Skip to main content

Fresh worries for rice industry as no markets yet for large surplus

JUNE 17, 2014 | BY  | FILED UNDER NEWS 

Guyana’s record-breaking run of rice production is expected to continue this year but there is worry now over a large surplus of the grain.
The situation has Government and the industry contemplating the next move as almost 250,000 tonnes is expected to be reaped in the coming harvest, with no markets for a large portion of that.

File photo: Rice being loaded for neighbouring Venezuela.

File photo: Rice being loaded for neighbouring Venezuela.

Last week, stakeholders- including the banks, millers and the Ministry of Agriculture- met on the issue. In addition to prices for farmers, there were also concerns expressed over adequate storage and markets.
According to officials of the Guyana Rice Producers Association (RPA), almost 150,000 tonnes of rice have been left over from the first crop. Almost 80,000 tonnes was carried over from last year, industry officials confirmed yesterday.
For this year, it is now being estimated that a worrying 300,000 tonnes will likely be left back unless new markets are found or the existing ones start taking off some more.
The meeting last week was to determine whether the banks would be willing to finance the harvests. However, the banks are still to decide as there are no immediate indications of any significant new markets.
Another major problem facing the industry is storage space for the milled rice or paddy. The country simply does not have the capacity to store that amount and have it sold before the next harvest starts in August.
While Guyana has smaller markets in Jamaica and Haiti, the price being offered is not nearly as attractive as the oil-for-rice deal with neighbouring Venezuela. But that market is a limited one for Guyana.
Under this year’s contract, Guyana has to supply 140,000 tonnes of paddy and 50,000 tonnes of white rice. With delays in Venezuela’s ports with the rice ships, a known problem, the country has so far for the year been able to only ship about half of the quota – 25,000 tonnes white rice and 70,000 tonnes paddy.
Yesterday, RPA officials who are busy with Agriculture to come up with strategies said the biggest fear remains the price of paddy for farmers. Currently, they are receiving between $2,800- $3,500 per bag. A huge surplus as is being forecast is likely to drive the price down to as low as $2,500, an untenable situation for farmers.
According to figures provided in Budget 2014, as provided by Finance Minister, Dr. Ashni Singh, rice export receipts last year expanded by 22.2 percent to US$239.8M, mainly attributed to an 18.2 percent increase in export volume to 394,989 tonnes, combined with a 3.4 percent increase in average export prices to US$607 per tonne.
The rice industry is projected to grow this year by a moderate one percent, with a production target of 540,793 tonnes. However, industry officials said that at the current production rate, that target is likely to be exceeded.
The market problem has been one acknowledged by Government for years now. This year was no different.
According to the Finance Minister in his budget speech, emerging challenges have manifested early in 2014, “including lower paddy prices, late payment by millers, and some degree of uncertainty in key export markets”.

Replies sorted oldest to newest

Originally Posted by Conscience:

Stop being a doomsday preacher, look at the glass as half filled, be an optimist....more rice markets will be found.

When are they going to find a market for the rice? After it is infested with weevils?

Mars
Originally Posted by Conscience:

Stop being a doomsday preacher, look at the glass as half filled, be an optimist....more rice markets will be found.

You remind me of Oebalus pugnax, rice stink bug. What happened to your cup? Go get a secondary education. Your own postings lacks realism.  There are so many rice products on the market. Why is the PPP/C not able to attract investors to manufacture some them?

Mitwah

Guyana's rice farmers are performing, producing and rising to meet challenges in good faith.

They need commensurate performance from the government's marketing body, the Agriculture ministry and private exporters.

Two score and five years ago the Burnham regime set up 6 large silos throughout the rice belt, with drying and storage facilities.

I don't know if those silos are still in use, but one would have expected the present PPP regime to build more silos in anticipation of higher levels of production.

Overproduction of grain is not a new phenomenon, nor is shortage of markets. Rice from one year can be safely stored for future sale once certain specific measures are put in place to ward of weevils and spoilage.

FM
Originally Posted by Gilbakka:

Guyana's rice farmers are performing, producing and rising to meet challenges in good faith.

They need commensurate performance from the government's marketing body, the Agriculture ministry and private exporters.

