Action points of the ASEAN Rice Trade Forum

• Toincreasepublicawarenessofthericemarketsituationandoutlook

• Todiscusskeypolicyissuesaffectingricetradeandfoodsecurityintheregion

• Toidentifyimmediateandlong-termpolicymeasurestoattainfoodsecurity

JapanFund forPovertyReduction

ASEAN Rice Trade

Forum Strengtheningcooperationonregionalricetradeissues

Convened by theASEAN Food Security

Reserve Board (AFSRB)

19–20 June 2012Siem Reap, Cambodia

ASSOCIATION OF SOUTHEAST ASIAN NATIONS

The ASEAN Food Security Reserve Board

The ASEAN Food Security Reserve Board (AFSRB) is the convenor of the ASEAN Rice Trade Forum, in coordination with the ASEAN Secretariat and the Asian Development Bank.

The AFSRB was created in 1979 to coordinate the ASEAN Food Security Reserve, including rice earmarked for the ASEAN Emergency Rice Reserve (AERR), to address food instability and promote food security cooperation in the region. In 2011, the AERR was embedded in the ASEAN Plus Three Emergency Rice Reserve (APTERR), which is governed by the APTERR Council.

The AFSRB continues its coordinating functions, which include exchange of information on food, evaluation of the food situation and prospects in ASEAN, and making relevant policy options and corresponding recommendations.

The AFSRB is composed of a representative from the agriculture, commerce or trade agency of each of the 10 ASEAN Member States. The AFSRB is supported by a Secretariat hosted by Thailand’s Ministry of Commerce.

The AFSRB seeks to be responsive to emerging challenges to food security in a new and more volatile world. It is examining its mandate toward facilitation of rice trade, given the high importance assigned to enhanced and sustainable food trade in the ASEAN Strategic Plan of Action for Food Security.

Consistent with this plan of action, the ASEAN Rice Trade Forum may ultimately lead to better coordination of food policies by all the Member States, through timely exchange of accurate information and analysis of the rice market.

For more information, contact:

The SecretariatASEAN Food Security Reserve BoardMinistry of Commerce 44/100 Nonthaburi 1 RoadNonthaburi 11000, ThailandTelephone Nos. (662) 547-5136 Fax Nos. (662) 547-4821 (662) 547-4834 Email: grn_info@moc.go.th

Supported by the Asian Development Bank, with financing from the Japan Fund for Poverty Reduction

The challenge: Rice for all

Despite the onrush of fast-foods and urbanisation, a bowl of rice still defines much of the way of life across Southeast Asia. The tiny grain remains not only the staple food but also the primary crop that has shaped the economies, cultures and politics of the region.

Yet, food security remains a critical challenge in a region that generates 25% of world rice production but where 85 million people are malnourished.

A key problem is sustainable rice trade— or rather, the lack of it.

The Association of Southeast Asian Nations (ASEAN) includes the world's biggest rice producers and exporters, and importers as well. The region’s rice export supply is nearly half of world levels, but rice trade is low within the ASEAN.

ASEAN net rice importers

• Brunei Darussalam • Indonesia • Lao PDR • Malaysia • Philippines• Singapore

ASEAN net rice exporters

• Cambodia• Myanmar• Thailand • Viet Nam

Importance of rice trade

Rice trade has the potential to keep rice price movements within the expected range of the region’s population. But trade in rice in proportion to global output has been the lowest of the top three cereals.

In 2008, rice export to output ratio was estimated at only 6.15%, compared to maize, 12.35%, and wheat, 19.20%. This thin trade makes the rice market susceptible to extreme price fluctuations, such as the rice price crisis in 2007–2008.

Sustained development of rice trade, as enunciated by the ASEAN Ministers on Agriculture and Forestry (AMAF), is a key part of the strategy to address rice crisis situations and manage the risks of extreme rice price volatility.

Mandate for action

In line with this strategy, in October 2011 during its 33rd Meeting in Jakarta, AMAF endorsed the August 2011 decision of its 32nd Special Senior Officials Meeting to pilot the ASEAN Rice Trade Forum.

The ASEAN Food Security Reserve Board (AFSRB) and the ASEAN Secretariat were directed to coordinate the pilot implementation of the ASEAN Rice Trade Forum with the Asian Development Bank (ADB).

The ASEAN Rice Trade Forum seeks to serve as a platform for promoting coherent and coordinated policy actions on rice trade to advance the goal of food security in the ASEAN region.

The Forum brings together representatives of the ASEAN Member States and various stakeholder groups to collectively• share, analyse and disseminate rice market

information; • identify areas of cooperation and policy

coordination to mitigate or avoid extreme rice price volatility; and

• determine long-term and strategic policy reforms for the sustained development of regional rice trade.

Piloting a platform of cooperation

On 19–20 June 2012, the ASEAN Rice Trade Forum gathers in Siem Reap, ancient gateway to Cambodia’s world-heritage site of Angkor temples.

• THEME: Managing the risks of extreme rice price volatility caused by policy shocks and supply distortions through coherent and coordinated policy actions.

• AIMS: To discuss and test the business processes and arrangements with respect to organising a rice trade forum.

• These PROCESSES include evidence-based policy analysis using tried and tested tools, presenting the findings to improve the analysis and recommendations, filtering the recommendations, and forwarding the recommendations to the Special Senior Officials Meeting of AMAF.

What is the ASEAN Rice Trade Forum?