Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

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Producers want premium price for California crop
Rice producers alarmed by this year's dismal estimates for payments say it's time for California rice growers to start demanding a premium for California-grown rice. Faced with low-market returns with this year's record California crop, some say it's unfair the way rice marketers lump California rice with rice grown throughout the world. A group of committee members who have revived a group called Rice Producers of California believe now is the time for rice producers to find new ways to market rice rather than relying on private "pool" companies. Rice growers have several options for selling their rice. Some belong to marketing cooperatives. Cooperatives take the rice from member growers, sell it, then divide the income among growers, minus overhead costs

Private rice marketers usually join pools. This is a collection of rice from many different growers. Some growers see an advantage because they don't have to market the rice themselves. But payments are made over 12-15 months and the grower has to take the average price of the collective harvest. Growers aren't told the exact prices for which the various sales were made.

Another way to market rice is to do it directly with the buyer. Larger rice growers will build connections in the industry and many do well. Smaller growers might have limited experience and with marketing.

Greg Massa of the newly restructured Rice Producers of California said the practice of private pooling of rice is leaving California rice growers with prices below the cost of production.

He cited a recent study by the Institute for Agriculture and Trade Policy, a Minnesota think tank. The report looked at government data and determined U.S. companies regularly undersell most exported commodities including rice, wheat, corn, soybeans and cotton. [The report is posted on www.iatp.org.]

For rice in particular, prices have been up to 35 percent below farmers' production costs in the past five years, Massa said.

This year looks bleak as well. This month a large shipment to Japan was purchased for 38 percent below cost, Massa said.

That sale was for 39,000 metric tons of milled rice. The price was $310 per ton, when farmers' costs were $530 per ton, Massa said.

"They are obligated by World Trade Organization trade agreements to buy our rice, which means we should be charging them market price," Massa said. "Why are we subsidizing the Japanese government?" Nathan Childs, agricultural economist with the Economic Research Service of the United States Department of Agriculture in Washington D.C., disagrees that is subsidizing exports, because those same world prices also apply to domestic purchases.

"Most studies show you the effect of farm programs in the United States is to help consumers. If it calls for more production it will have the effect of lower prices," Childs said.

Massa contends California rice, which is predominantly medium grain Calrose, also known as japonica, should fetch a premium because it is higher quality than that grown in other parts of the world.

Mark Kimmelshue, president of Associated Rice Marketing Cooperative in Durham, said growers demanding prices that match production costs is one idea, but an overwhelming number of growers would need to take part. Limited world markets
MGR Archive 8.3.2005
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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