USA Rice Logo
USA Rice Daily
Up-to-the-Minute News on Issues and Activities
USA Rice Federation is the global advocate of all segments of the U.S. rice industry with a mission to promote and protect the interests of producers, millers, merchants and allied businesses.  
Wednesday, May 21, 2014

Mexico Market Under Attack - Part Two: Enhancing American Rice's Profile 

ARLINGTON, VA - For many years, the United States has been the rice supplier of choice for Mexico, benefiting from a logistical advantage, strong contract performances and the ability to promptly ship specific quantities of rice, including rough/paddy. However, the new reality in the Western Hemisphere is that none of our export markets are guaranteed, and as we reported earlier this week, Brazil has recently been cleared to begin exporting paddy rice into the U.S.'s number one market, Mexico. In order to maintain a dominant market share for both milled and paddy rice in the Western Hemisphere, U.S. rice must remain competitive, and competitiveness comes in many forms: quality, price, reliability, and efficiency.  

The American Seal
Coming this Fall 

The USA Rice Federation is positioning U.S.-grown rice as the premium product in the Mexican market with, among other things, the development of a packaging logo to help consumers identify U.S. origin rice and rice products. The approved logo, called the American Seal, is in the legal registration process in Mexico and should be available for use this Fall.

 

The American Seal is available to rice milled and packed in the U.S.; shipped bulk as milled and packaged in Mexico; or, imported as rough rice and milled/packaged in Mexico. There are no restrictions on what entities can use the Seal, although they must sign the licensing agreement and abide by its terms.

 

Gluten Free Campaign Poster 
Gluten free materials for Mexico 

Promotional activities are another way USA Rice is increasing appreciation for U.S. rice in Mexico. A recent campaign with the Association of Celiac Disease in Mexico reached a broader audience actively seeking a gluten-free lifestyle. This educational campaign came in response to Mexican consumers becoming more aware of celiac disease and being concerned about improving their diets, and included media placements in a variety of culinary magazines as well as up-to-date information and rice recipes for print, radio, and television media.

 

Mexican TV Chef 
Mehor chef! 

USA Rice also produces original content television programs for the Mexican market  targeting the country's foodservice sector, as well as consumers interested in high-end recipes, who want to learn how to include U.S. rice in their gourmet menus.

 

One program, "Cocinando con," received an award from the chef association, Vatel Club México, for culinary excellence in showcasing gastronomy in Mexico. Last month, USA Rice conducted a total of twelve "Arroz Gourmet" TV shows on the national television station KW, where renowned chefs representing Mexico's most recognized restaurants, hotels, and culinary schools prepare dishes featured on their menus which use U.S.-grown rice as the main ingredient.

 

"The popularity of original content programs has expanded exponentially," said Jim Guinn, USA Rice vice president of International Promotion.   "In addition to the initial transmission, KW regularly rebroadcasts episodes and reports high interest from viewers. The programs are also available via a variety of social media sites, including YouTube and Facebook. Extensive media exposure like this drives awareness and increases demand for U.S.-grown rice in Mexico."

 

Guinn says the recent potential entrance of Brazil into the paddy rice market in Mexico ("Mexico Market Under Attack - Part One:  Brazilian Paddy Rice Cleared for Import" USA Rice Daily May 19, 2014) makes these outreach and branding efforts all the more important. He adds that USA Rice will continue and expand the successful programs as they actively seek to preserve the U.S.'s largest export market.

 

Contact: Sarah Moran, (703) 236-1457

MAP and FMD Funding Approved by House and Senate Appropriations Subcommittees 
Man giving thumbs up in front of U.S. Capitol 
So far, so good 

WASHINGTON, DC -- The House and Senate Agriculture Appropriations Subcommittees both met yesterday and approved their respective versions of the fiscal year 2015 Agriculture Appropriations bill.  As approved by both subcommittees, the legislation includes full funding of $200 million for the Market Access Program (MAP) and $34.5 million for Foreign Market Development (FMD), as authorized by the 2014 Farm Bill.  With approximately 50 percent of the U.S. crop bound for foreign markets each year, these programs are vital for a vibrant U.S. rice industry.

 

Both House and Senate Agriculture Appropriations bills contain provisions that are important to the rice industry, including funding for MAP and FMD, as well as funding for the PL 480 Food for Peace Program, agriculture research initiatives, and the Women Infants and Children feeding program.

