The Contribution of Agricultural Investments to Food Loss and the World Rice Market in Asian Countries

This study examines the role of agricultural investment growth in food loss, and international rice price using a partial equilibrium model. The developed Rice Economy Climate Change (RECC) model covers rice markets in 24 countries and regions. The purpose of this study is to conduct simulations on how agricultural investment for agricultural machinery and equipment can impact the food loss rate of rice and the world rice market. The result of this study concluded that an increase in agricultural machinery and equipment investment in the eight ASEAN countries, Bangladesh, Sri Lanka and Nepal would contribute to increasing not only the rice yield but also to reducing the food loss rate of rice, as rice consuming continues to grow and its production becomes increasingly affected by climate change. This study suggests that reducing the food loss rate of rice can contribute to coping with growing global rice consumption without increasing rice production. Consequently, policy makers should promote constant agricultural machinery and equipment investment not only to increase agricultural productivity, but also to reduce the food loss of rice.