Thai jasmine-rice exports will face serious competition in the global market after rapid development of the similar-quality "Jazzman rice II" strain in the United States.

Thai rice exports to the US and elsewhere could drop dramatically in the next few years once farmers in Louisiana and other states grow more Jazzman II, the Thai Trade Centre in Chicago reported.

After successfully producing a new variety of aromatic rice, known as LA2125 or Jazzman, since 2009, Louisiana State University's Agricultural Centre (LSU AgCenter) has recently developed a second strain for export in the near future.

Jazzman II has a very similar fragrance to Thai jasmine rice, as well as a similar long and soft grain and quality. It is also less sticky than Jazzman I, whose texture is very close to the Thai product, said the report.

So far, Jazzman rice has been sold in about 700 supermarkets and other retail outlets in the US. Many consumers have started to become familiar with the grain because of its similar aroma to Thai fragrant rice. It is also cheaper than the Thai rice.

Thai jasmine-rice exports to the US fell by about 81 per cent to 78,000 tonnes in the first nine months of this year. Exports to the US market totalled 703,000 tonnes last year.

Jazzman II is expected to be traded in the market next September, with LSU AgCenter distributing the grains to farmers soon.

Jazzman II will seriously harm Thai jasmine-rice export competitiveness, since it has a higher yield of up to 1.26 tonnes per rai (7.9 tonnes per hectare), while the retail price is US$1-$2 (Bt31-Bt62) lower per 25-pound (11-kilogram) bag.

To ensure the export competitiveness of the Thai product, the Thai Trade Centre has urged exporters to launch active trade promotion and marketing plans to maintain the US consumer base, and to penetrate the market among new groups of consumers such as Asians, Africans and West Indians who live in the US.

It also suggested that exporters continue promoting Thai jasmine rice in other markets, mainly in Hong Kong and Singapore, which are major export destinations for the product.

Many US states grow Jazzman rice, including Arkansas, Mississippi and Texas.

The US authorities reported that 900 tonnes of Jazzman rice I was cultivated on 100 rai in 2009, but the plantation area has increased sharply this year, with an estimated production of 41,000 tonnes.

Jazzman Rice, a company based in New Orleans, has already packed the product for export to 25 shops in Hong Kong.

Source: The Nation