Preview

Can Thailand Remain the Main Rice Exporter After Flood Incident in 2011.

Powerful Essays
Open Document
Open Document
4227 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Can Thailand Remain the Main Rice Exporter After Flood Incident in 2011.
“Can Thailand remain the world’s biggest rice exporter after the flood incident in 2011 and the current fierce competition from Vietnam ? ”

By ORNICHA Tantiwechwuttikul ID# 5004640669 A research paper as part of EE460: Thai Economy Semester 1/2011 Thammasat University

Abstract
Thailand was hit by the worst flood in 2011 causing vast damage to Thai economy as a whole. The floods have damaged 10 million rai (1.6 million hectares) of rice land, mostly in the Chao Phraya River basin, cutting the main harvest to about 19 million tons from 25.1 million tons and thus causing the reduction about 6 million ton of rice production in 2011. However, this research paper found that the reduction in our rice production in 2011 will be offset by the recovery in the rice growing after the first half in 2012. Moreover, Thailand’s reduction in the world rice export did not cause much fluctuation in the price of the world market. However, this research paper found that the main concern whether Thailand can remain its position as the number one rice exporter is not due to the short-run shock by the flood but rather the competition from Vietnam rice in terms of R&D, productivity, domestic policy and cost factors. Vietnam had gained more and more market share in rice export in the world market since 2005 and already become number 1 in Southeast Asian market and number 2 in the world market. Thus this situation posted the big challenge for Thailand in its long-term policy to cope with such problem in order to maintain the rank as number one rice exporter in the world market.

Key Question: “Can Thailand remain the world’s biggest rice exporter after the flood incident in 2011 and fierce competition from Vietnam rice?” I. Introduction It cannot be denied that Thailand had been the world’s biggest exporter of rice for



References: BioThai Foundation. (2010) Damage to agricultural sector from the flood in 2010 http://www.biothai.net/node/6081 [Access date: Dec 30,2011] Creed Rice Co. (2011) Market Report. http://www.riceonline.com [Access date: January 1,2012] Fernquest J. (2011) The rise of Vietnam Rice, Bangkok Post, January 26,2011 http://www.bangkokpost.com/learning/learning-from-news/218345/the-rise-of-vietnamese-rice [Access Date: October 31,2011] Ministry of Commerce, Trade policy and Strategy Office. (2011) Press release on Thai export, December 20,2011 “Overview on Thai rice” (2000) http://www.foodmarketexchange.com/datacenter/product/ grain/rice/dc_pi_gr_rice01.htm [Access date: December 28,2011] Phatra Securities. (2011) “Flood losses Bt400-530bn”, Thailand Macro Watch, November 4,2011, pp.2-3 Pratruangkrai P. (2011) Rice scheme will hurt Thais and help Vietnam, The Nation, September 5,2011. SCB Economic Intelligence Center. (2011) Thai Rice Focus, SCB “Biz Circle”, June-August 2011, pp.4-6. Shean M. (2011) SE ASIA: Widespread Flooding Impacts Regional Rice Production in 2011 http://www.pecad.fas.usda.gov/highlights/2011/11/SE%20Asia/ [Access date: Dec 30,2011] Suwannakij S. (2011) Thai Rice Exports Seen Plunging 50% on Government Buying Program, Flooding http://mobile.bloomberg.com/news/2011-11-03/thai-rice-exports-to-plunge-on-statebuying-floods-group-says [Access date: December 31,2011] Timmer, C. Peter (2010) The changing role of rice in Asia’s food security. ADB Sustainable Development Working Paper Series, No. 15 September 10, pp.4-5

You May Also Find These Documents Helpful

  • Powerful Essays

    Wgu Gke2 Task 2

    • 1230 Words
    • 5 Pages

    The rice market is our product concerned in this assignment. As a pantry necessity for the Asians, the rice market has an inelastic demand. Also, it has no close substitutes or perfect substitutes. This makes the importance of rice inevitable. On the other hand, the rice market has an elastic supply. Due to the wide variety of rice provided in the market, the quantity supplied by sellers tends to respond substantially to slight changes in price.…

