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Global Rice Market and Turkey

28 May 201513 min reading
The recent report published by the International Grain Council- IGC shows that the global rice production continues to increase.  According to IGC report, the global rice production that was 467 million tons in the season 2011/12 increased to 472 million tons in the season 2012/13 and finally reached to 476 million tons in the season 2013/14.  However, the projection of IGC for April indicates a decline of 2 million tons for the season 2014/15.  In other words, IGC estimates that the global rice production will account to 474 million tons in the season 2014/15.  The report from Foreign Agriculture Service of American Department of Agriculture indicates a production volume of 475.6 million tons for 2014/15. USDA that announced its projection for 2015/16 estimates that the global rice production will reach to 482.1 million tons in the next season with an increase of 6.5 million tons. arastirmassas Rice that is consumed as staple food particularly in Asia continent is the third grain that is produced the most after wheat and corn. Most of the rice production is carried out for people and it corresponds to one fifth of the staple food consumed by people. Rice that started to be consumed around 2500s B.C, is thought to have spread to the rest of the world from China. It is thought that countries like Sri Lanka and India took rice from China. The western world was introduced with rice around 300 A.C. It is thought that rice was brought to Europe at the end of the 17th century and to Turkey around 500 years ago. The protein content of rice is lower when compared with other grains. However, its rich amino acid content made rice one of the most popular products after wheat in the diet of people. The most fertile grounds for rice plant cultivation are located in the tropical and temperate regions of the world. The data show that the agricultural areas in the world are 1.5 billion hectare and grains are cultivated on 700 million hectare of these areas. Approximately 22 percent of these areas is reserved for rice cultivation. China, India and Indonesia are the countries have the highest share in the rice paddies across the globe. GLOBAL RICE PRODUCTION AND LEADING PRODUCER COUNTRIES The recent report published by the International Grain Council- IGC shows that the global rice production continues to increase. According to IGC report, the global rice production that was 467 million tons in the season 2011/12 increased to 472 million tons in the season 2012/13 and finally reached to 476 million tons in the season 2013/14. However, the projection of IGC for April indicates a decline of 2 million tons for the season 2014/15. In other words, IGC estimates that the global rice production will account to 474 million tons in the season 2014/15. The figures in the report of the American Food Department, Foreign Agriculture Service is around the same levels as the figures given by IGC for 2011/12, 12/13 and 13/14 and the report indicates a production of 475.6 million tons for 2014/15. USDA that announced its projection for 2015/16 estimates that the global rice production will reach to 482.1 million tons in the next season with an increase of 6.5 million tons. According to the rice report prepared by the American Agriculture Department in 2015, rice plant has been cultivated in an area of 158 thousand hectare since the season 2010/11 and this figure increased to 160 thousand hectare in 2013/14. 159 thousand tons production is expected for the season 2014/15. The data shows that the yield per unit area increases. The yield was 4 tons per hectare in the season 2006/07 and this quantity increased gradually and reached to 4.24 tons in 2010/11. This quantity increased to 4.34 tons in 2011/12, 4.44 tons in 2013/14 and 4.2 tons in 2013/14. It is anticipated to increase to 4.43 tons per hectare in the season 2014/15. The data announced by United Nations Food and Agriculture Organization (FAO) show that China and India met almost half of the global rice production of 711 million tons in the year 2013. China increased its rice production that was 196.6 million tons in 2009 to 197.2 million tons in 2010 and 202.6 million tons in 2011. It produced around 205 million tons rice in 2012 and 2013. India produced 135.6 million tons of rice in 2009 and increased this quantity to 143.9 million tons in 2010 and 158 million tons in 2011 and 2012. Rice production of the country increased to 159 million tons in 2013. Top 10 rice producers of the world are Asian countries. China and India shared the top two ranks in 2013 and they are followed by Indonesia with a production volume of 71.2 million tons, Bangladesh with 51.5 million tons, Vietnam with 44 million tons