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Historic Rice Export Sale Attracts Attention To Southwest Louisiana And Beyond
The UBC Saiki is expected to discharge the 19,000+ tons
in the Port of Veracruz, Mexico in just a few days.
HOUSTON, TEXAS
Buying directly from farmers has always been the goal of foreign processors and distributors for a number of reasons – maybe better price, maybe better quality, or maybe better service. American farmers have wished for a long time to make direct sales, but the reality is that farmers are traditionally focused on the crop itself, battling the weather, insects, and diseases in an effort to get the highest yields out of the field and into the bins. Marketing has been left to others to handle.
This week in SW Louisiana rice farmers have taken the next step by participating in what is being called the largest direct sale of rough rice to a foreign mill in the history of the U.S. rice industry. Thanks to a coordinated effort between the US Rice Producers Association (USRPA) and the Louisiana Independent Rice Producers Association (LIRPA), 41 farmer-members of LIRPA have sold 19,000+ tons of rough rice, which are currently being loaded at the new IFG export terminal at the Port of Lake Charles, Louisiana for shipment to Veracruz, Mexico.
As expected, the sale has gained considerable attention in the coffee shops of Louisiana and throughout the Southern rice belt. The positive impact on farm prices in the region has been an added benefit even to those farmers who did not participate in the actual sale as the news pushed up buyers’ ideas. For the USRPA and LIRPA, the effort is all about giving alternatives to farmers in the marketplace. The more alternatives a farmer has in the field or in the marketplace, the greater the chance he has to make a profit. Dwight Roberts, President & CEO of the USRPA traveled to the port to observe the loading, and met with local farmers, the IFG management team and interested parties. Roberts was encouraged to learn that this sale would not be a unique event and discussions are underway for additional shipments. “This is what a trade association for farmers should be focused on and is a direct result of our trade servicing and coordinated efforts among several entities who make it a reality,” said Roberts adding, “these farmers have shown they can make it happen by getting involved.” Better prices solve lots of problems.
This sale was made possible by the success of the South Louisiana Rail Facility in Lacassine, LA, the first marketing initiative of LIRPA. Area farmers have been selling directly by rail for two years now, to Mexican rice mills that demand identity preserved rice and better quality than they had been receiving. ∆
From left are Navaid Alam of Tradiverse Corporation (IFG Port
Holdings), Hongwei Zhang, President of JGG America Inc.,
a subsidiary of Jilin Grain Group Import & Export Co., Ltd of China
and Jeremy Tupper, Logistics Manager for JGG America Inc.
Mr. Zhang enjoyed observing the loading, seeing the facility and visiting with the
USRPA about rice for the Chinese market.
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