Posted May 22, 2014
Mexico’s Secretary of Agriculture, Livestock, Rural
Development, Fishing and Food (SAGARPA) has approved Mexico’s importation of
Brazil rice paddy for 2014, according to an article by Oryza available here.
The U.S. is the only country which currently exports
paddy rice to Mexico. U.S. trade sources
are “disappointed with SAGARPA’s decision as it is likely to impact U.S. paddy
rice exports to Mexico.” According to
the USA Rice Federation, the U.S. share in Mexico’s total rice import market
has declined to 89 percent in 2013 from about 100 percent in 2010. U.S. “paddy rice exports to Mexico declined
by about 29 percent in the first quarter of 2014 compared to the same period in
2013.”
U.S. trade sources say that Vietnamese and Uruguayan
rice have been replacing the U.S. rice in Mexico due to cheaper prices.
The
FAO projects higher rice prices due to traditional buyers returning to the
market and El Nino weather expected later this year. According to the FAO, global milled rice production
is expected to reach about 501.1 million tons in 2014-2015, up about 1 percent
from last year.
For more information on international trade, please
visit the National Agricultural Law Center’s website here.
