If it isn't quality, and it isn't price, what is it?

ARLINGTON, VA -- Following what appeared to be productive technical meetings and a fruitful tour of the delta by Iraqi Grain Board (IGB) officials earlier this year (see USA Rice Daily, June 11, 2014), the USA Rice Federation says the results of the latest IGB tender are inexplicable, and that farmers sitting on an abundant crop are left scratching their heads. 

USA Rice has learned that the IGB awarded 170,000 metric tons of milled rice to Uruguayan, Brazilian, and Thai origin rice, despite the fact that U.S. bids for the tender were lower than all bids except from Thailand and Vietnam.

"The results make no sense," said Betsy Ward, President and CEO of USA Rice.  "The U.S. is price competitive, the quality is excellent, the logistics are perfect, so why would the IGB want to pay significantly more than they have to?"

When the IGB visited the U.S. in May, progress was reported on three technical issues including broken content, chalk analysis, and shipping in bulk as opposed to 50kg bags, and IGB officials were confident they would begin purchasing U.S. rice again.

"If our prices are lower and the technical issues have been resolved, it doesn't look very good for why IGB snubbed the U.S. again," said Bob Cummings, USA Rice's Chief Operating Officer.  "This is the fourth tender where the IGB has either refused to purchase rice or ignored competitive U.S. offers."

Iraq is a huge rice importer, typically purchasing well over one million metric tons annually.  Cummings said USA Rice would be discussing the issue with U.S. officials in Baghdad and Washington to learn more, and to urge the officials to engage with the IGB.

"It's unacceptable," said Ward. "If these are legitimate tenders we want to know why we aren't being considered.  And if they're not legitimate, well, that's another story."

Contact:  Michael Klein (703) 236-1458

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