ERC/04/INF/5



TWENTY-FOURTH FAO REGIONAL CONFERENCE FOR EUROPE

MONTPELLIER, FRANCE, 5-7 MAY 2004

Agenda Item 10

INTERNATIONAL YEAR OF RICE: 2004

Table of Contents

Paragraphs

I. INTRODUCTION 1 - 2

II. RICE IN EUROPE 3 - 30

III. THE INTERNATIONAL YEAR OF RICE (IYR) 31 - 39

INTRODUCTION

1. ON 16 DECEMBER 2002, THE UNITED NATIONS GENERAL ASSEMBLY DECLARED 2004 THE INTERNATIONAL YEAR OF RICE TO FOCUS THE WORLD’S ATTENTION ON THE ROLE THAT RICE CAN PLAY IN PROVIDING FOOD SECURITY AND POVERTY ALLEVIATION. RICE IS LIFE FOR MAJOR POPULATIONS OF THE WORLD AND IS DEEPLY EMBEDDED IN THE CULTURAL HERITAGE OF SOCIETIES. IT IS THE STAPLE FOOD FOR MORE THAN HALF OF THE WORLD POPULATION. RICE-BASED PRODUCTION SYSTEMS AND THEIR ASSOCIATED POST-HARVEST OPERATIONS EMPLOY NEARLY A BILLION PEOPLE IN RURAL AREAS IN DEVELOPING COUNTRIES. ABOUT FOUR-FIFTHS OF THE WORLD’S RICE PRODUCTION IS GROWN BY SMALL-SCALE FARMERS IN LOW-INCOME AND DEVELOPING COUNTRIES.

2. Rice is not a major food crop in Europe. However, rice consumption has steadily increased during the last decade. The cost of rice production in Europe remains relatively high making competition with imported rice difficult. In addition, concern over the negative effects of rice production on the environment and biodiversity has continued to increase. However, the rice-based production systems in Europe have a number of opportunities for sustainable development.

RICE IN EUROPE

1 CURRENT SITUATION OF RICE PRODUCTION AND CONSUMPTION IN THE EUROPEAN REGION

3. During the period from 1992 to 2002, the harvested area for rice in the European Union increased from 350,000 ha in 1992 to about 420,000 ha in 1996, after which it decreased slightly in 1998 and then remained unchanged at about 400,000 ha until 2002. The changes in the harvested area were pronounced between 1992 and 1997, with a significant increase in Spain and Greece. Thereafter, the rice area declined in many Western European countries, while it remained stable in Spain. The introduction of national rice base areas in 1997/98 in the EU contributed greatly to the stability of production in the EU.

4. The rice harvested area in other parts of Europe declined rapidly from about 370,000 ha in 1992 to around 250,000 ha in 1996, mainly caused by significant reductions in the Russian Federation and Romania. Since 1997 it remained stable at around 240,000 ha.

Table 1: Paddy rice harvested area, yield and production in Europe in 2002

| |Harvested Area (ha) |Yield (kg/ha) |Production (tons) |

|European Union ( 15) |

|Italy |218,676 |6,270 |1,371,100 |

|Spain |112,900 |7,225 |815,700 |

|France |18,490 |5,691 |105,227 |

|Greece |22,413 |7,526 |168,682 |

|Portugal |25,198 |5,786 |145,801 |

|Rest of Europe |

|Russian Federation |130,100 |3,713 |483,000 |

|Turkey |70,000 |5,143 |360,000 |

|Ukraine |25,000 |3,000 |75,000 |

|Hungary |2,104 |4,643 |9,768 |

|Bulgaria |4,166 |4,310 |17,955 |

|Romania |1,600 |937 |1,500 |

|TFYR of Macedonia |1,870 |4,738 |8,860 |

|Europe, total |628,351 |5,670 |3,562,593 |

Source: (FAOSTAT, 2004)

5. In 2002, the European Union produced 2.6 million tons of paddy rice and preliminary estimates indicate the same level of output for 2003. The rest of Europe produced only 0.96 million tons in 2002 and a lower output is estimated for 2003 (Table 1). The three top rice producers were Italy, Spain and the Russian Federation. Together they contributed about 75 percent of total rice production in Europe. Little changes in production were reported for the 2003 season.

6. In general, rice yields in Western Europe were much higher than in Eastern Europe. Within the EU, yields were highest in Greece and Spain while in the rest of Europe yields were highest in Turkey and TFYR of Macedonia. The average rice yield in the EU increased steadily from 6.0 tons/ha in the early 1990s to about 6.5 tons/ha in 2002. In Eastern Europe, average rice yield remained at around 3.0 tons/ha during the period from 1992 to 1999, increasing to about 3.5 tons/ha as of 2000.

2 The European Rice Market

7. The European rice market consists of long-grain indica rice and round to medium-grain japonica rice. Traditionally Europeans consumed mostly japonica rice, but consumption of indica rice has increased in recent years. Demand in Northern European countries is almost entirely for indica type grains. Consumption of indica rice has surpassed japonica rice consumption since 1999/2000.

8. Rice demand for human consumption (85 percent) has grown since 1995, while use for animal feed (7 percent) has remained stable, and industrial use (3 percent) has fallen. Overall rice consumption (industrial uses included) in the European Union reached almost 2 million tons in 2001. Between 1990 and 2002, per capita rice consumption has increased from 4.0 kg to 5.2 kg and this upward trend continues.

9. Rice produced in southern Europe is processed by the local food industry for home consumption and for export to northern Europe. In addition to imports from southern Europe, the food processing industry in the north imports indica husked rice from India, Pakistan, Thailand and the USA. Imports have increased since 1994/95 as a consequence of tariff cuts following the implementation of the Uruguay Round Agreement on Agriculture and the subsequent concession to Pakistan and India of a tariff abatement of US $ 250 per ton on husked basmati rice and the implementation of preferential regimes. Imports to the EU have remained stable over the last years at around 700 000 tons, while rice purchases by the Russian Federation are forecast to rise to 470 000 tons in 2004. From 1995 to 2000 exports fell by 11 percent. Since then, they have stagnated, and food aid operations have at least partially replaced commercial exports. However, according to data collected between 1997/98 and 1999/2000, the volume of rice traded among member countries was twice that of external trade. Italy was the main provider (about 300,000 tons of milled rice equivalent), followed by Spain (with about 150,000 tons).

10. Under the “Everything but Arms” (EBA) programme, the EU committed in February 2001 to give unrestricted and free of duty access to rice imports originating from Least Developed Countries (LDCs) as of 2009 (Table 2). Until then, the free-of-duty imports will be subject to quantitative ceilings, set at relatively small volumes. Imports from LDCs exceeding the quota will progressively benefit from tariff reductions.

Table 2: EC Rice Concessions under the EBA Preferential Access Scheme

| |2003/04 |2004/05 |

| |Length (mm) |Length/Width |Length (mm) |Width |Weight/1000 (g) |

| | |Ratio | |(mm) | |

|Long |Long A |>6.0 |>2.0 6.0 |≥3.0 | | | |

|Medium |>5.2 | ................
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