Mexican Imports of U.S. Milled Rice on Rise - Packers Returning to U.S. Origin

MEXICO CITY, MEXICO – One of the top rice packers in Mexico is beginning to shift purchases back to U.S. rice from Uruguay and other origins thanks to better prices, logistics, and quality.

“The packer has a premium brand that can command a top price.  Back in 2011, they shifted almost exclusively to Uruguayan milled rice,” said Marvin Lehrer, USA Rice’s representative in the region.  “Recently, a large price spread between Uruguay and the U.S. has shifted origin preference back to the United States.”

The packer notes that he prefers to buy from the U.S. because of logistic advantages and is seeking higher quality U.S. rice.  The shift from Uruguayan origin back to the U.S. is expected to be gradual but steady.

“We are also hearing from the trade that there has been consumer rejection of Vietnamese rice, especially from supermarket buyers,” Lehrer continued.  “We're told that supermarkets and, in turn, packers are getting returns of Viet rice due to ‘stickiness,’ and other quality concerns by consumers.”

The U.S. already enjoys a significant quality, logistic, and name recognition advantage in Mexico, especially against Asia.  The latest problems for rice from Vietnam could push the origin to bottom end, non-branded segment of the market, where Lehrer says they could gain a foothold.  However, he says U.S. milled rice usage, especially properly promoted, will lead in Mexico for years to come.

Mexican imports of rice are still dominated by paddy rice, but a shift has been taking place.  Paddy, once 95 percent of imports, now make up about 75 percent, with milled rice making up the remaining 25 percent.  

“We're paying attention to both segments, and we are supporting the local trade in both paddy and milled rice - just so long as the origin is the United States,” says Jim Guinn, vice president of USA Rice’s international promotion programs.