1. Sustainability of World Rice Production Dr. Astrid Faust Senior Advisor “… Compliance & Innovation for Agri-Food Supply Chains …” (CIAS) Science and Technology Research Institute/STRI Chiang Mai University Thailand IAM RICE Conference November 26-28, 2012 Empress Convention Centre, Chiang Mai, Thailand

2. Content Update on “Big Picture” of Rice 1.Rice – An Asian (Success) Story ? 2.World Production 3.World Consumption 4.World Trade 5.Sketches of Top Five Rice Exporters 6.Competitiveness Benchmarks 7.Key Strategies 8.Sustainability – Questions & Issues 22

3. Main Rice Varieties Wikipedia 2012 Worldwide there are more than 40,000 different varieties of rice species. Rice varieties can be differentiated according to Size: long, medium and short grain varieties Origin: Indica, Japonica, Javanica Additional properties: aromatic, glutinous 3 3

4. Rice – An Asian (Success) Story ? At least 114 countries grow rice and more than 50 have an annual production of 100,000 tons or more. Asian farmers produce about 90% of the total, with two countries, China and India, growing more than half the total crop. Rice Production have more than trippled in the past 50 years (from 200 million MT in 1960 to 678 million MT in 2009). For most rice-producing countries where annual production exceeds 1 million ton, rice is the staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam, rice provides 50-80% of the total calories consumed. Only 5-6% of rice is traded internationally. Rice is a typical smallholder crop. At least 114 countries grow rice and more than 50 have an annual production of 100,000 tons or more. Asian farmers produce about 90% of the total, with two countries, China and India, growing more than half the total crop. Rice Production have more than trippled in the past 50 years (from 200 million MT in 1960 to 678 million MT in 2009). For most rice-producing countries where annual production exceeds 1 million ton, rice is the staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam, rice provides 50-80% of the total calories consumed. Only 5-6% of rice is traded internationally. Rice is a typical smallholder crop. 4 4

5. 5 Global Rice acc. to Farming Systems (source: IRRI) 5

6. Top 10 Rice Producers by Country 2010 in million metric ton [61] [61] 6 Ran k Countriesmillion MT in % 1PR China197.231.2 2India120.619.1 3Indonesia66.410.5 4Bangladesh49.37.8 5Vietnam39.96.3 6Myanmar33.25.3 7Thailand31.55.0 8Philippines15.72.5 9Brazil11.31.8 10United States11.01.7 Source: FAO 2011 576.1 MT corresponding to 91.2% of world rice production in 2010 (631.7) 6

7. Top 10 Rice Consuming Countries 2009 in million metric ton [61] [61] Source: FAO 2011 7 RankCountriesmillion MTin % 1PR China156.329.4 2India123.523.2 3Indonesia45.38.5 4Bangladesh38.27.2 5Vietnam18.43.5 6Philippines17.03.2 7Thailand13.72.6 8Japan10.21.9 9Myanmar10.01.9 10Brazil11.01.9 Source: FAO 2011 442.6 MT corresponding to 83.3% of world rice consumption in 2009 (531.6 MT) 7

8. Top 10 Rice Importers by Country 2011/12 in million metric ton [61] [61] 8 Rank Countriesmillion MT 1Indonesia3.1 2Nigeria2.6 3Iran1.9 4Bangla Desh1.5 5EU-271.5 6Philippines1.2 7Malaysia1.1 8Saudia Arabia1.1 9Iraq1.1 10Evory Coast0.9 Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source Rank Countriesmillion MT 1Nigeria2.5 2Iran1.9 3Philippines1.5 4EU-271.4 5Indonesia1.3 6Saudia Arabia1.2 7Iraq1.2 8Malaysia1.1 9Bangla Desh0.4 10Evory Coast1.0 20112012 Forecast 8

9. Top 10 Rice Exporters by Country 2011/2012 9 Rank Countriesmillion MT 1Thailand10.6 2Vietnam7.0 3India4.6 4Pakistan3.4 5US3.2 6Cambodia0.9 7Uruguay0.8 8Myanmar0.8 9Argentine0.7 10Egypt0.6 Source: United States Department of Agriculture (USDA) (Reporting by Apornrath Phoonphongphiphat; Editing by Alan Raybould and Clarence Fernandez Source, Wikipedia 2012 Rank Countriesmillion MT million US $ 1India8.03,488 2Vietnam7.03,101 3Thailand6.53,624 4Pakistan3.82,061 5US3.51,159 6Uruguay0.9 7Cambodia0.8 8Argentine0.7 9Myanmar0.6 10Egypt0.6 20112012 Forecast 9

10. Rice Supplies and Import Markets ASEAN+3 EU-27 10 Middle East Africa Supply RegionsRegional Markets 10

11. Key Strategies for Sector Promotion 1. Physical Infrastructure and Basic Support 2. Productivity Development/Cost Management 3. Quality and Compliance 4. Process and Product Innovation 5. Branding and Marketing Support 11

