Creed Rice Market Report - April 27, 2011

20110427 Creed Rice Market Report.

Special Report: Thai Rice Exports Part 1&2

Part 1

Santibhap Ussavasodhi
National News Bureau of Thailand
25 April 2011

Rice is one of the major export goods of Thailand. However, concerns over Thai rice exports have been ignited upon the upcoming formation of the ASEAN Economic Community (AEC) in 2015 as Thailand might lose rice market, at least in the ASEAN region to its fellow ASEAN friend, Vietnam.

Center for International Trade Studies (CITS) Director Dr Aat Pisanwanich from the University of the Thai Chamber of Commerce reported the studies on impacts of the AEC formation to the Thai rice market. He elaborated that Vietnam, which is the major rival of Thailand in rice exports, has the chance to take Thailand’s place as top rice exporter to the ASEAN markets if export tariff is cut to 0% in the AEC formation in 2015. He also pointed out that Thailand will be at risk of losing market shares, notably in the Philippines and Malaysia, which are important export targets of Thailand.

Dr Aat indicated that Vietnam will be able to dominate the rice market in ASEAN since qualities of Thai and Vietnamese rice are not much different while Vietnamese rice is cheaper than Thai rice by about 125 US dollars per ton. Taking into account the Vietnamese dong devaluation, he said Vietnamese rice becomes even cheaper than Thai rice. Thailand hence might also lose market shares in Africa in the future.

The director suggested that Thailand should publicize and promote Thai rice, especially premium grades, in upper markets by focusing higher quality of Thai rice among consumers. He also advised that Thailand should set up a panel to study pros and cons of Thai rice upon the AEC formation within three years from now in order to maintain its market share in the global market in general.

In preparation for the AEC, the public sector should urgently educate Thai farmers about the AEC via regional networks, universities and farmer communities since production efficiency should be improved and farmers should have more time to adjust to market demands. Whether Thailand will continue to maintain its grip in the global rice business under the coming integration of ASEAN markets, find out in the second part of this special report to follow, for other problems associated with Thai rice exports and the AEC.

Part 2

Sarun Saelee
National News Bureau of Thailand
25 April 2011

The planned formation of the ASEAN Economic Community (AEC) in 2015 has sparked growing concern among local traders that Thai rice exports will lose market shares to Vietnam. The private sector is, therefore, proposing solutions such as importing rice from neighbors similarly to what Vietnam is doing.

Thai Rice Exports Association Honorary President Chukiat Opaswong admitted that at present Vietnam has been exporting larger quantities of rice and is trying to turn itself into the rice-trading hub of Indo-China and ASEAN region after 2015 when the AEC is established. He pointed out that Vietnam could export more rice as it has been importing rice from neighbours, notably Cambodia which is selling rice surplus from domestic consumption; thereby, Vietnam can keep rice prices cheaper than Thai rice thanks to the larger quantities.

Mr Chukiat suggested that Thailand should adapt itself by using credibility in rice exports and importing more rice to make the country the regional and global hub for rice trade; however, he noted that free trade zoning should be set up to prevent negative impacts on local farmers and mixture of foreign and Thai rice. He cautioned that Thailand might lose the status of being the champion of global rice traders upon failure to take any appropriate action.

Meanwhile, the Ministry of Commerce clarified that Thailand is actually importing rice from neighboring countries under the ASEAN Free Trade Agreement (AFTA); however, only imports of broken milled rice are allowed for industrial production such as noodles and flour, not for direct consumption due to fear for crop mixing problem. In addition, the imports can be approved only at six border checkpoints with adequate inspection to prevent low quality rice and genetically modified rice from mixing with premium rice in Thailand.

Instead of worrying about losing market shares to Vietnam, the Minister suggested that related sides should have paid greater attention to the real objective of the AEC which is to enhance economic cooperation. Hence, it will indeed be better if Thailand and Vietnam cooperate and use the AEC for mutual benefits and turning ASEAN as a whole to be the global hub for rice trade.

VOA: Rising Food Prices Pinch the Poor, a Boon to Farmers

By Chun Sakada
VOA Khmer | Phnom Penh
Friday, 22 April 2011

Rising prices for food and other necessities have cut into the daily lives of many poor Cambodians, even though some farmers say there are benefitting. Prices for beef, pork, fish and vegetables have continued to climb, pinching budgets of many who have seen little adjustment to their earnings.

