Sustainability of World Rice Production

Dr. Astrid Faust Dr. Astrid Faust Senior Advisor “… Senior Advisor “… Compliance & Innovation for Agri-Food Supply Chains …” Compliance & Innovation for Agri-Food Supply Chains …” (CIAS)(CIAS)

Science and Technology Research Institute/STRIScience and Technology Research Institute/STRIChiang Mai UniversityChiang Mai University

ThailandThailand

IAM RICE Conference November 26-28, 2012Empress Convention Centre, Chiang Mai, Thailand

Content Update on “Big Picture” of Rice

1. Rice – An Asian (Success) Story ? 2. World Production3. World Consumption4. World Trade5. Sketches of Top Five Rice Exporters6. Competitiveness Benchmarks 7. Key Strategies8. Sustainability – Questions & Issues

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Main Rice Varieties

Wikipedia 2012

Worldwide there are more than 40,000 different varieties of rice species.

Rice varieties can be differentiated according to

• Size: long, medium and short grain varieties

• Origin: Indica, Japonica, Javanica

• Additional properties: aromatic, glutinous

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Rice – An Asian (Success) Story ?

• At least 114 countries grow rice and more than 50 have an annual production of 100,000 tons or more.

• Asian farmers produce about 90% of the total, with two countries, China and India, growing more than half the total crop.

• Rice Production have more than trippled in the past 50 years (from 200 million MT in 1960 to 678 million MT in 2009).

• For most rice-producing countries where annual production exceeds 1 million ton, rice is the staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam, rice provides 50-80% of the total calories consumed.

• Only 5-6% of rice is traded internationally.• Rice is a typical smallholder crop.

• At least 114 countries grow rice and more than 50 have an annual production of 100,000 tons or more.

• Asian farmers produce about 90% of the total, with two countries, China and India, growing more than half the total crop.

• Rice Production have more than trippled in the past 50 years (from 200 million MT in 1960 to 678 million MT in 2009).

• For most rice-producing countries where annual production exceeds 1 million ton, rice is the staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam, rice provides 50-80% of the total calories consumed.

• Only 5-6% of rice is traded internationally.• Rice is a typical smallholder crop.

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5

Global Rice acc. to Farming Systems (source: IRRI)

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Top 10 Rice Producers by Country 2010 in million metric ton[61]

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Rank

Countries million MT

in %

1 PR China 197.2 31.2

2 India 120.6 19.1

3 Indonesia 66.4 10.5

4 Bangladesh 49.3 7.8

5 Vietnam 39.9 6.3

6 Myanmar 33.2 5.3

7 Thailand 31.5 5.0

8 Philippines 15.7 2.5

9 Brazil 11.3 1.8

10 United States 11.0 1.7

Source: FAO 2011Source: FAO 2011

576.1 MT corresponding to 91.2% of world rice production in 2010 (631.7)

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Top 10 Rice Consuming Countries 2009 in million metric ton[61]

Source: FAO 2011

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Rank Countries million MT in %

1 PR China 156.3 29.4

2 India 123.5 23.2

3 Indonesia 45.3 8.5

4 Bangladesh 38.2 7.2

5 Vietnam 18.4 3.5

6 Philippines 17.0 3.2

7 Thailand 13.7 2.6

8 Japan 10.2 1.9

9 Myanmar 10.0 1.9

10 Brazil 11.0 1.9

Source: FAO 2011Source: FAO 2011

442.6 MT corresponding to 83.3% of world rice consumption in 2009 (531.6 MT)

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Top 10 Rice Importers by Country 2011/12 in million metric ton[61]

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Rank Countries million MT

1 Indonesia 3.1

2 Nigeria 2.6

3 Iran 1.9

4 Bangla Desh 1.5

5 EU-27 1.5

6 Philippines 1.2

7 Malaysia 1.1

8 Saudia Arabia 1.1

9 Iraq 1.1

10 Evory Coast 0.9

Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source

Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source

Rank Countries million MT

1 Nigeria 2.5

2 Iran 1.9

3 Philippines 1.5

4 EU-27 1.4

5 Indonesia 1.3

6 Saudia Arabia 1.2

7 Iraq 1.2

8 Malaysia 1.1

9 Bangla Desh 0.4

10 Evory Coast 1.0

2011 2012 Forecast

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Top 10 Rice Exporters by Country 2011/2012

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Rank Countries million MT

1 Thailand 10.6

2 Vietnam 7.0

3 India 4.6

4 Pakistan 3.4

5 US 3.2

6 Cambodia 0.9

7 Uruguay 0.8

8 Myanmar 0.8

9 Argentine 0.7

10 Egypt 0.6Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source, Wikipedia 2012

Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source, Wikipedia 2012

Rank Countries million MT

million US $

1 India 8.0 3,488

2 Vietnam 7.0 3,101

3 Thailand 6.5 3,624

4 Pakistan 3.8 2,061

5 US 3.5 1,159

6 Uruguay 0.9

7 Cambodia 0.8

8 Argentine 0.7

9 Myanmar 0.6

10 Egypt 0.6

2011 2012 Forecast

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Rice Supplies and Import Markets

