Continuing drought conditions in parts of Asia have hit farmers and livestock producers for months. And now there are signs that parched weather is translating to higher prices for rice. HPR’s Bill Dorman has more in today’s Asia Minute.
It may not show up in your plate lunch just yet, but the global price of rice is on the rise. The Nikkei Financial Review reports the cost of rice from Thailand is up nearly 20% from the start of the year….its biggest jump in eight years.
Overall, global rice prices are rising more slowly….but some futures contracts are approaching levels last seen nearly a year and a half ago. This is one more situation you can blame on the weather---the top three rice exporters in the world have all been suffering from drought. That includes India, Thailand and Vietnam….which together account for nearly 60% of the global rice trade, according to the International Grains Council. The end result may be the first decline in world rice production since 2010.
Rice consumption is also changing—at least in some parts of Asia. South Koreans now eat less than half the amount of rice they did thirty years ago. That news came from the South Korean government this week…which reports the per capita break down means the average Korean now consumes a little less than two bowls of rice a day. One side effect: more rice available for export. The Yonhap news agency reports South Korean rice was exported to China earlier this year….for what Yonhap says is the first time in history.
