Brazilian producers exchange rice for soy and corn

Brazilian rice production closed the 2015/2016 harvest at 10,6 million tons. The number indicates a drop of 1,8 million tons, compared to the last harvest, which accounted for 12,4 million. According to the National Supply Company (Conab), the reduction is justified by the fact that producers have migrated from cereals to other crops, such as soybeans and corn, which were offering better profitability.

The weather also affected production. In Rio Grande do Sul, responsible for 70% of the national amount, excess rain between January and February affected crops that were in the final stage of development. Due to these factors, the harvest was harmed, causing losses in the quality and quantity of the cereal. In other regions, the climate also affected plantations, causing losses of 6% across the country.

Conab data revealed a drop in rice transit stocks, which so far stands at 315 thousand tons. Last harvest, this reserve was 962 thousand tons. “The information is worrying for the Brazilian market, since this quantity is equivalent to approximately 10 days of national consumption. Therefore, any unforeseen event in relation to supply and demand could cause a lack of product on the market and prices could suffer a significant increase”, explained Alan Malinski, technical advisor to the National Commission for Cereals, Fibers and Oilseeds of the Confederation of Agriculture and Livestock. of Brazil (CNA).

Due to problems in Brazilian production, rice imports are estimated at 1,3 million tons, an increase of 800 thousand tons compared to the previous harvest. Regarding consumption in the 2015/16 harvest, the number remained at the same 11,4 million tons as in 2014/15. According to the Ministry of Agriculture, Livestock and Supply (Mapa), each Brazilian consumes, on average, 25 kilos of rice per year.