US Rice exports may gain edge as a result of Australian drought
A recent report from the USDA’s Foreign Ag Service projects Australia to have its smallest rice production in decades due to prolonged drought conditions. The USA Rice Federation says that could set the stage for the US to earn back some market share in countries where the US and Australia are both doing business.
Australia has preferential market access to Japan as a result of the recently implemented CPTPP and is provided a quota for access into the country. And while the bilateral agreement between the US and Japan began implementation at the start of the year, rice was not included in the deal.
Australia’s 2020 production is projected to be nearly one-tenth of its 10-year average and exports are expected at just 20,000 tons, down from 262,000 tons two years ago.