    • 1230 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Ch. 13 APWH Study Guide

    • 707 Words
    • 3 Pages

    -farmers in Vietnam, Java, Malaya, and Burma constructed special water-control systems, which irrigated their terraced rice paddies…

    • 707 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Buffer Stocks

    • 759 Words
    • 4 Pages

    If there are good conditions for growing rice one year, supply will increase. This will lower the price of rice, and possibly causing a surplus, where producers produce more than consumers are willing and able to purchase, i.e. supply > demand. When this is the case, there is a ‘bumper crop’, and the administrators of the buffer stock scheme will purchase the surplus. In the case of global rice, supply shocks in the form of typhoons have led to a bad year for rice production (Fig. 2). Furthermore, the Philippines has limited ability to ‘boost production’, due to limitations on some factors of production. The Philippines have little arable land left, and thus cannot increase the number of rice plantations. This inability to boost supply, coupled with a growing population, mean that supply per person is decreasing. This inability contributes to the supply shock experienced by the Philippines.…

    • 759 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    APA Style Of Documentation

    • 1958 Words
    • 8 Pages

    As prices surge, Thailand pitches OPEC-style rice cartel. (2008, May 5). The Wall Street Journal, p. A9.…

    • 1958 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    As prices surge, Thailand pitches OPEC-style rice cartel. (2008, May 5). The Wall Street Journal, p. A9.…

    • 2489 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Consequently, the number of employees in the agriculture sector is decreasing, with a 6% decrease in agriculture employment since 2013 (Country Reports- Thailand). A government subsidy encouraging rice farming influenced many people to work in agriculture, and its closure also caused an immediate impact on employment distribution, which shifted into other sectors (Country Reports- Thailand). As a result, this has provided other areas of the economy an inflow of…

    • 787 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Business and Rice

    • 369 Words
    • 2 Pages

    Answer: Rice farmers, are more than 2000 businesses owned by families and have been in the business since 1997. Rice is theirs lives and place an important role in California’s Economy. The rice they produce is exported to several countries which include Japan, Taiwan, Korea, and Turkey. Rice mills owned by companies provide capital for the rice operation. Rice mills such as ADM, Far West Rice, Pacific International, and Sun West have invested in rice through the years and are big organizations that depend on its quality. These companies have created jobs and are committed to distributing the rice produced by the California Rice Farmers to the US and the world. Both have invested time and money. California has highly refined technology which can compete with the international market, however only the 12% of rice production was exported in 2003.…

    • 369 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Problem Identification: The bad harvest of paddy resulting in a high price of rice, accompanying with the low income of farmers.…

    • 421 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The floods in Pakistan have amounted to an economic disaster for the country. The scale of the human tragedy is enormous. To put it in some perspective, the flood waters have submerged one-fifth of Pakistan; roughly an area the size of Florida culminating in 1600 dead, about 20 million people displaced and 17 million acres of farmland destroyed. Pakistan’s towns, villages, crops, livestock, personal possessions and infrastructure have been completely washed away. Beyond the obvious social and political fallout is the economic consequence. There inevitably will be economic fallout from the evolving situation. In a country where a quarter of the economy is dependant on agriculture for food and jobs, it is obvious that economic growth will be effected. The scarcity in food and textile supplies for both internal use and exporting is the biggest impact on the economic growth potential of Pakistan.…

    • 561 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Rice is one of the main stable food in China which has the largest population in the world. Because of the large amount of population, food stabilization and food security play significant roles in China, so in recent decades, many new technologies have been used in agricultural production. This paper will mainly discuses the economic impact of new technology in rice production, for example, how does new technology like Green Revolution affects rice supply and how does technology helps reduce production cost.…

    • 260 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Tibao, N. Y. (2009). Why does the philippines import rice: a solution to the rice shortage . Retrieved from http://www.nodai.ac.jp/cip/iss/english/9th_iss/fullpaper/1-1-5nchu-tibao.pdf…

