By deploying more mechanized equipment and introducing contract farming, RiceRich plans to increase production levels and expand exports to more international markets.
The Ho Chi Minh City-based company currently produces 1 million tonnes of rice per year, mainly Vietnamese white rice, Vietnamese jasmine rice, Vietnamese sticky rice, Vietnamese red rice and Vietnamese black rice.
With existing processing equipment, the company can supply 80,000 tonnes of high-quality rice per month.
“Next year, we expect production to grow by 10%, and we see an increase in demand for rice due to population growth. As Thailand and Cambodia turn to other crops, there are greater opportunities for Vietnamese rice exports,” RiceRich CEO James told The Post on Tuesday.
“We are looking at improving irrigation systems to increase production, and we will develop more contract farming next year,” he added. The company has begun working with local farmers on small-scale contract farming.
The rice produced by RiceRich is mainly sold to overseas markets, with China being the main buyer (accounting for 30% of its export orders) and another 20% of the rice shipped to Malaysia. This year, RiceRich also entered the US market.
“The high price of Thai rice in the market made us see the opportunity to export. Vietnam has more land and climate suitable for growing more rice, and RiceRich has more advanced equipment and technology. Vietnam has always been the world’s largest rice exporter.” Lay added.
In addition, domestic competition is also very fierce, with about 60 rice producers vying for the export market.
At the same time, other rice producers also face other challenges, such as unstable weather, lack of proper agricultural technology and high energy costs, which increase production costs and give RiceRich an advantage over some competitors.