Rice Exports Close 2006 Up

Arkansas rice growers took a large hit in 2006 in lost acreage thanks to increased energy costs and disease. The industry as a whole lost an estimated $150 million after the discovery of a genetically modified organism present in the seed strain LL601 was announced Aug 18.
The export market for rice was aided by the deregulation of the LL601 strain, considered safe for consumption by the USDA and Food and Drug Administration, in November by the U.S. Plant Health Inspection Service.
Led by 90,000 metric tons in new sales to Iraq, the U.S. exported 145,500 metric tons Nov. 30, six days after the deregulation.
The USDA increased its 2006 export estimate by 5 percent to 79 million cwt (hundred-pound units). The deregulation of LL601 will aid exports to Mexico, Central America, Cuba and Haiti, who represent 50 percent of the U.S. long-grain market.
Japan also got back in the U.S. market in December after a temporary ban on long-grain shipments in August.
Arkansas produces approximately 48 percent of the U.S. supply of rice and 80 percent of $1.88 billion U.S. export market is the long-grain variety most Arkansas farmers grow.
The European Union, which accounts for 6 percent of the U.S. export market, does not allow genetically modified food imports and recent planting bans on two other genetically modified strains will make that market recovery a long haul.