THE outbreak of Ebola Virus Disease, EVB, in some countries in Africa is beginning to have an impact on the shipment of rice and other agricultural products from far away as Asia, with Thailand’s rice industry being the first to experience a serious impact.
Africa is a major market for Thailand’s rice, but the industry is finding it difficult to meet demand.
Exporters in Bangkok say Africa consumes nine million tons of rice annually and two-thirds of it is imported. But they are currently unable to ship much of their crop to West African ports.
Africa is a major market for Thailand’s rice, but the industry is finding it difficult to meet demand.
Exporters in Bangkok say Africa consumes nine million tons of rice annually and two-thirds of it is imported. But they are currently unable to ship much of their crop to West African ports.
However, seafarers are running away from West Africa on account of the disease. Confirming this, honorary president of the Thai Rice Exporters Association; Vichai Sriprasert said dry bulk vessels cannot find crews to man their ships because of fears of possibly contracting the deadly Ebola virus,
“Merchants in West Africa are trying to build up stocks to meet the requirements during Christmas sales. They have to buy now in order to have enough stock. But if we cannot find enough vessels to go there this would jeopardize the whole trade situation,” said Vichai.
So far this year, Thailand, has shipped more than 3.3 million tons of rice to Africa-a pace far ahead of last year’s total shipments of 3.75 million tons. The top destinations, in terms of volume, are Benin, Côte d’Ivoire, South Africa, Cameroon, Mozambique and Nigeria, in that order.
Not being able to ship rice quickly during this peak season is creating a bottleneck, with Thai exporters’ warehouses already filled. Vichai said that is creating a chain reaction in the rice industry all the way back to the farmers.
“We cannot release the rice out of the warehouse and also cannot buy rice from the millers. And the millers’ warehouses are also filled up. If they cannot sell to exporters they also cannot buy from the farmers. The price of rice from the farmer also has to drop because not too many people can afford to buy. There’s no place to keep the stock,” explained Vichai.
Asia’s rice could become even more in demand in weeks and months ahead, with the Ebola outbreak expected to become worse before it improves.
The U.N’s Food and Agriculture Organization warns food in countries affected by the deadly virus has become more expensive. The FAO says some African farmers cannot reach their fields and food imported by ship and air is now unlikely to arrive as often.