ASEAN+3

EU-27

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Middle East

Africa

Supply Regions Regional Markets

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Key Strategies for Sector Promotion

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Yields in Rice Production

1212

Location western coastal strip, eastern coastal strip, covering all the primary deltas, assam plains and surrounding low hills, foothills along the himalayas

Share in Global Production

20% of world production of white rice

Yield MT/ha 3.12

Recent Develop-ments

increase production since 1950 = 350 % (via increased yields, area increase only 40%). The per-hectare yield increased more than 262 % between 1950 and 1992.[

Strategies increase of yield/ha at all levels, irrigation schemes

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Key Features Rice Production: India

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Location Mekhong and Red River Deals, Northern Highlands (33 mio ha)

Area under Cultivation

33 Mio ha

Yield MT/ha 4.5

Recent Developments

Rice production in Vietnam almost fourfold in 46 years from 9 million MT (1961) to 35.6 million MT (2007)IRRI involvement in the irrigated rice ecosystem to increase production and income through network of pest management, coherent rice promotion policy

Strategies R&D capacity developmentintegrated nutrient management measures, improved water management, introduction of new strains of rice, modern mechanized farming methods appropriate legal framework conditions by the Government). 14

Key Features Rice Production: Vietnam

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Location Central Thailand, Northeast, Northern Pleins and Valleys

Area under Cultivation

9,2 Mio hA

Yield MT/ha 2.65

Recent Developments

Development of material infrastructure and “green revolution” instruments since sixties of the past century. 2008 Thailand has considered to create a rice cartel with Vietnam, Burma, Laos, and Cambodia. The purpose would be to control production and set prices similar to the OPEC cartel that controls production of oil.

Strategies (1) Rice pleding scheme, offering farmers up to 15,000 baht per MT for white rice paddy and 20,000 baht for Hom Mali, well above world market prices. (2) Initial Promotion of Organic Rice and Processed Rice Products. 15

Key Features Rice Production: Thailand

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Location Sindh and Punjab Regions, Origin of Basmati Rice

History 40 % of basmati (fine) 60 % of coarse types

Area under Cultivation

2.6 Mio ha (2012)

Yield 3 MT/ha

Production 6.2 million MT

Export 3.8 million MT (2012) worth $ 2.061 billion

Strategies spread of basmati varieties in non-basmati zone introduction of hybrid rice

Issues water shortage post harvest losses and issue of aflatoxinrequest to enhance R&D

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Key Features Rice Production: Pakistan

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Location Misisippi River Delta, Missouri, Arkansas, California, Texas, Lousiana

Area in Cultivation

1.1 Million ha

Yield MT/ha 7.5

Recent Developments

40% of the domestic rice production is used as an input for processed food, beer and pet food. Rice flour goes into applications such as baby foods, extruded rice crispies, cereals, snacks, and coatings.

Strategies n/a

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Key Features Rice Production: US

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Template for a Competitors Analysis (only for Demonstration Purposes)

Key Strategies for Sector Promotion

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Template for a Competitors Analysis (only for Demonstration Purposes)

Hotspots for sustainable rice production and consumption?

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1. Productivity 2. Management

of Chemicals3. Post-Harvest

Losses4. GE

1. Methane Emissions (15% of antrogenic greenhouse gases)

2. Soil3. Water4. Agro-systems5. Upland Rice (!)

Producers1. Supply organization & facilities 2. InvestmentConsumersawareness quality, health, planet

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Issues from an Econcomic Perspective

• FAO study claims 8% to 26% of rice is lost in developing nations, on average, every year, because of post-harvest problems and poor infrastructure. Some sources claim the post-harvest losses to exceed 40%. Not only do these losses reduce food security in the world, the study claims that farmers in developing countries such as China, India and others lose approximately US$89 billion of income in preventable post-harvest farm losses, poor transport, the lack of proper storage and retail. One study claims that if these post-harvest grain losses could be eliminated with better infrastructure and retail network, in India alone enough food would be saved every year to feed 70 to 100 million people over a year.

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Thank for your attention.dr.astrid_faust@yahoo.com

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THE CONCEPT OF ORGANIC AGRICULTURE

…does not only exclude the use of synthetic agents, but is a system based on...

Biodiversity

Improvement of soil fertility

Sustainable Farming

Minimum of External Inputs

Organic Certification

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USA: More than 18 bn EUR= 16 % growth

Germany:More than 6.1 bn EUR= about 5 % growth

Great Britain: 3.2 bn EUR

France: 2.4 bn EUR

European Union 11 18.5 bn EUR

Organic turnover Worldwide

Market turnovers in 2009

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10 Countries with Most Organic Land in Asia 2008

Organic Production in ASIA

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Organic Certification Labels

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