Louisiana Rice Farmers hear optimistic Trade Outlook
By Bruce Schultz
Farmers heard about several optimistic developments in the international rice trade at the 2020 meeting of the Louisiana Rice Council and Louisiana Rice Growers Association recently.
Betsy Ward, USA Rice CEO, said Brexit has the potential to increase sales to the British market without the restrictions of the European Union.
“We’re optimistic we can open that market to U.S. rice,” she said.
The United Kingdom had bought as much as 600 metric tons, but that dropped by 75% because of tariffs in 2017. The Turkish market for U.S. rice was lost because of tariffs, but the country bought some U.S. rice last week, she said.
The preliminary trade agreement with China includes American rice.
China holds 65% of the world’s rice stocks, and the country is dumping the excess on the market, even selling medium-grain rice to Puerto Rico.
“The prices they are selling rice for in Puerto Rico don’t make sense,” Ward said.
An anti-dumping case is being built against China, and two cases were won recently, including one that complained China was unfairly subsidizing rice production.
“I think China will come around, and I think there will be stability in trade with Mexico,” Ward said.
India, the world’s largest rice exporter, also uses unfair trade practices, “and they are just as bad an actor as China,” she said. An unfair trade complaint also is being developed against India.
The trade agreement with Canada and Mexico is a positive development for U.S. rice.
“It’s brought some stability to the market,” Ward said.
A memorandum of understanding with Iraq has been extended to 2021 to buy more U.S. rice.
U.S. Secretary of Agriculture Sonny Perdue is receptive to the needs of the rice industry.
“He’s probably one of the best (agriculture secretaries) we’ve ever had,” Ward said.
USA Rice Chairman Charley Matthews Jr. has met twice with President Donald Trump to voice concerns of rice farmers.