In 2000 lower acreage offsets the substantially higher yield. This is due to the combined effects of lower U.S. farm prices and the weakening of the Thai baht relative to the U.S. dollar. The price premium is largely the result of a combination of two factors the higher quality of U.S. rice and the dependability of U.S. rice suppliers. Domestic use is driven by sustained growth in food use, particularly the processed food sector. U.S. rice exports in 2000, 83.9 million cwt., are projected to be 5.3 million cwt.
Population growth remains the driving force for growth in world rice consumption.
Utilization is projected to remain strong in 2000 at 401 mmt, slightly higher than the 1999 level. A significant reduction in stocks by China were a result of higher exports, lower government procurement, harvested area and production. Weak demand continues to depress international prices. China is expected to continue to be a net rice exporter over the next decade, with net exports in the 2.5 to 2.8 mmt level. Its main export destinations in 1999 were Indonesia, the Ivory Coast, the Philippines and Cuba.