Peter Brimble, a senior economist for the Asian Development Bank in Cambodia, said that rising food prices are a threat to Cambodia’s goals for poverty reduction, with the poorest spending large percentages of their incomes on food.

However, he said, Cambodia remains a net food exporter, especially with rice, making it somewhat less vulnerable.

Still, a spike in prices has been felt by Cambodians of many walks of life.

Khan Touch, a 36-year-old garment factory worker, told VOA Khmer this week she earns about $90 a month, with overtime, but bills for rent, $35, and utilities, $15, leave little left for food.

“Before, if I had 5,000 riel [$1.25], I could buy enough food for one meal,” she said. “Now if I have 5,000 riel, I can’t.”

Primary school teacher Ma Lay, 48, said her monthly salary of $70 does little in the face of rising prices.

“I can’t buy quality rice to eat,” she said. A third of a kilogram of fish now costs what half a kilogram costs not long ago, she said. Pork prices have doubled.

“My salary has not increased,” she said. “But rising food prices continue.”

Along with food prices, fuel prices are a growing concern for tuk-tuk driver Ha Sa An, 36. Over the past six months, he said, his daily take home has dropped from $7.50 to $2.50.

“The government should think of this problem,” he said.

Minister of Economy Keat Chhon said recently that food prices have become a general concern worldwide. But the rising prices of rice, soybeans and other agricultural goods have been a boon to farmers, he said.

He said the high value of the Cambodian riel has offered a buffer for state and private workers in preventing even high costs.

Var Khan, a 62-year-old cassava farmer in Banteay Meanchey province, said the price of his produce has gone from $0.06 per kilogram to $0.10 per kilogram in the last five months.

“I can earn nearly $3,000 on one hectare of cassava plantation,” he said. “I am very happy for the high price of cassava.”

Chan Sophal, president of the Cambodian Economic Association, said high prices for cassava, corn, soybeans and rice have all helped farmers, even if it hurts consumers.

Farmers that can earn more from their goods are able to save money, expand their production and look for more markets, either locally or for export, he said.

Related News

- Growing Economy at a ‘Crossroads’: ADB / Chun Sakada / VOA Khmer / Apr 6, 2011

- Cambodia Struggling With Paddy Rice Flight / Pich Samnang / VOA Khmer / Jan 31, 2011

- Ministers Approve Regulation for Contract Farming / Chun Sakada / VOA Khmer / Feb 14, 2011

- Rice Experts See Better Prospects in New Seeds / Pich Samnang / VOA Khmer / Feb 27, 2011

Creed Rice Market Report - April 20, 2011

20110420 Creed Rice Market Report.

Xinhua: Cambodia needs 350 mln USD to achieve its rice export target by 2015

THURSDAY, 31 MARCH 2011 09:04

PHNOM PENH, March 30 (Xinhua) -- Cambodia needs 350 million U.S. dollars to boost rice paddy production and rice exports to hit one million-ton a year from 2015, said a senior finance official on Wednesday.

Of the amount, 200 million U.S. dollars will be used to purchase rice paddy from farmers for processing and 150 million U. S. dollars for building hi-tech post harvest technology, Hang Chuon Naron, secretary of state for the Finance Ministry, told reporters after a seminar on environment, agriculture and development.

"Currently, the country's high-tech rice mills are capable to process only 200,000 tons of rice per year, so to meet the target of exporting 1 million tons a year by 2015, it needs to invest other five times, or around 150 million U.S. dollars, in building sophisticated rice mills," he said.

"So far, we have mobilized about 50 million U.S. dollars from banks and development partners for this task," he said.

The country, in August last year, set up a rice paddy production and rice export policy aiming to increase rice exports in Cambodia to one million tons a year from 2015.

Hang Chuon Naron said that the target markets that Cambodia focusing on are the Europe and China.

Chan Sarun, minister of agriculture, forests and fisheries, said in the seminar that in order to meet the need in foreign markets, the ministry has actively advised farmers to grow ten types of rice seeds that are popular among foreign countries.

"Now the issue that we need to give more attention to is sanitary and phyto-sanitary in order to adapt to international agreements in protecting interests of our trade partner countries," he told the seminar with 150 participants, who are government officials from the ministries of agriculture, commerce, finance, environment, industry, and rice exporters, millers, bankers as well as development partners.

Cambodia produced 8.25 million tons of rice paddy in the harvest season 2010-2011. Of this figure, the country has 3.9 million tons of rice paddies, or 2.5 million tons of milled rice left over for exports this year, said Chan Sarun.

