The rice market has been gradually spreading as a result of the expansion of wholesale rice companies around the world. This fact cultivates investment interest in the wholesale rice field, showing the increasing need to seek a reliable wholesale rice company.
Wholesale rice company’s popular products
There are 3 main types of rice that are most exported by many wholesale rice companies: white rice, parboiled rice, and fragrant rice. Customer expenditure on them is significantly high and their quality also is highly estimated.
White rice is the most commonly supplied rice by wholesale rice companies because of its reasonable price and longer storage time (2-3 years). Below is a price comparison between white rice from different countries.
Read more: Organic rice for wholesale
Only occupying 15-18% of the global rice trade, but fragrant rice is being sold at the highest price, peaking at 1100 USD/MT (2012) by wholesale rice companies. Fragrant rice’s high value comes from its impressive aroma and texture.
Parboiled rice is more special than the others when the rice is steamed before the removal of the husk to enhance its nutrient content and texture. Wholesale rice companies provide parboiled rice at different prices.
Wholesale rice company’s overview
To be successful in trading wholesale rice, you should understand basic information about a wholesale rice company and its global distribution.
Wholesale rice indicates the rice sold in bulk, normally packed in large bags or as loose cargo. Wholesale rice company is a business providing bulk rice for other retailers, wholesalers, and importers. Wholesale rice suppliers typically deal in huge quantities and operate on a large scale.
Asia is considered the world’s largest rice basket when the area accounts for about 90% of worldwide rice production. For example, China produced 146.73 million metric tonnes of rice, followed by India with 118.87 million metric tonnes.
Asia is also the location having many wholesale rice companies, especially India, Thailand, and Vietnam because
- They have large farming areas for rice cultivation. From 2017, India has expanded its rice farming area to 2.1 million ha, increasing 21% in total. Vietnam also has more than 1.5 million ha, with crop yield reaching 68.5 quintal/ha. Therefore, wholesale rice companies often focus on these countries because they are close to the growing area reducing transportation costs.
- The government has supporting policies for wholesale rice companies. For example, the Central Bank of Thailand (BOT) adds debt restructuring measures for wholesale rice companies. In Vietnam, the government directs banks to create conditions for businesses to be mortgaged to borrow capital with the products they will purchase.
Besides, many famous wholesale rice companies are also from other countries. In 2020, 11.56 million metric tonnes of rice were produced by the United States.
Factors contributing to the development of a wholesale rice company
Not only being considered as the staple for Asians, but other countries around the world also view rice as an important food in their daily consumption. This results in a valuable opportunity for wholesale rice companies to expand their business.
- The supply chains rely on rice production
In the most recent harvesting year, about 496 million metric tonnes of milled rice were produced worldwide.
Asian countries have produced the most rice in the globe. According to the most recent official data, China was the world’s biggest paddy rice producer in 2019, with a production volume of over 209 million metric tonnes, followed by India and Indonesia.
Shortage of rice production will result in an increase in the prices of wholesale rice companies. Particularly, in 2016-2017, the price of Basmati rice increased by 50% due to lack of supply.
- The demand for rice has been increasing
Rice consumption increased to 504.3 million metric tonnes in the 2020/2021 crop year, up from 437.18 million metric tonnes in the 2008/2009 crop year.
Freight rates are higher on long-haul routes, such as the Asia-Europe and Asia-North America routes. Freight charges at these routes have increased about 4 – 8 times within 1 year. The increasing transportation costs lead to significant changes in the prices of wholesale rice companies. For instance, Vietnam’s 5% broken rice price declined to 390 USD/ton.
Read more: Newest wholesale price for rice
- Good support of the government is another important element.
The government’s assistance is the driving force behind the rice sector in general, as well as wholesale rice companies, being able to expand and develop their businesses. For example, during the Covid-19 pandemic, Vietnam seized these specific opportunities to break through, surpassing Thailand as the world’s second-largest exporter of rice (the bloc). Rice exports totaled 6.15 million tonnes and $3.07 billion dollars in 2020, down 3.5 percent in volume but up 9.3 percent in value compared to 2019).
- Covid-19 is the main reason for the decline in wholesale rice price.
Export prices of rice from India – the world’s largest rice exporter – fell for the 7th week in a row as supplies increased after the Government released stockpiles to help the poor overcome difficulties caused by the Covid pandemic. -19. Accordingly, the price of 5% broken rice decreased to 370-374 USD/ton compared to 371-376 USD/ton a week earlier.
Signs of a reputable wholesale rice company
Choosing a trustworthy wholesale rice company will significantly contribute to your business success. Hence, it is required to have a list of characteristics of a reputable wholesale rice company as following
A reputable wholesale rice supplier must have a legal business license and a clear address.
- Transparency in business licenses is a basis to recognize whether this wholesale rice is trustworthy or not. It must receive trading permission from national competent authorities.
- A clear location of the office and factories will enhance the trustworthiness of the wholesale rice company. This basic information can be found on the company website or profile.
An outstanding certificate profile of products can be a good sign of a reliable wholesale rice company.
- Rice must undergo strict quality checks of national and international standards. A trustworthy wholesale rice company needs relevant qualifications to prove its ability to meet the high requirements of the customers.
- Some widely-recognized certificates are USDA for the American market or EU for countries within the European Union. Besides, other standards such as JAS, ISO, or Global GAP are accepted in different regions.
The high rate of successful contracts can be used to identify a reputable wholesale rice company.
- The reputation of a wholesale rice company can come from the number of successful contracts in the past. If many retailers or wholesalers work with this company, it means that the products of the wholesale rice company meet the requirements of the business partners.
- If the wholesale rice company can export its products to strict markets such as America and Eu, it indicates that the supplier can produce organic goods satisfying USDA and EU regulations.