 

"The USA Rice Federation signed a coalition letter in support of maintaining the 2014 Farm Bill authorized levels for MAP and FMD," said USA Rice Vice President of Government Affairs Reece Langley. "In meetings with House and Senate Agriculture Appropriations Subcommittee members, the broad agriculture coalition emphasized that support for these programs spans all parts of the country."

 

 Contact: Lauren Echols, (703) 236-1440

 

CCC Announces Prevailing World Market Prices 
WASHINGTON -- The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2013 crop, which became effective today at 7:00 a.m., Eastern Time (ET).  Rough rice prices decreased $0.13 per cwt for long grain and $0.12 per cwt for medium/short grain. 

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
17.52
11.50
0.00
Medium-/Short-Grain
17.18
11.76
0.00
Brokens
12.00
----
----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates:

 
U.S. Milling Yields
Whole/Broken
(lbs/cwt)
Loan Rate
($/cwt)
Long-Grain
57.94/11.23
6.65
Medium-/Short-Grain
63.26/7.45
6.58
 
The next program announcement is scheduled for May 28. 
CME Group/Closing Rough Rice Futures   
CME Group (Preliminary):  Closing Rough Rice Futures for May 21


Month
Price
Net Change
July 2014
$15.270
- $0.030
September 2014
$14.465
 + $0.025
November 2014
$14.565
+ $0.005
January 2015
$14.730
- $0.015
March 2015
$14.780
- $0.135
May 2015
$14.780
- $0.135
July 2015
$14.780
- $0.135


In the News

Around Washington

House Ag Subcommittee Approves 2015 Ag Appropriations Bill KTIC Radio

The bill provides a total of 20.575-billion dollars for agriculture, rural development, FDA and related agencies and 100-million dollars in disaster relief spending

 

USDA Delays Whole Grains Requirement for Schools Associated Press

USDA said schools can put off for two years a requirement that all pastas in schools be whole-grain rich, or more than half whole grain, if they can demonstrate that they have had "significant challenges" in preparing whole-grain pasta

 

Around the Country

In Texas, Less a Duck Dynasty Than a Duck Dilemma State Impact NPR

Subdivisions have replaced irrigated rice fields that for decades had provided ideal nesting places as well as food, and in more recent years, the severe drought has reduced rice farming even further

 

Oxfam Asks Top Food Companies for More Accountability in Reducing GHG Emissions 

Environment and Energy Newsletter

Humanitarian group Oxfam is calling on Kellogg Co. and General Mills Inc. to account for emissions like methane from livestock raising, nitrous oxide from fertilizer use and carbon dioxide released when forests are cleared to make way for crops

 

TCEQ Proposal Could Mean More Dry Years for Rice Farmers Texas Tribune

The Texas Commission on Environmental Quality issued new recommendations last Friday that would make it considerably more difficult for farmers to receive water for crops during times of drought and even under normal conditions

 

U.S. Agriculture Faces Shortage of Trained Scientists Southeast Farm Press

Despite high demand for ag scientists, not enough university students are being trained fast enough in disciplines such as plant science and crop breeding

 

Around the World

Trade Ministers See Headway on Trans-Pacific Pact, But Thorny Issues Remain Reuters

Trade ministers from 12 nations said recent bilateral talks between the United States and Japan helped breathe life into the stalled talks for the ambitious Trans-Pacific Partnership trade pact

 

Health and Nutrition

Fermented Rice Prevents Wrinkles? Oryza

Rice fermenting involving the presence of lactic ferments can generate more biologically active substances in anti-wrinkle treatments while maintaining environmentally-friendly characteristics

facebook logo   twitter   YouTube
Upcoming Events
 Events Calendar
 
Recent Issues




Mission Statement
USA Rice Federation is the global advocate for all segments of the U.S. rice industry with a mission to promote and protect the interests of producers, millers, merchants and allied businesses.
About Us
Editor: Michael Klein,
(703) 236-1458,
mklein@usarice.com

Fax (703) 236-2301

2101 Wilson Boulevard, Suite 610
Arlington, VA 22201

This report is time-sensitive, based on information available at press time. Content is derived from facts and sources believed to be reliable. Reprinting and/or distribution may be done with permission of the USA Rice Federation

Copyright © 2014. Please direct comments or questions to the editor or contact name listed for each story.