Thailand is a pre-eminent producer and also an exporter of rice. Rice as a crop has become essential surpassing its role as a domestic food staple and lucrative export product. It’s also one influential political and social component.
Rice is among the significant commodities to find in the agricultural sector. It’s also the 2nd-most significant agricultural export other than rubber. Rice exports dating back in 2015 totaled to 4.7 billion dollars. This already accounts for twenty-nine percent of the agricultural exports.
Thai rice is a long-standing food staple consumed by the Thai population. The rice consumption accounts for more than a half of the yearly production. And way back from 2015 to 2016, the Department of Agriculture estimated a domestic consumption of 11.2 million tonnes. This is just in Thailand alone.
The role of grain also extends beyond the monetary value. This is also because of the key position occupied in Thai society. The rice farmers are making up a huge portion of the labor force of the country. This powerful and large block gains much attention from the politicians. This is also for those who are entering the election years. That’s why previous policy decisions are designed in meeting the interests of the rice industry. This is true considering the ultimate expense of the government’s fiscal responsibilities.
Quality Export
Thailand is known for producing four-percent of the rice output globally. This covers the 2014 to 2015 season. The small population, the well-developed infrastructure, and the desirable rice strain have put the country at the front of the international rice trade.
Other Asian countries like India and Vietnam are producing only less expensive rice. They are selling it on the international market. Thailand is still competing following the categories of targeted niche segments, higher quality, and competition in the international market.
While organic rice is popular in the Western markets and is fetching a higher price, the Thai Jasmine rice is also highly-graded and well-regarded. This is true in particular to the prestigious variety of Hom Mali. This is also as preferred by the affluent North American and Asian consumers. It commands a higher price than any other grade.
Strong Volume Position
Thailand rice company is exporting in the global markets bringing it in a strong volume position. The profits are also squeezed since the rice also has declined in the past few years. The export market of Thailand continues to expand around the world. These include Nigeria that heavily relies upon the sale of its natural resources. It is also seeing more of its revenue streams.
Main Foreign Currency Earner
Thai rice is and has always been the staple food of Thais. It has per capita consumption that ranges from eighty-kilograms for the urbanized households. It also reaches up to 155-kilograms for every rural household. It continues to about 125-kilograms every year in low-income households. This is based on the USDA presented information.
The country’s consumption is far more dominated by the medium-quality type of rice. This already accounts for fifty to sixty percent of the total consumption of rice. This is also used for both animal feed and human consumption. Quality rice that includes the fragrant rice accounts for ten to fifteen percent of the total consumption of rice. The low-quality rice is also making up a balance.
Future Growth
Thailand rice company is on the bright side of future growth. This is because of the long-term demand of China for Thai rice. The Thai rice exporter will increase more of its sales to South Africa and Southeast Asia in 2016. This will push the country to become the biggest rice exporter in 2016. This is also based on the USDA projections.
