Brazil Loses Ground to Argentina in Global Rice Market

What began as a bet to supply the Brazilian market has evolved into a global export platform. Argentine rice sector companies, such as Ebro Foods, Copra, Ceolin, and Adecoagro, are expanding their presence in the global market by focusing on high-quality, segregated, and traceable products, primarily targeting Europe and Central America. While Brazil was once the main customer, it has now lost ground to more demanding and profitable markets.

In spite of their different origins, the four companies visited by Valor earlier this month share a common feature: a strategic decision to expand in Argentina, despite facing economic crises and regulatory instability. Amid reforms by the Javier Milei administration, all report a more favorable investment climate and project continued growth in the coming years.

For years, Brazil was a key piece in the business plans of many of these companies. Copra, for example, built its plant in Mercedes with the intention of exporting to the Brazilian market. “When this plant was built, it was to sell to Brazil,” recalled Christian Jetter, the company’s general manager.

“We used to sell carnaroli and long-grain rice, but Brazil became a difficult market, with ups and downs. Today, it’s almost irrelevant to us,” said Jetter while walking with the Valor reporter through Copra’s storage facility on a cold Argentine winter day.

Adecoagro, a multinational with a strong presence in Brazil’s sugar and ethanol sector, still maintains a rice brand aimed at Brazilian consumers—Monte Alegre—but its activity in Brazil is limited to exports. “Although we don’t grow rice in Brazil, we see the country as a strategic market, especially in the South,” said Walter Cardozo, the company’s operations director.

Grupo Ceolin was one of the pioneers to cross the border in the 1990s, capitalizing on the momentum created by the newly formed Mercosur. With roots in Nova Palma (Rio Grande do Sul), the group now operates four mills in Argentina and views the country as an extension of its agribusiness presence in Brazil.

“We started small, with our feet in the mud, but we’ve always had vision,” summarized Antonio Ceolin, CEO and one of the group’s founders, sitting in a heated room overlooking the fields. For someone who started small, the scale of the farms in Argentina and the infrastructure built—with massive reservoirs and vast expanses of land—is striking.

Over time, companies realized that greater value was in exporting to markets like the European Union, which demand more sophisticated rice, segregated by variety and with guaranteed traceability.

Copra sends 80% to 85% of its production abroad, mainly to European countries. Its flagship product is carnaroli rice, typical of dishes like risotto. “Over there, quality is everything. Our biggest competitors now are the Uruguayans, no longer the Brazilians,” said Jetter.

At Adecoagro, approximately 75% to 80% of the rice production is also exported, featuring 15 different varieties that range from short-grain Japanese types to long and wide grains. All production is segregated from the source, with control extending from seed to port. “We work with 100% segregation. Our advantage is in integrated production—we control everything, from genetics to port loading,” Cardozo emphasized.

Ebro, which invests in technology, digitalization, and artificial intelligence, highlights the growing demand for premium quality and traceability. The company sees opportunities not only in Europe but also in the United States. “Our commitment goes beyond large-scale production. We aim for efficiency and excellence with the least possible environmental impact,” said Dario Sanches, Ebro’s project manager.

Optimistic Future

Despite Argentina’s history of economic instability, the companies interviewed expressed optimism about the current state of the economy. Recent financial reforms—such as lower taxes on rice and the removal of export barriers—have created a more investor-friendly environment, as Valor reported recently.

Ebro, for instance, tripled its processing capacity in the last harvest and plans to keep investing between US$5 million and US$10 million per year. Copra announced an expansion of its plant, featuring four new silos, as part of a US$4 million investment, in addition to commencing upgrades to its milling operations.

Adecoagro, which operates four mills and three drying plants in Argentina, has a five-year expansion plan that includes the installation of more metal silos, new dryers, and automation technologies. “Our focus is on quality-driven growth and reducing operational risks, like those associated with silo bags,” Cardozo said.

Grupo Ceolin, meanwhile, emphasizes that Argentina remains a strategic location, with fertile land and abundant water resources, especially in the Corrientes region. “We’ve faced a lot of volatility, but we never stopped believing in this country’s potential,” said the group’s CEO.

The journalist traveled at the invitation of Kepler Weber.

Source: Globo Rural

Sharing is caring!