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Up-to-the-Minute News on Issues and Activities
Thursday, January 8, 2015

USA Rice and Cuba - Getting Closer  

 
Governor Nixon (l) and  
Secretary Vilsack 
WASHINGTON, DC -- The USA Rice Federation has joined with more than 25 prominent U.S. food and agriculture associations and companies to form a coalition that seeks to advance trade relations between the United States and Cuba.  The U.S. Agriculture Coalition for Cuba (USACC) formally launched at an event here today that was attended by Secretary of Agriculture Tom Vilsack, a bipartisan group of Members of Congress, and Missouri Governor Jay Nixon. 

The purpose of the USACC is to re-establish Cuba as a market for U.S. food and agriculture exports and address liberalizing trade between the United States and Cuba.  The coalition will work to end the embargo and allow for open trade and investment, and coming just a few weeks after President Obama's announcement of a major policy shift on Cuba, is well-timed.


"President Obama's new policies on Cuba aim to expand opportunities for U.S. farmers and ranchers, expand choices for the Cuban people, and create new customers for us," Secretary Vilsack said.
 

 

"We know the Cuban market for rice is not theoretical.  It is real, it is large, and it is compelling," said Betsy Ward, President and CEO of USA Rice, who also spoke at the event.  "With rice imports valued at more than $300 million, Cuba is the second largest importer of rice in the Americas.  And there was a time when Cuba was our number one export market - we look forward to a return to those days."

 

 
CEO Betsy Ward meets the press 

The U.S. rice industry has been advocating for open trade and travel with Cuba since the mid 1990's and was the first U.S. commodity back in Cuba in 2001, exhibiting at the Havana Trade Fair, which led to the first U.S. rice sale to Cuba in more than 40 years.

 

Throughout the last decade, USA Rice has sponsored numerous trade missions, led and participated in many forums, here and in Cuba, and participated in eight Havana International Fairs.  Consequently, by 2004, U.S. rice sales to Cuba were valued at $64 million. However, U.S. government policy changes reversed that trend, and by 2009 sales fell to zero, where they remain.

 

"All we need is an open door, the hard working farmers will do the rest," said Governor Nixon.  "Given the opportunity to compete, America's farmers will win."

 

"We applaud the Obama Administration for their recent actions, and ask our leaders in Congress to normalize trade with this nation that we believe will once again become a major market for U.S. rice," Ward said.  "Open trade with Cuba would be an enormous boon for U.S. rice farmers, and we look forward to working with the Cuban rice industry so together we may supply the Cuban people with high-quality, delicious rice."

 

Contact:  Deborah Willenborg (703) 236-1444

Weekly Rice Sales, Exports Reported        

WASHINGTON, DC -- Net rice sales of 28,600 MT for 2014/2015 were up noticeably from the previous week, but down 53 percent from the prior four-week average, according to today's Export Sales Highlights report.  Increases were reported for Haiti (9,500 MT), unknown destinations (6,000 MT), Turkey (2,600 MT), Saudi Arabia (2,500 MT), and Jordan (2,400 MT).  Decreases were reported for Iraq (600 MT). 

Exports of 50,500 MT were down 45 percent from the previous week and 34 percent from the prior four-week average.
  The primary destinations were Turkey (28,100 MT), Haiti (10,500 MT), Mexico (4,400 MT), Canada (3,300 MT), and Jordan (1,700 MT).


This summary is based on reports from exporters from the period December 26-January 1.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for January 8


Month
Price
Net Change
January 2015$11.295
- $0.115
March 2015$11.525
- $0.125
May 2015$11.755
- $0.115
July 2015$11.980
- $0.115
September 2015$11.555
- $0.005
November 2015$11.430
- $0.145
January 2016$11.665
- $0.060


In the News 

Around Washington

Senate Panel to Challenge Water Rule, Endangered Species Enforcement Agri-Pulse

The committee chairman, Sen. Jim Inhofe, said his agenda includes a promise to conduct "rigorous oversight of EPA regulations, including the proposed rule defining the waters of the United States" (WOTUS) that are regulated under the Clean Water Act. Killing the rule is a high priority for many farm groups, mining companies and development interests.

 

 

Around the Country

Deadlines Loom for Crucial Farm Program Decisions AGProfessional

The Agricultural Act of 2014 has revised the commodity support programs. Producers must elect from among three different programs and there is a new crop insurance policy. Landowners are also provided an opportunity to reallocate base acres and update payment yields. The decisions will be made once by the deadlines provided and cannot be changed for the life of the 2014 Farm Bill.

 

Around the World

Gulfood 2015 to Enhance Dubai's Role as Global Hub for Foodstuff Commodity Trade Saudi Gazette

Dubai has become a well-connected, cost-effective global gateway for foodstuff commodities trade. This includes trade in commodities such as rice - the UAE is the world's largest re-exporter of rice, importing rice from 32 countries and exporting it to more than 80 countries globally.

 

Two More Varieties of Hybrid Rice Introduced Dhaka Tribune

The government has introduced two more varieties of hybrid rice for cultivation aiming to boost the rice production in Bangladesh.

 

 

Tariffs and Trade

Senate Plots 'Early' Action on Trade Powers Agri-Pulse

The Obama administration needs TPA in order to wrap up negotiations on the 12-nation Trans-Pacific Partnership trade agreement (TPP). Trade policy is likely one of the few major issues where congressional Republicans and President Obama can agree this year.

 

McCaskill to Travel to Cuba to Assess Markets for Missouri St. Louis Today

Senator McCaskill is working to determine from the U.S. Department of Agriculture what agricultural products could be sold in Cuba now, and which are likely to best fit the Cuban market.

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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

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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

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