Project vietnam agricultural report research may 2014 rice market review and analysis

Vietnam Rice Report – May 2014 Project Vietnam Agricultural Report Research May 2014 Rice Market Review and Analysis Research duration: from 1st April to 8th May 2014 Reported by: Ho Cao Viet (PhD) Submission of draft report for review: 6th May 2014 Submission of full report: 8th May 2014 Page of 29 Vietnam Rice Report – May 2014 Table of Contents Introduction Hot topics of the month Weather condition and its impacts to rice production 3.1 Weather forecasting on April 2014 3.2 Impacts of weather to agriculture 10 Situation of rice production-consumption in Vietnam and global market 11 4.1 Progress stages, crop conditions 11 4.2 Demands in domestic, exportation & importation 15 4.3 Domestic prices and Market trends 19 4.4 Export prices and Market trends 20 4.5 Analysis, Opinion, and Prediction 23 4.6 Other related news 24 Page of 29 Vietnam Rice Report – May 2014 List of tables Table Forecast of average temperature and precipitation on April 2014 in Vietnam Table Monthly hydrological forecasting for rivers in the Central highland and Southern of Vietnam (1st to 30 Apr 2014) 10 Table Rice sowing area in WS & SA crop by region (up to 15th Mar 2014) 12 Table Rice sowing area of WS crop in the North provinces (up to 15th Mar 2014) 12 Table Sowing area of SA rice crop in the MRD (up to 15th Mar 2014) 13 Table Harvesting area of WS rice crop in the South provinces (up to 15th Mar 2014) 14 Table Weekly rice exportation (Dec 2013 to end of March 2014) 15 Table Monthly rice exportation (Jan 2013 to Mar 2014) 15 Table Rice exportation by import country in March, 2014 16 Table 10 Price of different rice grades in MRD (27th Mar to 24th Apr 2014) .19 Table 11 Rice prices quote of Vietnam, Thailand in the world market (first weeks of March to middle of April, 2014) 22 List of figures Figure Weather Maps (1st April & 17th April 2014) Figure Forecast of precipitation mean on April, 2014 Figure Forecast of temperature mean on April, 2014 Figure Target markets of Vietnam rice by quantity in 1st quarter of 2014 17 Figure Target markets of Vietnam rice by value in 1st quarter of 2014 18 Figure Exported price of Vietnam rice by continent/region in 1stquarter of 2014 .18 Figure Fluctuation of rice price in domestic by grade from March to April 2014 19 Figure Fluctuation of long-grain paddy price in domestic from March to April 2014 20 Figure Volume of Vietnam exported rice and value (from Jan to 14th Apr 2014) 22 Page of 29 Vietnam Rice Report – May 2014 Introduction  The database and information used in report were collected since March 2014 to the end of April 2014 from different official sources as well as direct  contacts to experts who involved to rice sector Information is updated and bearing the major events and topics of rice production and consumption in Vietnam in referring to the global market as well as the analysis of authors and rice specialists Hot topics of the month  Vietnam has won a tender to supply 800,000 tons of 15% broken wellmilled white rice to Philippines The tender is likely to be awarded to Vietnam’s Vinafood II, which submitted the lowest bid in the Philippines open tenders to import 800,000 tons of rice on 15th April 2014 (MARD, April 2014) Vinafood II offered to supply rice in four separate batches of 200,000 tons each from May to August at an average price of $438.69 per ton (According to Philippines National Food Authority) Rice Vietnamese companies had tried to win this tender because they expected to help reduce rice stockpiles and prop up rice prices in the MRD in the between crop period in next few months Before the tender, there were concerns that Vietnam could fail to compete with Thailand as Vietnam’s rice export price was around $10 per ton higher than that of Thailand Meanwhile, Thailand has around 10 million tons in  stock and wants to reduce it over fears of quality deterioration The USDA expects Vietnam to export about 