WSWS: Fears of a looming Philippine rice crisis

By Joseph Santolan
WSWS.org
15 April 2011

The possibility of a serious rice shortage has dominated the Philippine press this past week. On April 12, the Philippine Daily Inquirer ran a banner headline that President Aquino had been warned of a rice crisis in a confidential report issued by the National Intelligence Coordination Agency (NICA) in late February. The report, which was leaked to the press, warned of possible food riots, concluding that “the danger of a food crisis in this country is reaching the point that it has now become an issue of national security.”

President Aquino first responded to the article by claiming that fears of a food shortage were unfounded and that the Philippines would have an adequate supply of rice for the coming year. A day later, he announced that the NICA report upon which the article was based was a fraud. The head of the Department of Agriculture held a press conference in which he stated that NICA had never issued such a report to the president and that a conspiracy of rice merchants had produced the phony report in a bid to raise market prices.

The Aquino administration’s disavowal of the NICA report and their allegations of a shadowy cabal of rice merchants engaged in a disinformation campaign do not hold up to scrutiny. Aquino publicly acknowledged receipt of the report in a press conference in late February. The data given in the report as published by the Inquirer were accurate; the conclusions were measured and reasonable. The report warned that a shortage would benefit “a rice cartel that continues to operate in the country.” It advocated that the National Food Authority (NFA) submit a “detailed report on rice availability” and take measures to ensure supply. These conclusions would hardly benefit a conspiracy of rice merchants.

More telling, the unnamed rice merchants that Aquino claims are manipulating the press and the Philippine public, are precisely the beneficiaries of his campaign of privatization. They are the capitalists which he claimed would handle the importation, purchase and sale of rice more efficiently than government. He slashed the NFA budget so these merchant would be unobstructed in their pursuit of profit.
The furor over the possibility of a rice crisis and the Aquino administration’s dismissal of the allegedly fraudulent NICA report reveals the precarious position in which Aquino’s policy of privatization has left the Philippine rice supply.

The National Food Authority was the Philippine government agency responsible for the purchase of a portion of the annual rice harvest from local farmers at subsidized prices, the importation of rice to ensure an adequate supply, the sale of rice at reduced prices for poor families, and maintenance of a stockpile of rice to be used in the event of a shortage. Aquino reduced the budget of the NFA last year to zero, effectively eliminating all of these functions. The rice stockpile was halved from a 30-day supply to 15. The importation of rice was tendered out to private merchants. The subsidized purchase and sale of rice was drastically reduced.

On entering office, Aquino was under sharp pressure from the World Bank and the IMF to slash government spending and to service the national debt. The NFA budget was one of the first items that he targeted. The World Bank quarterly report on the Philippines released on April 8, entitled “Robust Growth, Stubborn Poverty,” singled out the NFA cuts as a positive example of “priority and efficient spending” which “significantly slowed down total public spending.”

The World Bank report praised the Aquino administration’s use of targeted cash dole-outs to poor families to replace the functions of the NFA. This program, dubbed by the Aquino administration Conditional Cash Transfer (CCT), gives 1,000 pesos ($US23) a month to poor families to supplement their income provided they meet certain requirements such as enrolling their children in school. These limited hand outs, even assuming they reach the poor families for which they are intended, cannot replace the infrastructure and programs that the Aquino administration has slashed.

The Food and Nutrition Research Institute of the Department of Science and Technology (FNRI-DOST) released the findings of its Seventh National Nutrition Survey in February, 2011. They found that more than 50 percent of Philippine children ages 0-5 are malnourished. A Social Weather Stations (SWS) survey released on April 8 showed that 20.5 percent of Filipinos reported that they had experienced involuntary hunger in the past three months. This figure has gone up from 18.1 percent since the last survey results in November 2010. The number of hungry Filipinos is growing.

When confronted with this data, Aquino responded with disbelief, dismissing the survey results. He claimed in the Philippine press that the statistical sample used “did not capture those helped by CCT.” Aquino’s dismissal indicates clearly that he is conceding that there is a poor section of the population which is hungry and unaided by the CCT program. But SWS conducts rigorous, nationwide surveys. This is not an error in statistical sampling. Hunger is mounting in the wake of Aquino’s campaign of privatization and budget cuts.