    • 12783 Words
    • 52 Pages
    Powerful Essays
  • Good Essays

    Philippines Economy

    • 645 Words
    • 3 Pages

    The Philippines currently hosts the International Rice Research Institute (IRRI), which studies high yielding rice varieties. It has played a key role in the Green Revolution and was able to increase rice yields and rice production during the 1970s. “The agricultural sector sees the involvement of about two-thirds or more than 40% of Filipinos. Rice remains the most important agricultural product. In order to increase the economic growth of the country, the Filipinos rely on major products such as coconuts (copra and coconut oil), abaca (Manila hemp), tobacco, and sugar for export purposes. The island republic is, however, diversifying from agricultural and mineral product exports into higher value manufactured and luxury goods such as electronics, apparel and clothing accessories as well as computer-related products.” (http://www.marimari.com/cOnTENT/philippines/general_info/economy.html)…

    • 645 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Miss

    • 2872 Words
    • 12 Pages

    Thailand means Land of the Free and formally known as Kingdom of Thailand (Ratcha Anachak Thai). The main metropolitan region and the country capital, Bangkok, with an estimated 9.6 million population in 2002. Thailand’s inhabitants were anticipated at 64,631,595 in July 2006, making it the nineteenth most densely inhabited country in the world. The population development rate was likely at 0.68 percent in 2006. The net immigration rate, also based on a 2006 estimate, is 0 percent. About 68 percent of the population lived in rural areas and 32 percent in urban areas in 2005. The largest population, according to 2000 census data, was in the northeast, with 20.7 million populations and the residency density of 122.9 persons per square kilometer. The central area, excluding Bangkok, had the next largest inhabitants in 2000, with 14 million people and a density of 137.8 persons per square kilometer. Bangkok itself had a inhabitants of 6.3 million people and a population intensity of 4,038 persons per square kilometer. The hilly north had nearly 11.4 million people, with a capacity of 67 persons per square kilometer, while the south had 8 million people and a capacity of 113.9 persons per square kilometer. It has been estimated that Thailand’s age structure for 2006, 22 percent of inhabitants are less than 15 years of age, 70 percent are 15–64 years of age, and 8 percent are 65 and older. Authorized government personnel approximation showed 75 percent of Thailand population are made up of that people of Thai ethnicity while another 14 percent are ethnic Chinese, and 4 percent are Malays, leaving behind 7 percent as unclassified. Thailand hosted some 188,400…

    • 2872 Words
    • 12 Pages
    Good Essays
  • Good Essays

    Thesis: Pesticide and Plant

    • 4432 Words
    • 18 Pages

    The widespread use of irrigation, agrochemicals and new seeds have largely increased agriculture production, but this model of agricultural growth is flawed because of declining crop yields and massive environmental impacts. According to the recent Food and Agriculture Organization of the United Nations (FAO) data, between 1961 and 2005 fertilizer applications in the Philippines increased by 1000%, while yields of rice and maize increased only by 200% and 280% respectively, and the yield of pulses remained about the same. From 1977 to 1987 pesticide use increased by 325%, while rice yield increased by only 30%. Pesticide imports have continued to increase, while rice and corn yields have increased at a much smaller rate.…

    • 4432 Words
    • 18 Pages
    Good Essays
  • Better Essays

    Food Scarcity in India

    • 1100 Words
    • 5 Pages

    The crisis has its roots in different areas. The first is the low and slow productivity of farmers in the poorest countries, caused by their lack of ability to pay for feed, fertilizers and materials. When you do not have the money to pay for the necessities to keep your farm maintained, the resources will begin to die. India and Thailand are two of Asia 's leading rice exporters. The rules in the U.S. and Europe of creating a diversion of food crops to produce different eco-friendly fuels like corn-based ethanol create a barrier between the two countries. But is also the reason why these countries are so involved. Wheat, corn and rice prices have more than doubled in the past two years, and oil prices have more than tripled since. “The state government of Andhra Pradesh, one of India 's traditional rice-bowls, said food grain production in the state was expected to plummet by more than 900,000 tons due to the floods.”…

    • 1100 Words
    • 5 Pages
    Better Essays

Related Topics