Thailand To Regain Its Role As World's Leading Rice Exporter

[NeverSure]

why dont they pay them to not grow any rice for a year and clear the backlog,or give it away to starving countries,,,,and maybe do something decent for a change,,,

That may be the only way out. A big problem is that by not supplying rice at world market prices, and now trying to sell old rice, Thailand has already lost its customers to other countries. Compound that with the fact that the world is flooded with excess rice, and Thailand probably isn't going to be able to sell its old rice. Who would buy that old rice at any price when rice is so available and so cheap worldwide?

Thailand may need to (should) eat its losses, pardon, sell that rice for animal feed, and try to get back into the game. The next problem would be finding buyers which have been insulted and ripped off and lost. Thailand's attitude got it here because after all it is the HUB of rice and has superior rice (BS) and its mindset won't allow it to adjust.

Thailand doesn't have enough land to be the leading exporter of rice and it isn't. India is the world's largest exporter of rice followed by Vietnam. Additionally, Thailand paid its farmers about twice the market price for this rice. Now what? Link.

Rice is grown on land that isn't suitable for a lot of other things. If it was, more valuable crops could be grown. Rice is kind of the bottom of the barrel for 3rd world Asian countries. Far less is used per capita in the West.

If rice was valuable instead of a 3rd world staple, Isaan wouldn't be so poor nor would some other places even in other countries.

[Thai at Heart]

why dont they pay them to not grow any rice for a year and clear the backlog,or give it away to starving countries,,,,and maybe do something decent for a change,,,

That may be the only way out. A big problem is that by not supplying rice at world market prices, and now trying to sell old rice, Thailand has already lost its customers to other countries. Compound that with the fact that the world is flooded with excess rice, and Thailand probably isn't going to be able to sell its old rice. Who would buy that old rice at any price when rice is so available and so cheap worldwide?

Thailand may need to (should) eat its losses, pardon, sell that rice for animal feed, and try to get back into the game. The next problem would be finding buyers which have been insulted and ripped off and lost. Thailand's attitude got it here because after all it is the HUB of rice and has superior rice (BS) and its mindset won't allow it to adjust.

Thailand doesn't have enough land to be the leading exporter of rice and it isn't. India is the world's largest exporter of rice followed by Vietnam. Additionally, Thailand paid its farmers about twice the market price for this rice. Now what? Link.

Rice is grown on land that isn't suitable for a lot of other things. If it was, more valuable crops could be grown. Rice is kind of the bottom of the barrel for 3rd world Asian countries. Far less is used per capita in the West.

If rice was valuable instead of a 3rd world staple, Isaan wouldn't be so poor nor would some other places even in other countries.

The buyers will come back if the price is OK. The very same companies putting the deals together for Vietnamese, Cambodian or Thai rice are the same companies. They are all invested regionally or have joint ventures.

You are right flogging this old crop is now getting harder with each passing month. They are going to have to start discounting for quality losses soon.

The whole title of biggest exporter is a weird thing. The amount of rice traded globally versus total supply is relatively small, so the fact that Thailand can grow 9mn tons beyond domestic requirements is all very nice, but in global rice production terms it is a small volume.

It only takes a rise in yield in China and India for one year and 9mn extra tons can be grown by accident.

Edited May 26, 2013 by Thai at Heart

[NeverSure]

why dont they pay them to not grow any rice for a year and clear the backlog,or give it away to starving countries,,,,and maybe do something decent for a change,,,

That may be the only way out. A big problem is that by not supplying rice at world market prices, and now trying to sell old rice, Thailand has already lost its customers to other countries. Compound that with the fact that the world is flooded with excess rice, and Thailand probably isn't going to be able to sell its old rice. Who would buy that old rice at any price when rice is so available and so cheap worldwide?

Thailand may need to (should) eat its losses, pardon, sell that rice for animal feed, and try to get back into the game. The next problem would be finding buyers which have been insulted and ripped off and lost. Thailand's attitude got it here because after all it is the HUB of rice and has superior rice (BS) and its mindset won't allow it to adjust.

Thailand doesn't have enough land to be the leading exporter of rice and it isn't. India is the world's largest exporter of rice followed by Vietnam. Additionally, Thailand paid its farmers about twice the market price for this rice. Now what? Link.

Rice is grown on land that isn't suitable for a lot of other things. If it was, more valuable crops could be grown. Rice is kind of the bottom of the barrel for 3rd world Asian countries. Far less is used per capita in the West.

If rice was valuable instead of a 3rd world staple, Isaan wouldn't be so poor nor would some other places even in other countries.

The buyers will come back if the price is OK. The very same companies putting the deals together for Vietnamese, Cambodian or Thai rice are the same companies. They are all invested regionally or have joint ventures.

You are right flogging this old crop is now getting harder with each passing month. They are going to have to start discounting for quality losses soon.

