That said, virus-stricken China is one of the country’s largest importers, and so Vietnam is also looking to widen its scope to other countries worldwide, such as in South America. The association expects that Vietnam will export 6.75 million tonnes of rice in 2020, a 6% rise from 2019. "Vietnam is producing more fragrant rice to tap new markets, such as South Korea and Africa." “Demand is seen rising this year as Vietnamese rice is more competitive in terms of prices,” Vietnam Food Association Vice Chairman Do Ha Nam told Reuters. Meanwhile, Vietnam rice prices (for its benchmark 5% broken rice variety) rose to a record high since December 2018 benchmark at US$380 per tonne, and the local industry expects both demand and prices to continue to grow. will likely cause a further reduction in Thai rice exports to 7.5 million metric tons in 2020, down 1% from 2019,” said the USDA report. “Vietnamese and Indian rice prices were also US$70 to US$80 cheaper per MT, making Thai rice less competitive in the international market. USDA Global Agricultural Information Network analysis described the drought as the ‘second most severe in a decade’ and estimated total agricultural at approximately THB26bn (US$840mn) with rice taking the bulk of the damage at THB25.2bn (US$801mn). “Vietnam now has seven or eight rice types for export to serve global demand.”Īpart from innovation, a severe drought in the country has also led to serious supply shortages. “Because of the labour shortage, farmers opt to use machinery and chemicals that affect Thai rice's aromatic quality and good taste, while other exporters such as Vietnam have developed their own varieties every year to serve consumer demand. “Thailand has shipped the same rice varieties for 30 years and lacks rice variety development to deal with changing market demand and consumer behaviour,” the association’s President Charoen Laothamatas told Bangkok Post. In terms of exports, the Thai Rice Exporters Association has set a target of 7.5 million tonnes for 2020, its lowest since 2013. Previously it was beaten globally only by India but this year the country is expected to fall behind Vietnam within the region as well.Īccording to data from the Thai Foreign Trade Department, rice production in 2020 is expected to fall a whopping 9% to 18.5 million tonnes from around 20.34 million tonnes in 2019, whereas Vietnam is predicted to grow by almost 2% to produce 28.3 million tonnes, from 27.77 million tonnes last year. In 2019, Thailand was the world’s second-largest exporter of rice and the top in South East Asia.
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