Trump chickens out again.

[webfact]

Thailand ranks no.1 rice exporter in 2014

BANGKOK, 4 Jan 2015 (NNT) – Thailand has reclaimed its rank as no.1 rice exporter in 2014 thanks to her adjustment of marketing strategies, which prompted the demand in foreign markets to jump.

The Thai Rice Exporters Association attributed the achievement to the country’s decision to lower rice prices in line with those of other exporting countries, leading to a boost in the country's competitiveness. Thailand’s rice export volume in 2014 rose by 66 percent to 10.9 million tons.

As for jasmine rice export, the country was however unable to outperform Cambodia and Vietnam, which last year produced higher outputs at a lower price. The release of Thai jasmine rice, which had been pledged at high prices under the rice pledging scheme, prompted the Thai jasmine rice to be more expensive than that of other countries.

The Thai Rice Exporters Association has estimated this year’s rice export volume at 10 million tons, as the situation in the country’s market has returned to normal.

It has also predicted that the drought crisis and the less tempting price would cause the off-season yields to drop by 30 percent--to six to seven million tons this year.

In addition, the production costs of the off-season rice are unusually high given it has to be cultivated in the dry season, the release of the government's stockpiled rice must, therefore, be well-timed.


-- NNT 2015-02-04

[Basil B]

Thailand had a lot of rice to sell while it was still saleable...

[ratcatcher]

Thank God Thailand is at last back to being Number 1 at something.

[Robby nz]

So we see yet another previously hidden consequence of the pledging scheme :

As for jasmine rice export, the country was however unable to outperform Cambodia and Vietnam, which last year produced higher outputs at a lower price

Both Cambodia and Vietnam increased their production of sought after Jasmine rice to make up for the shortfall caused by the storage of jasmine rice that was withheld from the market under the pledging scheme.

So now the Thai farmers and Thailand, which used to be the place to come for high quality jasmine rice, not only have to compete against greater quantities produced by competitors but also against the lower prices they are prepared to sell at.

It is not going to be easy to get the customers back that were lost due to them having to go elsewhere to get the rice they needed.

[BigBadGeordie]

What an excellent "adjustment of marketing straegies", reducing the price in line with other producers! And selling at a loss!

[chooka]

What an excellent "adjustment of marketing straegies", reducing the price in line with other producers! And selling at a loss!

Reducing the price???? The price of Thai rice in Australia has skyrocketed. Rice from other Asian nations is a 1/4 of the price of Thai rice. My Thai wife refuses to buy thai as it is so bloody expensive and she buys Vietnamese.

[carstenp]

Congratulations thailand. Your are the one leader in the world. Let's hope you make money on the deals

[DAiler]

It's a great turnaround from the failed policies earlier.

[bubblegum]

I don't like rice...

[surangw]

did they get paid up front? ( or will there be a problem when the customers find out the rice stinks )