Thailand's rice industry, which accounts for about a quarter of the world's global trade of rice, is facing a climate crisis due to frequent extreme weather events. The intensity and inconsistency of rain in 2021 has compromised the production of Thailand's most important crop, causing market turbulence, food security concerns, and leaving millions of Thai households facing economic difficulties. The industry is highly vulnerable to climate change, with Thailand ranking ninth in the world on the Global Climate Risk Index. Timing is crucial in rice growing, but the current climate conditions are making it futile. Climate change is expected to exacerbate inequalities, with rice production potentially increasing in irrigated areas while being stunted in rainfed regions. By mid-century, Thailand could expect a more than 10% decline in its overall rice yield, affecting regional food stability. Thailand, the world's third-biggest rice exporter, has struggled to regain its position as the world's top exporter since 2012. The country's rice production has been impacted by droughts and unpredictable rains, making it highly vulnerable to climate change. The country's agriculture sector is particularly vulnerable to temperature rises, and the country has experienced severe water shortages and dry spells in recent years. The lower yields in the global market mean higher selling prices and diminished competitiveness. The appreciation of the baht currency and costly freight charges during the pandemic have also diminished the appeal of Thai rice among buyers. In 2019, Thai rice exports plummeted by 32%, and in 2020, only 5.7 million tonnes were shipped overseas. Thailand exports different types of rice, including white, fragrant, and parboiled rice. The country's jasmine fragrant rice, Hom Mali 105, won the World's Best Rice Award in Dubai last year. However, it has a low yield and only grows once a year. Thailand is trying to find soft-textured white rice varieties to compete with other countries and boost the export sector. Over the past decade, Thailand has lost much of its market share in the rice trade to Vietnam, which has developed aromatic varieties for sale at a cheaper price. Businesses that used to buy fragrant rice from Thailand are now buying it from Vietnam due to its cheaper and more attractive quality. Thailand's rice industry faces challenges due to a lack of research, genetic development, and varietal improvement, as well as red tape in the seed registration process. It takes at least three years for one type of rice to be developed and approved by the government for commercialization. Frequent changes in government and limited support from policymakers for rice species development have adversely affected Thai rice's performance at the world stage. The Thai government is working with the private sector and TREA to ameliorate the weaknesses of the rice industry and reposition Thai rice in global trade. The country has set an export target of 7 million tonnes of rice this year, which should bring it back to the world's second top position after India. The government is working with the private sector and TREA to ameliorate the weaknesses of the rice industry and reposition Thai rice in the global trade. By 2024, Thailand aims to develop at least 12 rice varieties for the world market, including jasmine fragrant rice, soft-textured rice, hard-textured rice, and high nutrition rice. Ruam Jai Pattana Kwamroo, a company conducting research and development to improve rice varieties, works with farmers, millers, and TREA to produce high-quality rice species with high yields and short harvesting ages. Climate change could potentially impact rice supply from Thailand, one of the three to four major suppliers of rice to Singapore. However, it is unlikely that other countries will be able to make up for any shortfall due to climate change. The most popular rice from Thailand, fragrant rice, is also grown in Cambodia. Singapore's small importer status makes it unlikely that all rice-exporting countries will reduce their supplies to Singapore. Rice is a "thin margin" commodity, meaning only 7 to 10 per cent of global production is available for trade. Vietnam's Mekong Delta, "the rice bowl of Southeast Asia," could be more concerned as climate change and sea level rises could inundate rice fields, reducing the area of land for rice production. Singapore can support research to produce "climate-smart varieties" and work with countries with untapped potential to increase production and export more, such as Myanmar. Singapore can also work with rice exporting countries like Vietnam and Thailand to increase their export stockpiles. Question -Show how rice would be positioned in the Portfolio Analysis (or Kraljic Matrix) forSingapore’s food supply. Support your answer with reasons
Thailand's rice industry, which accounts for about a quarter of the world's global trade of rice, is facing a climate crisis due to frequent extreme weather events. The intensity and inconsistency of rain in 2021 has compromised the production of Thailand's most important crop, causing market turbulence, food security concerns, and leaving millions of Thai households facing economic difficulties. The industry is highly vulnerable to climate change, with Thailand ranking ninth in the world on the Global Climate Risk Index. Timing is crucial in rice growing, but the current climate conditions are making it futile. Climate change is expected to exacerbate inequalities, with rice production potentially increasing in irrigated areas while being stunted in rainfed regions. By mid-century, Thailand could expect a more than 10% decline in its overall rice yield, affecting regional food stability.
Thailand, the world's third-biggest rice exporter, has struggled to regain its position as the world's top exporter since 2012. The country's rice production has been impacted by droughts and unpredictable rains, making it highly vulnerable to climate change. The country's agriculture sector is particularly vulnerable to temperature rises, and the country has experienced severe water shortages and dry spells in recent years.
The lower yields in the global market mean higher selling prices and diminished competitiveness. The appreciation of the baht currency and costly freight charges during the pandemic have also diminished the appeal of Thai rice among buyers. In 2019, Thai rice exports plummeted by 32%, and in 2020, only 5.7 million tonnes were shipped overseas.
Thailand exports different types of rice, including white, fragrant, and parboiled rice. The country's jasmine fragrant rice, Hom Mali 105, won the World's Best Rice Award in Dubai last year. However, it has a low yield and only grows once a year. Thailand is trying to find soft-textured white rice varieties to compete with other countries and boost the export sector.
Over the past decade, Thailand has lost much of its market share in the rice trade to Vietnam, which has developed aromatic varieties for sale at a cheaper price. Businesses that used to buy fragrant rice from Thailand are now buying it from Vietnam due to its cheaper and more attractive quality.
Thailand's rice industry faces challenges due to a lack of research, genetic development, and varietal improvement, as well as red tape in the seed registration process. It takes at least three years for one type of rice to be developed and approved by the government for commercialization. Frequent changes in government and limited support from policymakers for rice species development have adversely affected Thai rice's performance at the world stage. The Thai government is working with the private sector and TREA to ameliorate the weaknesses of the rice industry and reposition Thai rice in global trade.
The country has set an export target of 7 million tonnes of rice this year, which should bring it back to the world's second top position after India. The government is working with the private sector and TREA to ameliorate the weaknesses of the rice industry and reposition Thai rice in the global trade.
By 2024, Thailand aims to develop at least 12 rice varieties for the world market, including jasmine fragrant rice, soft-textured rice, hard-textured rice, and high nutrition rice. Ruam Jai Pattana Kwamroo, a company conducting research and development to improve rice varieties, works with farmers, millers, and TREA to produce high-quality rice species with high yields and short harvesting ages.
Climate change could potentially impact rice supply from Thailand, one of the three to four major suppliers of rice to Singapore. However, it is unlikely that other countries will be able to make up for any shortfall due to climate change. The most popular rice from Thailand, fragrant rice, is also grown in Cambodia. Singapore's small importer status makes it unlikely that all rice-exporting countries will reduce their supplies to Singapore. Rice is a "thin margin" commodity, meaning only 7 to 10 per cent of global production is available for trade. Vietnam's Mekong Delta, "the rice bowl of Southeast Asia," could be more concerned as climate change and sea level rises could inundate rice fields, reducing the area of land for rice production. Singapore can support research to produce "climate-smart varieties" and work with countries with untapped potential to increase production and export more, such as Myanmar. Singapore can also work with rice exporting countries like Vietnam and Thailand to increase their export stockpiles.
Question
-Show how rice would be positioned in the Portfolio Analysis (or Kraljic Matrix) for
Singapore’s food supply. Support your answer with reasons
Step by step
Solved in 2 steps
