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November 14 ,2018

Vol 9 ,Issue 11

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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."

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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 % Season Modal Prev. Prev.Yr


change cumulative Modal %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

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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 -

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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

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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.

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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.

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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.

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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

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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.

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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

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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

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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

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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

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‘

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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

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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

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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

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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

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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?‖.

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―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

20 | w w w . r i c e p l u s m a g a z i n e . b l o g s p o t . c o m ,
mujahid.riceplus@gmail.com