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Maizefarmer

Status Of Thai Rice Industry

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Another snippet from The Nation.

Thailand will shoulder huge losses when the import tariff for rice traded among Asean members is reduced to zero, due to the wide price gap between Thai rice and that grown in other countries, experts have warned.

A zero tariff will also cause major trouble in terms of cheaper rice being imported from neighbouring countries and finding its way into the Thai pledging system, as Thailand is the only nation in Asean that has a rice price-intervention programme to guarantee high prices for the country's farmers.

Charoen Laothamatas, vice president of the Thai Rice Exporters Association, said the government should reconsider the decision to cut the import tariff for rice under the Asean Free Trade Agreement (Afta) to zero.

Asean members, with the exception of Indonesia, Malaysia and the Philippines, have agreed to bring the tariff down to zero next year.

"A big difference in the export price and production costs between Thai and other countries' rice growers would not only cause a 'circumvention' problem for the rice-pledging scheme, but also hit Thai farmers as Thai consumers may turn to other sources of rice if they find lower retail prices," he said.

Charoen said exporters had always been against the idea of including rice in the normal Afta tariff-reduction programme because Thailand has a subsidy programme.

The association will soon meet with the Foreign Trade Department to discuss ways to avoid these expected problems.

The government must have a measure to prevent rice flooding into the Kingdom as it is a sensitive product for the country, involving more than 14 million farming households, he said.

Suggestions include special safeguard measures against imports.

Charoen said that rice from Laos, Burma, Cambodia and Vietnam would flood into the country as their production costs are much lower than those of Thai farmers, while the guaranteed price for Thai rice is very high.

The production cost for Thai rice is about Bt7,000 per tonne, but for other countries it is only Bt3,000-Bt4,000.

If the government failed to introduce efficient measures to prevent advantage being taken of the pledging scheme, it would face a huge burden in having to purchase rice from other countries into the scheme, said Charoen.

He added that it was very difficult to prove whether rice was from Thai farmers or those in neighbouring countries.

The government is already facing maize 'circumvention' from neighbouring countries because of the high guaranteed price in the pledging scheme.

The zero tariff for rice would be effective for 11 types, including paddy rice, brown rice, Thai jasmine rice, polished rice and partly polished rice, sticky rice, husk rice and parboiled rice.

Chutima Bunyaphrasara, director-general of the Trade Negotiations Department, said the government would join hands with the private sector to prevent circumvention from other Asean members.

The government plans to launch automatic licensing to screen imported rice in terms of where it has come from and what it will be used for.

In addition, importers will be required to register with the authorities in order to protect the country against illegal imports.

Regards

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My wife just sold some Mali Horm rice today. She got 12 baht per kilo. She has two ten rai mini farms and has rice in less than half of that twenty rai. There is some profit there but no way could she make a living from it. Her mother and father's farm is also ten rai. Most old family plots were ten rai total. No way is that enough land for a family to survive growing rice.

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My wife just sold some Mali Horm rice today. She got 12 baht per kilo. She has two ten rai mini farms and has rice in less than half of that twenty rai. There is some profit there but no way could she make a living from it. Her mother and father's farm is also ten rai. Most old family plots were ten rai total. No way is that enough land for a family to survive growing rice.

It all boils down to the scale of economies, In Oz ,95% of all rice grown is sold through the Rice growers Association and growers receive 44% of the retail price of the rice .

Late last year growers were receiving A320 $ per tonne or 7000 baht and it is regarded as a pretty good return. And yet Thailand states that cost of production alone is 7000 baht per tonne for local growers.

Australian production is fully mechanised ,from arial sowing to mechanical harvesting and handling.

The difference is that Oz producers use best farm practises and farm sizes are extremely large compared to Thai .

Oz also enjoy some of the highest yields in the world.(subject to water availability)

Australian farms almost always plant a second crop almost immediately after harvest to utilise the moisture still available in the paddy, these can be sorghum,lucerne or beans which gives added income and after harvesting are ploughed in to add nitrogen and aid soil structure.

Failure to fully utilise their land is one of the major failings of the average Thai farmer. Even in areas where water is not readily available, a water storage dam or pond big enough to allow a second rice planting would more than double the farmers income as warm/hot seasons growing give historically higher yields than wet season crops.

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My wife just sold some Mali Horm rice today. She got 12 baht per kilo. She has two ten rai mini farms and has rice in less than half of that twenty rai. There is some profit there but no way could she make a living from it. Her mother and father's farm is also ten rai. Most old family plots were ten rai total. No way is that enough land for a family to survive growing rice.

