Where the USA Rice action is in Central America
Jun 06, 2022
CANCUN, MEXICO -- Last week, the Central American Rice Federation (FECARROZ) Board of Directors met here prior to the Rice Market & Technology Convention to discuss a wide range of issues including regional production and trade, and get reports from rice industry representatives from North and South America, including USA Rice Vice President International Sarah Moran and Director of Western Hemisphere Promotions Asiha Grigsby.
Moran and Grigsby provided updates on the 2022-2023 U.S. rice crop and also discussed opportunities for joint promotions in the region, to help spur sales of U.S. rice. Several FECARROZ Board members already participate in joint promotions with USA Rice but there is always room for more to join, given the vital importance of Central America as an export destination.
“We always look forward to meeting with FECARROZ to hear about developments in the region,” said Moran. “Several FECARROZ members are participating in the USA Rice Millers’ Convention in California this week, which will be an additional opportunity for these importers to discuss trade with USA Rice members.”
Central America is a top market for U.S. rice, bringing in nearly 600,000 tons ($206 million) last year.
While the U.S. had near 100 percent market share in the early 2000s, market share has dropped since the implementation of the U.S.-Central America-Dominican Republic free trade agreement (CAFTA-DR) in 2006. CAFTA-DR created duty/tariff free quotas for rough and milled U.S. rice, but the importer must first purchase domestic rice in order to access those quotas. U.S. market share in 2020 was 52 percent, rebounding to more than 75 percent in 2021.