U.S. Rice Promotional Activities Kick Off in Honduras

US Rice Producers Association has officially kicked off a series of promotional activities in Honduras to increase the visibility and demand for U.S. rice in the country. These activities are a crucial part of the broader strategy to strengthen market access and enhance trade relations in Latin America. Through these promotional efforts, the USRPA is working closely with local partners, and retailers to highlight the quality, value, and benefits of U.S. rice. Events, marketing campaigns, and consumer outreach initiatives will help to raise awareness of the product and educate consumers about its advantages over competitors. This launch marks an important milestone in the ongoing efforts to ensure that U.S. rice remains a preferred choice in key Latin American markets. As these activities unfold, they are expected to create new opportunities for U.S. rice producers while reinforcing the importance of strong trade ties between the U.S. and Honduras. "Having Chef Juan Carlos Bonilla lead these cooking demonstrations will significantly enhance the promotional campaign's impact. His expertise and reputation as a well-known chef lend credibility and appeal to the message, helping to connect with local audiences authentically." Iris Figueroa, USRPA Western Hemisphere Marketing Manager said. "His ability to demonstrate the versatility and quality of U.S. rice through delicious, practical recipes will resonate with consumers and inspire confidence in the product."

Chef Juan Carlos Bonilla demonstrated the cooking process and highlighted the numerous benefits of incorporating U.S. rice into everyday meals. During his presentation, Chef Bonilla emphasized the superior quality, versatility, and nutritional value of U.S. rice, showcasing how it enhances a variety of dishes with its excellent taste and texture. Through engaging recipes and step-by-step instructions, Chef Bonilla demonstrated how U.S. rice enhances meals with its consistent texture and ability to absorb flavors, making it a versatile ingredient for a wide range of dishes.

The cooking demonstration was a key highlight of the promotional campaign, aimed at educating consumers and encouraging them to choose U.S. rice for its quality, convenience, and health benefits. Chef Bonilla explained that U.S. rice is easy to cook, maintains its consistency well, and absorbs flavors perfectly, making it an ideal choice for both traditional Honduran recipes and international cuisines. He also pointed out the health benefits of U.S. rice, which is a good source of essential nutrients such as vitamins, minerals, and fiber, contributing to a balanced diet.

ILA and USMX reach agreement through January 15

On Thursday evening, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced they had reached an agreement to extend their current labor agreement through January 15, 2025. The labor agreement between the parties expired on Monday, leading to a labor strike at East and Gulf Coast ports. Approximately 40% of all agricultural exports travel through the ports impacted by the strike. ILA has been seeking wage increases, benefit improvements, and protections against automation in the new labor agreement. On Thursday, it was reported that USMX offered to meet ILA’s wage requests, leading to a breakthrough that allowed the labor strike to cease. The parties will continue negotiations on other pending items as they work to finalize a new labor agreement.

From the desk of Subra V. Last weekend was a busy weekend, starting on the 27 September evening when we saw an announcement from India declaring a reduction in duties for rice in husk (HS code 10061090), husked brown rice (HS code 10062000), and parboiled rice (HS code 10063010) and this effectively cut Indian parboiled rice prices by about $50 PMT. The announcement also revealed a zero duty for non-basmati white rice (HS code 10063090) added to the removal of the Minimum Export Price for Basmati rice exports a week ago. This news was quickly followed by a 28 Sep 2024 announcement that white non-basmati rice (HS code 10063090) was no longer banned and the export policy was described as “Free” but with the condition of a Minimum Export Price (MEP) of USD $490 PMT (which we assume to be for FOB value). This set about a shift in global (mostly Asian) markets, as prices started to slide. It is also noted that broken rice remains banned from exports from India, so the white rice ban removal and duty reduction from India on parboiled and husked rice and husked brown rice were the main results. This decision has left markets faced with a strong Indian supply, as improved overall global exportable supplies from Asia are seen to test markets for lower prices. Buying interest is rising, and there are questions as to how Indian exports will show in markets, even the lower-quality white rice segment faces pressures from India’s potential to supply, especially in African markets. There are already a number of unverified suggestions of Indian prices below the MEP being made available for a suite of white rice offerings (in quality and variety), while a rising demand for this Indian offer, is already underway, at market best prices, and consequently leaving most Asian markets weaker in price. Strong Indian stocks (rice stocks are at (31.23 MMT) and at record levels, the highest in 20 years and a relatively weak demand for OMSS sales of stocks to the market also means there is a chance of further adjustments and removal of restrictions which some market watchers consider possible. Current prices we have for Indian prices show PB 5% at $495 PMT (including a 10% duty), MEP at $490 PMT for all grades of white rice, while unverified sources provide us a range of $440 PMT to $477 PMT for a suite of Indian white rice offerings being made available to selected buyers at destination. For now, Pakistan and Myanmar prices offer the strongest competition to India, while Thai and Viet white rice prices have also slumped. Editor's Note: While this news will shake the rice market in the Eastern Hemisphere, the effects will be a bit muted in the Western Hemisphere. Prices out of South America remain strong, and pricing out the U.S. for the new crop has been steady. We are still waiting for significant exports to ramp up to really establish price direction, but with India now flooding the market, it is difficult to predict that prices will be firm when coupled with the large crop. This week the news of India will carry the day, but next week we will look into the port strikes and their impact on rice exports.

