Prospects for the EU rice market
Since 1996/97 EU rice production has increased strongly, as have imports of rice. This has led to a rapid increase in EU rice stocks, which stood at over 600,000 tonnes in 2001/02, equivalent to one-third of current domestic EU rice consumption of 1.8 million tonnes. The situation is expected to deteriorate gradually up to 2006/07. The European Commission maintains that increased imports of rice from least developed countries under the EBA will 'dramatically worsen the overall outlook', with imports capable of almost entirely satisfying current EU demand by 2009/10 (imports of 1.7 million tonnes). Trendsdiffer, however, between the japonica and indica rice markets. Favourable demand trends for indica rice are predicted in the medium term (total EU rice demand is set to rise to 2.1 million tonnes in 2009/10). Overall however by 2009 rice held both privately and in public stocks (though mainly in public stocks) is projected to substantially exceed total domestic consumption (total stocks 2.8 million tonnes). Comment: European Commission proposals to introduce a one step 50% reduction in the EU rice price, with EU farmers being compensated with direct aid equivalent to 88% of the price reduction will have an impact on these projections, since it will greatly reduce the attractiveness of the EU market.
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| Format: | News Item biblioteca |
| Language: | English |
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Technical Centre for Agricultural and Rural Cooperation
2002
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| Online Access: | https://hdl.handle.net/10568/52726 http://agritrade.cta.int/Back-issues/Agriculture-monthly-news-update/2002/August-2002 |
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| Summary: | Since 1996/97 EU rice production has increased strongly, as have imports of rice. This has led to a rapid increase in EU rice stocks, which stood at over 600,000 tonnes in 2001/02, equivalent to one-third of current domestic EU rice consumption of 1.8 million tonnes. The situation is expected to deteriorate gradually up to 2006/07. The European Commission maintains that increased imports of rice from least developed countries under the EBA will 'dramatically worsen the overall outlook', with imports capable of almost entirely satisfying current EU demand by 2009/10 (imports of 1.7 million tonnes). Trendsdiffer, however, between the japonica and indica rice markets. Favourable demand trends for indica rice are predicted in the medium term (total EU rice demand is set to rise to 2.1 million tonnes in 2009/10). Overall however by 2009 rice held both privately and in public stocks (though mainly in public stocks) is projected to substantially exceed total domestic consumption (total stocks 2.8 million tonnes).
Comment:
European Commission proposals to introduce a one step 50% reduction in the EU rice price, with EU farmers being compensated with direct aid equivalent to 88% of the price reduction will have an impact on these projections, since it will greatly reduce the attractiveness of the EU market. |
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