Mar 13, 2015
MANILA, PHILIPPINES -- This week, USA Rice is participating in a USDA-sponsored Agribusiness Trade Mission to Malaysia and the Philippines led by Under Secretary for Farm and Foreign Agricultural Services Michael Scuse. Today, USA Rice Vice President for International Promotion Jim Guinn received a detailed briefing on the economic, agricultural, and political situation in the region from U.S. Ambassador Philip Goldberg and his embassy staff.
Following the briefing, Guinn met with Ludovico Jarina, Deputy Administrator of the National Food Authority (NFA), the agency responsible for all governmental purchases of rice. As expected, Jarina emphasized the sensitive nature of rice in the country.
NFA, once under the authority of the Agricultural Ministry, is now under control of the Presidential Advisor on Agricultural Modernization and Food Security. Discussions centered on the current market situation, the controlled access system of a tariff rate quota with attendant country specific quotas (the U.S. does not hold a CSP), and what may take place when the TRQ is scheduled to expire in 2017. Total rice imports into the Philippines, including smuggled rice, will equal approximately 1.5 million metric tons this year.
NFA's Jarina said there is a strong market preference for long grain, but opportunities for U.S. rice here are rather limited due to much lower priced long grain rice available from nearby Thailand and Vietnam. However, sushi is growing in popularity here, and Guinn thinks this may present niche market opportunities for U.S. medium grain rice, which could be imported under the omnibus (global) quota.
Contact: Deborah Willenborg (703) 236-1444