Signs of a scam wholesale rice company
Now, there are so many wholesale rice companies available. It means the rate of scams is also increasing. Therefore, you should know some hints of an unreliable wholesale rice company to avoid.
– Too low wholesale rice price: Wholesale rice prices are usually updated on rice associations in different countries. If the given price is too low, you should compare it to the current rice price in each market.
– Lack of basic information
- Not providing a legal business license authorized by national organizations
- Not having a transparent address of the office, factories, and farms
- Not having a professional website or company profile
– Urging on early payment: Scam wholesale rice companies usually request you to pay before product shipment. To avoid this case, you should negotiate the appropriate payment method before signing a contract.
Finding a wholesale rice company
Searching for information about a wholesale rice company is one of the most important steps. Here is the recommendation of channels that helps find a suitable wholesale rice company
Searching wholesale rice companies on the Internet
- You are active in finding wholesale rice companies on the Internet. You have much time to read reviewing information and compare one company to the others.
- If good wholesale rice companies are usually the top finding results on Google. It indicates that the quality of the company’s website, the user interface, and customer access is high and stable.
Disadvantages: Sometimes, online information of the wholesale rice company is not real. In addition, the amount of information is huge so that you find it difficult to filter it.
Participating in agricultural fairs
Advantages: Agricultural fairs are places where many wholesale rice companies gather to do their product marketing. By joining those fairs, you have a chance to meet and talk directly to different companies; therefore, it is time-saving.
Disadvantages: In the Covid-19 pandemic, it is impossible to hold an agricultural fair.
Through professional broker associations
Advantages: Professional broker associations are another reliable source when finding a trustworthy wholesale rice company. They are in charge of ensuring the reputation of the company. The rate of being cheated is not high.
Disadvantages: The cost of brokerage is usually high.
Through the office of the wholesale rice company
Advantages: By visiting the office, you can work with your partner in person in order to check the reputation and ability of the wholesale rice company.
Disadvantages: It is not feasible in case you are too far from the address of the wholesale rice company.
Visiting the Vietnamese Embassy in your country
Advantages: You can rely on the introduction from the Vietnamese Embassy because the wholesale rice company’s reputation and capacity are supported by this trustworthy organization. Hence, you are not afraid of being scammed.
Disadvantages: The wholesale rice company source from the Vietnamese Embassy is not diverse. Thus, the rate of you missing out on many good wholesale rice companies is high.
Working with a wholesale rice company
– Finding a reputable wholesale rice company
You should ensure the reputation, service, and product source of the wholesale rice company. Moreover, you should request rice samples to check the product quality.
– Price negotiation
First, you should clarify the final price with the partner wholesale rice company to see whether the given price is the raw price or it includes other fees such as shipping fees, packaging fees, and labor cost.
Secondly, when negotiating, you should offer a price that is 15-20% cheaper than your budget, with long-term benefits. Normally, in the wholesale rice field, it is likely that the wholesale rice company will agree with you in your given price.
– Contract signing
The contract is an important document when working with a wholesale rice company. You should be careful when checking all the terms written in the contract before signing. It should be ensured that the agreement is in the best interests of both parties and follows the common law.
The wholesale rice company will recommend a suitable payment method based on the number of products you order. However, it is good to divide the entire order value into 2 installments: before and after getting the products, rather than paying in one go. This way helps you guarantee that the condition of the final goods meets the standards you specified.
You should consider different payment methods in the country where the wholesale rice company is located. The other way is to ask for consultation from professionals.
– Receiving and checking goods and feedback to the wholesale rice company
After the items have been delivered to the location, you must thoroughly inspect the product to ensure that it fulfills the negotiated requirements and quality. If not, you need to contact the partner wholesale rice company as quickly as possible to discuss solutions more.
Reliable wholesale rice companies
The following recommendation of three reliable wholesale rice companies is useful for you when finding a stable source of wholesale rice.
K-Agriculture wholesale rice company
During 25 years of development, K-Agriculture, based in Hanoi, with factories in major rice-producing regions of Vietnam, is one of the leading wholesale rice companies in the field of rice distribution in Vietnam. Nowadays, their distribution reaches more than 80 countries over the world with a wide diversity of products.
Supported by the Vietnam Ministry of Industry and Trade, K-Agriculture long grain rice and fragrant rice brand becomes a national project to bring the best agricultural products from Vietnam to the world. Hence, the quality of products is put in the first line. This Vietnamese wholesale rice company has well-trained farmers to grow long grain and fragrant rice, facilities for the milling process, and experts to guarantee the quality of the goods.
The wholesale rice company K-Agriculture provides a diverse selection of rice choices for selling in bulk, from ST25, ST24, Jasmine, to Japonica. These products are certified by Global GAP, HACCP, and FSSC22000.
Whatsapp: +84 855555694 (Ms. Evelyn)
Herba Bangkok Sociedad Limitada wholesale rice company
Another wholesale rice company is from Thailand called Herba Bangkok Sociedad Limitada. Herba Bangkok S.L. is a global company supplying wholesale rice, with a presence in the EU, America, and Australia.
Products of this wholesale rice company receive many reputable certificates such as ISO 9001-2015, GMP, and HACCP. Herba Bangkok Sociedad Limitada emphasizes productivity, quality, and transparency.
F.Garcia wholesale rice company
F.Garcia is a notable American name in the field of wholesale rice. Located in Miami, Florida, the wholesale rice company exports bulk rice to over 20 destinations from the Caribbean to Europe, Central-South America, and Africa.
Established in 1974, F.Garcia has been growing to become a leading wholesale rice company internationally. Besides wholesale rice, this company offers a diversity of products: beans, oils, salts, etc.