Wal-Mart and Costco both rationing rice to customers

Little-Acorn

Little-Acorn

New member
For those who wonder if their neighbor is crazy....... :D

But I have to wonder: If all this land is being converted from regular food grains to corn for ethanol production.....

...then why isn't there a similar shortage of wheat and wheat products (bread, pasta etc.)? Or for that matter, corn?

Why just rice?

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http://www.foxbusiness.com/markets/...ce-warns-supply-demand-concerns_575879_7.html

Wal-Mart Rations Rice, Warns of "Supply and Demand" Concerns

FOXBusiness
Wednesday, Apr. 23 2008

Wal-Mart, the world’s largest retailer, said on Wednesday that it would ration the amount of rice each customer can purchase at its Sam's Club warehouse stores because of recent “supply and demand trends.”

“We are limiting the sale of Jasmine, Basmati and Long Grain White Rices to four bags per member visit,” the company said in a statement. “This is effective immediately in all of our U.S. clubs, where quantity restrictions are allowed by law.”

Wal-Mart (WMT: 56.99, +0.44, +0.77%) is the second-major grocer to limit the purchasing of a commodity because of the recent run up in prices. The company said it is not limiting the purchase of other basic food products like flour or oil.

The price of rice, which is the primary foodstuff for the majority of the human population around the world, rose to $894 a metric ton according to the Thai Rice Exporters Association. That’s compared to the $327.25 a ton average price in the same month last year.

In Chicago, the price of export-quality rice rose to $24.745 per 100 pounds on Tuesday.

The run up in price in rice is primarily related to poor harvests and countries curbing exports. Thailand, Asia’s largest exporter of rice, said it may curb exports.

The World Food Program called the recent run up in prices of rice and other basic commodities a “silent famine.”

Wal-Mart did not say when the rationing would end, but it was “working with our suppliers to address this matter to ensure we are in stock, and we are asking for our members' cooperation and patience.”

Costco (COST: 69.57, +1.49, +2.18%), the nation's largest warehouse retailer, said yesterday that it had seen increased demand for basic food staples as well like rice and flour. The company had a two 50-lb limit on rice purchases as well to keep people from hoarding and reselling the rice.

FOX Business's Jordan Mandelberg said a San Francisco-based Costco has basically sold completely out of its supply of rice. Only one pallet of white rice was left by the late morning in California.
 
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I only eat brown rice. White rice will kill you anyway. Eat brown rice and organic broccoli for dinner and you'll stop feeling like shit all the time, which will probably cause you to stop voting republican.
 
Darla said:
I only eat brown rice. White rice will kill you anyway.
Click to expand...

Right. Look at how the population is falling in all those countries (China, Japan, Phillipines, Vietnam, Thailand etc.) where people eat lots of white rice every day.

(not...)

OTOH, if whacked-out leftist extremist persons such as yourself keep eating so-called "organic" foods that have never been treated with insecticides or fertilizers, and so are scrawny and bug-riddled, maybe they will all die off while Republicans who eat healthy, disease-free foods continue to have big families and support them well, and the country moves closer and closer to an all-Republican electorate!

:D :D :D

Darwin in action! Only the fittest (and most sensible) survive!

:)
 
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Darla said:
I only eat brown rice. White rice will kill you anyway. Eat brown rice and organic broccoli for dinner and you'll stop feeling like shit all the time, which will probably cause you to stop voting republican.
Click to expand...

I eat brocoli every day along with asspergas which helps bless me with the gun show called my two bi-ceps. I also vote exceptionally well thank you.
 
Acorn, the main reason it is rice and not other grains is because rice is consumed in large quantities by Asians. As the economies in Asia boomed, the people began to consume more rice per day. When you have half the worlds population increasing consumption of a particular good without a corresponding increase in production... you end up with the shortage.
 
Darla said:
I only eat brown rice. White rice will kill you anyway. Eat brown rice and organic broccoli for dinner and you'll stop feeling like shit all the time, which will probably cause you to stop voting republican.
Click to expand...

Good Idea I can buy Brown rice and not feel guilty.
 
Superfreak said:
Acorn, the main reason it is rice and not other grains is because rice is consumed in large quantities by Asians. As the economies in Asia boomed, the people began to consume more rice per day. When you have half the worlds population increasing consumption of a particular good without a corresponding increase in production... you end up with the shortage.
Click to expand...

