“The Sacramento Valley is one of the great valleys of the world, with vast and fertile soil. It has an abundant water supply, and an agriculture much more diversified than is found anywhere else on the face of the earth.”
California Rice Sales:
- 45%-55% Domestic market- Normally 18-22 million cwt
- 45%-55% Export market- Normally 18-22 million cwt
What is a Tender?
- Typical Japanese cargo- 13,000 tons of milled rice
- 13,000 tons X 22.046= 286,598 cwt of milled rice
- 286,598 / .68= 421,467 cwt of paddy rice
- 421,467 X 25 cargoes= 10.5 million cwt of paddy rice
An offer to buy rice with specific details on type, quantity and delivery period. Japan, South Korea and Taiwan use the Tender system for purchasing CA rice. Each tender has a designated number of cargoes or boatloads of rice. Normally there are 2-5 cargoes per Tender for Japan and Korea’s purchases of CA rice.
CA Rice Industry’s 4 Major Export Markets:
Normally purchases 10-11 million cwt of California’s paddy rice Japan is a World Trade Organization mandated market. Under the agreement they are required to import a minimum of 700,000 MT of milled rice every year, of which they typically purchase over 300,000 MT from the U.S ever year. They always buy CA rice from the U.S as it fits the taste characteristics that are preferred in their country. Japan normally only purchases milled rice from California.
Normally purchases 4-5 million cwt of California’s paddy rice. South Korea is a World Trade Organization mandated market. Under the agreement they are required to import a minimum of 408,700 MT of milled rice every year, of which they typically purchase over 150,000 tons from the U.S. every year. They always buy CA rice from the U.S. as it fits the taste characteristics that are preferred in their country. South Korea buys mostly brown rice as well as milled rice from California.
Normally purchases around 1-2 million cwt of California’s paddy rice. Taiwan is a World Trade Organization mandated market. Under the agreement they have a country specific quota to purchase 64,634 MT from the U.S. every year. They buy both CA rice and Southern medium grain and long grain rice. That decision is mostly based on price and quality desired. Taiwan normally purchases milled rice from California.
Middle East and North Africa
Normally purchase 2-5 million cwt of California’s paddy rice. Volume purchased varies from year to year and they are not required under trade agreements to purchase any rice from the U.S. The countries in this region that normally purchase the most CA rice are Turkey, Jordan and Libya. Jordan and Libya normally purchase milled rice and Turkey normally purchases paddy rice from California.
Average Planted Acreage per State:
Million Acres in Arkansas
Thousand Acres in California
Thousand Acres in Louisiana
Thousand Acres in Missouri
Thousand Acres in Texas
Thousand Acres in Mississippi
US Rice is grown in 6 States:
About 7-8 MMT of milled rice is produced per year in the United States which is around 2% of the world’s production. Rice is a primary staple for about half of the world’s population and about 480 MMT of milled rice is consumed annually.
The top 5 producing Countries: China, India, Indonesia, Bangladesh, and Vietnam.
The top 5 Exporting Countries: India, Thailand, Vietnam, Pakistan, and the United States
Top 5 Importing Countries: China, Nigeria, Philippines, Ivory Coast, Saudi Arabia
Globally Around 41 MMT or 8-9% is traded and about 90% of rice is grown in Asia.