Thailand wants rice pricing deal with Vietnam for 'bargaining power' Academic adaptation from: https://www.channelnewsasia.com/business/thailand-seeks-rice-price-pact-vietnam-boost-bargaining-power-2711736?cid=internal_mcdrecs_04072022_cna#mdcrecs_s BANGKOK: On Friday (27 May), a Thai government official said Thailand and Vietnam are in talks to raise rice export prices to gain global market leverage and boost farmer incomes. Thai and Vietnamese agriculture authorities, the world's second and third largest rice exporters, met in Bangkok on Friday to explore ways to support their farmers and rice sectors and control rising production costs. Thai government spokeswoman Thanakorn Wangboonkongchana said, "We aim to raise rice prices, increase farmer income and increase bargaining power in the global market," after talks at a farm expo. "The rice price has been low for more than 20 years while the cost of production has been increasing." Pricing increases were not immediately addressed by Vietnam's agriculture ministry. Any collusion to raise prices would hurt buyers and consumers amid rising global food prices. Thailand's agricultural exports are rising due to a weaker currency. The US Department of Agriculture reports that Vietnam and Thailand produce 10% and export 26% of rough rice worldwide. Thai export prices for 5% broken rice have averaged US$420 a tonne in 2022, 16% higher than India's US$363. The leader of Vietnam's Food Association said his organisation would meet with Thailand in June to discuss rice output but not prices. "The meeting will discuss sustainable food production cooperation," Nguyen Ngoc Nam told Reuters. "It's not reasonable to talk about raising or controlling rice prices at this time when the global food price is on the rise." He said Vietnam would export 6 million tonnes of grain this year, down from 6.24 million tonnes last year, to safeguard its food security. A weaker Indian currency and sufficient supply in major exporting countries drove rice prices to a five-year low this week. India ships 40% of global rice. On Thursday, trade and government sources said India will not limit rice exports since it has enough stockpiles and local rates are lower than state-set support prices. B.V. Krishna Rao, head of the All India Rice Exporters Association, said Thailand and Vietnam had not approached them about a rice cartel. "If Thailand and Vietnam try to jack up the prices, obviously price sensitive buyers in Africa will shift towards India," he said, adding that some purchasers will choose Thai or Vietnamese rice "but that section is small." Question: What do you think this means?Why do you think Thailand choose Vietnam? Why didn't Thailand approach India? Examine two (2) market research or macro environmental analysis tools which can beused for worldwide sourcing of rice. You can present your answer in a table form orillustrate with a model
Thailand wants rice pricing deal with Vietnam for 'bargaining power'
Academic adaptation from: https://www.channelnewsasia.com/business/thailand-seeks-rice-price-pact-vietnam-boost-bargaining-power-2711736?cid=internal_mcdrecs_04072022_cna#mdcrecs_s
BANGKOK: On Friday (27 May), a Thai government official said Thailand and Vietnam are in talks to raise rice export prices to gain global market leverage and boost farmer incomes.
Thai and Vietnamese agriculture authorities, the world's second and third largest rice exporters, met in Bangkok on Friday to explore ways to support their farmers and rice sectors and control rising production costs.
Thai government spokeswoman Thanakorn Wangboonkongchana said, "We aim to raise rice prices, increase farmer income and increase bargaining power in the global market," after talks at a farm expo.
"The rice price has been low for more than 20 years while the cost of production has been increasing."
Pricing increases were not immediately addressed by Vietnam's agriculture ministry.
Any collusion to raise prices would hurt buyers and consumers amid rising global food prices. Thailand's agricultural exports are rising due to a weaker currency.
The US Department of Agriculture reports that Vietnam and Thailand produce 10% and export 26% of rough rice worldwide.
Thai export prices for 5% broken rice have averaged US$420 a tonne in 2022, 16% higher than India's US$363.
The leader of Vietnam's Food Association said his organisation would meet with Thailand in June to discuss rice output but not prices.
"The meeting will discuss sustainable food production cooperation," Nguyen Ngoc Nam told Reuters. "It's not reasonable to talk about raising or controlling rice prices at this time when the global food price is on the rise."
He said Vietnam would export 6 million tonnes of grain this year, down from 6.24 million tonnes last year, to safeguard its food security.
A weaker Indian currency and sufficient supply in major exporting countries drove rice prices to a five-year low this week. India ships 40% of global rice.
On Thursday, trade and government sources said India will not limit rice exports since it has enough stockpiles and local rates are lower than state-set support prices.
B.V. Krishna Rao, head of the All India Rice Exporters Association, said Thailand and Vietnam had not approached them about a rice cartel.
"If Thailand and Vietnam try to jack up the prices, obviously price sensitive buyers in Africa will shift towards India," he said, adding that some purchasers will choose Thai or Vietnamese rice "but that section is small."
Question: What do you think this means?
Why do you think Thailand choose Vietnam? Why didn't Thailand approach India?
Examine two (2) market research or macro environmental analysis tools which can be
used for worldwide sourcing of rice. You can present your answer in a table form or
illustrate with a model
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