RICE EXPORTS HAVE POTENTIAL TO GROW 20% IN 2020

The Federation of Rice Farmers Associations of Rio Grande do Sul (Federarroz) brings a positive balance to the rice sector in 2019. The increase in exports, especially to Central American and Caribbean countries, as well as actions with the state and federal governments to assist the producer to lower production costs, show a scenario of achievements and expectations for 2020. The crop year, which ends in February, is projected to export 1.2 million tons of grain, above the historical average of 1 million tons. The president of the entity, Alexandre Velho, explains that this volume is due to the high exchange rate added to the opening of new markets, such as Mexico. In October, 11 containers were shipped to the country, with 275,000 kilos of processed rice. 60K tons are also planned for Venezuela and 20K tons for Costa Rica in paddy rice between January and February. “We are able to increase exports by 20%,” says Velho, indicating the interest of nations such as Iraq, Iran and Egypt, which currently do not buy from Brazil. In the case of Mexico, shipments are expected to continue as a result of prolonged drought and reduced planting area in the United States. In Asian markets, such as China and India, the limited use of water is leading to increased imports of rice products in these regions. However, Brazil has US competition in supplying this demand, as well as a bottleneck in logistics operations, which require adequate transportation by sea. Currently, the largest buyers of Brazilian rice are Venezuela, Costa Rica, Peru and Senegal.
Regarding the domestic market, the estimate is a 2.9% growth in consumption in Brazil, while production will remain stagnant – the estimate is 10.5 million tons, against 10.3 million in 2018. In the state, production of 7.1 million tons is projected.
Source: Universo agro