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ACQ 2016-1

The export of Vietnamese rice

The rice trade

Recent statistics show the total amount of rice traded globally to be 23 million tonnes. The ratio of trade volume against total production,based upon 340 million tonnes of milled rice, is approximately 6.75%, which is significantly less than other grains.Rice production in Vietnam is about 34 million tonnes of paddy (harvested) base, where the main production areas are the Mekong Delta in the South and the Red River Delta in the North. The Mekong Delta produces more than half of the country’s total production and provides suitable climate conditions so that, in most cases, farmers can harvest rice more than three times a year.Rice harvests are generally between February and March, July and August, November and December, for short season rice; and January and February, for long season rice.

Rice moisture

At harvest, paddy rice generally has a moisture content of 20-28 percent. The moisture content varies with maturity and atmospheric humidity. It is understandably higher in the wet season than the dry season. Paddy rice should be dried to a moisture content of less than 20 percent within 48 hours of harvest to reduce the risk of damage. To facilitate good storage, it is best to dry the paddy rice – either in the sun or with modern drying techniques and/or machinery – to a moisture content of 14 percent or less. Rice kernels should have a moisture content of 13-14 percent to ensure good storage. When the moisture level exceeds 14 percent, the rice takes on a yellowish hue that can lead to mould, lumping and decay, resulting in damage that effects both the quality and quantity of the rice. Damaged rice can affect undamaged rice lying in close proximity but not necessarily in direct contact. This can occur particularly when it is bagged and awaiting shipment. Therefore, it is prudent to check for this type of damage prior to the cargo leaving the warehouse storage facility. The carrier and his appointed surveyors therefore require the full cooperation of the shippers, to identify where the rice is being stored prior to shipment. However, Spica’s experience has shown that the shippers may not be eager to cooperate.

Milling and processing

The most essential stage of the post-harvest process is milling, when the husks and bran particles are removed from the paddy grain. Milled rice maintains a higher temperature than pre-processed rice, when the moisture content is higher than 14 percent and particles of bran adhere to the surface of the kernel. Since the rice has generally been whitened, it soon takes on an ivory or yellow coloration.

Preparing rice for export

Prior to the 1990s, exported Vietnamese rice was considered to be low-grade, when approximately 35 percent of the rice had broken ends. Following significant improvements in production and processing technology, Vietnam now produces rice with only 5-10 percent broken ends. Following the establishment of the Vietnamese Rice Standard for Export by the Standardization Meteorology and Quality Control (SMQC) Centre, foreign buyers can choose between the Vietnamese standard specification or their own export specification.

The following steps indicate how local exporters prepare rice for export:

  • Milled rice is purchased from local mill or merchant.
  • The rice is processed and/or classified, according to export grades and standards. Cargo is separated into different categories, according to grade and quality.
  • The quality of the rice is adjusted, if necessary, to meet the specifications of the shipments by reprocessing (via whitening, sieving, polishing, drying, etc) or simply by mixing rice from different categories in ratios determined during packing at the warehouse.
  • Bagged rice is transported from warehouses and remote locations in and around Ho Chi Minh City and throughout the Mekong Delta area. This stage is difficult to monitor accurately unless the surveyor is given several days' notice of the shipment.

Source : the Amrican Club Currents Issue 21

Novemvber 2005

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