Rice Sector: Background
Market Overview
Rice, the primary staple for more than half the world's population, is produced worldwide. The United States is a major exporter, and the global market accounts for nearly half the annual sales volume of U.S.-produced rice. Four U.S. regions produce almost all of the country's rice crop - three in the South and one in California. The South and California produce different types of rice for specific markets, with rice from California typically selling at a premium to southern rice.
From 2009/10 to 2011/12, the value of the U.S. crop averaged $3.0 billion a year. Six States - Arkansas, California, Louisiana, Mississippi, Missouri, and Texas - account for nearly all U.S. rice production, with Arkansas producing almost half the U.S. crop. California and Louisiana rank second and third, with the remaining three producing much smaller crops. Organic rice accounts for 1-2 percent of the U.S. crop, and its share has been rising.
Americans consume about 26 pounds of rice each year, not counting rice used in pet food. This number has been nearly stable for the past 5 years, after rising sharply over the previous quarter century. The United States imports about 15 percent of the rice it consumes, with Thailand supplying about 70 percent of these shipments and India and Pakistan supplying most of the remainder. The United States purchases specific premium aromatic varieties from these three Asian exporters that are not currently grown in the United States. The import share of the U.S. market has nearly leveled off after growing rapidly since the early 1980s.
The Western Hemisphere is the largest export market for U.S. rice, taking more than half of U.S. shipments, with Mexico and Central America the biggest buyers. Northeast Asia - Japan, South Korea, and Taiwan - and the Middle East, are the next largest markets, with Northeast Asia the highest valued market. The remaining markets for U.S. rice are much smaller and include, from largest to smallest, Sub-Saharan Africa, the European Union, and Oceania. Food aid accounts for a large share of U.S. shipments to Sub-Saharan Africa. U.S. rice is not competitive in the substantial South and Southeast Asian rice markets.
Key Data
U.S. rice supply and use 1/
Total U.S. rice
2008/09 2009/10 2010/11 2011/12
Million acres
Harvested area 2.976 3.103 3.615 2.618
Pounds per harvested acre
Yield 6,846 7,085 6,725 7,067
Million hundredweight (cwt*)
Production 203.7 219.9 243.1 185.0
Imports 19.2 19.0 18.3 19.4
Total domestic use 2/ 127.6 124.5 136.5 110.2
Exports 94.4 108.3 113.0 101.5
$/cwt
Average farm price 3/ 16.80 14.40 12.70 14.30
* One cwt (or 1 hundredweight) equals 100 pounds.
1/ August-July market year; rough-rice equivalent of milled and unmilled rice.
2/ Includes residual (i.e., unreported uses, processing losses, and any estimating errors).
3/ Market-year weighted average price in nominal dollars.
Source: World Agricultural Supply and Demand Estimates, WAOB, USDA.
For Further Information:
World Agricultural Supply and Demand Estimates, USDA: Monthly forecasts of supply and demand for major commodities
Agricultural Prices, USDA's National Agricultural Statistics Service: Monthly farm prices for principal commodities
Bureau of Labor Statistics: Retail price data for food products
Rice Information and Data: Further resources on ERS website
Rice Chart Gallery: ERS data