The whole title of biggest exporter is a weird thing. The amount of rice traded globally versus total supply is relatively small, so the fact that Thailand can grow 9mn tons beyond domestic requirements is all very nice, but in global rice production terms it is a small volume.

It only takes a rise in yield in China and India for one year and 9mn extra tons can be grown by accident.

I "liked" your post because it has really good stuff in it. My personal observation right now is that the Thai government is running around trying to sell this rice. That's what's in the news.

I really appreciate links when claims are made, unless the claim is all over the news or is obvious. I don't know that the same people who put deals together for other countries will put deals together for Thailand. Maybe it's true, I just don't know that and don't see that.

My belief is that Thailand's attitude, first in withholding rice from the market, insanely thinking they could drive the world price up, and now in trying to dump inferior rice, has peo'd a lot of customers who may not come rushing back. There is talk that one country had to throw out 20% of the rice they bought due to storage damage.

Thailand is the hub, after all. Ask any Thai.

[crazygreg44]

Yes they can achieve the 8 million tonnes goal by just selling 5 million tonnes off their stockpiles. However I doubt the prices will go up. Furthermore, the stockpile rice is now of poorer quality, you can expect it to stink and smell, no more jasmin smell rice. It could backlash onto Thailand as being the World's number one exporter for low quality rice. I sincerely hope for all's sake she does not shoot the bullet into her own foot !!!!

[Robby nz]

What they are going to do with the new seasons crop will be telling.

Whether they are going to try to sell it as new season good quality product or store it away in warehouses.

They have still got the problem of price having paid so much above market value.

If what I read is correct that they can be done for dumping for selling on the open market then G 2 G deals with prices kept secret seems the only way out.

This of course does not get back the customers who have gone elsewhere.

And it cuts out the rice traders who will also go elsewhere.

Nor does it get rid of the stockpile which continues to deteriorate and cost in storage.

With G 2 G deals they may be able to say "we sold X amount of tons of rice, aint we wonderful" but at what loss?

To be number 1 in volume while losing money just does not compute.

Private enterprise would quickly fold with that policy, a government using other peoples money may take a little longer.

[Thai at Heart]

why dont they pay them to not grow any rice for a year and clear the backlog,or give it away to starving countries,,,,and maybe do something decent for a change,,,

That may be the only way out. A big problem is that by not supplying rice at world market prices, and now trying to sell old rice, Thailand has already lost its customers to other countries. Compound that with the fact that the world is flooded with excess rice, and Thailand probably isn't going to be able to sell its old rice. Who would buy that old rice at any price when rice is so available and so cheap worldwide?

Thailand may need to (should) eat its losses, pardon, sell that rice for animal feed, and try to get back into the game. The next problem would be finding buyers which have been insulted and ripped off and lost. Thailand's attitude got it here because after all it is the HUB of rice and has superior rice (BS) and its mindset won't allow it to adjust.

Thailand doesn't have enough land to be the leading exporter of rice and it isn't. India is the world's largest exporter of rice followed by Vietnam. Additionally, Thailand paid its farmers about twice the market price for this rice. Now what? Link.

Rice is grown on land that isn't suitable for a lot of other things. If it was, more valuable crops could be grown. Rice is kind of the bottom of the barrel for 3rd world Asian countries. Far less is used per capita in the West.

If rice was valuable instead of a 3rd world staple, Isaan wouldn't be so poor nor would some other places even in other countries.

The buyers will come back if the price is OK. The very same companies putting the deals together for Vietnamese, Cambodian or Thai rice are the same companies. They are all invested regionally or have joint ventures.

You are right flogging this old crop is now getting harder with each passing month. They are going to have to start discounting for quality losses soon.

The whole title of biggest exporter is a weird thing. The amount of rice traded globally versus total supply is relatively small, so the fact that Thailand can grow 9mn tons beyond domestic requirements is all very nice, but in global rice production terms it is a small volume.

It only takes a rise in yield in China and India for one year and 9mn extra tons can be grown by accident.

I "liked" your post because it has really good stuff in it. My personal observation right now is that the Thai government is running around trying to sell this rice. That's what's in the news.

I really appreciate links when claims are made, unless the claim is all over the news or is obvious. I don't know that the same people who put deals together for other countries will put deals together for Thailand. Maybe it's true, I just don't know that and don't see that.

My belief is that Thailand's attitude, first in withholding rice from the market, insanely thinking they could drive the world price up, and now in trying to dump inferior rice, has peo'd a lot of customers who may not come rushing back. There is talk that one country had to throw out 20% of the rice they bought due to storage damage.

Thailand is the hub, after all. Ask any Thai.

The major Thai rice trading firms all have operations in neighbouring countries.

[jambco984]

Every bag of rice in Big C Ubon today had flies/ants/bugs whatever they where in the bags. Not 1 or 2 but lots in each bag

Is this to do with the surplus and the fact they cant sell it quick enough?

Check your bags before you buy folks.

This seems to be quite a common complaint these days, despite the fact that the stored rice has been saturated with insecticide.

