Reply to "Rice exports bags US$10M more in bumper first crop"

caribny posted:
Reeper posted:
 

Whether they make a profit is still unknown, I supposed you can make the argument they would not invest if they didn't make a profit. Time will tell whether they will continue to plant at these prices. 

No one expands production if they are losing.  This would mean that they would spend more to grow more, but also lose more because of an unsustainable price.

It appears as if their yields have improved  and in addition they claim that they are being paid faster.  Having to fund their receivables when the PPP was playing games with paying them drove up their costs.

Good point, not sure that yields have improved as there is no mention of bags per acre yield. However if Guyanese farmers are to compete with word market prices, they have no choice but to employ economies of scale and the latest technologies to cut down inefficiencies. 

“What we have seen in the first crop; generally, there have been improved productivity issues. Pests and disease were managed; farmers were being paid faster than previous crops; prices paid were improved from previous crops to $3000 per bag of paddy.”

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