The Philippines has long been the world’s largest importer of rice. Claiming that he was aiming at making the Philippines self-sufficient in rice production, Aquino ordered the dramatic reduction in imported rice for 2011. From 2.3 million metric tons in 2010, Philippine rice imports have dropped to 200,000 metric tons so far in 2011.

Aquino and the Department of Agriculture are projecting a bumper crop of rice this year in the Philippines. The head of the Department of Agriculture, Proceso Alcala, forecast a growth of 1 million tonnes in the dry season harvest this year. But there are several problems with these claims.

First, Alcala is only examining the data from the northern island of Luzon where conditions have been favorable. The southern islands of the Visayas and Mindanao have had flooding and unfavorable conditions and are projected to have a much lower yield. Second, even the best annual bumper crop in the past decade has only resulted in a growth of one million tonnes over the average. Alcala is projecting this amount of growth for the dry season harvest alone, which is half of a year’s agricultural output. Finally, even if these numbers were accurate and sustainable for the entire year, there would still be a dramatic shortfall from the projected demand. The US Department of Agriculture estimates a shortfall for the Philippines of 1.5 tonnes in 2011. This amount will need to be imported.

Global food prices have soared in the past year. A World Bank press release dated April 14, 2011, indicates that global food prices are 36 percent higher than last year and are highly volatile. Rice has remained the one point of comparative stability while the prices for wheat, sugar, maize and other crops have skyrocketed. Two factors have contributed to relatively constant world rice prices. The first was a good rice harvest in Thailand and Vietnam and the second the dramatic reduction in demand from the Philippines. Both of these factors are poised to change.

A sustained drought in northern China has destroyed at least 40 percent of the Chinese wheat harvest. This shortfall will need to be replaced with rice. The Chinese government has called for higher rice production in the southern provinces, but even the best efforts will not be able to replace the lost grain. Given the astronomical prices of wheat on the world market, the Chinese are looking to import rice.

Rice grown in the United States, largely in California, is a leading contributor to the world rice market. In the past year, 20 percent of US rice land has been shifted away from rice to other crops in pursuit of government subsidies for bio-fuel production.

Myanmar has imposed a ban on all rice exports, so the Irrawaddy River delta, a highly productive region, will not be feeding anyone outside of Myanmar. India has imposed a minimum export price on its rice. Rice can only be exported at over $850 a ton. The current Thai benchmark price for rice is $540. India is contemplating raising this minimum to as high as $1,200 per ton according to the Economic Times of India.

Aquino claims that one of the countries that he is looking to as a potential source of rice imports is Cambodia. Cambodia, while highly fertile agriculturally, has had very limited infrastructural investment. Last year it exported 20,000 tons of rice. This pales when compared to the projected 1.5 million ton Philippine shortfall.

Both Indonesia and Bangladesh have begun massively importing rice. In January, the Indonesian rice importing agency BULOG ordered 820,000 tons of rice, more than four times the expected order. Bangladesh doubled its rice imports to 1.2 million tons.

Japan lost at least 20 percent of its rice harvest to the March 11 tsunami and the Fukushima Dai-ichi nuclear catastrophe. It will be looking to Thailand for imports as Thai farmers have begun growing the japonica strain of rice that is consumed in Japan.

The world is looking to the harvests of Vietnam and Thailand to sustain this increased demand. However, Vietnam.net reported on April 12, that its coastal provinces were suffering from a potential drought. The annual seawater inundation had left areas up to 25 kilometers from the coast with heightened salinity. Without sufficient rain to dilute the salty soil with fresh water none of this land will be arable for rice.

Bloomberg.com reported on April 8, that Thailand is suffering an infestation of rice planthoppers which are destroying crops. The government has determined not to have a third rice harvest this year, letting the fields lie fallow to kill off the pests. This will slash the Thai rice harvest this year by a third. The Bangkok Post reported on April 12 that no crop insurance will be issued for this year’s second rice harvest. The potential damage from pests is too high.

When the Philippines returns to the world market to import additional rice, as it must given current estimates, it may cause global rice prices to spiral dramatically upward.

Regional governments are preparing for this eventuality by making further inroads against the living standards of the poor. Both the Philippine and the Indonesian government have recently begun strongly advocating that consumers shift from rice to cassava as their primary staple.

Aquino’s administration is also seeking to place the blame for any possible rice shortage on consumers. Filipinos waste three tablespoons of rice every day, Alcala stated. To save rice, Filipinos should take three tablespoons less rice each day. And this to a population where over half the children already suffer malnutrition!