and Thailand with 36 million tons. Thailand is followed by Myanmar, Philippines, Brazil and Japan. If we look at the top 10 list of USDA that announced the data on rice for the season 2014/15, we see that the ranking is parallel with the ranking of FAO. USDA data shows that China produced 142.5 million tons rice in 2013/14 and increased the production to 144.5 million tons in 2014/15. USDA anticipates an increase of 1.5 million tons in the rice production of China in 2015/16. It is notable that the data announced for India indicate a decline. USDA data shows that India produced 106.5 million tons rice in 2013/14 and the production will produce 102.5 million tons with a decline of 4 million tons in 2014/15. The projection for the rice production of India in 2015/16 is 104 million tons. Data for 2014/15 shows that China and India are followed by Indonesia with rice production of 36.3 million tons, Bangladesh with 34.5 million tons, Vietnam with 28 million tons, Thailand with 18.7 million tons, Burma with 12.6 million tons, Philippines with 12.2 million tons, Brazil with 8.3 million tons and Japan with 7.8 million tons. An increase is anticipated in the production of these countries except for Brazil in the season 2015/16. The production volume of Brazil is expected to remain around the same levels. China and India continue to maintain their top ranks in the global rice consumption just like they did with the production. According to USDA data, the rice consumption of China that is 148.4 million tons in 2014/15 season will reach to 151 million tons in 2015/16 and India's rice consumption of 99.3 million tons will reach to 99.5 million tons. The global rice consumption ranking is almost the same as the global production ranking. Data from USDA show that China and India are followed by Indonesia with rice consumption of 38.6 million tons, Bangladesh with 35.3 million tons, Vietnam with 21.9 million tons, Philippines with 13.2 million tons, Thailand with 11.2 million tons, Burma with 10.7 million tons, Burma with 8.3 million tons and Brazil with 7.9 million tons. Production and consumption data show that the aforementioned countries consumer substantial part of the rice they product in their domestic markets. GLOBAL RICE TRADE Approximately 40-42 million ton of the global rice production is traded. IGC's report for April shows that the global rice trade that was 39 million tons for the seasons 2011/12 and 2012/13 reached to 43 million tons in 2013/14. IGC estimates that the quantity of rice traded globally in the season 2014/15 remains at around 41 million ton levels. Data from USDA support the IGC's data, however the estimation of USDA for the season 2014/15 is 2 million tons higher than IGC (43.1 million tons). In contrary to IGC, USDA announced projections for 2015/16, too and reported that it anticipates rice trade to account to 42.3 million tons in the next season. Asian countries hold the largest share in the global rice exports in parallel with the production. Asian countries are followed by the USA and South Africa. Data from USDA show that Thailand has the highest share in the global rice exports of the season 2014/15 with 11 million tons. Thailand exported 8.5 million tons of rice in 2008/09 and increased this quantity to 9 million tons in 2009/10 and 10.6 million tons in 2010/ 11. Rice exports of Thailand that declined to 6.9 million tons in 2011/12 and 6.7 million tons in 2012/13 increased back to 10.9 million tons in 2013/14. Thailand is anticipated to export around 11 million tons of rice in the season 2015/16. Thailand is followed by India with 9.8 million tons of rice exports in the season 2014/15. However, export volume of India in 2014/15 is lower when compared with the previous seasons. USDA data show that India exported approximately 2.2 million tons of rice in the seasons 2008/09 and 2009/ and increased this quantity to million tons in 2010/2011 and to 10.2 million tons in 2011/12 which indicates a record increase. India that exported 104 million tons of rice in the season 2012/13 increase the volume of exports to 10.9 million tons in the season 2013/14. The decline in the exports of India is expected to continue in the season 2015/16, too, and export volume is expected to decline to 8.5 million tons. Thailand and India are followed by Vietnam in the top 10 rice exporters ranking. Vietnam that exported 5.9 million tons of rice in 2008/09 increased this quantity to 6.7 million tons in the season 2009/10, 7 million tons in the season 2010/11 and 7.7 million tons in the season 2011/12. Rice exports of Vietnam that declined to 6.7 million tons in the season 2012/13 declined further down to 6.3 million tons in 2013/14 and increased to 6.7 million tons in the season 2014/15 by following an upward trend. The country is