Market Trends of Brazil Rice Industry
This section covers the major market trends shaping the Brazil Rice Market according to our research experts:
Brazil is predominant in Rice Production
Brazil, the fifth largest country in area and population and the largest in terms of arable land, is among the few countries with the potential to increase agricultural productivity in terms of cereals crops like rice. Over the past two decades, Brazil has been consolidating its position as a major producer of rice and related products as well as a supplier to international markets.
The major rice-producing areas are based in the South, Centre-West, and Northeast regions of Brazil. The Southern areas are the Rio Grande do Sul (RS) and Santa Catarina (SC), which produce approximately 47% and 8% of the country's total rice, respectively. According to FAO, the production of rice in 2021 is 11.6 million metric ton which is slightly increased compared to previous years of production in the country. Compared to other rice-growing regions in the world, rice cultivation on larger farms in Brazil is predominantly mechanized. Direct seeding and purchased inputs are used for cultivation across the country.
Brazil has a highly qualified and innovative rice industry that boasts a high technological standard, with a focus on exclusive and efficient service to the most demanding requirements of international food supply. Domestic companies offer expressive flexibility in meeting specific needs sought by consumers from different countries, based on logistical and consumption characteristics. Above all these factors will drive the rice market in the coming years.
Huge Potential for Brazil Rice Exports
According to the International Trade Centre (ITC), Brazil is the largest rice-exporting and importing country in the South American region. Venezuela, Senegal, Peru, the Netherlands, and the United States are the major importers of Brazilian Rice and Peru has the highest export value of USD 359,090 Thousand in 2021 which is a decline this year compared to last year due to the pandemic effect all over the world and holds a major share of 16% in 2021 among all the countries in the region.
The vast wetlands of Brazil hold higher significance for the future production growth of rice in the country. Furthermore, due to its continental proportions and the cutting-edge technology employed in industrial processes, the country is quickly able to expand its offer of grain in the face of global demand. According to the United States Department of Agriculture, the Brazilian crop, around 7.2 million ton or 22700 Thousand Hectares in 2022, of rice is harvested in the south of the country, in the states of Santa Catarina and the Rio Grande do Sul, in an area of 12,500 km2, in a subtropical climate. The southern region is home to 25,000 rice farmers in more than 200 municipalities. The cereal for export originates entirely from this region. The rest of the national harvest, cultivated in other regions, is geared towards domestic consumption which will drive the rice market.
