080	4080	0.25
Khairagarh(UP)	0.90	12.5	120.00	2560	2560	1.59
Ujhani(UP)	0.80	-11.11	14.20	2300	2375	-
Fatehpur Sikri(UP)	0.70	-30	31.90	2675	2670	5.73
Jagnair(UP)	0.70	16.67	87.00	2560	2550	0.79
Achnera(UP)	0.60	-14.29	24.60	2560	2560	0.39

Published on November 13, 2018

https://www.thehindubusinessline.com/economy/agri-business/rice-prices/article25483385.ece

Egypt's GASC receives offers from 11 suppliers in rice purchase tender - trade

The offers were for Chinese, Indian and Vietnamese rice, but traders did not provide a price breakdown

Image used for illustrative purpose

Getty Images

By Maha El Dahan, Reuters News

CAIRO - Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), has received offers from 11 suppliers in its first international rice purchase tender of 2018, trade sources said on Monday.

The offers were for Chinese, Indian and Vietnamese rice, but traders did not provide a price breakdown.

GASC was seeking short or medium grain milled white rice of any origin in the tender that closed on Monday, and has asked traders to submit 2 kg samples of their grains for a cooking test.

It is unclear when the tender results will be announced.

(Reporting by Maha El Dahan in Dubai, Writing by Nadine Awadalla; editing by David Evans) ((Nadine.Awadalla@thomsonreuters.com;))

Negros Occidental acquires farm machines, dump trucks

By Erwin Nicavera  November 13, 2018, 3:07 pm

NEW AGRI MACHINES. The transplanter units were purchased by Negros Occidental through the Office of the Provincial Agriculturist and delivered last weekend. These are now housed at the Rice Processing Complex in Bago City.(Photo courtesy of OPA Negros Occidental)

BACOLOD CITY -- The province of Negros Occidental has acquired PHP9.2 million worth of agricultural machinery to boost its farm mechanization program.

Japhet Masculino, head of the Office of the Provincial Agriculturist (OPA), on Monday said the machinery delivered last weekend are now housed at the Rice Processing Complex at Barangay Tabunan in Bago City.

The equipment include two units of 70 horsepower harvester worth PHP4.4 million; three units of ride on transplanter, PHP3.2 million; two units of walk behind transplanter, PHP800,000; and one laser leveler, PHP800,000.

Masculino said the recently-purchased machines are part of the PHP25 million worth of farm mechanization equipment programmed by the province.

The rest include five tractors and three 35 horsepower harvesters amounting to PHP15.8 million, expected to arrive next week.

“(Then) we can now start the province-led focused mechanization program with the arrival of these farm machines,” Masculino said.

The OPA is developing a 200-hectare rice farm in Barangay Taloc, Bago City into a model farm through full mechanization.

Under the focused mechanization program, the province will provide the machinery and operate the farm - from land preparation, transplanting to harvesting.

“We will teach farmers how to operate these machines as we move towards full mechanization. We will have a pool of ready and equipped operators,” he added.

Also last week, the provincial government through the Provincial Engineer’s Office announced its acquisition of 13 units of brand-new dump trucks worth PHP84.964 million to be used for various engineering and construction projects.

Governor Alfredo Marañon Jr. inspected the dump trucks at the Capitol on November 6.

Provincial Engineer Ernie Mapa said they bought nine units of six-wheeler trucks worth PHP6.38 million each and three units of 10-wheeler trucks amounting to PHP8.188 million each.

The province also purchased a PHP2.98-million dump truck to be used for its garbage collection project at the Provincial Capitol. (PNA)

http://www.pna.gov.ph/articles/1053714

Haryana rice millers catch fancy of Chinese importers

Nov 13, 2018, 12:41 AM; last updated: Nov 13, 2018, 2:58 PM (IST)

Punjab at second spot, followed by UP, Andhra and J&K

Illustration: Sandeep Joshi

Vijay C Roy

Tribune News Service

Chandigarh, November 12

Haryana has emerged as the number one choice for China to source non-basmati rice after Beijing opened its trade with India this year by importing 100 tonnes of non-basmati rice recently.

Indian exporters are working towards meeting the export target of another 500 tonnes in immediate future, with a major share coming from the northern state.