7.5 million tons of rice in 2014, up about 10% compared to 2013 However, exports so far are lower than last year According to the VFA, until middle of April 2014, Vietnam had exported approximately 1.417 million tons of rice at value of $652.4 million, down about 38% from 2.15 million tons of rice exported during the first four months of 2013 In next quarter (from April to June, 2014), Vietnamese rice Page of 29 Vietnam Rice Report – May 2014 companies expect to export up to 2.4 million tons of rice The nation estimates to ship around 600,000 to 800,000 more tons abroad as of the end of April, taking to around 2.4 million tons the total rice export volume in  the first four months this year Export prices average is at $390 per ton According to VFA’s news, dried paddy in the MRD is priced at 5,150 to 5,250 dong per kg and the long-grain type at 5,400-5,500 dong The free on board (FOB) price of 15% broken rice is 7,450-7,550 dong per kg At present, fresh paddy is around 4,400 dong per kg while the long-grain type   ranges from 4,700 to 4,800 dong per kg Concerning to stockpiling scheme of million tons of paddy, the rice enterprises have bought 743,000 tons of rice by April 2013 According to MARD’s report of March 2014, rice area damaged by rat was around 10,000 ha, of which 74 was extremely damage Proportion of rice area under rat damage varied from 1-20%, down compared to the same period last year The golden snail, planthopper, diseases were also concerned in the SA rice crop in all ecological regions from the North to the South (seeing photo) Trapping rat in Summer–Autumn rice crop in MRD Photo by: Vo Thi Hong Thuy, 2014 Page of 29 Vietnam Rice Report – May 2014 Weather condition and its impacts to rice production  On April 2014, rainfall was generally lower than the average rainfall of the same period in recent years Precautions should be accompanied by strong thunderstorm whirlwind and hailstorm (NCHMF, April 2014)  However, the hurricane season is likely to be late than usual The monthly total rainfall of the first half of rainy season (May to July, 2014) predicts lower than compared to previous year; whereas in the second half of rainy season (August to October, 2014) is approximately at the same level of previous year In the North, the heavy rains will mainly occur from June to  August, 2014 and it’s still cool in March & April 2014 In the Central region, from Nghe An to Ninh Thuan province, the rainfall from May to August 2014 are forecasted at lower than in compared to previous year Therefore, the water shortage, drought in the region will be happen during this period It will affect to farming activities A campaign to exterminate rat (major epidemics in SA rice crop) in MRD Photo by: Bureau of Plant Protection, DARD of King Giang, 2014 Page of 29 Vietnam Rice Report – May 2014 3.1 Weather forecasting on April 2014  North: Average temperature will be a little bit higher than mean of temperature in 30 previous years from 0.5 to 1.0oC The rainfall in the Northwest will be lower than average level from 20-50% compared to previous year  Central coastal: Average temperature will be higher than mean of temperature in 30 previous years from 0.5 to 1.0oC Particularly in the South Central Coastal provinces, temperature will be equivalent to mean of 30 previous years It will vary from 0.5 to 0.5oC The rainfall will be lower than average rainfall of 30 previous years from 20-50%  Highland and South: Average temperature in month is equivalent of mean of temperature in 30 previous years at -0.5 to 0.5oC In the highland, the rainfall will be equivalent to mean of rainfall in 30 previous years at level of -20% to 20% On the contrary, in the South, level of rainfall will be down from 20 to 50% compared to previous years In general, the temperature in April is higher than March from 0.9 to 3.5oC in whole country Particularly it will be a little bit high in the Central and South The rainfall will increase in April, but the drought will also