In-store demo draws a crowd
Aug 19, 2015
MEXICO CITY, MEXICO – For the first time in four years the market share for U.S. rice in Mexico is on the upswing. The United States is the sole supplier of paddy rice to Mexico and typically 40 percent of U.S. paddy exports are destined to this market. In 2010, 92 percent of the rice Mexico imported was paddy; by 2014, that number had fallen to 69 percent. But in the first five months of this year, the trend has reversed and 75 percent of Mexico’s imports were U.S. paddy rice.
Similarly, U.S. milled rice exports to Mexico have skyrocketed, increasing more than 100 percent in the first six months of this year compared with the first six months of 2014. The U.S. market share for milled rice was 97 percent in 2010 and fell to a low of 35 percent in 2014. In the first six months of 2015, the market share has rebounded to 62 percent, mostly due to the 20 percent duty imposed on rice imports from Vietnam and Thailand.
Notwithstanding the potential outcome of the Trans-Pacific Partnership negotiations, the outlook for U.S. sales remains positive, given the improved U.S. rice quality and narrowed price differences between U.S. and Asian origin rice. The Trans Pacific Partnership deal could potentially lower tariffs into Mexico for rice from Asian origins which is all the more reason USA Rice continues its robust marketing activities that have helped change consumption habits and now are focusing on differentiating U.S. grown rice from other foreign rice.
“Over the past 15 years of USA Rice promotional activities, rice consumption has grown 43 percent while population has grown only 22 percent,” says Jim Guinn. “In just this year alone, USA Rice will conduct more than 300 promotional activities in Mexico targeting both the consumer and foodservice sectors.”
Guinn says activities focus on the newly developed “Authentic American Seal” which is used throughout all USA Rice promotional activities. This logo highlights to the consumer what U.S. rice represents and which rice products on store shelves are from the United States. USA Rice uses other messages as well that we know resonate strongly with Mexican consumers – health, versatility, economics, food safety, and gluten free.