Total rice suppliers approved by the Chinese in the northern states are 20, including Haryana, which tops the lot with 12 mills. Punjab is the second largest state in terms of non-basmati exports to China with four mills followed by Uttar Pradesh with two and Delhi and Jammu and Kashmir one each. Other four mills are located in different parts of the country — two in Andhra Pradesh and one each in Maharashtra and Telangana.

Haryana and Punjab mills are instant favourite of the Chinese traders because of their state-of-the-art technology right from processing to storage.

“The northern region, especially Punjab and Haryana, has been a major supplier of basmati internationally. Over the years, these millers have made significant investments in modernising their facilities to meet stringent norms of importing countries. They have, therefore, an edge over other states even in non-basmati exports,” All India Rice Exporters Association president Vijay Setia said.

The Chinese opportunity has come after several years and it will boost exports, he said. Rice mills based in southern parts of the country are exporting non-basmati rice to African countries in large quantities, he added.

Though in 2016 China had agreed to import from 14 Indian rice exporters, the actual exports could not take place due to technical issues, he said.

The first consignment of 100 tonne non-basmati rice was shipped to China from Nagpur in September this year.  Two Indian companies, namely Sukhbir Agro Energy and Pattabhi Agro Foods, have bagged export orders of 600 tonnes of non-basmati rice from China, a government source said.

Protik Guha, executive director, Sukhbir Agro Energy said, “China, the largest producer and importer of rice, buys over 5 million tonnes of the cereal per annum mainly from Vietnam, Thailand and Pakistan due to geopolitical reasons. However, it is shifting focus to India now. Already, we have bagged order and discussions are still on with the buyers.” There is a potential of exporting two million tonnes of rice, he added.

This year, officials from China inspected rice mills that are capable of exporting non-basmati rice to China and 24 rice mills and processing units were registered for export to China.

https://www.tribuneindia.com/news/business/haryana-rice-millers-catch-fancy-of-chinese-importers/681980.html

S. Korea's rice production hits 38-year low on reduced rice paddies

Source: Xinhua| 2018-11-13 16:37:57|Editor: Shi Yinglun

SEOUL, Nov. 13 (Xinhua) -- Rice production in South Korea hit the lowest in 38 years this year on the reduced area for rice paddies and bad weather conditions, a government report showed Tuesday.

The estimated rice output for 2018 was 3,868,000 tons, according to Statistics Korea. It was down 2.6 percent from 3,972,000 tons tallied in 2017, marking the lowest since 1980 when the rice production was 3.55 million tons.

The country's rice output kept falling for the third consecutive year as the area for rice paddies continued to decline.

The size of rice paddies totaled 737,673 hectares nationwide this year, down 2.3 percent from the previous year.

The scorching heatwave in the summer contributed to the reduced rice output, together with the rising moves to use rice paddies for other crops.

Amid the falling rice output, price for the staple grain kept rising. The average wholesale price for rice jumped 29 percent for the past year.

As people's tastes got increasingly Westernized, rice consumption continued to fall. The rice consumption per capital fell 0.2 percent over the year to 61.8 kg in 2017.

https://www.theguardian.com/us-news/2018/nov/13/california-camp-fire-woolsey-latest

Suppliers refuse to meet NFA price as rice auction fails again

November 13, 2018 | 9:37 pm

An accredited National Food Authority outlet in Quezon City. -- PHILIPPINE STAR/MICHAEL VARCAS

THE National Food Authority (NFA) said it rejected the bids of Thailand and Vietnam in the second government-to-government (G2G) auction for 203,000 metric tons (MT) of long grain rice at the 25% broken grade, with bids much higher than the $447.88 per MT reference price.

On Tuesday morning, Thailand initially offered $480.50 per MT for 100,000 MT, while Vietnam offered $483 per MT for 203,000 MT of rice.

The initial offers were rejected, as were second offers by Thailand at the same price and Vietnam at $481.50 per MT.

The 203,000 MT represents the unawarded portion of an initial volume of 250,000 MT bid out in October. The NFA was authorized by its governing NFA Council to import 750,000 MT this year, divided into three equal shipments of 250,000.

The initial volume of 250,000 MT was originally intended to arrive by the end of the year as a means of relieving pressure on food prices and potentially easing the impact of inflation. The refusal of suppliers to meet the NFA price indicates that the G2G sourcing route is failing to provide the volumes needed to stabilize the market, which was disrupted in 2018 when the NFA allowed the depletion of its inventories, which poor consumers and calamity zones rely on.