take place in some rice areas (NCHMF, 2014) Page of 29 Vietnam Rice Report – May 2014 Source: NCNMF, 2014 Source: NCNMF, 2014 Figure Forecast of temperature mean on April, 2014 Figure Forecast of precipitation mean on April, 2014 Figure Weather Maps (1st April & 17th April 2014) Source: Weather online (www.weatheronline.co.uk) Page of 29 Vietnam Rice Report – May 2014  In the end of April 3014, the sea water and the salinity intrusion has caused the people in MRD suffer Rice farmers in the coastal provinces of Tien Giang, Ben Tre, Tra Vinh, Bac Lieu, Ca Mau and Kien Giang are dealing with fresh water shortage due to raining season coming late in this year Water irrigation is very important in SA rice crop In Ca Mau peninsula, there was only little water in the canals, while WS crop harvesting had finished and SA crop is starting in early of May Irrigation cost will probably increase in SA rice crop (According to NCHMF, April 2014) Table Forecast of average temperature and precipitation on April 2014 in Vietnam 30-years 30-years Forecast of Forecast of mean of mean of Ord Station temperature rainfall temperature rainfall o ( C) (mm) (oC) (mm) Sơn La Hà Nội Hải Phịng Thanh Hóa Vinh Huế Đà Nẵng Nha Trang 10 Buôn Ma Thuột Châu Đốc 22.8 22.5-23.5 116 50-100 23.7 23.5-24.5 90 50-80 22.6 22.5-23.5 93 50-80 23.5 23.5-24.5 59 30-50 24.1 24.0-25.0 61 30-50 26.0 26.0-27.0 52 20-40 26.2 26.0-27.0 27 10-20 27.3 27.0-28.0 33 15-30 26.1 25.5-26.5 97 70-120 28.0-29.0 78 40-70 28.5 th Source: NCHMF, 2014 (accessed on 18 April 2014) (http://www.nchmf.gov.vn/web/en-US/70/105/Default.aspx) Page of 29 Vietnam Rice Report – May 2014 Table Monthly hydrological forecasting for rivers in the Central highland and Southern of Vietnam (1st to 30 Apr 2014) Observed River Station Ma Ly Nha Ca Yen Thuong Ta Thuong Trach Nhat Thu Bon Nong Son Tra Khuc Kon Ba Tra Khuc Binh Tuong Cung Son Cai N.T Dong Trang Dakbla Kon Tum Serepok Ban Don Tien Hau Tan Chau Chau Doc Factor Mean 3rd quarter 2014 Water level 258 (cm) Discharge 124 (m3/s) Discharge 3.10 (m3/s) Discharge 131 (m /s) Discharge 43 (m /s) Discharge (m3/s) Discharge 62.8 (m3/s) Discharge 2.00 (m /s) Discharge 52.5 (m /s) Discharge 87.0 (m3/s) Hmax 139 cm Forecasted Compared to the mean annual stage < 138 cm Mean 4th quarter 2014 260 Compared to the mean annual stage < 138 cm < 31% 120 < 25% < 33% 3.00 < 33% > 39% 120 > 57% < 123 cm 35.0 < 122 cm > 29% 55.0 > 85% < 93% 2.00 < 92% > 46% 50.0 > 47% > 18% 95.0 > 20% > 41cm 135 cm > 49cm Hmin cm < 11cm -5 cm *** Hmax 146 cm > 47cm 140 cm > 52cm Hmin -10 cm < 5cm -10 cm > 5cm Note: *** similarly average of previous years Source: NCHMF, 2014 (accessed on 18thApril 2014) (http://www.nchmf.gov.vn/web/en-US/71/110/21077/Default.aspx) 3.2 Impacts of weather to agriculture  In the North, according to dispatch No.605/TT-CLT issued on 14th April 2014, concerning the rice sowing in WS 2013-2014 The prolongation of cold weather in the North, particularly the mean of temperature and photoperiod was low in February and March that affected to growth of rice, diseases in some rice varieties Growth period may last from to 10 days compared to the previous rice crop in last year (MARD) Page 10 of 29 Vietnam Rice Report – May 2014 4.2 Demands in domestic, exportation & importation  Data generated from Vietnamese Customs showed that on March 2014, Vietnam has exported around 108 thousand tons of rice, estimated about $281.4 million Most of rice specialists expect that rice exportation will be increased in next month due to Vietnam has won a tender to export 800 thousand tons to Philippines (Table 7) Table Weekly rice exportation (Dec 2013 to end of March 2014) Period Reporting period Year to date (from – to) Tons USD Tons USD 16/12/2013 31/12/2013 01/01/2014 – 15/01/2014 01/02/2014 – 15/02/2014 16/02/2014 28/02/2014 01/03/2014 – 15/03/2014 16/03/2014 – 31/03/2014 184,458 89,038,225 6,592,439 2,925,222,101 258,507 121,396,340 258,507 121,396,340 166,355 77,015,418 533,887 252,297,463 