Two score and five years ago the Burnham regime set up 6 large silos throughout the rice belt, with drying and storage facilities.

I don't know if those silos are still in use, but one would have expected the present PPP regime to build more silos in anticipation of higher levels of production.

Overproduction of grain is not a new phenomenon, nor is shortage of markets. Rice from one year can be safely stored for future sale once certain specific measures are put in place to ward of weevils and spoilage.

the government can give the rice to nehru,he will store it on the mountain top

FM

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Mr.T
Originally Posted by Mr.T:

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Shipping is an issue.  Better to focus on nearby markets like the DR.

FM
Originally Posted by caribny:
Originally Posted by Mr.T:

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Shipping is an issue.  Better to focus on nearby markets like the DR.

Brazil shipping meat all the way to China. So shipping is not an issue these days. Container ships coming to Guyana to dump the Chinese rubbish on us can take rice back.

Mr.T
Originally Posted by Billy Ram Balgobin:

You need to contact the Rice Board about questions concerning the rice industry. Don't ever think government always have the answers to every question.

Billy Ram Goat, do you read the nonsense you write before you post?

Mitwah
Originally Posted by Mars:
Originally Posted by Conscience:

Stop being a doomsday preacher, look at the glass as half filled, be an optimist....more rice markets will be found.

When are they going to find a market for the rice? After it is infested with weevils?

This always is the paradox of national food production.  There is ample evidence in almost any productive economy where surplus needs to be managed by the Govt so as not to destroy the capacities developed.  The problem of excess is what I would consider a "good" problem because when you prove reliability and sustainability, then you can confidently enter into supply agreements.

 

The GoG has to have a strategy to ensure the farmers don't suffer losses while they (Govt) work to open new markets for their output.

 

Supply and demand for food will nearly always never match, but in the long run, food will always be needed and demand will outstrip supply.

FM
Originally Posted by Mr.T:
Originally Posted by caribny:
Originally Posted by Mr.T:

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Shipping is an issue.  Better to focus on nearby markets like the DR.

Brazil shipping meat all the way to China. So shipping is not an issue these days. Container ships coming to Guyana to dump the Chinese rubbish on us can take rice back.

Evidently you don't know basic economics.  Brazil is a huge country with a powerful economy, so can get all the shipping that it needs.  Guyana is a small country with primitive harbors, and so shipping is a challenge.  It is likely the Chinese products are transshipped via some hub within the Americas.   I don't think that you are going to ship rice on a boat carrying toxic materials like bauxite.

FM
Originally Posted by caribny:
Originally Posted by Mr.T:
Originally Posted by caribny:
Originally Posted by Mr.T:

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Shipping is an issue.  Better to focus on nearby markets like the DR.

Brazil shipping meat all the way to China. So shipping is not an issue these days. Container ships coming to Guyana to dump the Chinese rubbish on us can take rice back.

I don't think that you are going to ship rice on a boat carrying toxic materials like bauxite.

Maybe he will.

FM
Originally Posted by caribny:
Originally Posted by Mr.T:
Originally Posted by caribny:
Originally Posted by Mr.T:

There is market in China for rice since they cannot produce enough. Why is the PPP sales team not talking to the Chinese about it? Africa also needs rice. Has the PPP not got a competent business department?

Shipping is an issue.  Better to focus on nearby markets like the DR.

Brazil shipping meat all the way to China. So shipping is not an issue these days. Container ships coming to Guyana to dump the Chinese rubbish on us can take rice back.

Evidently you don't know basic economics.  Brazil is a huge country with a powerful economy, so can get all the shipping that it needs.  Guyana is a small country with primitive harbors, and so shipping is a challenge.  It is likely the Chinese products are transshipped via some hub within the Americas.   I don't think that you are going to ship rice on a boat carrying toxic materials like bauxite.

I am shocked at your clear lack of knowledge on how international shipping works as far as goods transportation is concerned. Bauxite boats are not suitable for regular freight. And bauxite is not classified as a toxic material.

Mr.T
Originally Posted by Mr.T:
 

I am shocked at your clear lack of knowledge on how international shipping works as far as goods transportation is concerned. Bauxite boats are not suitable for regular freight. And bauxite is not classified as a toxic material.

