The state of Rio Grande do Sul had a bumper rice crop in 2021, with an output of 9,000 kg per hectare, bringing calm to the market in Brazil. The Federation of Rice Associations of Rio Grande do Sul (Federarroz) continues to defend the expansion of the soybean planted area, as well as considering exports a genuine investment for 2022. The president of Federarroz, Alexandre Velho, says that foreign sales are essential to better regulate market, bringing a price reference and making the industry have a stronger position in relation to larger amounts of the product. He emphasizes that with the drop in the North American crop of around 15%, and with the dollar trading above R$ 5.50, Brazilian rice becomes able to compete and enter Mexico. “We will have a good opportunity in the first half of next year to export a considerable volume of rice again, taking the surplus from the domestic market and, as a result, have a better reference price for producers”, he said.
Source: Canal Rural (*Translated by Ia Niani)