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Production
Estimates and Crop Assessment Division |
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Production
Estimates and Crop Assessment Division |
April 21, 2003
Rice
is at the core of the traditional Dominican diet. As such, rice
self-sufficiency is a concept easily sold to the voters. The Government of
the Dominican Republic (GODR) has made
concerted
attempts to achieve self-sufficiency for at least 15 years, but the
rice surpluses of the last two years present a new set of problems.
Complaints are beginning to surface because citizens are being asked to
underwrite the costs of field activities, purchase any rice production beyond
national consumption, bear the costs associated with transportation and storage
of the excess rice, and perhaps to accept the sale of some of that excess to
buyers outside the country at prices far below Dominican Republic production
costs. Annual rice production in 2002/03 is estimated by USDA to be 318,000
tons, representing about 99 percent of their total annual consumption.
A PECAD analyst and personnel from the FAS office in Santo
Domingo traveled across the
Dominican Republic
in February 2003, visiting numerous rice fields throughout the country.
Rice in this area is mostly irrigated. Previously, substantial quantities
of rice were imported,
but the country is self sufficient now.
Team members observed a wide variety of fields, shown in the following photos.
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South Coast Provinces
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Central
Provinces
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Northwest Provinces
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Conditions
Conducive to Rice
The midsize to large-scale producers in the Dominican
Republic rice sector currently find few barriers to a profitable existence.
Land is available, and transportation from field to millers or the market is
acceptable. Disease is not a major problem. Producers are
encouraged to rotate crops more often, and to do so with an eye
toward restoring soil vitality. The most popular seed variety has
demonstrated a reduced moisture requirement compared to seeds previously
planted, and the price of seeds is not viewed as a significant budget item.
Curiously, people encountered during travel expressed little concern that water
might limit agricultural activities beyond the immediate future, regardless of
the size of the operation or the crop type. Although the island of
Hispaniola (which the Dominican Republic shares with Haiti) has endured several
bouts of extended dryness in recent years, rice producers have historically had
access to ample water supplies from private wells (very few), nearby rivers, or
the extensive reservoir-fed canal system. Water went
unmentioned when producers were asked to list their most expensive inputs; most
could not recall the nominal amount paid to the National Institute of Hydraulic
Resources to receive water. The mindset appears to be that
moisture conditions will revert to what the sector thinks of as normal in time for rice
to prosper.
Visit Crop Explorer to see more weather and crop information about the Dominican Republic.
Credit Imbalance for Producers
The
national government’s intervention policy is the Dominican Republic rice
sector’s shield against the influences of the international marketplace. The
National Rice Committee has in recent years successfully communicated a need for
assistance, and the response has been substantial. The Banco Agricola, an entity
intended to provide financial assistance to Dominican Republic agricultural
interests, was instructed by the Executive Branch in 2000 to provide subsidized
loans for rice production as an aid toward reaching self-sufficiency.
Under the Banco
Agricola loan program generally the wealthier operators--not the smaller
operators--qualify for low-rate loans. Legislators and other nationally elected
officials have not effectively challenged this practice. For small
operators, even commercial bank rates--they may be as high as 24-30 percent--are
better. Most producers said they avoid the Banco Agricola, even if that means not planting rice. Small
producers sometimes have access to limited credit with millers or input
suppliers, but these loans must be repaid at harvest. Consolidation within the
industry may force smaller producers out of the rice sector over time.
Additional Resources:
Post-Santo Domingo GAINS Report DR2035 dated 12/27/2002, Dominican Rice Exports
Previous Updates:
Hurricanes Shrink Rainfall Deficits But Damage Cuba and Jamaica
Hurricanes and Tropical Storms Plentiful in Gulf of Mexico and Caribbean Sea
Caribbean Looks for Additional Moisture in Later Stages of Hurricane Season
Visit Crop Explorer to see more weather and crop information.
