Guyana’s rice in significant breakthrough into European market
By Chamanlall Naipaul
Guyana Chronicle
February 24, 2007
Guyana’s rice industry has made a significant breakthrough into the European market, as a local milling company begins shipping finished parboiled rice to the lucrative market for the first time.
In an interview with the Guyana Chronicle, Chief Executive Officer of Guyana Stockfeeds Limited Robert Badal disclosed that his company has begun shipping parboiled rice to Holland under the brand name of Angel Parboiled, and this is an attestation to the quality of the locally manufactured product and the vision of targeting Europe with its high qualitative standards.
Initially, Badal said his company will be exporting five containers which amount to some 500 tonnes, but there is a demand for some 2,000 tonnes per month. However, because of a shortage of paddy, this demand cannot be met at present.
Currently, the volume of exports would see Guyana earning about US$800,000 per month.
Badal says Europe has a high demand for the product and his company is gearing towards expanding exports there. And the prices are good.
He added that this is a very positive development for the local rice industry as apart from the earning of increased foreign exchange, several spin-off benefits for farmers and the national economy would be accrued, including high prices for farmers and increased employment, as more truckers and porters will be needed. In addition, he disclosed that over 300 persons are indirectly employed as a result of the new market, apart from some 50 directly employed in the operations.
He noted that currently farmers are excited about the prospects of the European market because they are enjoying higher paddy prices which now stand at about $2,150 per bag as compared with about $1,700 per bag previously.
Currently, Badal said the milling capacity of his factory is 2,000 tonnes per month but he aims at upping that figure to 3,500 tonnes per month to meet the increased demand.
Originally some US$10M was invested in the modern factory he established and plans are afoot to invest a further US$4M to expand its productive capacity.
However, Badal speaks of constraints affecting the production of high quality rice, but because of its processing technology, Guyana is able to achieve internationally acceptable quality.
He pointed out that the key to producing quality rice is having high quality paddy, but this is lacking mainly because of poor husbandry practices and poor varieties of rice being sown.
To overcome this hurdle, Badal is contending that farmers have to be given the necessary help and support, and reduced cost of inputs such as fertilisers and pesticides. He is also called for improved farm to market roads.
The CEO said his company plans to establish an extension service to help farmers improve the quality of paddy produced by them.
Badal also indicated that his company’s exports of parboiled rice is doing well in the Caribbean. He has consolidated markets in Trinidad and Tobago, Barbados, Antigua and Grenada. Indications from buyers in these countries are that they are satisfied with the quality of the product and they have all been re-ordering purchases.
During the latter half of last year, some 3,000 tonnes were exported to the Caribbean while for the next six of months this year it is envisaged that about 9,000 tonnes will be exported, Badal indicated.
He said he is happy about the breakthrough into the European market and called for cooperation among the players in the local private sector to boost exports.