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Rice in Asia’s Feed Markets

Author

Listed:
  • Skorbiansky, Sharon Raszap
  • Childs, Nathan
  • Hansen, James

Abstract

Historically, only humans—not livestock—consumed rice. Consequently, rice is considered a food grain and not a feed grain. However, the Food and Agriculture Organization of the United Nations estimates that in 2013 more than 33 million metric tons (mt) of rice were devoted to feed, with the amount growing by 0.5 million mt per year since 2003, an average annual growth rate of 1.7 percent. In several Asian countries, policies incentivized overplanting and boosted stocks, eventually leading governments to release rice from their stocks for feed use at a small fraction of the procurement cost. Thus far, South Korea, Japan, and Thailand have diverted rice into feed grain markets to reduce government stocks. China, the world’s largest producer and consumer of rice, has near-record rice stock levels, and policymakers there could follow a similar path. This report discusses policies and consumption changes that have led to the increased use of rice for feed. It also uses the USDA, Economic Research Service baseline model to simulate the effect on corn and rice markets if China were to divert rice into its feed market.

Suggested Citation

  • Skorbiansky, Sharon Raszap & Childs, Nathan & Hansen, James, "undated". "Rice in Asia’s Feed Markets," Miscellaneous Publications 290025, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersmp:290025
    DOI: 10.22004/ag.econ.290025
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    References listed on IDEAS

    as
    1. Jikun Huang & Cristina C. David, 1993. "Demand for cereal grains in Asia: the effect of urbanization," Agricultural Economics, International Association of Agricultural Economists, vol. 8(2), pages 107-124, February.
    2. C. Peter Timmer & Harold Alderman, 1979. "Estimating Consumption Parameters for Food Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 982-987.
    3. Pandey, Sushil & Byerlee, Derek R. & Dawe, David & Dobermann, Achim & Mohanty, Samarendu & Rozelle, (ed.), 2010. "Rice in the Global Economy: Strategic Research and Policy Issues for Food Security," IRRI Books, International Rice Research Institute (IRRI), number 164488, January.
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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; International Relations/Trade;
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