World Grain - September 2008 - 83

RICE QUARTERLY

RICE NEWS ROUNDUP

Rice
Ri

News Roundup
FAO expects rice production
to rise by 1.5% in 2008
ROME, ITALY - The United Nations' Food and Agriculture Organization (FAO) released a report Aug. 8 indicating
that global rice paddy production in 2008 is forecast to rise
by 1.5% over the 2007 total to 668 million tonnes.
Much of the expansion is expected in Asian countries, now
forecast to gather some 605 million tonnes, 1.1% above their
2007 production results. Sizable gains are foreseen in Bangladesh, India, Indonesia, the Philippines and Vietnam, while
Iran, Japan, Turkey and Myanmar may face a contraction.
The FAO's forecast of global rice trade in 2008 now stands
at 30.2 million tonnes, 1.4 million tonnes more than anticipated last April, but 4% below the 31.3 million tonnes traded
in 2007, a reflection of the export curbs imposed by several
exporting countries and of the high world prices prevailing

since January, which have depressed import demand. Much
of the expected drop in world rice imports would arise from
lower purchases by Asian countries, in particular Bangladesh, Indonesia, Saudi Arabia, the United Arab Emirates and
Yemen, more than compensating for larger deliveries to Iraq,
Korea, Malaysia, the Philippines and Sri Lanka. Imports to
Africa are also expected to fall. By contrast, Australia, the
European Union and the United States are all expected to
purchase more. Much of the drop in world exports in 2008
can be attributed to the restrictive export policies implemented by several countries, in particular India, Egypt and
Vietnam.
The FAO's still very preliminary forecast of global rice trade
in 2009, at 30 million tonnes, shows little change from 2008.

NutraCea posts loss in quarter
PHOENIX, ARIZONA, U.S. - As a result of difficulty obtaining adequate quantities of rice bran, the business segment
of NutraCea operated at lower capacity in the second quarter,
which put pressure on the company's overall financial results.
For the quarter ended June 30, NutraCea sustained a loss
of $6,093,000 compared with an income of $2,002,000 during the same quarter of the previous year. Total revenue was
$10,314,000, down 21% from $12,996,000 during the same
quarter of the previous year.
"It is important to note that during the second quarter our

NutraCea segment operated at 30% capacity overall due to difficulties in obtaining adequate quantities of rice bran," said Leo
Gingras, chief operating officer. "Our Mermentau (Louisiana,
U.S.) plant was not operational from May through July because
the rice mill that serves that facility was not milling rice.
"Additionally, our Lake Charles (Louisiana, U.S.) facility
production levels have not been reached because the rice mill
was phasing in our contract for rice bran. Beginning this month,
we anticipate that both of these mills will be operational and our
plants will be receiving 100% of the output from each mill."

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