Rice output in Rio Grande do Sul surged in 2021. The production of 9,000 kg per hectare brought calmness to the market. Costs, however, are still the most important concern for the rice sector, which has been seeking alternatives with the Federal government. For 2022, the Federation of Rice Associations of Rio Grande do Sul (Federarroz) continues to defend the increase in the soy planting area, considering exports investments can be effective. The president of Federarroz, Alexandre Velho, says that foreign sales are essential for market control, bringing references in terms of price, which results on a stronger position from the industry in relation to large quantities. He emphasizes that the Brazilian product could compete and enter Mexico (which imports 800 thousand to a million tons of rice a year) mainly due to some reasons, such as the drop in the North American crop of around 15%, the dollar above BRL 5.50, in addition to the fact that the bag price in the United States is 15 dollars.
Sources: Universe Agro/DATAGRO (*Translated by Ia Niani)