Well, he didn't say the bugs were alive.....

Alive and kicking.

[NeverSure]

That may be the only way out. A big problem is that by not supplying rice at world market prices, and now trying to sell old rice, Thailand has already lost its customers to other countries. Compound that with the fact that the world is flooded with excess rice, and Thailand probably isn't going to be able to sell its old rice. Who would buy that old rice at any price when rice is so available and so cheap worldwide?

Thailand may need to (should) eat its losses, pardon, sell that rice for animal feed, and try to get back into the game. The next problem would be finding buyers which have been insulted and ripped off and lost. Thailand's attitude got it here because after all it is the HUB of rice and has superior rice (BS) and its mindset won't allow it to adjust.

Thailand doesn't have enough land to be the leading exporter of rice and it isn't. India is the world's largest exporter of rice followed by Vietnam. Additionally, Thailand paid its farmers about twice the market price for this rice. Now what? Link.

Rice is grown on land that isn't suitable for a lot of other things. If it was, more valuable crops could be grown. Rice is kind of the bottom of the barrel for 3rd world Asian countries. Far less is used per capita in the West.

If rice was valuable instead of a 3rd world staple, Isaan wouldn't be so poor nor would some other places even in other countries.

The buyers will come back if the price is OK. The very same companies putting the deals together for Vietnamese, Cambodian or Thai rice are the same companies. They are all invested regionally or have joint ventures.

You are right flogging this old crop is now getting harder with each passing month. They are going to have to start discounting for quality losses soon.

The whole title of biggest exporter is a weird thing. The amount of rice traded globally versus total supply is relatively small, so the fact that Thailand can grow 9mn tons beyond domestic requirements is all very nice, but in global rice production terms it is a small volume.

It only takes a rise in yield in China and India for one year and 9mn extra tons can be grown by accident.

I "liked" your post because it has really good stuff in it. My personal observation right now is that the Thai government is running around trying to sell this rice. That's what's in the news.

I really appreciate links when claims are made, unless the claim is all over the news or is obvious. I don't know that the same people who put deals together for other countries will put deals together for Thailand. Maybe it's true, I just don't know that and don't see that.

My belief is that Thailand's attitude, first in withholding rice from the market, insanely thinking they could drive the world price up, and now in trying to dump inferior rice, has peo'd a lot of customers who may not come rushing back. There is talk that one country had to throw out 20% of the rice they bought due to storage damage.

Thailand is the hub, after all. Ask any Thai.

The major Thai rice trading firms all have operations in neighbouring countries.

I don't understand how that is the same as

"The very same companies putting the deals together for Vietnamese,

Cambodian or Thai rice are the same companies. They are all invested

regionally or have joint ventures."

As said by thai by heart. And I still don't see a link to that claim. I'm not saying that's not true, it's just not the way I understand it atm and would like a link to back claims of this "joint venture" with the Vietnamese, Cambodians, and Thailand to sell rice.

[Traveling Sailor]

Hmmm! I think I smell smoke and see mirrors.

Well, leave the bathroom and stop bending down, then you will understand life and not what you see in the mirror!

Are you that obtuse or just being rude?

Probably both.

[Thai at Heart]

Soma Group signs a joint-venture agreement with Thai-based CP Intertrade to build a $20 million rice mill that will process fragrant rice for export.

Jan 25 (Reuters) - Capital Rice Ltd, Thailand's third-largest rice exporter, is shifting some of its businessto Cambodia as the Thai market shrinks because of government intervention that has diverted grain into state stockpiles or made it too expensive to ship.

"We have built a medium-sized milling house in Cambodia, expecting to start processing rice and export by the first quarter of this year," Wanlop Pichpongsa, the deputy managing director, told Reuters.

There are currently two rice parboiling plants in Vietnam, one operated by Ho Chi Minh City-based Vinh Phat JSC in the Mekong Province of An Giang, and one by a Thai company, located in Tien Giang.

Within Southeast Asian, governments still had a long way to go to pave the way for an Asean regional free-trade zone envisioned in 2015, the president of the Thai Rice Exporters Association Korbsook Iamsuri said. “Until we change laws that prohibit the import and export of seeds, I think the (Asean Economic Community) will not be implemented,” she said.

However, Thai rice producers have already invested in other Southeast Asian countries “accidentally creating an AEC in agriculture. We more or less have accomplished it,” she said. “A few of us have moved into Cambodia, into Vietnam.”

http://www.phnompenhpost.com/plans/form

http://www.reuters.com/article/2013/01/25/thailand-rice-exporter-idUSL4N0AT3HC20130125

http://tuoitrenews.vn/business/8646/vietnam-sees-hope-in-parboiled-rice-exports

http://www.irrawaddy.org/archives/29373

The so called "Thai" rice exporters are happily operating all over the region, so they might be losing out in Thailand at the moment, but they are happily trading elsewhere in the region

Edited May 27, 2013 by Thai at Heart