Expanding into new markets, rice continues its move into bold new territories

Written by Gina Webmasters, Published in News, Georgetown, GINA, March 23, 2014, Source - GINA

Paddy being loaded for export

In an interview with the Government Information Agency (GINA,)  Minister Ramsammy noted that countries like Belize, Panama, Nicaragua and Guatemala have been added to the export destinations for Guyana’s rice, even as the country is currently seeking to finalise a larger market in North America, with a potential for rice export to exceed 600,000 tons in 2015.

According to the Agriculture Minister, the African market represents a new horizon for an industry that has proven resilient and robust over the decades. He explained that Guyana is at present negotiating prices and quantities with at least four African countries.

“A draft contract has been prepared with at least one African country and payment arrangements are being discussed,” Minister Ramsammy said. He advised that since these are new markets, the Guyana Rice Development Board (GRDB) is seeking to ensure that there will be reliable payment arrangements, before concluding any contract.

As Minister Ramsammy pointed out, Africa today represents a region with one of the largest importation of rice, and Guyana is very excited to enter the African market. “Markets, such as the African rice market, provide another facet in the growth of the Guyana rice industry and can become a further catalyst for growth,” he said.

“The rice industry, in fact, represents a pioneering entry for Guyana into the large African market for Guyana’s agricultural and other products. The Guyana Government, therefore, sees the entry into Africa, through rice, as opening up new development vistas for our country,” he continued.

In 2014, Guyana exported 501,208 tons of rice. This was a record export, which added new destinations and expanded existing markets. More rice was sold to the Caribbean and Europe, the traditional markets. Within the European market, new destinations were added even as the country sustains its Venezuelan market, which came into effect from 2009. In 2010, the Venezuelan market was 70% of local production. In 2014, the Venezuelan market, which maintained its volume, accounted for about 31% of production.

Minister Ramsammy noted that the breaking of new grounds in 2014, when the country exceeded export of 500,000 tons, tells a story of an industry that has grown phenomenally over the decades.

Rice field ready for harvesting

“Between 1957 and 1964, the PPP Government led the industry and export increased from about 37,000 tons annually to 100,000 tons for the first time in 1964. Between then and 1992, the PNC ran the country and the rice industry struggled to keep up production, and by 1990, export fell to less than 70,000 tons. When the PPP took over, export climbed again and reached 200,000 tons for the first time in 1995. Export reached 300,000 by 2010 and 500,000 tons in 2014. These are record-breaking figures and underline the robust growth of the industry,” he said.

“The government actively seeks new markets for the rice industry and we allow the private sector to sustain and expand these markets. That is how a government facilitates a private sector business. The PPP/C Government sees this as a positive partnership,” he said.

 While the rice industry continues to strengthen its private sector character, the Government of Guyana has been intensifying its facilitation of the industry. One of its facilitating mechanisms is the opening up of new markets for rice.

The government has aided in the opening up of new markets and then partners with the private sector to sustain and expand the market. This model has proven successful and the rice market has grown impressively through the public-private partnership.