Miller Magazine Issue: 152 August 2022

95 COUNTRY PROFILE MILLER / AUGUST 2022 RICE Milled rice production in MY2022/23 is forecast at 149 mmt. MY2022/23 and MY 2021/22 rice con- sumption estimates are both 5-6 MMT higher than MY2020/21 as price advantages give rice more op- portunities for feed use. And USDA’s rice import esti- mate for MY 2022/23 is 6.0 mmt due to animal feed demand. From January to May 2022, rice imports in- creased by 30 percent to 2.9 MMT, of which 1.6 mmt was broken rice. Imports of Indian broken rice jumped by 300 percent in 2021. The country's imports of In- dian broken rice almost tripled in 2021. The first five months of 2022 also witnessed Pakistani broken rice imports increase by 125 percent over the same peri- od in 2021. BAKERY SECTOR China is the second largest market for baked goods after the United States and USDA predicts this market will reach $53 billion by 2025. China’s bakery sector is regarded for its dynamic innovation on distribution and products. Primary imported ingredients include wheat, dried fruits, nuts, dairy, and preservatives. The sector is currently evolving in two ways – central fac- tory supply and boutique bakeries. Central factories produce more standard recipes in volume for several different retailers and outlets, while boutique baker- ies produce more specialized products. Even bou- tique bakeries chains though, may often have a cen- tral headquarters and an ingredient supplier. These formats provide companies with volume purchasing power. Following the e-Commerce trend, many bak- ery chains, including boutique ones, are seeing sig- nificant growth using online platforms to sell to cus- tomers. These companies utilize the inexpensive and improved logistics infrastructure to get baked good direct to consumers. The baking industry is more established and with a higher customer base in 1st and 2nd tier cities (Bei- jing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Xiamen). Consumers, ever curious to try some- thing new, seek new recipes and novel products. Companies continue to innovate new recipes to grab these opinion leaders’ attention but are quick- ly copied by competitors. Pastries and sweet pies constitute the largest segment of bakery products and are in growing demand. Like bakeries, food processing companies also face strong competition. Many look to differentiate themselves with innova- tive products and packaging that will grab custom- ers' visual attention and taste.