Still haven't provided evidence that Guyana can find reliable shipping to export rice to more distant lands.  Thanks for providing evidence of how difficult shipping to Asia is as the one product that we do ship direct, isn't suitable for the export of a broad range of products.

 

 

 The best opportunity for Guyanese sugar lies in South America, one of the largest consumers of rice, yet one of the smallest producers.  We cannot even begin to satisfy their demand.  So why roam all the way to China where we must compete with lower cost suppliers in other parts of Asia, and who by definition will be more reliable suppliers given massive shipping availability in that area.

FM
Last edited by Former Member

I think that you should study the rice market properly and you'll find all the evidence you need. Rice prices went up in Europe and Asia a few years ago because of shortages. The PPP marketing people who are travelling the globe at great expense should be looking at trade with Asia.

Mr.T

for guyana to get good market for its rice,they need to produce rice of better quality  and their package have to be of good market standard.why guyana only have to look for third world market,how about north America and Europe.if they can  produce the standard why guyanese in these country cannot patronize them  

FM
Originally Posted by Mr.T:

I think that you should study the rice market properly and you'll find all the evidence you need. Rice prices went up in Europe and Asia a few years ago because of shortages. The PPP marketing people who are travelling the globe at great expense should be looking at trade with Asia.

I see that you are quite a stubborn man.  Latin America needs rice, and so is hurt by the same price hike that you describe.  Latin America is nearby.  Shipping to Latin America from Guyana isn't an issue.

 

When Asian producers increase their production we will be able to keep our Latin markets, assuming that we are competitive.  Will this be the case for our Asian markets, when one considers the much higher shipping costs, and the existence of suppliers located near to these markets. 

 

Guyana will always be a small producer, so Asian consumers will always obtain the bulk of their rice from suppliers within that continent.  They have less incentive than do buyers in countries like the DR, Colombia and even Brazil to source rice out of Guyana to the extent that we can supply.  Indeed these buyers might like the idea that rice is available nearby so shipping costs and delivery dates should be more favorable.

FM
Last edited by Former Member
Originally Posted by caribny:
Originally Posted by Mr.T:

I think that you should study the rice market properly and you'll find all the evidence you need. Rice prices went up in Europe and Asia a few years ago because of shortages. The PPP marketing people who are travelling the globe at great expense should be looking at trade with Asia.

I see that you are quite a stubborn man.  Latin America needs rice, and so is hurt by the same price hike that you describe.  Latin America is nearby.  Shipping to Latin America from Guyana isn't an issue.

 

When Asian producers increase their production we will be able to keep our Latin markets, assuming that we are competitive.  Will this be the case for our Asian markets, when one considers the much higher shipping costs, and the existence of suppliers located near to these markets. 

 

Guyana will always be a small producer, so Asian consumers will always obtain the bulk of their rice from suppliers within that continent.  They have less incentive than do buyers in countries like the DR, Colombia and even Brazil to source rice out of Guyana to the extent that we can supply.  Indeed these buyers might like the idea that rice is available nearby so shipping costs and delivery dates should be more favorable.

I agree with Caribj.  Asia is the largest rice producing region.  Trade first as close to home then expand out.  In a few years Guyana will hit 500k tons, per capita probably one of the highest producers in the world.

 

This PPP govt is building Guyana way more than any time in its history.  Why change a good thing.

FM
Originally Posted by redux:
Originally Posted by baseman:
. . . This PPP govt is building Guyana way more than any time in its history.  Why change a good thing.

"de smartness" . . . from a dunce

Yo.....Baseman how yuh got TK de PNC Yard Fowl....calling you a Dunce.

 

What Baseman said about rice production in Guyana is True....So TK DE PNC Yard Fowl....Haul Yuh Ass.

FM
Last edited by Former Member
Originally Posted by Jalil:
Originally Posted by redux:
Originally Posted by baseman:
. . . This PPP govt is building Guyana way more than any time in its history.  Why change a good thing.

"de smartness" . . . from a dunce

What Baseman said about rice production in Guyana is True....

red herring marries non sequitur in the village of the desperate . . .

 

these two PPP lifers practicing "de smartness"

 

har har harrrr

FM

Add Reply

×
×
×
×
×
Link copied to your clipboard.
×
×