The
Commodity Chain; Where does Alesie White Rice Come from and how does it reach
our supermarket shelf?
A commodity chain is defined as ‘a network of labor and
production processes whose end result is a finished commodity’ (Hopkins and
Wallerstein 1986). In effect a commodity chain is the process of gathering, and
transforming raw materials into goods to be finally distributed to consumers.
With increasing inter connectivity and trade between nations, the need for
commodity chain analyses is becoming increasingly important.
The Alesie Group of Companies consists of a network of
rice mills throughout the Caribbean, one of which is based in Guyana. The Tropical island of Guyana is the third
largest rice exporting country in South America. Most rice farms in Guyana are
owned and operated by local farmers. Rice production in Guyana is highly mechanized, however some farmers still use traditional methods. Large wheeled
tractors are used for land preparation, which includes ploughing, harrowing and
puddling. The crop is direct seeded using pre-germinated seeds sown onto
flooded fields (UNEP 2001). In a report dated October 2013, Dr. Leslie
Ramsammy, the Minister of Agriculture indicated that rice harvest would exceed
500,000 tonnes.
The Alesie group of companies produces (but does not
grow) five different varieties of rice, including; White, Parboiled, Basmati,
Hom Mali and Five Minute. The Guyana grown white rice, of which I am
interested, produces a larger grain than in any other region. The following
paragraphs accompanied by my sketch map on the right follow the process by which
Alesie White Rice moves from the farm in Guyana to our local supermarket shelf.
The rice harvested from
the field is called a ‘paddy’, which means rice still covered by an outer
shell. Farmers from several parts of Guyana cut their paddy, which is then
loaded onto large trailer trucks that take the paddy to Alesie rice mills. Alesie
does not ‘contract’ rice production to farmers; however, their mobile
laboratory helps the local farmers produce the best quality rice in the market,
which Alesie then purchases. Alesie owns and operates three rice mills, of
which Rumzick Rice Processors (RRP) is the largest, located in Demerara road,
Guyana. Once the trucks arrive at RRP, a sample of the rice is taken to test
its quality. If the received grains satisfy the requirements, it is weighed and
dumped into tunnels in the ground. These tunnels channel the rice paddies onto
conveyer belts that transport the rice into the Silo (a silo can hold up to 100
tonnes of rice paddy).
From the Silo the rice is then processed through a Sortex
machine, which processes 1000 grains every 5 seconds. The Sortex firstly removes
any grains or objects that are not rice paddies. It then sorts the paddies
based on colour and surfaces that differ from the main product. From the Sortex the rice moves onto a
dampening machine which prepares the rice paddies to be grinded in the stone
grinders. Stage one in the stone grinder removes the outer shell (paddy) from
the rice itself. The removed shell is separated from the rice as it moves to
the second stage. Stage two involves another stone grinder which polishes the
rice. From here the rice is placed into storage units, then into either 100lb
or 500lb (lb = pound) bags to be shipped.
Trinidad Commodities limited orders rice from Alesie in
Guyana. Once a purchase/order is submitted to Alesie (Guyana), the rice is
loaded onto containers and trucked to the port to be shipped. A Cargo container
can hold up to twenty-four (24) tonnes of rice, equivalent to 540 x 100lb bags
of rice. The main shipping ports for rice from Guyana to Trinidad are Georgetown
and New Amsterdam. Once loaded onto the cargo ship it can take between 2-3
weeks for arrival, sometimes longer depending on docking time at different
ports. Upon arrival a Customs Clerk has to clear the container before it can be
transported by truck to Trinidad Commodities Limited, located at #51 O'Meara
Industrial Estate, Arima.
The rice at this stage is still contained in
either 500lb or 100lb bags, which are not for final sale. These bags are cut
open and the rice is placed into another Silo. The final packaging is supplied
by Sun Delight packaging company which supplies 1lb, 2lb and 9lb bags for the
rice. Trinidad Commodities Limited uses the packaging at their facility to
package the rice. The rice is then placed in bales of 3x9lb, 24x1lb or 12x2lb.
Orders are placed by local supermarkets such as Persad’s, JTA and Pricesmart throughout
Trinidad and Tobago for the Alesie White rice. Once an order comes in to
Trinidad Commodities Limited trucks are loaded and sent out to the various
supermarkets and groceries to deliver the rice. From there the rice is unloaded
and shelved for final sales to local consumers, like myself.
What
are the social and environmental growing conditions like?
Guyana is spread over an average of 214,970 square
kilometres, positioned between 1 and 9 North latitude and between 56 and 62 West
longitude. This tropical island is home to approximately 735,554 people, twenty
per cent (20%) of which depend on the rice industry for a livelihood. Guyana
was historically one of the poorest nations in the Western Hemisphere, but now
has a per capita GDP of $8000(Purchasing Power Parity for 2012).
