The rice trade balance ends 2021 with surplus

Brazilian rice brought 2021 to a close with a positive balance in terms of foreign exchange, according to the Brazilian Rice Industry Association (Abiarroz) on this Thursday, 20th.

In 2021, rice exports (husk base) yielded earnings worth US$ 363.2 million, while imports were worth US$ 316.8 million, which resulted in a surplus of US$ 46.4 million. The volume shipped last year totaled 1.153 million tons, compared to 1 million tons of landed imports, making the balance 149 thousand tons.

The amount was well below 2020 figures when Brazil exported 1,813mt as a result of strong global demand caused by the height of the Covid-19 pandemic. It was also lower than the amount exported in 2019.

“Rice exports returned, in 2021, to the 2019 foreign sale levels, owing to the appreciation of the dollar,” says Carolina Telles Matos, manager of Abiarroz Exports.

“However, in terms of quantity, sales were 20% and 36% lower than 2019 and 2020, respectively”,  she added.

See below the track record of Brazilian rice imports and exports from 2019 onwards. Data are from DataLiner:

Brazilian Imports and Exports of Rice (HS 1006) | Jan 2019 to Nov 2021 | WTMT

Source: DataLiner (click here to request a demo)

Logistics

The retraction of the volume exported was one of the main logistical problems. “We saw a strong reduction in the supply of maritime transportation, which caused a significant increase in ship freights, in addition to the lack of containers”, points out Carolina.

As a result, Brazil began using the pioneer method of packing rice in plastic bags capable of supporting a load of up to 2,000 kg. By applying this innovation, Abiarroz believes that exporters will decrease their container dependency.

The association also stated that most logistical adversities are likely to persist throughout the first semester, though it sees a promising year for cereal exporters.

“We will have enough raw material available, in addition to a favorable exchange rate to exports”, emphasizes Gustavo Trevisan, director of International Affairs at Abiarroz.

According to Abiarroz, Peru overtook Venezuela as the primary destination for rice shipments in 2021. Other popular destinations included the Netherlands, Senegal, Gambia, Cuba, Costa Rica, the United States, Sierra Leone, Nicaragua, and Mexico.

Source: Canal Rural

To read the full original article please visit:

https://www.canalrural.com.br/noticias/agricultura/arroz/balanca-comercial-do-arroz-termina-2021-com-saldo-positivo/

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