The newest edition of the FAO’s Rice Market Monitor is out, and all signs point to an overall healthy rice market.
Listen up, manufacturers working with rice and rice-based ingredients. The newest edition of the FAO’s Rice Market Monitor is out, and all signs point to an overall healthy rice market.
Thanks to fortuitous weather in key producing countries, the FAO in July bumped up its total rice paddy production forecast for 2012 to 486 million tons of milled rice-an increase over the previous estimate by 4.2 million tons. The increase can also be attributed to a global increase in land used for rice farming (163 million hectares more) and increased consumer demand, particularly in nations including Nigeria, Brazil, and Venezuela.
Nations experiencing particular harvest success this year include the United States, which is expecting record yields, and Australia, which the report states is moving towards its best harvest season since 2006. India and Brazil have experienced “large production shortfalls,” according to the report.
In July, the FAO announced an all-time record for international rice trade, a 1% of more than one million tons over 2011, the previous all-time record. But production is still exceeding demand as the FAO predicts a rice carryover for the year of nearly 170 million tons.
Human consumption makes up more than 85% of current global rice utilization.