December 12, 2006

World Production and Trade of Rice

World Production and Trade of Rice
Rice is the staple in the diet for much of the world. It runs a close second to wheat in its importance as a food cereal in the human diet. About 560 Million Metric Tons of rice are grown annually compared to 600 MMT for wheat, 300 MMT for oil seeds, and 900 MMT for coarse grains (corn, sorghum, barley, oats, rye, millet and mixed grains.)

Most coarse grains go into animal feed where its impact on the human diet is not as great (eight lbs. of grain are needed to produce one lb. of beef). Rice produces more food energy per acre than other cereal grains, and is second only to wheat in terms of protein per acre produced.

Rice production has more than doubled in the last 40 years. Most of the increase in production has been a result of improved field yields. Acreage planted in rice has only increased about 30 percent. Rice is best grown in flooded fields and so acreage is limited by soil type and supply of water.

Of the 560 MMT produced almost 60 percent is grown and consumed in China and India. The leading producers of rice, are (in order) China, India, Indonesia, Bangladesh, Vietnam, Thailand, Burma, Japan, Philippines, Brazil, and the United States.

The United States produces about 8 MMT, or about one and one half percent of the world’s supply. Most rice is consumed within a few miles of where it is produced.Very little rice is traded and for this reason the market price for rice is very volatile. In the case of wheat and coarse grains 15% of the world’s production is traded between countries. In the case of rice only 5% is traded.

The United States has historically exported about half of its production, and for many years, the U.S. was the number two exporter of rice in the world behind Thailand. Today Vietnam is number two and occasionally India takes the number three slot. Following are the top five exporters and importers for 1999: (quantities are for milled rice, about 68% of paddy rice)
World Production and Trade of Rice

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