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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Thursday, April 30, 2015

Budget Conference Report Reveals No Farm Bill Cuts 

WASHINGTON, D.C.-The House and Senate Agriculture Chairmen received welcome, but not entirely unexpected news when they reviewed the 2016 budget conference report. The report stated that neither the House nor the Senate Agriculture Committees are required to trim money from the Farm Bill.  

 

"The conference report as it relates to agriculture is a clear indication that Congress recognizes that the Agriculture Committees stepped up to the plate by reducing spending through the Farm Bill signed into law last year," said USA Rice's vice president of Government Affairs Ben Mosely.  

 

According to reports, even though the no-cut decision was anticipated, it was still appreciated. Senator Debbie Stabenow (D-Mich.), a Senate Budget conferee and ranking Democrat on Senate Agriculture, credits the backing of 400 different groups for their efforts in keeping House reconciliation directions for cuts to agriculture out of the budget conference reports.

 

Contact: Michael Klein (703) 236-1458

USA Rice Promotions: A Hit in Haiti  

PORT-AU-PRINCE, HAITI- The island nation of Haiti, a little more than 1,000 miles from the United States, has long been an important market for U.S. rice. However, in  

U.S. rice and Haiti have similar goals 

December 2012, the Government of Haiti signed an agreement with the government of  Vietnam allowing the purchase of  

300,000 MT of milled long grain rice; at that time, the U.S. had a 97 percent market share in Haiti. 

 

In 2013, a total of 66,000 MT of Viet rice was imported to Haiti, displacing U.S. rice and reducing our market share to 78 percent.   

 

During the summer of 2013, USA Rice commenced a promotions program here with the goal of returning U.S. rice exports to their prior level. While there is a price differential between Vietnamese and U.S. rice (typically $3-$5 per 25kg bag), Haitians have shown their desire for good quality rice. 

 

"Viet rice, while cheaper, has a bad image - if it is not consumed right after it's cooked, then it becomes very hard and difficult to eat. American rice does not have that reputation," says Ives-Marie Channel, USA Rice's marketing representation in Haiti. "USA Rice promotions in Haiti stress the high quality, reliability and excellent cooking characteristics of U.S. rice, or as many Haitians know it, Miami rice."

 

After compiling an extensive list of the rice trade in Haiti and consulting with the major players, USA Rice began conducting 1,000 radio promotions and four 15-minute radio programs which discussed rice in depth.    

 

The most visible activity last year were TV and radio spots broadcast during the World Cup. USA Rice broadcast 5,166 spots on 10 radio stations and 1,760 commercials were broadcasted on 6 television stations.    

 

In 2014, Haiti brought in less than 20,000 MT of Viet rice and the U.S. market share rose back up to 96 percent. There have not been any reports of Viet rice imports into Haiti in 2015 thus far. 

 

USA Rice is continuing its successful promotions in 2015, including sponsoring a local soccer team which will place U.S. rice posters in their stadiums, strengthening the positive image of U.S. rice, encouraging continued consumption, and protecting U.S. market share. 

 

Haiti consistently ranks among the top three markets for U.S. rice and the largest market for milled rice. Haiti was the second largest single destination for U.S. rice last year (361,578 MT) and the third largest value market ($185 million). 

 

Contact: Sarah Moran (703) 236-1457

Weekly Rice Sales, Exports Reported        

WASHINGTON, DC --Net rice sales of 112,800 MT for 2014/2015 were up 72 percent from the previous week and up noticeably from the prior four-week average, according to today's Export Sales Highlights.  Increases were reported for Libya (22,000 MT), Haiti (20,500 MT), South Korea (17,000 MT), Colombia (14,900 MT), and Mexico (12,100 MT). 

Exports of 58,100 MT were down 25 percent from the previous week and 18 percent from the prior four-week average.
  The primary destinations were Colombia (34,800 MT), Haiti (10,000 MT), Mexico (3,600 MT), Canada (2,700 MT), and Jordan (1,700 MT).


This summary is based on reports from exporters from the period April 17-23.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for April 30

Month
Price
Net Change
May 2015
$10.030
- $0.130
July 2015$10.295
- $0.135
September 2015
$10.565
- $0.135
November 2016
$10.815
- $0.140
January 2016$11.065
- $0.140
March 2016$11.115
- $0.140
May 2016$11.115
- $0.140

In the News 

Around the Country

Growing Leaders the Rice Way TWILA

Video report on the most recent Rice Leadership Development Class touring the Gulf Coast for their first session.

 

Seed Foundation Facility Headed to Stuttgart UALR Public Radio

The $2 million for the new facility will come through tariff rate quota funds generated for domestic rice research from the U.S.-Colombia Trade Promotion Agreement, which established an annual tariff rate quota for U.S. rice exported to Colombia.

 

Tips for Transitioning Farm to Next Generation Delta Farm Press

Succession planning intersects finance, business and the human spirit. Using proven assessment tools to measure leadership behaviors can help channel emotions into constructive activities.

 

Tariffs and Trade

Japanese Leader Says Trade Deal 'Near,' Pledges Farm Policy Reform Agri-Pulse

Japanese Prime Minister Shinzo Abe, in an historic address to a joint meeting of Congress, assured lawmakers he was ready to remove protections for his country's farmers and was close to finalizing a trade deal with the United States. The U.S. demand that Japan end its stiff tariffs on rice and other agricultural commodities is one of the major hangups to concluding the 12-nation Trans-Pacific Partnership agreement.

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