anticipated to export around 6.7 million tons of rice in the season 2015/16. The data for the season 2014/15 show that Thailand, India and Vietnam are followed by Pakistan with 3.9 million tons of exports, the USA with 3.4 million tons, Burma with 1.8 million tons and Cambodia with 1.1 million tons in the global rice exporters ranking. China holds the largest share in rice imports. China that is the biggest rice producer of the world cannot meet its domestic consumption, therefore it meets the shortage with imports. China imported 300 to 600 thousand tons of rice in the seasons 200/09, 2009/10, 2010/11 and it increased this quantity to 2.9 million tons in 2011/12. China that imported 3.4 million tons of rice in the season 2012/13 imported 4.1 million tons of rice in the season 2013/14 and 4.5 million tons of rice in the season 2014/15. An upward trend is anticipated in the rice imports of Chine in the season 2015/16 and import volume is expected to reach 4.7 million tons. Nigeria that follows China imported 2 million tons of rice in the seasons 2008/09 and 2009/10 and increased the volume to 2.5 million tons in 2010/11 and 3.4 million ton in 2011/12. The volume of imports decline to 2.4 million tons in the season 2012/13 and it reached to 3.2 million tons in the season 2013/14 and 4 million tons in the season 2014/15. Estimations show that Nigeria will import around 3 million tons of rice in the next season. Iran that holds the third rank after China and Nigeria important 1.4 million tons of rice in the season 2008/09, 1.5 million tons in the season 2009/10 and 1.8 million tons in the season 2010/11. This quantity declined to 1.5 million tons in the season 2011/12 and reached to 2.2 million tons in the season 2012/13. Iran that imported 1.6 million tons of rice in the season 2013/14 and 1.7 million tons in the season 2014/15 is anticipated to import 1.6 million tons of rice in the season 2015/16. Data for the season 2014/15 show that China, Nigeria and Iran are followed by Philippines with 1.7 million tons of rice imports, the USA with 1.5 million tons, Saudi Arabia with 1.4 million tons, Indonesia and Iraq with 1.2 million tons and Senegal and South Africa with 1.1 million tons in the global rice imports. RICE PRODUCTION AND CONSUMPTION IN TURKEY Rice plant cultivation areas in Turkey have been expanded and this expansion increased the rice production. Data from Turkish Statistics Institute (TUIK) show that rice cultivation carried out on an area of approximately 96 thousand hectare in the year 2009 expanded to an area of 99 thousand hectare in 2010 and 2011. Cultivated areas that increased to 119 thousand hectare in 2012 were recorded as 110 thousand hectare in 2013 and 2014. The yield per unit area increased between 2009 and 2011 and decline in 2012 and 2014. The volume of the rice production that was 372 thousand tons in 2003 increased substantially in the last decade. Rice production of Turkey that increased to 900 thousand tons in 2011 declined to 880 thousand tons in 2012, increased back to 900 thousand tons in 2013 and declined to 830 thousand tons in 2014. The data on rice production and consumption show that the production does not meet the consumption. In 2009, rice production volume of Turkey was 450 thousand tons. This quantity increased to 516 thousand tons in 2010 and 540 thousand tons in 2011. The production declined to 528 thousand tons in 2012. Rice production volume of the year 2013 is 540 thousand tons. Annual import volume corresponds to 250 to 550 thousand tons as the aforementioned quantities do not meet the domestic consumption. RICE EXPORTS AND IMPORTS IN TURKEY As mentioned above, rice production of Turkey increases every year however, it still did not reach to a level that meets the consumption. Therefore imports are made to meet the domestic demand. Data from Turkish Statistics Institute show that the volume of rice imports in Turkey that was 535 thousand tons in 2010 declined to 349 thousand tons in 2011 and 263 thousand tons in 2012. The volume of rice imports that increased to 283 thousand tons in 2013 showed a substantial increase in 2014 and reached to 493 thousand tons. The value of the imports that were made in 2013 was 150 million USD and 277 million USD was spend for rice imports in the year 2014. The volume of rice exports in Turkey is limited when compared with the import volume. The volume of exports is limited with 100 thousand tons and Turkey exports rice particularly to Syria, Iraq, Jordan and Sudan. The volume of rice exports in Turkey that was 51 thousand tons in 2010 increased to 98 thousand tons in 2012, however declined again in the following years. The value of 98 thousand tons of exports made by Turkey in 2012 is 74 million USD.
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