The increasing import of packaged rice from Asian countries is a significant challenge for the EU rice sector. To understand this threat better, Platts interviewed Pietro Milani, the Director of the Association of Italian Rice Industries. He shared insights on the current market conditions and the implications for the industry.
Rice prices in Europe have risen due to unfavorable weather in the previous season, which adversely affected the harvests. In Italy, the prices of Indica and Arborio white rice jumped by 5% and 42% year over year, with current assessments indicating Indica at Eur845/mt and Arborio at Eur1,699/mt as of mid-March. Italy stands as the largest rice exporter within the EU, sending 109,000 metric tons to non-EU countries in the 2023-24 season.
The primary markets include the UK, Switzerland, and the US, with Italy exporting various types of rice, notably risotto and round grain rice. Despite the high prices, demand for Italian rice has seen a decline as other countries start sourcing rice from alternative non-European markets, particularly for aromatic varieties. However, demand for Italy’s high-quality risotto rice remains consistent.
The importation of packaged rice poses a serious threat, accounting for 30% of all EU rice imports, which could displace local consumption. In the 2023-24 season, approximately 470,000 metric tons of packaged rice were imported, which is equivalent to nearly the total consumption of an entire EU country. Addressing the self-sufficiency of European rice production, Milani noted that while there are no significant supply challenges, EU rice production met only 48% of its demand last season.
He emphasized the importance of promoting local cultivation to enhance self-sufficiency in the sector. Price volatility in Italy is influenced by factors such as quality concerns, forecasts based on climatic conditions, and geopolitical events, indicating a need for continued market monitoring and support for domestic rice producers.