264,996 121,758,147 791,437 370,997,328 262,040 121,668,699 1,048,989 490,810,389 373,854 164,248,784 1,417,392 652,456,320 Source: General Department of Vietnamese Customs Month Year Table Monthly rice exportation (Jan 2013 to Mar 2014) Compared Reporting period Reporting period to previous month (%) Compared to previous year (%) USD 203,401,224 Tons -14.0 USD -16.8 Tons 444,723 USD 203,401,224 Tons 74.4 USD 39.3 354,902 750,151 156,684,518 327,601,579 -20.2 111.4 -23.0 109.1 799,626 1,549,777 360,085,741 687,687,321 13.9 15.9 -1.3 4.4 649,035 288,873,634 -13.5 -11.8 2,198,812 976,560,956 -0.6 -6.1 728,835 323,162,380 12.3 11.9 2,927,647 1,299,723,337 -0.9 -5.3 641,163 650,011 276,103,327 274,884,662 -12.0 1.1 -14.0 -0.8 3,568,810 4,232,338 1,575,826,664 1,856,659,413 -6.8 -10.9 -10.3 -13.9 659,012 288,234,735 1.4 4.9 4,876,202 2,138,471,464 -12.4 -15.2 460,820 206,462,801 -30.1 -28.4 5,322,709 2,338,412,577 -14.7 -17.2 543,480 242,651,420 17.9 17.5 5,851,380 2,573,903,236 -15.2 -17.9 376,057 387,929 174,235,382 187,124,596 -30.8 3.2 -28.2 7.4 6,221,918 6,592,439 2,745,630,310 2,925,222,101 -17.0 -17.8 -19.9 -20.4 368,867 175,832,182 -4.9 -6.0 368,867 175,832,182 -17.1 -13.6 791,437 370,997,328 -1.0 February 426,294 196,742,665 15.6 11.9 631,030 283,631,576 49.7 45.6 1,417,392 652,456,320 -7.9 March Source: Calculated from data of General Department of Vietnamese Customs -4.4 2013 Tons 444,723 2014 January February March April May June July August September October November December January Page 15 of 29 3.0 Vietnam Rice Report – May 2014 Table Rice exportation by import country in March, 2014 Reporting period (Mar 2014) Year to date Country/continent (1st Feb to 30th Mar 2014) Tons USD Tons USD Africa 43,272 22,210,950 73,116 38,229,275 Algeria 3,214 1,304,388 3,758 1,525,151 Angola 576 317,525 1,137 623,786 1,744 944,982 1,837 1,011,806 32,486 17,297,737 57,818 31,316,491 4,845 2,037,785 8,159 3,443,508 407 308,533 407 308,533 6,428 3,472,415 11,312 6,343,019 46 31,471 410 234,671 Belgium 490 235,200 1,143 585,194 Bulgaria 1,385 880,913 3,096 2,024,184 780 405,603 1,490 763,508 France 1,319 770,440 1,387 830,374 Spain 118 63,658 313 203,626 Turkey 848 418,300 1,774 901,534 Ukraine 1,442 666,830 1,699 799,928 462,189 203,526,488 1,115,162 502,670,857 Brunei 1,401 817,643 2,882 1,761,636 Taiwan 4,989 2,941,061 7,930 4,743,839 East Timor 18,500 7,112,939 35,800 13,916,208 Hong Kong 15,864 8,987,173 38,436 23,059,252 1,400 721,000 Ivory Coast Ghana South Africa Senegal EU Poland Netherland Asia Indonesia Malaysia 10,511 5,920,248 8,159 3,443,508 Philippines 1,060 488,451 379,450 175,339,824 Singapore 28,565 12,518,877 52,647 24,737,096 378,259 162,809,646 581,426 250,367,404 501 347,420 1,397 973,876 United Arab Emirates 2,539 1,583,030 5,635 3,607,214 United States 3,981 2,421,889 8,751 5,643,884 10,033 4,480,209 12,280 5,550,767 China Australia Russian Federation Source: Calculated from data of General Department of Vietnamese Customs Page 16 of 29 Vietnam Rice Report – May 2014  Quantity of export rice on March has increased remarkably at about 49.7% compared to previous month and it has similarly trend as value of exportation also increased by 45.6% This is a big effort of exporters as well  as government institution (Table 8) However, the situation of rice exportation in first quarter was being slowly than last year Quantity of exported rice on March 2014 was 7.9% lower than same period last year Total export value was below at 4.4% compared  to previous year (Table 8) On March 2014, the Asia countries were the major importers of Vietnam rice 91% of rice quantity and 90% of import value was presented by this continent (Figure & 5) Philippines and China are continuing to be in the top of biggest rice importers from Vietnam (380 and 581 thousand tons, respectively; equivalence of $175 and $250 million) It occupied by 34.9% and 49.8% of Asia’s rice imported whole volume in st quarter of 2014 (502.67 thousand tons) Africa is