Recently I had the opportunity to travel to Tokyo as part of the USA Rice Federation's Asia Technical Working Group. The team is made up of growers, millers, and marketers of California Rice. We work on both technical aspects and trade policy aspects of the trade with our current WTO partners in Asia -- Japan, South Korea, and Taiwan.
One of the most important and long-standing traditions of the group is the Annual Japan-US Rice Technical Meeting. It takes place between the U.S. team and Japan's Ministry of Agriculture Forestry and Fisheries (MAFF). MAFF is the Japanese government entity that conducts all of the imports of rice into Japan from all origins, both through Minimum Access and Simultaneous Buy/Sell tenders. MAFF controls the amount and types of rice that reaches the Japanese market as whole kernel (or table rice), as well as the amount that simply goes into the market for processing and/or for feed. In addition to MAFF employees, the Japanese delegation also had representatives from the Japan Grain Importers Association (JGIA), the Wholesalers Association, and two Japanese rice millers.
This meeting was the 16th Annual between our two groups. Over that time period many positive things have been accomplished by accommodating concerns and addressing issues from both sides. Some of the most important for the California Rice Industry have been discontinuing the importation of 100 percent broken rice through the MA tenders, thus allowing more paddy to be consumed in order to meet Japan's minimum import requirements and increasing the voluming and validity length of Pre-shipment Sample Testing for the SBS tenders allowing California premium short grain to compete on a more level playing field with Chinese short grain rice. From the 2012 crop, these items, and others, were responsible for allowing more than 322,000 metric tons of California rice to be exported to Japan -- about 25 percent of the state's production! Additionally, Japan imported more than 17,000 metric tons of California's main crop (Calrose) through the SBS tender system that allows it to be marketed as table rice in Japan. Previously, the most Calrose imported through SBS in a crop year was 1,048 metric tons.
As relationships have grown, the Technical Meeting has taken on a much more positive tone over the last few years. This year was no exception. The importers, wholesalers, and millers all said that they are impressed with the ever-increasing quality of California Rice. This is a testament to our entire industry as the Japanese are some of the most difficult customers to please in the world. As our quality continues to improve, we will continue to move larger quantities of rice through the SBS system, and into the Japanese table rice market. This is very positive for our industry, because that rice is far more valuable and provides much better producer returns than the highly competitive MA tendering process.
There continues to be challenges as well, however. The team was informed that soon MAFF would begin new testing on imported rice for micro toxins and heavy metals. While we are not concerned about California Rice "passing" these tests, anytime new testing is introduced there are always increased costs and the possibility of false positives. We must work together with MAFF to develop a cost effective and scientifically based methodology for these new tests.
Over the past decade and a half, the USA Rice Federation's Asia Technical Working Group has made great strides in improving the quality and value of the Japanese market to the California Rice Industry. I believe this will continue as we move forward in our relationship with California's largest and most important customer.
Chris CrutchfieldPresident and CEO -- American Commodity Company
Chris Crutchfield is very proud to represent the third generation of his family to be involved in the rice industry. Currently Chris is involved in all aspects of California rice from production all the way to the grocery store shelf.
Shortly after graduating from the University of Missouri in 1996, Chris moved back to California and joined with his father Paul Crutchfield in the formation of a rough rice pool for direct marketing to Turkey. Chris was responsible for the day-to-day management of the pool. That partnership developed into the formation of American Commodity Company (ACC) in 2000, and Chris assumed all direct management responsibilities for ACC.
Prior to establishing himself in the California rice industry, Chris worked in the press offices of Governor Pete Wilson as his Assistant Press Secretary. He also briefly taught secondary education in the California public school system.
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