Posted May 22, 2014
Mexico’s Secretary of Agriculture, Livestock, Rural Development, Fishing and Food (SAGARPA) has approved Mexico’s importation of Brazil rice paddy for 2014, according to an article by Oryza available here.
The U.S. is the only country which currently exports paddy rice to Mexico. U.S. trade sources are “disappointed with SAGARPA’s decision as it is likely to impact U.S. paddy rice exports to Mexico.” According to the USA Rice Federation, the U.S. share in Mexico’s total rice import market has declined to 89 percent in 2013 from about 100 percent in 2010. U.S. “paddy rice exports to Mexico declined by about 29 percent in the first quarter of 2014 compared to the same period in 2013.”
U.S. trade sources say that Vietnamese and Uruguayan rice have been replacing the U.S. rice in Mexico due to cheaper prices.
The FAO projects higher rice prices due to traditional buyers returning to the market and El Nino weather expected later this year. According to the FAO, global milled rice production is expected to reach about 501.1 million tons in 2014-2015, up about 1 percent from last year.
For more information on international trade, please visit the National Agricultural Law Center’s website here.
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