NFA Administrative Assistant and chairwoman of the agency’s committee on government-to-government (G2G) procurement Maria Mercedes G. Yacapin told reporters: “We want to evaluate (the auction result) and report to the council for necessary direction.”

According to Ms. Yacapin, the reference price set of the NFA is based on the agency’s study of world prices.

“This is based on our study on the trends of the international market. We do our own world market monitoring of prices,” Ms. Yacapin said.

Asked about adjustments to the delivery period of the rice which was originally set for Dec. 15, Ms. Yacapin said: “We will know later, because when we review, we just do not review one thing. We review everything — the price, the delivery schedule.”

Meanwhile, an open tender for the remaining 500,000 MT of rice is scheduled for Nov. 20. — Reicelene Joy N. Ignacio

https://www.bworldonline.com/suppliers-refuse-to-meet-nfa-price-as-rice-auction-fails-again/

Iran Rice Imports Down 4.21% (Mar-Oct 2018)

About 958,000 tons of wholly or semi-milled rice worth $985.4 million were imported into Iran during the first seven months of the current Iranian year (March 21-Oct. 22) to register a 12.54% and 4.21% decline in weight and value respectively compared with the similar period of last year.The latest data were released by the Islamic Republic of Iran Customs Administration.

https://financialtribune.com/articles/business-and-markets/95024/iran-rice-imports-down-421-mar-oct-2018

Rice output drops to lowest level in nearly 40 yrs

2018/11/13 12:00

SEJONG, Nov. 13 (Yonhap) -- South Korea's rice output fell to the lowest level in nearly 40 years in 2018 despite government efforts to tackle the yearslong oversupply of the staple grain, data showed Tuesday.

The country's rice production reached 3.86 million tons this year, down 2.6 percent from 3.97 million tons produced in 2017, according to the data compiled by Statistics Korea.

It marked the smallest amount since 1980 when it hit 3.55 million tons.

A total of 737,673 hectares of rice paddies was cultivated this year, down 2.3 percent from last year.

Bad weather conditions, combined with continued moves to use rice paddies for other crops, helped cut rice output and rice paddies, the statistics office said.

The South Korean government has been pushing to control rice production in order to deal with a chronic glut of the grain as people's tastes become increasingly Westernized.

Per capita rice consumption in South Korea hit a fresh record low last year.The average annual consumption of rice per person fell to 61.8 kilograms last year, down 0.2 percent from the previous year's 61.9 kg, the data showed.

http://english.yonhapnews.co.kr/news/2018/11/13/0200000000AEN20181113003300320.html

Egypt's GASC receives offers from 11 suppliers in rice purchase tender - trade

The offers were for Chinese, Indian and Vietnamese rice, but traders did not provide a price breakdown

Image used for illustrative purpose

Getty Images

By Maha El Dahan, Reuters News

CAIRO - Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), has received offers from 11 suppliers in its first international rice purchase tender of 2018, trade sources said on Monday.

The offers were for Chinese, Indian and Vietnamese rice, but traders did not provide a price breakdown.

GASC was seeking short or medium grain milled white rice of any origin in the tender that closed on Monday, and has asked traders to submit 2 kg samples of their grains for a cooking test.

It is unclear when the tender results will be announced.

(Reporting by Maha El Dahan in Dubai, Writing by Nadine Awadalla; editing by David Evans) ((Nadine.Awadalla@thomsonreuters.com;))

https://www.zawya.com/mena/en/markets/story/Egypts_GASC_receives_offers_from_11_suppliers_in_rice_purchase_tender__trade-TR20181112nC6N1VP00WX2/

California wildfires: statewide death toll rises to 50 as search for remains continues

Hundreds are missing, thousands are displaced, and the danger from fires in the state’s north and south is ‘far from over’

Dani Anguiano in Chico, California, Gabrielle Canon in Los Angeles and agencies

Wed 14 Nov 2018 03.02 GMTFirst published on Wed 14 Nov 2018 01.25 GMT

 Aerial footage shows California fire continues to burn – video

The statewide death toll in California’s wildfires reached 50 late Tuesday, as authorities reported six more fatalities in the Camp fire in the north of the state.The deaths from the Camp fire, the deadliest wildfire in the state’s history, have increased to 48, the Butte County sheriff, Kory Hone, said.

Two people have also died in the Woolsey fire, a major blaze around Los Angeles.