V Subramanian is the co-founder, along with Sue Huong of SSResource Media and publishes SS Rice News Network, covering market intelligence across all major rice markets, particularly throughout Asia. Subra spoke at this year’s Rice Market & Technology Convention in Cancun, enlightening participants on the realities of Southeast Asian exporters with a focus on India. SS Rice News Network publications can be found at www.ssricenews.com Read the most recent edition of SS Rice News Related Articles: Bloomberg: Rice Prices Plunge Most in 16 Years After India Eases Export Curbs FAO Rice Price Update: October 2024

US Rice Producers Association, represented by their President & CEO, Marcela Garcia, Western Hemisphere Marketing Manager, Iris Figueroa, and USRPA Board members, Dennis DeLaughter and Mark Pousson, visited Honduras this week to participate in the first EXPO Convención Internacional del Arroz organized by the Central American Rice Federation (FECARROZ) held from September 24-25, in San Pedro Sula. The event brought together students, professionals, and entrepreneurs from the Latin American rice sector who enjoyed conferences, panels, and workshops.  As Diamond Sponsor of the Expo Convención Internacional del Arroz, USRPA helped kick off the event with a ribbon-cutting ceremony on Tuesday morning. Aligning with its ongoing efforts to promote U.S. rice and reaffirm its longstanding commitment to supporting and partnering with FECARROZ and the Central American rice industry, USRPA invited Board Member Dennis DeLaughter, a crowd favorite, to speak on the Market Analysis and Perspective of Rice Production in the United States. Additionally, Chef Juan Carlos Bonilla showcased a variety of dishes made with U.S. rice at the USRPA booth, with his culinary creations drawing the crowd back for more throughout the event. Chef Bonilla will play a vital role in promoting U.S. rice as part of USRPA's promotional activities in Honduras. “When FECARROZ asked USRPA to support this inaugural event, it was a no-brainer,” Marcela Garcia, President and CEO of US Rice Producers Association, said. “We’ve worked with each other for more than 20 years, and when they came to us with the idea of this convention, we immediately knew we wanted to be involved.”  The trip allowed the USRPA team to continue to foster trade relationships, explore market opportunities, and strengthen partnerships between U.S. rice producers and the Honduran rice industry. The team also had the opportunity to tour Baprosa’s facilities during the week-long trip at the invitation of Michel Hawit, president of the company.  “As always, we are thankful for the Hawit family and their amazing hospitality throughout our time in Honduras,” Garcia said. “Our tour of their facilities in Progreso was informative, and we look forward to continuing to work with them to market U.S. rice in the region.”

President of FECARROZ, Kamal Dieck, officially opens the EXPO Convención Internacional del Arroz and meets with exhibitors. Left to right: Kamal Dieck, president of FECARROZ, Anabel Gallardo, president of COHEP, Laura Suazo, Minister of Agriculture of Honduras, and Marcela Garcia, President and CEO of USRPA, inaugurates the conference and does the initial walkthrough and meet with expo participants.