In response to claims that there was a pending rice crisis, the Philippine Senate offered sweeping and unspecified “emergency powers” to the president. Aquino turned down the offer, saying that it was not needed—for now.

As hunger mounts, so will anger. When the majority of the Filipino people can no longer afford to purchase the rice they need to feed their families, there could well be food riots, just as there were in during the rice shortages of 1995 and 2008. And Aquino will return to the Philippine Senate for these emergency powers.

Phnom Penh Post: Mill capacity key to growing rice exports

Column: The Bottom Line
By Steve Finch
The Phnom Penh Post
April 4, 2011

Cambodia's target of 1 million tonnes in rice shipments by 2015 would place the Kingdom behind China, or in seventh position in the world pecking order of rice exporters based on current volumnes.

To achieve this goal Cambodia need not drastically raise its level of production. Domestic rice output was expected to outstrip supply by 3.9 million tonnes this year. And export levels are growing at at staggering pace, some 2,356 percent in the first half of last year compared to a year earlier. Which meant Cambodia overtook Burma and Uruguay among mid-level world exporters, according to data from the United States Department of Agriculture.

The problem remains milling because farmers simply cannot get the neccessary credit to raise capacity. After milling more than 107,000 tonnes in the first half of last year, Cambodia is already hitting its annual capacity of 200,000 tonnes per year.

To meet its stated goal of 1 million tonnes of rice exports by 2015, Cambodia therefore has to raise milling capacity by five times in four years which according to the Ministry of Economy and Finance will require US$150 million in investment over the same period. If it does not, paddy will continue to spill over the country's borders to Thaland and Vietnam, the two largest exporters in the world where processing capacity is much greater.

In Channy, general manager of ACLEDA Bank, by far the biggest lender to the agricultural sector in Cambodia, said yesterday credit remained the major problem. "This is the most difficult part for entrepreneurs in Cambodia," he said.

Medium-sized companies seeking to borrow between $10,000 and $1 million from ACLEDA must supply finanical information going back three years, he added. Credit worthiness is determined through interviews with friends and local officials which overall leads to a system which is time-consuming and hugely inefficient. Often, companies simply do not hold the required accounting history, said In Channy.

The Government's recent promise to guarantee 50 percent of loans by commercial banks to the agricultural sector will surely help raise financing to the sector, but the real key could be the estrablishment of the country's first credit bureau either by year's end or early 2012.

The Association of Banks in Cambodia will set up the new service with the help of Singapore's Veda Advantage, according to In Channy, which ought to make borrowing much simpler. Banks will be able to share credit information, reducing the work and risk required, which should in turn raise lending appetite.

If Cambodia reaches its target of 1 million tonnes in rice exports by 2015, that would bring in more than $125 million at 2010 prices. The indutry won't compare to the $3-billion garment sector, but with the necessary financing Cambodia would at last have a vital second major export industry.

Creed Rice Market Report - April 13, 2011

20110413 Creed Market Report

Reuters: Thai rice exporters eye investments in Cambodia-INTERVIEW

By Apornrath Phoonphongphiphat
Reuters News
Thursday April 14, 2011 04:31:09 AM GMT

THAILAND-RICE/CAMBODIA (INTERVIEW)
* EU initiative offers opportunities for Thai exporters

* Logistics could limit pace of investment in Cambodia

* Cambodia keen to overhaul sector, boost exports

BANGKOK, April 12 (Reuters) - Thai exporters plan to invest in Cambodia's fledgling rice sector, lured by low production costs and tariff-free exports to the European Union, an industry official said on Tuesday.

Cambodia, the world's 15th-largest rice producer caught the attention of Thai exporters because of its growth potential and access to special EU privileges for poor countries, Korbsook Iamsuree, president of the Thai Rice Exporters Association, told Reuters.

Cambodia is an interesting country to invest in. The rice quality is OK and there is plenty of land to grow more rice at cheaper costs," she said.

Thailand, the world's biggest rice exporter, is facing higher production costs and uncompetitive export prices. The country has shipped less rice because Vietnam, the second-largest exporter, is boosting its market share with cheaper rice.

Korbsook said Thailand needed to find ways to cut production costs by looking for cheaper rice from neighbouring countries.

Thai exporters met last week with Cambodia's Commerce Minister Cham Prasidh, who is keen to attract foreign investment in the country's rice industry and boost exports this year.