That makes more sense, frankly. The article did mention someone's opinion that the "shortage" was caused by Asian countries reducing the exports of rice, something one could expect from increasing demand in those countries as a result of prosperity... IF they didn't increase their acerage of rice farming. Japan is very land-poor. Are other countries?

Also by poor harvests.
 
so, walmart is allowed to ration by law so the article says....
“We are limiting the sale of Jasmine, Basmati and Long Grain White Rices to four bags per member visit,” the company said in a statement. “This is effective immediately in all of our U.S. clubs, where quantity restrictions are allowed by law.”
Click to expand...

What law?

I didn't even know there were any laws on rationing?
 
Little-Acorn said:
That makes more sense, frankly. The article did mention someone's opinion that the "shortage" was caused by Asian countries reducing the exports of rice, something one could expect from increasing demand in those countries as a result of prosperity... IF they didn't increase their acerage of rice farming. Japan is very land-poor. Are other countries?

Also by poor harvests.
Click to expand...

As for the other countries, I do not know their current ability to use more land for rice production. I do know they have been producing more corn (especially in China) but that has been predominantly used for ethanol production.
 
Superfreak said:
Acorn, the main reason it is rice and not other grains is because rice is consumed in large quantities by Asians. As the economies in Asia boomed, the people began to consume more rice per day. When you have half the worlds population increasing consumption of a particular good without a corresponding increase in production... you end up with the shortage.
Click to expand...

Super,

But HOW did this happen in JUST ONE year?

prices went from $300 a ton to $800 a ton in just one year....? The chinese eating more and prospering has been going on for nearly two decades, they did not double their population in one year to make rice more than double its price in one year????


Are the people in China hording rice and we don't know it? Or is some other country?
 
Care4all said:
Super,

But HOW did this happen in JUST ONE year?

prices went from $300 a ton to $800 a ton in just one year....? The chinese eating more and prospering has been going on for nearly two decades, they did not double their population in one year to make rice more than double its price in one year????


Are the people in China hording rice and we don't know it? Or is some other country?
Click to expand...

1) no, this is not all about increased consumption. They have also had a bad year of production. The combo sent prices up.

2) China became a net importer of rice for the first time this past year. Given they were one of the largest exporters for decades, this certainly led to some panic buying by other countries (which can be translated to hoarding). Thailand for example increased their imports by almost three times. Not all of that was increased consumption for the year.

3) I do not believe the Chinese are hoarding. The demand for so many commodities has increased dramatically year-over-year. As they have urbanized, they have increased consumption. Vast amount of wealth have been transferred into the hands of a country with a sixth of the worlds population.

4) Side note on the consumption.... if you have population steady, but that population increases their consumption from 80 pounds per person per year to 125 pounds per person... that accounts for a huge shift in demand. Those numbers I just heard for China today.
 
Care4all said:
Are the people in China hording rice and we don't know it? Or is some other country?
Click to expand...

India put an abrupt ban on importing jasmine and most other types of rice, last October. India is (or was) the third-largest rice exporter (Thailand and Vietnam were 1 and 2).

They lifted that ban in March 2008, but then put it back on in early April, this time with duties that cover ALL types of rice exports.

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http://news.bbc.co.uk/2/hi/south_asia/7323713.stm

Page last updated at 00:20 GMT, Tuesday, 1 April 2008 01:20 UK

India introduces rice export ban

Traders say rice prices rose by 10% last year

The Indian government has banned the export of non-basmati rice to try and control soaring domestic food costs. The decision, one of a series of measures to curb inflation, was taken during an emergency cabinet meeting.

The price for exports of aromatic basmati rice has also been raised to $1,200 per tonne to discourage exports. The move could have an impact on rice prices globally as the country is the third largest exporter of the grain - a staple food in many countries.

The move is the latest in a series of increases in the export price of non-basmati rice. The price of such rice was increased from $650 to $1,000 per tonne in the month of March alone.

Global problem

The government imposed a total ban on non-basmati rice exports last October but lifted it following protests from exporters.

India is the second-largest rice producer in the world. It usually exports more than four million tonnes of rice a year.

The government also announced that it would be scrapping import duty on all crude edible oils as part of its inflation-curbing measures.

India ended its reliance on food imports in the 1970s, largely to the government's so-called Green Revolution. But two years ago, it imported wheat for the first time in six years following a significant drop in its stockpiles. The government wants to avoid a similar situation for its rice stocks.

In mid-March, in an attempt to bolster its stocks, India abolished import duties on rice.

The problem is an international one, as global rice stocks have reached a 25-year low.
 
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