import brown jasmine rice from thailand
DESCRIPTION
The presentation is from Import/Export Management class, SFSU. The slide shows the process from analyzing target market and the way how to import rice from Thailand to the United States.TRANSCRIPT
Presentation Topic
�� Product specification
�� Rice market in the United States
�� U.S. rice import statistics
�� Competitive situation in the U.S. market
�� U.S. specific regulations
�� Trade transaction
�� Recommendation
Brown Jasmine Rice
Product Specification
• fragrant, long-grain rice• unmilled or partly milled rice• a kind of whole grain• more nutritious than white rice
�� Originally from Thailand
�� The northeastern of Thailand; the best place in Thailand to grow jasmine rice.
• Second largest consumption in the Americas.
• Recommendation to consume brown rice from FDA.
Promising rice market in the U.S.
• Rice import into the U.S. has been increasing.
U.S. rice import statistics• U.S. rice imports are projected to be the highest on record in 2007/2008.
Source: World Agricultural Supply and Use Estimates, WAOB, USDA.
U.S. rice import statistics• Thailand is the leading rice import in the United States.
Source: United States Department of Agriculture. Economic Research. Rice Yearbook (89001). 2007
Metric Tons
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Thailand
India
P akistan
China
Egypt
U.S. rice import statistics• Thailand Accounts for Most of the Increase in U.S. Long-Grain Imports
Source: FAS ONLINE, Foreign Agricultural Service, U.S.Dept. of Agriculture, http://www.fas.usda.gov/ustrade.
Competitive situation in the U.S. marketDomestic & Foreign Competitors
• 9 American Brown Rice Brands
• 3 Brown Rice Brands from Thailand and India
* Coconut Tree * Sunlee * Spicy World
U.S. Specific RegulationsNo specific regulations for importing brown rice
HTS: 1006.20.40.20 : 2.1¢/kg
Trade TransactionIncoterms 2000: CFR
Supplier: Chia Meng Group
to Port of Laem ChabangTruck from supplier
Trade Transaction
Port of Laem Chabang > Singapore > Kaohsiung >
Los Angeles > Port of Oakland >
Trade Transaction
Port of Oakland to
�� WALMART
�� Asian Supermarkets
�� eBay.com
Cost CalculationTOTAL SALES $10,224.50Customer Name Unit Price/item Total
• Walmart 3,000 $2.00 $6,000.00
• Asian Supermarkets 1,950 $2.10 $4,095.00
• Ebay.com 50 $2.59 $129.50
TOTAL EXPENSES $7,752.85Cost of goods ( Brown Jasmine Rice ) 5,000 $1.00 $5,000.00
Export Packing $500.00
Thailand Inland freight $100.00
Forwarding Fees $200.00
Ocean Freight $1,500.00
Insurance $47.85
Tariff Fee 5,000 0.021 $105.00
Others (Documents, Inland Freight, etc.) $300.00
PROFITS $2,471.65
Recommendation
Recommend
5,000 units of brown jasmine rice; Profit “$2,471.65”
Recommend
15% increase of expenses; Profit “$1,308.72”
Expenses increase more than 20% and importers could not expand markets.
Not Recommend