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In This Issue:
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Market Update: Colombia Consumes 95 Pounds Per Capita
- South Louisiana Rail Facility Continues Shipping
- USRPA Wraps Up Successful USDA Trade Mission to Panama
- Washington, D.C. Update
- USRPA Promotes U.S. Rice in Guatemala
- RMTC 2023 - Early Bird Price Extended
- Photos from Rice Country
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Market Update: Colombia Consumes 95 Pounds Per Capita | |
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Similar to last week, planting is underway in Louisiana, while most other states eagerly await better weather and ideal timing. Arkansas is just around the corner from getting in the field, but cold and wet weather is pushing start dates out a bit. This is exactly the case for California as well, where despite expectations for 100% water allocations, now many are worried they won’t be able to plant because of too much water. The storms keep coming and the forecast isn’t letting up. Not having decent drying weather for the fields will push out fieldwork, which will likely cause some prevented planting to occur. This is welcome news for the folks who were able to contract medium grain rice in the south several weeks ago, as the actual California acreage keeps whipsawing back and forth.
A recent USDA GAIN report on Colombia, which is a key trade partner for the U.S. because of the U.S.-Colombia Trade Promotion Agreement, was published this week. Colombia has an average per capita consumption rate of approximately 95 pounds, which is higher than several other South and Central American countries. Given that all other trade agreements have or are expiring and resulting in a drop-off of exports, Colombia provides a steady stream of business and is extremely important to the market matrix, as the TRQ for U.S. rice for 2023 is 128,205 metric tons. Over the last six marketing years, this means that the U.S. has been responsible for about 35% of Colombia’s imports each year. Compare that to Mexico, where only a few years ago the U.S. enjoyed nearly 100% market share and now struggles to maintain levels that exceed 50% market share.
Domestic production in Colombia is expected to increase, due in part to the implementation of better agronomic practices through a technology transfer program called AMTEC. This program provides information to increase productivity and reduce production costs. Domestic rice prices have also been on the rise in Colombia, incentivizing more production. In January 2022, paddy was priced at $327 pmt. One year later in Jan 2023, paddy increased 28% up to $418 pmt. Production is expected to increase just under 4% this year, up to 1.36 million acres.
Moving to Asia, prices rebounded a bit in Thailand, bouncing back to $460 pmt where it was two weeks ago after dropping to $450pmt last week. Vietnam, likewise, is at $460 pmt after a jump this week. Pakistan rice is quoted just below $450 pmt, achieving relative parity for the first time in several months. This firming can be attributed to steady business and currency fluctuations, namely the strengthening of the Thai Baht.
And not to beat a dead horse, but the weekly USDA Export Sales report was ugly once again. There was a spike two weeks ago, but we are back down to net sales of only 14,900 MT, down 42% from the previous week and 73% from the prior four-week average. Exports of 14,300 MT were up 37% from the previous week, but down 76% from the prior four-week average.
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South Louisiana Rail Facility Continues Shipping | |
South Louisiana Rail Facility (SLRF) continues shipping U.S. Rice by vessel to Columbia tenders in an SLRF / Agreeta partnership. | |
Vessel loading for Colombia. | |
Paddy rice being loaded on barges headed to Colombia. | |
New mill going through final tests. | |
USRPA Wraps Up Successful USDA Trade Mission to Panama City | |
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Chief Operating Officer Mollie Buckler and USRPA consultant Stuart Hoetger represented US Rice Producers Association on the USDA Agribusiness Trade Mission to Panama City, Panama this week. The delegation, which included 26 agribusiness and farm organizations and two state departments of agriculture, was led by USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor.
The trip itinerary included tours of local retail stores, a distribution center, the opportunity to see retail promotions featuring U.S. products, and meetings with industry members from the region. In addition to Panama, representatives from the Dominican Republic, Costa Rica, Nicaragua, El Salvador, Guatemala, and Honduras attended trade mission activities.
Over the last 10 years, the U.S. has exported an average of 46,000 MT to Panama annually, and approximately 65,000 MT in the 2022 calendar year.
“This trade mission was an excellent opportunity to connect with Central American rice importers and USDA-FAS colleagues from CAFTA-DR member countries,” Buckler said. “The market for U.S. rice is changing dramatically in this region, and it’s extremely important for USRPA to have boots on the ground as often as possible. We’re proud to have been able to represent the U.S. rice farmer in this capacity this week.”
Read the USDA’s Press Release about the Trade Mission here.
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Mollie Buckler and Stuart Hoetger with USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor and Arlene Villalaz, Agricultural Specialist, FAS-Panama City | |
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Touring Dicarina, one of the top distribution companies in Panama
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No trip to Panama City is complete without a trip to the Panama Canal! | |
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Senate EPW Committee Holds Hearing on EPA Budget Request
On Wednesday, the Senate Committee on Environment and Public Works held a hearing on the President’s Fiscal Year 2024 Budget Request for the Environmental Protection Agency (EPA). Senators questioned EPA Administrator Michael Regan about policy and funding priorities at the Agency, including regulation of waters of the United States (WOTUS). Administrator Regan acknowledged the Agency’s rule will be impacted by the Supreme Court’s ruling in Sackett v. EPA but reaffirmed that the Agency was operating within its authority in issuing the rule. A recording of the hearing can be found here.
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USRPA Promotes U.S. Rice in Guatemala | |
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As part of USRPA's international program to promote U.S. rice around the world, USA Arroz visited Escuela Oficial Urbana Mixta No. 810 Jornada Matutina Zona 1 in Santa Catarina Pinula in Guatemala. They gave a demonstration about how to cook U.S. rice and prepared rice to serve the students.
Santa Catarina Pinula is a town with a population of 70,982 and a municipality in the Guatemala Department of Guatemala, which includes Guatemala City and its suburbs.
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RMTC 2023 - Early Bird Price Extended | |
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"Hard Rock Hotel Vallarta is a luxury hotel
and resort that lights up your senses. "
Don't miss out! Register today by clicking on the link below.
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Jordan Bradshaw age 11, helping his dad, Independent Consultant Gary Bradshaw during spring break. Jordan is in the field of Horizon AG PVL03 near El Campo, Texas. Great job, Jordan!
Send us your rice country photos on Facebook, Instagram, or via email!
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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
Grain: World Markets and Trade | | |
Mexico: Grain & Feed Annual
Lower than expected planting intentions data accounts for slightly lower rice and wheat production forecasts.
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Japan: Grain & Feed Annual
FAS/Tokyo projects flat rice consumption in MY2022/23 due to strong demand for feed rice offsetting lower table rice demand but forecasts a decrease in MY2023/24 consumption as feed rice production declines.
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World Rice Market Report- n°228
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2023 Rice
Management Guide
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FAO Rice Price Update March 2023
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April 11, 2023
2023 South Texas Agriculture Symposium
Bay City, TX
More Information
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May 30 - June 1, 2023
2023 Rice Market & Technology Convention
Puerto Vallarta, Mexico
More Information
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender identity, sexual orientation, religion, age, disability, political beliefs, or marital/family status. Persons who require alternative means for communication of information (such as Braille, large print, sign language interpreter or translation) should contact USRPA at 713-974-7423. |
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