Authorities in northern California have ramped up the search for more victims buried in rubble left by the blaze that incinerated the town of Paradise.

Authorities have brought in cadaver dogs, mobile morgue units, rapid DNA identification units and 100 national guard troops.

More than 200 people remain missing, and local law enforcement plan to release a list of those individuals in the coming days.

Camp fire

Officials said earlier Tuesday that the fire had grown to 195 square miles.

Firefighters report that the fire is 35% contained and NWS meteorologist Aviva Braun said early Tuesday that the high winds that helped spread the blaze have begun to diminish.

Air quality in the area, which has been hazardous in recent days, is expected to worsen as light winds cause smoke to settle, Braun said.

The fire is still actively burning, and more than 5,000 fire personnel are on the scene from across the country. They continue to battle flames including in the area north of Magalia near Stirling City. With increased visibility, planes were able to deliver retardant as crews on the ground worked in steep inaccessible terrain, Cal Fire authorities said.

Fast yielding rice varieties could help reduce greenhouse gas emissions

Paramananda Barman

Bengaluru Nov 12, (Research Matters):

In a recent study conducted by the researchers from ICAR-National Rice Research Institute, Cuttack and their collaborators, researchers have studied the mechanism of methane gas emission by seven varieties of rice grown in  Eastern India. The study was published in the journal Science of The Total Environment.

Greenhouse gases, like methane, trap heat in the atmosphere and contribute to global warming. Methane is considered as the second greatest contributor to human-mediated climate change. Rice, a sustainable food crop, is one of the major culprits releasing methane to the atmosphere. Flooded rice fields are fertile grounds for bacteria that produce methane by degrading organic matter in the soil. The litters of the rice plants and the organic compounds (exudates) released by the roots serve as a major substrate for the production of methane. Besides, the rice plants also transfer methane from the soil to the atmosphere through the capillary pores present in the plant.

The researchers of the current study selected seven rice varieties based on the duration of their life cycle and analysed their methane emission. They measured the rate of methane emission, root exudates released by the plants and the pore spaces in the shoot aerenchyma- the spongy tissue which helps in exchange of gases.

“The rate of methane emission was controlled by the orientation of aerenchyma, root exudation, and biomass production rate which are the key specific traits of a cultivar”, comment the researchers on their main findings.

The researchers infer that these traits are associated with the duration of these cultivars and their adaptability. “The methane emission rates were lowest in the short duration cultivars followed by medium and long duration ones. The average methane emission rate per unit grain yield was also relatively less in short and medium duration cultivars” say the authors.

Significant variations in the methane emission rate among the cultivars proved that suitable selection of varieties might help to address the problem of methane emission.

“There is a possibility to breed rice cultivars depending on ecology, duration and having less methane emission potential, which could be effectively used in greenhouse gas mitigation strategies”, conclude the researchers.

https://researchmatters.in/news/fast-yielding-rice-varieties-could-help-reduce-greenhouse-gas-emissions

White hair and white rice set me free

I love rice. White rice, Jasmine rice, brown rice - not so much wild rice - long grain, short grain...According to Britannica, nearly half of the world population, including just about all of the East and Southeast Asia is completely dependent on rice as a staple. I too am dependent on the swamp grass seed.

I love rice so much that I enjoy it plain. That’s right: Bare-naked, without a stich of flavor. I used to worry about the high carbohydrate source of fuel because everybody was telling me how it (along with every other food that’s white) is bad for me. Even my daughter who lives in LA shakes her head when I mention the non-essential carbohydrate. “Oh,” she says. “If I ate that I couldn’t eat another carb all day.” Well, my dear child, I’m so unhappy for you.

Then I did some research. According to ScienceAid.com, rice helps prevent cancer and Alzheimer’s disease (to a degree). I don’t know how much evidence proves this statement but it sounds good to me. I also learned about the MIND diet. Developed in 2015, by Chicago-based Rush University Medical Center researchers, the diet recommends three servings daily of whole grains such as faro or brown rice. Well, there ya go. Sushi, my old friend, I’m back. Purlieu, we are once again united in boggy bliss.

Now that I am free to indulge in my favorite worldwide staple I focused on another “white” issue: My hair. A while back I confessed I had a problem with coloring my hair. Every month I wasted precious time touching up those dark roots. I won’t try to calculate how much I must have spent doing so because I don’t recall ever seeing the real color of my hair since high school, which feels like a millennia ago.

