Brazilian rice gains competitiveness to export

Brazilian rice’s supply table is now adjusted due to the Brazilian crop failure and stable foreign sales with good demand for the Brazilian product. These are some of the evaluations made by the Federation of Rice Association of Rio Grande do Sul (Federarroz) on the scenario of exports and imports of the cereal. In addition, according to the entity, the high exchange rate is providing good competitiveness to the Brazilian product.

From March to September this year, 760,000 tons of rice (husk base) have been exported, while imports totaled 636,000 tons, generating a surplus of 124,000 tons of rice until last month. “This picture gives us optimism that we will close this year with a very adjusted picture of import and export and also with low stocks of passage for the next crop year,” evaluates the president of Federarroz, Alexandre Velho.

Other points that motivate this optimism is the consolidation of Brazil as one of the major players in the world rice market. In addition, the expectation is that by December the second shipment of 30,000 tons of beneficiated rice will be shipped by the Port of Rio Grande, destined for Iraq, a market that has been demanding Brazilian rice. “We are looking for new markets to bring more support to quotations, with possible deals for Mexico, Panama, and Guatemala. We are optimistic about the numbers seen so far,” says Velho.

According to Federarroz’s analysis, exports, in addition to expanding demand and opening and maintaining new markets, drain surpluses, neutralize imports, and make the producer not hostage to domestic demand, giving greater support to prices.

The following DataLiner graph shows Brazil’s month-by-month rice exports statistics:

Source: DataLiner/Datamar

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