Presentation Topic

�� Product specification

�� Rice market in the United States

�� U.S. rice import statistics

�� Competitive situation in the U.S. market

�� U.S. specific regulations

�� Trade transaction

�� Recommendation

Brown Jasmine Rice

Product Specification

• fragrant, long-grain rice• unmilled or partly milled rice• a kind of whole grain• more nutritious than white rice

�� Originally from Thailand

�� The northeastern of Thailand; the best place in Thailand to grow jasmine rice.

• Second largest consumption in the Americas.

• Recommendation to consume brown rice from FDA.

Promising rice market in the U.S.

• Rice import into the U.S. has been increasing.

U.S. rice import statistics• U.S. rice imports are projected to be the highest on record in 2007/2008.

Source: World Agricultural Supply and Use Estimates, WAOB, USDA.

U.S. rice import statistics• Thailand is the leading rice import in the United States.

Source: United States Department of Agriculture. Economic Research. Rice Yearbook (89001). 2007

Metric Tons

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Thailand

India

P akistan

China

Egypt

U.S. rice import statistics• Thailand Accounts for Most of the Increase in U.S. Long-Grain Imports

Source: FAS ONLINE, Foreign Agricultural Service, U.S.Dept. of Agriculture, http://www.fas.usda.gov/ustrade.

Competitive situation in the U.S. marketDomestic & Foreign Competitors

• 9 American Brown Rice Brands

• 3 Brown Rice Brands from Thailand and India

* Coconut Tree * Sunlee * Spicy World

U.S. Specific RegulationsNo specific regulations for importing brown rice

HTS: 1006.20.40.20 : 2.1¢/kg

Trade TransactionIncoterms 2000: CFR

Supplier: Chia Meng Group

to Port of Laem ChabangTruck from supplier

Trade Transaction

Port of Laem Chabang > Singapore > Kaohsiung >

Los Angeles > Port of Oakland >

Trade Transaction

Port of Oakland to

�� WALMART

�� Asian Supermarkets

�� eBay.com

Cost CalculationTOTAL SALES $10,224.50Customer Name Unit Price/item Total

• Walmart 3,000 $2.00 $6,000.00

• Asian Supermarkets 1,950 $2.10 $4,095.00

• Ebay.com 50 $2.59 $129.50

TOTAL EXPENSES $7,752.85Cost of goods ( Brown Jasmine Rice ) 5,000 $1.00 $5,000.00

Export Packing     $500.00

Thailand Inland freight     $100.00

Forwarding Fees     $200.00

Ocean Freight     $1,500.00

Insurance     $47.85

Tariff Fee 5,000 0.021 $105.00

Others (Documents, Inland Freight, etc.)     $300.00

PROFITS $2,471.65

Recommendation

Recommend

5,000 units of brown jasmine rice; Profit “$2,471.65”

Recommend

15% increase of expenses; Profit “$1,308.72”

Expenses increase more than 20% and importers could not expand markets.

Not Recommend