Korbsook said Thai exporters would be interested in milling rice and exporting them via a Cambodian port in a bid to get tax privileges from the EU rather than investing in rice planting. But the actual value of investments would depend on the development of Cambodia's logistical infrastructure.

Thai exporters had also sought to invest in Myanmar, but abandoned the idea due to the political uncertainty and unconducive investment climate in the neighbouring country.

Cambodia is targeting annual rice exports of 1 million tonnes of milled rice this year, dramatically up from the current volume of about 20,000 tonnes. [ID:nSGE67G0A9]

However, the goal was still small compared to Thailand, which ships around 10 million tonnes and Vietnam, which exports about 6 million tonnes.

Comparison of the amount of rice export of the four rice growing countries

Data Source from USDA / graphic by AKR / Unit in tons of rice

INVESTMENTS SOUGHT

To achieve the 1 million-tonne mark, Cambodia needed foreign investment in milling technology and government support by providing soft loan.

After years of political turbulence, including civil war and the deadly Khmer Rouge era, Cambodia's economy was in tatters by the end of the 1980s, when it produced around 7 million tonnes of rice, most of which was milled and re-exported by Vietnam.

Korbsook said producing and exporting rice from Cambodia would help expand sales in the Euro zone, with firms capitalising on the EU's zero-tariff "Everything but Arms" privileges, which it offers to less developed nations.

Cambodia is looking for foreign investors to boost its milling sector and it has allocated a budget of $23 million to the Ministry of Agriculture this year, up from $3 million in 2010.

However, Korbsook said investment in Cambodia by Thai exporters is not expected to be substantial over the next couple of years, as there were still some obstacles that could push up costs.

"The logistics system is still not ready for exports and that would result in higher costs," she said.

"We expect the Cambodian government to overcome this problem very soon and by that time, investing in Cambodia would be more interesting." (Editing by Martin Petty and Ramthan Hussain)

Related News

Top Thai-Cambodian rice traders meet up - vow greater cooperation on the trade / Angkor Rice News / March 31, 2011

Document: Seminar on Rice Standard and Regulation workshop, Apr 6, 2011

Document from a seminar on "Rice Standard and Regulation workshop" arranged by Ministry of Commerce on April 6, 2011

Intertek: Rice-Paddy Information.

Top Thai-Cambodian rice traders meet up - vow greater cooperation on the trade

Strong cooperation - Executives of Thai Rice Exporters Association and Angkor Rice holding hand together at Angkor Kasekam Roongroeung rice mill, Kandal, Cambodia. - (picture by Angkor Rice)

By AC

31 March 2011

Thai Rice Exporters Association (TREA) and Board of Trade of Thailand (BTT) visit Cambodia during 29 - 31 March 2011 meeting top Cambodian government officers and local rice traders to tie closer cooperation on the rice trade between the two countries.

The group comprised of leading Thai rice exporters headed by Miss Korbsook Iamsuri, President of TREA, and Mr. Niyom Wairatpanij, Chairman: Commitee on Neighbouring Countries Economic Promotion - BTT.

The trade envoys have met with H.E. Dr. Cham Prasidh, Minister of Commerce, local Cambodian rice millers and visiting Angkor Rice.

Document: "Workshop on the implementation of the rice export policy", March 28, 2011

Certificate of Completion.

Phl eyeing to import rice from Cambodia, India and Pakistan

philstar.com
April 05, 2011 11:33 PM

MANILA, Philippines (Xinhua) - The Philippine government is keen on sourcing this year's rice imports from Cambodia, India and Pakistan, a senior agriculture official said today.

National Food Authority Administrator Angelito T. Banayo disclosed that he is set to meet with the ambassador of Cambodia on Wednesday for a possible rice supply deal.

"These are just initial discussions. We could buy from (these countries) if the price is right," Banayo said.

The Philippines has an existing rice supply agreement with Vietnam for a maximum of 1.5 million tons of rice. The memorandum of agreement, which was recently renewed by the government, is in force until 2013, when the Philippines expects to be self sufficient in rice.

Just recently, the NFA announced that it bought 200,000 tons of rice from Vietnam under a government to government deal.

For 2011, the Philippines had announced that it will buy 860, 000 tons of milled rice although the figure may go up if local rice production for January to June will not meet the projected production increase of 15.3 percent.

Source: USDA

Creed Rice Market Report - April 06, 2011

20110406 Creed Market Report

Creed Rice Market Report - April 01, 2011

20110401 Creed Market Report