second rice importer of Vietnam that was 6% of rice quantity and 7% of import value In first months of 2014, this continent accelerated to import rice from Vietnam at 73 thousand tons that  equivalence to $38.2 million (Table 9) Note: Calculated by quantity of exported rice (ton) Source: generated from data of General Department of Vietnamese Customs Figure Target markets of Vietnam rice by quantity in 1st quarter of 2014 Page 17 of 29 Vietnam Rice Report – May 2014 Note: Calculated by value of exportation (USD) Source: generated from data of General Department of Vietnamese Customs Figure Target markets of Vietnam rice by value in 1st quarter of 2014 Source: Calculated from data of General Department of Vietnamese Customs Figure Exported price of Vietnam rice by continent/region in 1stquarter of 2014  The estimation of average rice exported price based on total export value and quantity of exported rice in first quarter of 2014 showed in figure that: import price of Vietnam rice was relatively high in EU countries at $560 per ton and lowest in Africa continent at $494 per ton because differentiation of rice quality In Asia countries, import price of Vietnam rice were high in Page 18 of 29 Vietnam Rice Report – May 2014 Taiwan, Hong Kong and Brunei at level of $598, $599.9 and $611.3 per ton In EU countries, Vietnam rice has good price in some countries such as Bulgaria, Spain and France at $653.8, $650.6 $598.7 per ton, respectively (Fig.6) Therefore, Vietnamese rice exporters should focus on these target market for improving the added value of exported rice 4.3 Domestic prices and Market trends  In the MRD, general trend of price of most rice grades has reduced by 50 to 250 dong per kg since end of March to last week of April 2014 The price increased slightly by 50 to 150 dong per kg in late April due to exporters buy rice for processing to export to Philippines in next few months in accordance of tender of 800 thousand tons (Table 10, Fig.7 & 8) Note: Price delivered at port no bagged Source: generated from VFA’s data Figure Fluctuation of rice price in domestic by grade from March to April 2014 Table 10 Price of different rice grades in MRD (27th Mar to 24th Apr 2014) Unit: dong per kg Rice quality 27 Mar 2014 04 Apr 2014 10 Apr 2014 24 Apr 2014 5,250 5,250 5,200 5,250 Ordinary paddya 5,550 5,550 5,450 5,500 Long-grain paddy b Raw rice for processing 7,050 6,950 6,750 6,800 5% 6,750 6,750 6,550 6,650 25% Rice delivered at port without package/bagged 7,850 7,900 7,750 7,900 5% 7,600 7,650 7,500 7,650 15% 7,350 7,350 7,300 7,350 25% Note: a dried paddy, b not polishing rice used for processing Source: compiled and calculated from database of VFA, April 2014 Page 19 of 29 Vietnam Rice Report – May 2014 Note: Price of long-grain and ordinary paddy Source: generated from VFA’s data Figure Fluctuation of long-grain paddy price in domestic from March to April 2014  The rice experts expected that price of paddy will be continue to increase in next few weeks of May 2014 because most of farmers have sold the storage paddy after peak harvesting and rice stockpiling scheme is realizing by entrepreneurs in MRD 4.4 Export prices and Market trends  Vietnam has exported about 1.3 million tons of rice during January - April 10, 2014, down about 38% from about 2.15 million tons of rice exported during the first four months of 2013, according to data from the Vietnam  Food Association (VFA) VFA says that average rice export price so far in this year stands at about $437 per ton (FOB), down about $2 per ton from about $439 per ton  recorded in the same time last year During April 1-10, 2014, Vietnam exported about 108,902 tons of rice, which is down about 84% from about 700,710 tons of rice exported in overall of April 2013, and down about 81% from about 583,294 tons of rice exported on March of 2014 Average rice export price in so far in April stands at around $461 per ton, up about 7% from a year ago, and down about 5% per ton from March 2014 