Student: Rice and Santo Domingo Rice Essay

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THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY

Voluntary

- Public

Date:
GAIN Report Number:

Haiti
Post: Santo

Domingo

Rice Production and Trade Update
Report Categories:
Grain and Feed
Approved By:
Margie Bauer
Prepared By:
Carlos G. Suarez & Nicolas Rubio
Report Highlights:
Rice production in Haiti has been stagnant for decades. In CY 2010, the availability of fertilizer and water in irrigated lands increased overall output to an estimated 90,000 MT. Estimates for
CY 2011 are between 80-90,000 MT. The increased demand from a rapidly rising population and lower import tariffs implemented in the late 1980’s made rice imports one of the least expensive carbohydrate sources and a basic item for daily use today. The consumption estimate for CY 2010 is
380,000 MT - almost 300,000 MT of donations and commercial imports, supplemented by domestic production. The forecast for 2011 does not anticipate any major changes in production, demand or consumption from the current year.

Executive Summary:
Rice production in Haiti has been stagnant for decades. Producer sources, government officials, traders and USDA data all agree on an average of 70,000 MT/year (milled basis) for the past 25 years. In CY
2010, the availability of fertilizer through the Haitian government, FAO and Taiwan government donations, and plentiful water in irrigated lands increased overall output to an estimated 90,000 MT. As for CY2011, Post estimates a comparable production level of 80-90,000 MT.
The higher food demand induced by the fast population growth and lower import tariffs implemented in the late 1980s to address this need made rice imports one of the least expensive carbohydrate sources.
As a result, rice has become a basic item for daily use today. Consumption estimates for CY 2010 are
380,000 MT which includes almost 300,000 MT of donations and commercial imports, supplemented with 90,000 MT of domestic production. The forecast for 2011 does not anticipate any changes in donations or consumption from the current year.
Over the years, the quality of imported U.S. rice at affordable prices gained grounds over the more expensive yellow and “criollo” rice varieties produced domestically. As a result, rice imports penetrated this market and became necessary to meet the increasing domestic demand. The GOH does not limit rice imports, although the GOH claimed that there is a needed to protect the local industry with an increase in the tariff from zero to 3.5% after the January earthquake. No reliable numbers exist on stocks. Importers try to keep a thirty day supply in hand, equivalent to 23-25,000 MT.

Production:
Rice production in Haiti has been stagnant for decades. In the 1970s and mid 1980s, Haiti was nearly self sufficient in a number of agricultural and livestock products including rice. However, it should be noted that rice consumption per capita at that time was much lower. Producer sources, government officials, traders and USDA data all agree on an average production of 70,000 MT/year (milled basis) for the past 25 years. Even so, a recent exploratory visit to Haiti gave evidence to higher productivity and yields appear to have increased for CY 2010.
The availability of fertilizer through the Haitian government, FAO and Taiwan government donations and plentiful water in irrigated lands increased overall output to an estimated 90,000 MT. Abundant rainfall and a large supply of fertilizer at low or no cost and the availability of additional labor outside of Port au Prince could raise production to above the estimated 90,000 MT. On the other hand, after the earthquake, enormous quantities of donated rice reached the Haitian market and temporarily suppressed domestic prices, which could have had an impact on next year’s planting decisions. As for CY 2011,
Post estimates a comparable
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