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. China s grain policy has changed substantially over the past year. The Chinese government is reportedly moving towards more market orientation again in its grain sector. Contrary to the government s previous practice of actively buying grains to maintain farm prices, in 1999 the government tried to reduce grain stocks by lowering procurement prices and volume, and selling to the domestic market.