Page 20 of 29 Vietnam Rice Report – May 2014 Table 10 Thailand and Vietnam rice prices quote (Aug 2013 to Apr 2014) Source: USDA, updated on April 2014  Vietnam's rice exports during April 1-10, 2014 include: 37,951 tons of aromatic rice (35% of total rice exports in April 2014); 31,219 tons of 5% 14% broken rice (29% of total rice exports in April 2014); 15,649 tons of glutinous rice (14% of total rice exports in April 2014); 15,032 tons 15%  broken rice (14% of total rice exports in April 2014) Asia is the major rice export destination for Vietnam rice so far in April 2014, accounting for around 88,049 tons or about 81% of total rice exports Africa is the second large destination, imported around 10,616 tons of exported rice (equivalence to around 9.75% of total exported rice on April 2014) Vietnam also exported 5,834 tons of rice to EU; 2,279 tons to the Americas; 1,296 tons to Australia, and 828 tons to the Middle East in April 2014 (according to VFA data) Page 21 of 29 Vietnam Rice Report – May 2014 Source: www.oriza.com (accessed on 14 Apr 2014) Figure Volume of Vietnam exported rice and value (from Jan to 14th Apr 2014) Table 11 Rice prices quote of Vietnam, Thailand in the world market (first weeks of March to middle of April, 2014) Unit: USD per ton Quality first weeks of first weeks of Mar, 2014 Apr, 2014 Thailand 100% B grade 395 – 405 395 – 405 Long grain white rice high quality Vietnam 5% broken 385 – 395 380 – 390 Thailand 25% broken 345 – 355 345 – 355 Long grain white rice low quality Vietnam 25% broken 350 – 360 350 – 360 Thailand Hommali 92% 940 – 950 940 – 950 Long grain fragrant rice Vietnam Jasmine 500 – 510 490 – 500 Thailand A1 Super 300 – 310 300 – 310 Broken Vietnam 100% broken 335 – 345 330 – 340 Source: www.oriza.com (updated on 18nd Apr 2014)  Vietnam rice sellers increased their quotes for Jasmine rice by around $5 per ton to about $490-$500 per ton on 17th April Other Asia rice quotes remained mostly unchanged by this time However, compared to previous months, price of Vietnam jasmine and 5% broken rice has moved down from $5 to $10 per ton because the slowdown of demand and domestic force to sell Page 22 of 29 Vietnam Rice Report – May 2014 4.5 Analysis, Opinion, and Prediction  Although Vietnamese rice enterprises have gained the tender to export 800,000 tons of rice in next months, but many experts predict that price of paddy in domestic is not change much because the exported price is too low in compared to other tender such as French, Thailand & Hong Kong up about $35.3 per ton (FOB exported price is average at $370 per ton) In this case, the rice farmers not have any benefit from this contract Many  enterprises will get loss because they have no paddy stockpile The statistical data of China showed that in the first two months of 2014, their rice imported at around 340,000 tons, down by 34.8% compared to the same period last year Meanwhile, Vietnamese rice exported to China was restored but still at level of 580,000 tons, down by 16.6% compared to same period last years China and Philippines are two large rice importers of Vietnam The strategy of market promotion and reinforcement of rice trading  should be focused on these nations in next quarter The reduction of rice area in Hunan province due to soil and water contamination may cause lack of around 26 million tons of rice, occupies around 13% of country’s total rice production (Hunan rice production accounted for around 17 million tons of milled rice or about 12-15% of the country’s total rice production of around 143 million tons) China annually consumes 145 to 148 million tons and import demand is estimated about million tons Under the pressure of rice market in domestic, the Chinese importers will increase amount of imported rice in next few months from Vietnam, Thailand, Cambodia and traditional customers This factor may affect positively to rice exportation of Vietnam in next quarter of 2014 Rice price in domestic is expected to escape