Rice

This FARMD Featured Topic provides a brief introduction to some of the key production risks faced by rice producers globally. This Topic shares the experience, insight, and research of practitioners and academics working, and researching, in this space. Authors include representatives from the International Rice Research Institute (IRRI), Utah State University, the Center for Continuing Education and Interdisciplinary Research at the University of Development Studies in Ghana, and the Indonesia Center for Agricultural Socio-Economic and Policy Studies (ICASEPS).

Document: 

Production Risk in Rice 2-Pager FINAL.pdf

This FARMD Featured Topic provides a brief introduction to some of the key market risks faced by rice sector participants globally. This Topic shares the experience, insight and research of practitioners and academics working and researching in this space. Authors include representatives from the University of Arkansas, the National Center for Agricultural Economics and Policy Research (ICAR) in India, the University of Manchester and the University of Cocody-Abidjan in Côte d’Ivoire.

Document: 

Market Risk in Rice 2-Pager_FINAL.pdf

On 12 July 2012, the Association of Southeast Asian Nations (ASEAN) Plus Three intergovernmental agreement establishing the ASEAN Plus Three Emergency Rice Reserve (APTERR) entered into force. In this paper, lead author Roehlano Briones, a senior research fellow at the Philippine Institute for Development Studies, assesses the effectiveness of APTERR as a mechanism for addressing food security in light of the rising challenges of climate change and price volatility.

Rice crises involve sharp changes in prices that cause substantial adjustment costs in the economy, including financial losses and hunger. In this paper, University of the Philippines School of Economics Dean Ramon Clarete assesses the capacity of member countries of the Association of Southeast Asian Nations (ASEAN) to avoid or mitigate the risk of extreme swings in rice prices. Using the Riceflow model, the impact on ASEAN countries of a possible decline of rice outputs in the People's Republic of China and India is simulated.

In this paper, Andrew McKenzie looks into the economic benefits and limitations of rice futures market in stabilizing prices across multiple years or seasons. He identifies several important cash market characteristics needed to promote the success of a futures contract, namely, adequate cash price volatility, a large competitive and well-defined underlying cash market that lends itself to standardization, minimal government intervention in the underlying cash market, and free flow of public information.

Member states of the Association of Southeast Asian Nations (ASEAN) play a major role in the global rice market. In this paper, lead author Eric Wailes, agricultural economics and agribusiness professor at the University of Arkansas, presents the current and projected status of the rice economies in ASEAN countries until 2022. The baseline situation of the rice market is generated using the Arkansas Global Rice Model, a multi-country statistical simulation.

Globally, rice is a very important food crop. It is an ancient crop consumed as healthy and staple food by more than half of the world population. Rice is consumed by over 4.8 billion people in 176 countries and is the most important food crop for over 2.89 billion people in Asia, over 40 million people in Africa and over 150.3 million people in America with estimates based on FAO report of 1996. More than 90% of global production occurs in tropical and semi-tropical Asia.

In 2010 it was proposed that Singapore consider hosting an international rice futures market, with cited benefits being enhanced price discovery and price stabilization. The RSIS Center for Non-Traditional Security (NTS) Studies hosted an Expert Working Group Meeting in Singapore in March 2012 to discuss the feasibility of this proposal. The market conditions of the Southeast Asian rice sector are seen as an impediment to the operation of an international futures contract, although opinion is divided as to the degree to which the conditions would affect a contract.

The alternative rough rice marketing and storage strategies were evaluated using three methods of analysis.  The methods used in this study were MOTAD, simulation, and stochastic dominance.  Historical rough rice prices from 1980/81 – 2000/01 was used and tested for trends and seasonality in order for the methods to be formed properly.

The general objective of this study iss to identify and measure the relative magnitude of effect of the key economic factors affecting Thai rice producer planting decisions using an econometric model of the area planted to rice in Thailand.  The results suggest that area planted to rice in Thailand is more responsive to changes in area planted in previous years, the amount of rainfall, and the availability of  agricultural labor than to changes  in paddy rice prices.