Thailand hopes for comeback in Hong Kong jasmine rice market

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RICE
Thailand hopes for comeback in Hong Kong jasmine rice market
Sasithorn Ongdee
The Nation

BANGKOK: -- Thailand is striving to reclaim its position as the largest supplier of jasmine rice to Hong Kong after losing almost half of its footprint in that market to Vietnam for several years.

"We expect the Thai share of the jasmine-rice market in Hong Kong this year to reach 60 per cent, though that level is still below what it used to be - 90 per cent at its highest point," said Witt Maneenetr, trade commissioner of the Thai Trade Centre in Hong Kong.

Currently, the market for Thai fragrant rice in Hong Kong is segmented into two main groups, households and restaurants. Witt said the household segment was not a problem, as these customers are more concerned about quality than price. Restaurants, however, do worry about price.

Last year, Thailand's share of Hong Kong's rice market was 54 per cent, falling from as high as 90 per cent in the last decade. For the first two months of this year, the share dropped to 47-48 per cent. However, it bounced back to above 50 per cent in March, reflecting the improved competitiveness of Thai rice. Meanwhile, Vietnam's share rose by 2-3 percentage points to 40 per cent.

According to the US Department of Agricul-ture (USDA), Vietnam gradually established itself as the second-largest supplier, taking a 41-per-cent market share in 2013 from almost nothing a decade ago. The key reason was price competitiveness.

Hong Kong is one of Thailand's main markets for rice, especially fragrant rice.

Last year, Hong Kong's rice market was worth US$320 million (Bt10.4 billion). Major suppliers include Thailand ($182 million), Vietnam ($93 million) and mainland China ($23 million). Thailand and Vietnam supply long-grain fragrant rice.

Last year, of the 339,000 tonnes of rice exported to Hong Kong, Thailand accounted for 155,000 tonnes while Vietnam's share was 138,000 tonnes. Ten years earlier, Thailand shipped Bt238,000 tonnes to the city while Vietnam exported none, according to the USDA report.

To regain its crown as the top supplier of fragrant rice to Hong Kong, Witt said the Commerce Ministry would invite more than 10 large traders in the city to attend the "Thaifex-World of Food Asia" fair, which will take place from May 21-25.

"We hope the rice-market share in Hong Kong this year will not decline. If the country's three-to-five-year strategy plan is successful, we should reclaim a market share of 70-80 per cent."


-- The Nation 2014-05-14

[NeverSure]

Should, hope, expect, hub...

[JeremyBowskill]

I hoped, before going to bed I would wake this morning 15 years younger with a bigger bank account! Guess we are both sh!t outa luck.

[JRSoul]

"If the country's three-to-five-year strategy plan is successful.........."

Is that the plan to get Shinawatra's out of government?

[EricBerg]

"Restaurants, however, do worry about price."

There are millions of tons stored in the warehouses, so the Thai price can be way below international market prices, else the stored rice will just rot away.

"We hope the rice-market share in Hong Kong this year will not decline. If the country's three-to-five-year strategy plan is successful, we should reclaim a market share of 70-80 per cent."

Is that TAT speaking?

[tomyummer]

Boy, I've learned my fill about the rice trade and rice economics in the past year. All thanks to Ajarn Yingluck.

Edited May 14, 2014 by tomyummer

[BillyBobThai]

Just wait until next year when ASEAN starts to kick Thailands butt.

[allan michaud]

"For the first two months of this year, the share dropped to 47-48 per cent. However, it bounced back to above 50 per cent in March, reflecting the improved competitiveness of Thai rice"

Improved competitiveness, really, over a 1 month period? I think that is called clutching at straws. With Burma and Cambodia fast expanding their rice production I see no reason why Thai rice would increase it's share dramatically. When Thailand decides to sell rotten rice to countries in Africa and the middle east it doesn't make other countries want to rush out and buy Thai. IMO this bunch of muppets (PTP) will continue to wreck Thailand's main export for as long as they are in charge.

[chainarong]

Given the chance and giving the Thai rice farmer a fair go, he /she can compete anywhere, the country has a good research base, within the agriculture department and the countries universities , it has all the boxes ticked , reasonable infrastructure, rice grade etc, what it needs is a government that can introduce performance based schemes not vote buying schemes , there-in lies the problem, damage to this sector is massive in the international market place , so there needs to be a complete re - think in export strategies and prices. Let that be a lesson , no one is bigger than the game.

[Emilp]

I hope too.

[ChrisY1]

Given the chance and giving the Thai rice farmer a fair go, he /she can compete anywhere, the country has a good research base, within the agriculture department and the countries universities , it has all the boxes ticked , reasonable infrastructure, rice grade etc, what it needs is a government that can introduce performance based schemes not vote buying schemes , there-in lies the problem, damage to this sector is massive in the international market place , so there needs to be a complete re - think in export strategies and prices. Let that be a lesson , no one is bigger than the game.

The whole rice business industry in Thailand should be privatised.......no Thai government has ever been able to manage major projects....similarly, most other governments globally....they are never project managers in any country!

Whatever major projects the Thai governments try to control, they always seem to turn to a disaster with massive funds always vanishing, and projects left unfinished.

With exception, Royal projects.....

Edited May 14, 2014 by ChrisY1

[NongKhaiKid]

Just wait until next year when ASEAN starts to kick Thailands butt.

Will LoS not be running the show after all this is the hub / haven of everything /

[LomSak27]

Well sorry to all the above obsessors about Rice Scheme’s YingLuck and the Shin clan.

The reason that Thai high end jasmine rice has lost market share is the same reason they have lost market share in North America – starting 15 years ago the rice millers and shippers started to put lower grades of rice in their high grade rice bags

It’s called corruption and done by the private sector

This was big news 10 years back among large scale buyers in the US. Who retaliated by buying Vietnamese Jasmine. And sad to say it had nothing to do with the rice scheme. Wah Wah. Actually the Rice Millers are almost positively 100 % not reds

Excellent work by “The Nation” to not mention the above facts. Almost like they wanted readers to assume it was the Rice scheme and not the greed of the Rice Millers and shippers.

You can almost hear the Leo bottles dropping