the “bottom” and move up a little bit Page 23 of 29 Vietnam Rice Report – May 2014 4.6 Other related news  Bat help Thailand rive farmers save bahts: A paper published in Biological Conversation last month suggests that bats can save millions of dollars of paddy rice in Thailand Each bat eats about 1,130 plant-hoppers each day There are currently almost million wrinkle-lipped bats, and scientists estimated they may be preventing paddy losses of 2,900 tons each year Those 2,900 tons have an export value of about $1.2 million, and could feed  about 26,000 people for a year (Source: http://oryza.com, 2014) China halts rice production in Hunan province due to soil contamination: Hunan is a major rice growing region in China, accounting for around 17 million tons of milled rice or about 12-15% of the country’s total rice production of around 143 million tons However, rapid industrialization has contaminated water supplies and soil with toxic metals such as cadmium Rice absorbs amount of chemicals from soil and water The Food and Drug Administration of Guangzhou city in Southern China said that the test found excessive levels of cadmium in 44% of rice samples taken from restaurants & food outlets China annually consumes 148 million tons in 2014-2015 and import demand is astimated about million tons (Source: http://oryza.com,  2014) The United Nations International Fund for Agricultural Development (UNIFAD) will invest $50 million as part of its "Adaptation in the Mekong Delta" project to help Vietnamese rice farmers to cope with climate changes, which threaten to affect rice production in the Mekong River Delta (MRD) starting from May 2014 UNIFAD will cooperate with Vietnam government and the University of Tra Vinh to help strengthen the MRD farmers' capacity to adapt to changing environment (to invest in building dams and dykes, improving irrigation canals and on development of newer varieties of rice that are resistant to both heat and salinity) While the MRD region accounts for around 50% of Vietnam’s total rice production of around 27 million tons, the region is also vulnerable to rising sea levels and extreme weather Page 24 of 29 Vietnam Rice Report – May 2014 conditions Rice farmers in MRD state that water from the sea flow upstream and contaminate fresh-water canals up to 20 kilometers inland and rising  temperatures which affect rice crops ( Source: http://oryza.com, 2014) Indonesia issues new rice import-export rules: The new rules (Decree No.19/M-DAG/Per/3/2014) stipulate that National Logistics Agency (NLA) can import rice for the purposes of price stabilization, combating emergencies and during periods of food security in the country Private companies registered as manufactures importers (IP) can import rice that can be used as raw material in industries and if that kind of rice is not produced domestically Similarly, companies designated as registered importer (IT) are allowed to import specific varieties of rice for health purposes By new regulation Indonesia aims to stabilize food security, increase income and welfare of farmers, control rice smuggling into the  country (Source: http://oryza.com, 2014) Cambodia 2014 rice export may increase to 1.4 miillion tons: Food Agriculture Organization (FAO) stated that Cambodia’s milled rice production is expected to increase to around million tons (about 9.34 million tons, basis paddy) in 2013, up about 1% from the previous year, despite crop damages in 128,000 of paddy and 160,000 tons of paddy produce due to floods last year In 2014, FAO projects rice export by Cambodia to increase to around 1.4 million tons, up about 8% from the previous year Most of the rice from Cambodia goes to Vietnam and Thailand through cross-border  trade (Source: http://oryza.com, 2014) Chinese promotes grain production and self-sufficiency: On 19 January 2014, the Chinese Government issued the Number Central Document, reaffirming its commitment to promote grain production and maintain absolute