Veera Prateepchaikul's blog - Latest comments on Is rice cartel a pipe dream?

In response to: Is rice cartel a pipe dream?

Boriga [Visitor] — Tue, 05 Aug 2008 14:03:02 +0000

Surely the question to be asked is what is the benefit of a rice cartel? The logical humanitarian view would be to protect the income of small scale rural rice farmers who rely upon the sale of excess rice to rise above subsistence. Alternatively, given Thailand's dominant position in the rice exporting market, to benefit Thailand's economy as a whole.

However, would that eventuate if OREC came about? No, it would simply benefit the intermediaries, large conglomerates and commodity traders in the middle of the business. If the objective is to help the poor in rural areas alternative crops and technology reflect the best solution. Not a market manipulating mechanism to enrich the already enriched further.

In response to: Is rice cartel a pipe dream?

rafael m. arteaga [Visitor] — Mon, 23 Jun 2008 02:29:56 +0000

Global food production is not enought for the amount of present population, added to it the effects of the climatic changes, wich affected in different countries. The production ways are oriented to a population of twenty years ago to keep the ascent and slope of prices, but the technological field has not renewed. In addition, the nutritional product use to secure new fuels brings scarcity in the markets.

In response to: Is rice cartel a pipe dream?

Bob [Visitor] — Sat, 21 Jun 2008 14:15:42 +0000

I don't think rice industry can become a monopoly since there are many substitutes for rice while there is nothing can replace oil. This idea just benefits rice exportors like Mr. Dhanin, but not the poor farmers.

In response to: Is rice cartel a pipe dream?

Chompon [Visitor] — Mon, 16 Jun 2008 22:38:03 +0000

I think this is a great idea if implemented the right way. If it's done the wrong way it might be abused by crooked greedy business-people instead of helping farmers who actually do the work.

In response to: Is rice cartel a pipe dream?

One who cares about Thailand [Visitor] — Fri, 13 Jun 2008 14:49:15 +0000

Below is a list of the top ten rice exporting countries.

1. Thailand â€¦ 10 million tons (34.5% of global rice exports)
2.India â€¦ 4.8 million tons (16.5%)
3. Vietnam â€¦ 4.1 million tons (14.1%)
4. United States â€¦ 3.1 million tons (10.6%)
5. Pakistan â€¦ 1.8 million tons (6.3%)
6. China (including Taiwan) â€¦ 901,550 tons (3.1%)
7. Egypt â€¦ 836,940 tons (2.9%)
8. Italy â€¦ 668,940 tons (2.3%)
9. Uruguay â€¦ 609,170 tons (2.1%)
10. Spain â€¦ 346,030 tons (1.2%)

( http://tinyurl.com/56dac6 )

Note that the United States is presently the world's number 4 rice exporter. Unlike Asia rice is not a daily food. Rice in the US is grown on land that cannot be easily used for other purposes due to strong environmental regulation. Much of the land that used to produce rice in the US is presently uncultivated due to the historically low price of rice. That is changing. If a rice cartel were formed and high prices were sustained the rice land in the US that is presently uncultivated would quickly be put into production. With the economies of scale that exist in US farming it is unlikely the proposed rice cartel could control the market price of rice. Rice production in the US is highly mechanized. Giant tractors now exist that cultivate land using GPS and a computer. The farmer who sits in an air conditioned cab is there to correct any unexpected problems. The rice producers in the US could not be brought into the cartel due to antitrust laws.

Thailand would be better served by putting her energy into developing biodiesel production using algae feedstock. Thailand's climate offers an excellent opportunity in that area. Biodiesel from algae yields 5000 to 20,000 gallons per acre (2.5 rai) vs 230-500 gallons per acre for palm oil. A plant in the US producing biodiesel from Algae began operation this year with other companies presently building similar facilities. Thailand could do likewise.

Fragrant rice will remain a strong point for Thailand but a rice cartel with the goal of controlling the market price is not likely possible.