12. Yields in Rice Production 12

13. Locationwestern coastal strip, eastern coastal strip, covering all the primary deltas, assam plains and surrounding low hills, foothills along the himalayas Share in Global Production 20% of world production of white rice Yield MT/ha3.12 Recent Develop- ments increase production since 1950 = 350 % (via increased yields, area increase only 40%). The per-hectare yield increased more than 262 % between 1950 and 1992. [ [ Strategiesincrease of yield/ha at all levels, irrigation schemes 13 Key Features Rice Production: India 13

14. LocationMekhong and Red River Deals, Northern Highlands (33 mio ha) Area under Cultivation 33 Mio ha Yield MT/ha4.5 Recent Developments Rice production in Vietnam almost fourfold in 46 years from 9 million MT (1961) to 35.6 million MT (2007) IRRI involvement in the irrigated rice ecosystem to increase production and income through network of pest management, coherent rice promotion policy StrategiesR&D capacity development integrated nutrient management measures, improved water management, introduction of new strains of rice, modern mechanized farming methods appropriate legal framework conditions by the Government). 14 Key Features Rice Production: Vietnam 14

15. LocationCentral Thailand, Northeast, Northern Pleins and Valleys Area under Cultivation 9,2 Mio hA Yield MT/ha2.65 Recent Developments Development of material infrastructure and “green revolution” instruments since sixties of the past century. 2008 Thailand has considered to create a rice cartel with Vietnam, Burma, Laos, and Cambodia. The purpose would be to control production and set prices similar to the OPEC cartel that controls production of oil.VietnamBurmaLaos CambodiaOPECcartel Strategies(1) Rice pleding scheme, offering farmers up to 15,000 baht per MT for white rice paddy and 20,000 baht for Hom Mali, well above world market prices. (2) Initial Promotion of Organic Rice and Processed Rice Products. 15 Key Features Rice Production: Thailand 15

16. LocationSindh and Punjab Regions, Origin of Basmati Rice History40 % of basmati (fine) 60 % of coarse types Area under Cultivation 2.6 Mio ha (2012) Yield3 MT/ha Production6.2 million MT Export3.8 million MT (2012) worth $ 2.061 billion Strategiesspread of basmati varieties in non- basmati zone introduction of hybrid rice Issueswater shortage post harvest losses and issue of aflatoxin request to enhance R&D 16 Key Features Rice Production: Pakistan 16

17. LocationMisisippi River Delta, Missouri, Arkansas, California, Texas, Lousiana Area in Cultivation 1.1 Million ha Yield MT/ha7.5 Recent Developments 40% of the domestic rice production is used as an input for processed food, beer and pet food. Rice flour goes into applications such as baby foods, extruded rice crispies, cereals, snacks, and coatings. Strategiesn/a 17 Key Features Rice Production: US 17

18. ที่มา ละเอียด มธุรส ส่วนบริหาร ยุทธศาสตร์ ศภ.7 กสอ. 18 Template for a Competitors Analysis (only for Demonstration Purposes)

19. Key Strategies for Sector Promotion 1. Physical Infrastructure and Basic Support 2. Productivity Development/Cost Management 3. Quality and Compliance 4. Process and Product Innovation 5. Branding and Marketing Support 19

20. ที่มา ละเอียด มธุรส ส่วนบริหาร ยุทธศาสตร์ ศภ.7 กสอ. 20 Template for a Competitors Analysis (only for Demonstration Purposes)

21. Hotspots for sustainable rice production and consumption? Economic Perspective Ecologic Perspective Social Perspective 21 1.Productivity 2.Management of Chemicals 3.Post-Harvest Losses 4.GE 1.Methane Emissions (15% of antrogenic greenhouse gases) 2.Soil 3.Water 4.Agro-systems 5.Upland Rice (!) Producers 1. Supply organization & facilities 2. Investment Consumers awareness quality, health, planet 21

22. Issues from an Econcomic Perspective FAO study claims 8% to 26% of rice is lost in developing nations, on average, every year, because of post-harvest problems and poor infrastructure. Some sources claim the post-harvest losses to exceed 40%. Not only do these losses reduce food security in the world, the study claims that farmers in developing countries such as China, India and others lose approximately US$89 billion of income in preventable post-harvest farm losses, poor transport, the lack of proper storage and retail. One study claims that if these post-harvest grain losses could be eliminated with better infrastructure and retail network, in India alone enough food would be saved every year to feed 70 to 100 million people over a year. 22

23. Thank for your attention. dr.astrid_faust@yahoo.com 23

24. THE CONCEPT OF ORGANIC AGRICULTURE …does not only exclude the use of synthetic agents, but is a system based on... Biodiversity Improvement of soil fertility Sustainable Farming Minimum of External Inputs Organic Certification 24

25. USA: More than 18 bn EUR = 16 % growth Germany: More than 6.1 bn EUR = about 5 % growth Great Britain: 3.2 bn EUR France: 2.4 bn EUR European Union 11 18.5 bn EUR Organic turnover Worldwide Market turnovers in 2009 25

26. 10 Countries with Most Organic Land in Asia 2008 Organic Production in ASIA 26

27. Organic Certification Labels 27