Rice: favorable supply and exchange rates maintain positive scenario for exports in 2022

Brazilian rice exports are looking to have a positive year in 2022, even with possible setbacks caused by persisting sea freight difficulties, says Gustavo Trevisan, director of International Affairs at the Brazilian Rice Industry Association (Abiarroz). “We will have enough raw material available, and the exchange rate should remain favorable to exports.”

The 2021/22 rice harvest is estimated by the national supply company, Companhia Nacional de Abastecimento (Conab), at 11.4 million tons, to be harvested in an area of 1,678.7 thousand hectares. According to the state-owned company, exports should total at least 1.4 million tons in 2022, nearing the volume shipped in 2019, of 1.43 million tons.

In 2021, foreign sales are expected to reach at least 1.2 million tonnes of rice, says Trevisan. From January to November, the volume shipped was 984 thousand tons. Last month, data from the Ministry of Economy indicated shipments of 26,300 tons, a significant drop compared to external sales in October 2021, of 140,600 tons.

Difficulties in rice flow

“Official numbers do not reflect reality. Following the pace of exports, we identified the departure of at least one vessel with 26 thousand tons of rice in October, which did not appear in the November statistics and should be counted in December”, says Tiago Barata, executive director of the Union of the Rice Industry of Rio Grande do Sul (Sindarroz-RS).

He adds that 2021 was defined by the slow pace of exports. “But today, we are in a better competitive condition. The main bottleneck, which has hindered business liquidity, is the logistical difficulty, but we have found alternatives to serve the market, including the use of big bags, which store around a thousand kilos of rice, in substitution of containers”.

Trevisan also points out logistical problems as the main obstacle hindering the flow of rice exports in 2021. According to him, the lack of ships and containers exponentially raised the price of freight. “The cost of freight for Peru, one of our rice’s main destinations, rose from US$ 1,000 to US$ 7,500, and for the United States, it rose from US$ 1,500 to US$ 9,000”.

However, such adversities opened up new possibilities of rice flow. “Given the difficulties in accessing logistical equipment, Brazil has adopted an alternative and perhaps will no longer be so dependent on containers when the situation returns to normal. As a matter of fact, we are pioneers in the use of big bags to export rice”, emphasizes Tiago Barata. “Without a doubt, we will come out of this situation stronger”, he adds.

Source: Canal Rural

To read the full complete article visit the link: https://www.canalrural.com.br/noticias/agricultura/arroz-oferta-e-cambio-mantem-cenario-positivo-para-exportacoes-em-2022/

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