Chef Juan Carlos Bonilla and USRPA's Iris Figueroa

Guests gather at USRPA's booth.

USRPA advocates for U.S. rice farmers by promoting their products internationally, ensuring competitive pricing, and addressing trade barriers. This visit to Honduras is part of ongoing efforts to expand market access and maintain positive trade dynamics in Latin America, which is a significant region for U.S. agricultural exports.

USRPA Calls for Action on Impending Port Strike

On Wednesday, USRPA joined 55 other agriculture organizations in urging President Biden to take action to ensure operations continue at the Eastern and Gulf ports. A labor strike could begin next week as the negotiations between the International Longshoremen’s Association and the United States Maritime Alliance remain at a standstill. The current labor agreement between the parties is set to expire at midnight on September 30. The letter notes that 40% of containerized agricultural exports go through the ports that may be impacted in the coming days and cautions that failure to reach an agreement will impact agricultural and food supply chains. A copy of the letter can be found here.

Appropriations Update

On Wednesday, the House and Senate both approved a continuing resolution to fund the government through December 20. The bill also included an additional $321 million in funding for the Secret Service. Having avoided a government shutdown ahead of the September 30 deadline, Congress has now recessed and members are returning to their districts ahead of November’s election. When Congress returns for the lame-duck session, they will have a number of items to work through, including FY2025 appropriations and either passing a new farm bill or an extension to the existing law.

Harvest is rounding the corner to completion in all states but California, where they took a huge jump forward in harvest completion because the rice is drying quicker in the field than normal. In Mississippi and Arkansas, there are emerging reports of lost or delayed acres due to Hurricane Francine, but the total amount is yet to be determined. We don’t have any significant changes in milling yields to report this week, but the real story would be the surging harvest of medium grain rice in California. Early field yields are reporting nearly 10% off from historical norms on the West Coast, which is puzzling many of the producers in the state. The below-average yield is attributed to excessive heat during the flowering stage for the early-maturing varieties. Despite these low field yields, milling yields are reported to be strong, but there is nothing firm to hold onto yet. Producers are hoping that the later maturing varieties will return to a more average yield, but virtually none of those fields have been cut as of this writing. A USDA GAIN report on Mexico was published this week. Post forecasts that Mexico’s milled rice production will increase 5% up to 160,000 metric tons (81,544 acres) based on higher-than-average precipitation. Post forecasts imports to decrease by only 2% to 840,000 MT on account of the increased production. U.S. rice is estimated to remain the primary source of rough rice for Mexico because of its proximity, reliability, and price competitiveness. Milled rice, now accounting for nearly one-third of Mexico’s imports, is a bit more diversified with suppliers coming from the U.S. (47%), Thailand (24%), and Uruguay (22%). It is expected that Mexico’s consumption will increase by 1% this year, up to 990,000 MT. All things considered, it is positive news and great to finally have a full crop to send to Mexico. In Asia, Thai prices continue to soften, now down to $550 pmt, while Viet prices have held closer to $580 pmt. The big news this week, however, is the awarding of the BULOG tender. It was Indonesia’s 8th tender, and it went to Myanmar, Vietnam, Thailand, and the majority to Pakistan. The demand side of the equation has been choppy, so this surge in demand didn’t have a material impact on price direction in those markets. Paki price is reported at $535 pmt, similar to last week, and down 9% from three months ago. On the ground, cash prices in Texas are $15.50-$16.50. Louisiana is reporting $14.80-$15.20. Mississippi, Arkansas, and Missouri are showing bids of $14.50 and ask of $15.55. The weekly USDA Export Sales report shows net sales of 55,300 MT this week, down 32% from the previous week, but up 6% from the prior 4-week average. Exports of 59,400 MT were down 33% from the previous week, but up 18% from the prior 4-week average.

JEFFERSON CITY, Mo. – On behalf of Missouri rice producers, Governor Mike Parson proclaimed Sept. to be Rice Month in Missouri. The proclamation was presented to Missouri Rice Research & Merchandising Council members. “Missouri is growing food for a growing world, and Missouri rice producers are proof,” Governor Mike Parson said. Ranking fourth in the nation for rice production, we are proud to provide a versatile Missouri-made product to consumers across the country and the globe.”

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