Vietnam Rice-Paddy Standard Report Q2/2019

Vietnam Rice-Paddy Standard Report Q2/2019

  • August 2019 •
  • 92 pages •
  • Report ID: 5494564 •
  • Format: PDF
VIETNAM RICE-PADDY INDUSTRY

Rice is the main source of food for over 50% of the world’s population, providing 21% of energy and 15% of protein for humans. Asia is the area with the highest rice consumption volume accounting for 90% of the world consumption production. In the first 2 months of 2019, the world rice price generally witnessed a slight increase compared to the end of 2018; however, it was lower than the beginning of 2017. It is forecasted that the rice price will rise dramatically in 2019 and remain high cost over the next 4 years, marking the increasing cycle of rice price all over the world.
Rice is not only the main food crop but the main source of income for millions of households in rural area of Vietnam as well. In general, agricultural production in 2018 attained quite good results. The weather was convenient for plants to grow and develop, especially for rice. Up to Q1/2019, the amount of rice planted nationwide increased by 0.8% compared to the same period of the previous year. In which, Northern areas were equivalent to 99.6% of the same period of the previous year, Southern areas were equivalent to 101.4% of the previous year.
Currently, Vietnam ranks fifth in the rice consumption volume. In which, food for humans accounts for 68% of the total volume, 25% of the total volume is used for animal feed industry, 7% is used for other purposes such as the demand for rice in the industrial-scale food processing industry, especially for beer and wine industry.
Regardless exporting, up to Q1/2019, the volume of exported rice decreased by 5.2% in volume and 17.9% in value compared to the same period of 2018. China always maintained the biggest rice consumption market of Vietnam, accounting for 22% of the total volume in 2018 and the total export turnover nationwide. However, in Q1/2019, the amount of rice exported to China decreased sharply, accounting for only 3.1% of Vietnam’s rice export structure in the first 3 months of 2019.