self-sufficiency in rice and wheat To this end, grain subsidies (including direct payments to farmers, subsidies on seeds and machinery and other inputs) are to be maintained and expanded, as will minimum support prices for rice and wheat The main policy guidelines further Page 25 of 29 Vietnam Rice Report – May 2014 underscored the need to keep arable land above the 120 million hectare “red line”, while promoting the development of trial subsidy programs linking support to actual areas planted or volumes produced, as a means of improving targeting of direct payments to farmers In line with these directives, in February 2014, the National Development and Reform Commission (NDRC) raised support prices for rice by 2-3 % to 2,700-3,100 (USD 439-504) per ton, Although this would mark the seventh successive annual increase in support prices, this year’s is far more modest than the 710 % rise approved in 2013 or the 9-18 % rise approved in 2012 (Source:  Rice Market Monitor, FAO, April 2014) Japanese Government announced a significant overhaul of the country’s national rice policy in November 2013: The plan, to be put forward for parliamentary approval, envisages the abolition of the long-standing rice production adjustment program by the end of March 2019 This would leave farmers to make their planting decisions based on prices and the prevailing supply and demand situation, without Government-set targets geared at preventing excess production Specific measures would include a gradual reduction of the Yen 15,000 per 10are (USD 1,476 per hectare) subsidy granted to producers adhering to the rice diversion program and the abolition of payments to farmers in the event that prices fall below previous  years’ level (Source: Rice Market Monitor, FAO, April 2014) Rural development authority of South Korea and IRRI sign new rice research agreement for next two years: Rural Development Authority (RDA) of the Republic of Korea (South Korea) and the Philippines-based International Rice Research Institute (IRRI) have signed a new rice research agreement for the years 2014-2015, according to a press release by the IRRI The new agreement highlights the 2014-2015 RDA-IRRI collaborative plan as well as priority areas of research IRRI and RDA will work together in the development of abiotic stresses and disease tolerance in temperate japonica, Page 26 of 29 Vietnam Rice Report – May 2014 as well as in the development of rice cultivars with tolerance to high temperature (Source: http://www.oryza.com/news) Appendix Global rice importers, monthly revisions and annual changes Source: Production, Supply, & Distribution Online Data Base, FAS/USDA, (http://www.fas.usda.gov/psdonline/psdHome.aspx Last updated April 10, 2014) Page 27 of 29 Vietnam Rice Report – May 2014 Appendix Global rice exporters, monthly revisions and annual changes Source: Production, Supply, & Distribution Online Data Base, FAS/USDA, (http://www.fas.usda.gov/psdonline/psdHome.aspx Last updated April 10, 2014) Page 28 of 29 Vietnam Rice Report – May 2014 Abbreviation VFA MARD MIT VC WS SA NCHMF MRD RRD NCC SCC Vietnam Food Association Ministry of Agriculture and Rural Development Ministry of Industry and Trade General Department of Vietnamese Customs Winter-Spring rice crop Summer-Autumn rice crop National Centre for Hydro-Meteorological Forecasting Mekong River Delta Red River Delta North Central Coast South Central Coast Page 29 of 29 ... of Vietnam rice were high in Page 18 of 29 Vietnam Rice Report – May 2014 Taiwan, Hong Kong and Brunei at level of $598, $599.9 and $611.3 per ton In EU countries, Vietnam rice has good price... prices and Market trends 19 4.4 Export prices and Market trends 20 4.5 Analysis, Opinion, and Prediction 23 4.6 Other related news 24 Page of 29 Vietnam Rice Report. .. Rice Report – May 2014 Table 10 Thailand and Vietnam rice prices quote (Aug 2013 to Apr 2014) Source: USDA, updated on April 2014  Vietnam' s rice exports during April 1-10, 2014 include: 37,951