The Guyana rice industry is over 100 years old and employs
over 150,000 people directly or indirectly and accounts for 13% of GDP. The
sales of rice paddy generates about 20 billion Guyanese dollars yearly, which
contributes significantly to poverty reduction, since many producers are small
farmers who depend solely on rice farming for a livelihood. The rice is
harvested twice yearly, with the first harvest from February to May and the
second harvest from September to December.
As I mentioned before, there are several farmers who
supply Alesie with white rice paddies, but no official contract is signed
between the farmers and the company. The names of some of the supplying farmers
had to be kept confidential for ‘security’ reasons. Although there is no signed
contract, Alesie goes out into the field, conducting tests to assure quality is
kept high ensuring that farmers achieve best results in their crop yield. This
enables farmers to profit while Alesie ensures a constant high quality supply.
Rice production is concentrated mainly on coastal areas
where approximately 90% of the population live. Rice is planted in four main
regions, namely; Mahaica Abary/West Berbice, East Berbice/Black Bush Polder,
Essequibo Coast and West Dem/EssIsies. The Coastal plain comprises of alluvial
mud which is channelled out to sea by the Amazon River and deposited on
Guyanese shores. This mud is high in fertility making it essential for rice
production. Below is a diagram of areas where rice is grown.
Guyana, being a member of CARICOM has benefitted from the
common external tariff trade agreement. This has allowed then to trade with
member countries easier and more freely. Trinidad and Tobago have culturally
eaten more parboiled rice but Guyana is able to sell white rice to us.
How has the product become
meaningful to us?
Alesie
rice may not be specifically meaningful to us but rice on the whole is very
meaningful and has become a part of our everyday lives. The extract below shows
how rice production began in our island and where its appreciation grew out of;
‘The indentureship period was a boost
to the plantation system and to the economy of the colony. Indians worked in
both sugar, cocoa and coffee estates. The third crop of great importance to
Trinidad was rice. This was entirely in Indian hands. Rice was introduced by
Indians and to the present is mostly cultivated by them. By the 1870s, it was
apparent that rice was being cultivated in the Caroni swamp; and to some degree
in the Oropouche lagoon. In a 1960 study produced by Arthur and Juanita Niehoff
entitled “East Indians in the West Indies”, it is said:
“In the first place
there is a traditional sentimental value attached to growing and possessing
large amounts of rice. Among Hindus rice is the one important crop in which
religious rites are involved.”
(Besson 2011).
Over
the years, rice cultivation in Trinidad has fallen significantly, but our
people have been acculturated toward rice consumption. Our society is
multi-ethnic and over all ethnicities rice is consumed. For decades rice has
become part of Hindu religious ceremonies such as prayers, weddings and
funerals. During prayer ceremonies our offerings are placed on a drawing
outlined by rice. At Hindu weddings, there is a huge celebration called,
‘patching the lawa’ where rice is patched. This rice is then used for the
wedding ceremony and thrown onto the wedding car (to bid good-bye and bless the
newly wedded couple). It is also crucial to Indian cuisine, boiled and served
with many other dishes as well as in local Indian delicacies (especially white
rice). Apart from the attachment of rice to Hindu and Indian culture, its
consumption has progressively been adopted into a ‘Creole’ culture. Creole
foods include Pelau and what could be considered one of our national dishes;
rice, crab and Callaloo.
Rice
is a commodity consumed by most in society; from the extremely poor to the
richest in society. Rice of all kinds have been consumed by the majority of the
population and will continue to be a part of our everyday life and culture.
Alesie
White rice packaging may add value to the product but white rice is very price
elastic. Price elasticity of demand refers the substitution effect of one good
for another due to price changes. If Alesie were to increase the price of their
white rice, us consumers would easily shift to other brands of white rice,
therefore, although Alesies packaging may add value to the product, it is not
very significant. I think the main added value may be through appeal of the
packaging.
Referencing:
·
Besson, A. G.. 2011. The history of Caribbean archives: Paria publishing co ltd.
http://caribbeanhistoryarchives.blogspot.com/2011/09/have-rice-be-wealthy.html
(accessed 10th April, 2014)
·
Hopkins, T. and Wallerstein, I. (1986). Commodity chains in the world economy prior
to 1800. Review X (1) 157-170.
·
UNEP, 2001, The
Guyana Rice Industry.(no further information was provided for referencing) http://www.unep.ch/etu/etp/events/Agriculture/guyana.pdf (accessed 10th April, 2014)