It all boils down to the scale of economies, In Oz ,95% of all rice grown is sold through the Rice growers Association and growers receive 44% of the retail price of the rice .

Late last year growers were receiving A320 $ per tonne or 7000 baht and it is regarded as a pretty good return. And yet Thailand states that cost of production alone is 7000 baht per tonne for local growers.

Australian production is fully mechanised ,from arial sowing to mechanical harvesting and handling.

The difference is that Oz producers use best farm practises and farm sizes are extremely large compared to Thai .

Oz also enjoy some of the highest yields in the world.(subject to water availability)

Australian farms almost always plant a second crop almost immediately after harvest to utilise the moisture still available in the paddy, these can be sorghum,lucerne or beans which gives added income and after harvesting are ploughed in to add nitrogen and aid soil structure.

Failure to fully utilise their land is one of the major failings of the average Thai farmer. Even in areas where water is not readily available, a water storage dam or pond big enough to allow a second rice planting would more than double the farmers income as warm/hot seasons growing give historically higher yields than wet season crops.

Bang on ... the exact same problems are evident in the dairy industry - high prduction costs, small farms, low yields and poor logistics ... and so this problem stretches across thw whole Thai agricultural business.

Edited by Maizefarmer

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Anybody know why Japan has banned Thai rice imports?

Do you have a link to this story Lickey First I've heard of the ban you mention, the Family no nothing either.

How much Rice did they use to take?

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Perhaps someone in the forum has an answer to this question:

I have a friend that is looking to purchase 12,500 metric tons of rice CIF Nigeria.

What is the best way to get a supplier to quote a price for this in Thailand?

Do I need to go directly to the mills, or to an exporter?

Any suggestions on who is reliable and cost effective?

Cheers,

E.

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I've been talking to farmers here in Myanmar recently to find out what is going on. Most appear to be in serious trouble financially and the vast majority have failed to grow a second crop this season (Jan - Apr). The price of rice in the local market is very low, input costs such as fertiliser, labour etc have changed little (all controlled) with the exception of diesel which has of course plummeted. I understand from some of the buyers/traders of milled rice that they're finding it very difficult to get export orders and those that they do get realise little if any profit. Most of the rice exported from here is pretty poor quality I'm told and most ends up in Africa. Something has to give, the system they have appears to be broken with parts of it being controlled but the final price is not.

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Perhaps someone in the forum has an answer to this question:

I have a friend that is looking to purchase 12,500 metric tons of rice CIF Nigeria.

What is the best way to get a supplier to quote a price for this in Thailand?

Do I need to go directly to the mills, or to an exporter?

Any suggestions on who is reliable and cost effective?

Cheers,

E.

What quality of rice does your friend want ?

Does he want rice from Thailand ?

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Anybody know why Japan has banned Thai rice imports?

Do you have a link to this story Lickey First I've heard of the ban you mention, the Family no nothing either.

How much Rice did they use to take?

I can find nothing about this. This is a good site for rice news:-

http://www.riceexporters.or.th/Rice_news_eng.htm

I think Japan was expected to take 220,000 tonnes ? Historically, they have had 500,000.

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Anybody know why Japan has banned Thai rice imports?

Do you have a link to this story Lickey First I've heard of the ban you mention, the Family no nothing either.

How much Rice did they use to take?

I can find nothing about this. This is a good site for rice news:-

http://www.riceexporters.or.th/Rice_news_eng.htm

I think Japan was expected to take 220,000 tonnes ? Historically, they have had 500,000.

Thanks for that its a good site, 220,000 tonnes that a lot a Rai that is.

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Lickey,

I could be wrong,but my understanding is that Japan has never exported rice.This is a historical thing from one of their old kings.

Things may have changed however,but as I understand it from a friend who used to work high up in a Japanese bank in the Uk, this was the story.

I wait to be corrected however.

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Lickey,

I could be wrong,but my understanding is that Japan has never exported rice.This is a historical thing from one of their old kings.

Things may have changed however,but as I understand it from a friend who used to work high up in a Japanese bank in the Uk, this was the story.

I wait to be corrected however.

Excuse me please , correction , the post says 'Banned IMPORTS '

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Lickey,

I could be wrong,but my understanding is that Japan has never exported rice.This is a historical thing from one of their old kings.

Things may have changed however,but as I understand it from a friend who used to work high up in a Japanese bank in the Uk, this was the story.

I wait to be corrected however.

Excuse me please , correction , the post says 'Banned IMPORTS '

sorry so it does....must clean my glasses....however, may well still be the same in reverse.

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