Then one day, my hair stylist(s) Mandy, Patricia and Candy convinced me that everything would be ok if I grew it out. I have to say it was an extremely emotional period in my life. I thought I was going to need an emotional support animal to get me through. Maybe a peacock since my vanity was about as immense as the red color I was about to shed.

Last week Patricia whacked off the last bit of faded dye freeing me to focus on my next challenge. And that will certainly be a challenge because it is from the dark side, as in Dove dark chocolate.

Your feedback is always welcome. Readers are encouraged to email us at news@kingstreenews.com or write with your feedback, ideas, or questions.

Futures market for rice not a good move, says Nuffield scholar

JAMES WAGSTAFF, The Weekly Times

November 13, 2018 6:00pm

A FUTURES market will be of no benefit to Australia’s rice industry, according to southern NSW farmer Drew Braithwaite.

In his recently released Nuffield scholarship report titled “Adding value to a commodity like rice,” Drew — a third-generation farmer from Benerambah near Griffith — said a “futures market for rice or medium grain rice is not in the best interests of the Australian rice industry in its current form” given single-desk operator SunRice’s “time in the market, the reputation and the relationship that they have built globally and domestically”.

“A single referenced price would make it harder for SunRice to extract price premiums and trade rice globally,” Drew said. “A futures market has the potential to commoditise rice and is no value to the small and niche nature of the Australian rice industry. A rice futures market is not justified or required to secure local supply; a higher rice price would achieve this result.”

.

Drew said the increased price would ensure both water and land resources were used for rice production.

“The rice industry should watch the evolution of these markets, with a brief to ensure that a futures market does not erode the competitive advantage of relationships that SunRice has developed, nurtured and maintained,” Drew said.

“The aim should be to stay in the niche market segments where the selling point is not the price but the product offering.”

FAMILY MATTERS

DREW is part of a farming operation growing rice, wheat, canola and seed crops on about 1100ha.

He said there had been a number of changes to the rice industry in recent decades including drought, water policy reforms, water market developments, asset growth and the arrival of new crops to the area — including cotton — which had put pressure on land and water resources.

It meant growers needed to achieve higher returns from their crops in order to remain profitable and relevant.

Drew said the topic of his study came from the many conversations growers had at planting time, centred on this management decision: “Does a farmer plant cotton and lock in prices at sowing time, or plant rice and not know the price until the pool has closed in 18 months’ time?”.

“It is possible to forward sell other crops through well-established and liquid futures markets, however with rice there is no opportunity to forward price grain,” Drew said.

During his study Drew travelled to Ireland, the UK, France, Singapore, Indonesia, Japan, Israel, the Netherlands, the US and New Zealand.

BRAND STAND

DREW said brand value, and unlocking its potential for growers, was possible provided there was good management.

He said this could be achieved in many forms — rice paddy price, dividends and share price value — depending on the objectives of the business. “The real success of a brand is the price premium that can be achieved over and above a baseline price,” he said.

He said futures markets were a tool to help trade and minimise risk. “They are not a tool for profit,” he said. “The real money is in owning the customer and having space in the subconscious mind of the consumer.”

He said the rice industry should continue to maintain and revitalise brands in existing and developing markets by following consumer trends and continuing to develop and innovate new rice products.

“Creating new customers in new and emerging market segments will be critical,” he said. “To maintain continuity of supply to these markets, back-to-back long-term contracts in some of the speciality markets should be employed to reduce risk to all parties. This should be the focus, as it has been in recent times.”

POOL SIDE

DREW said the objective for the rice industry should be to increase pool returns through value-added branded rice products.

He added that participation should be to ensure growers remain in the pool.

“There should be incentives and bonuses paid for constant supply into the pool; this is beneficial for both the producer and SunRice,” he said.

“This could be in the form of premiums paid related to the volume delivered over a three-year period. This will encourage a more constant supply and avoid the peaks and troughs the industry has experienced over the last decade.”

https://www.weeklytimesnow.com.au/agribusiness/on-farm/futures-market-for-rice-not-a-good-move-says-nuffield-scholar/news-story/a04d296dfc93d0ece0e0f57b9963211e

https://researchmatters.in/news/fast-yielding-rice-varieties-could-help-reduce-greenhouse-gas-emissions

https://www.phnompenhpost.com/business/rdb-seeks-govt-loans-amid-rice-harvesting