Yara projects positive scenario for the fertilizer market in 2023
Company makes strategic contribution in Rio Grande do Sul
While the area planted with rice varied little in the last 10 years, around 5% between the year with the largest area and the year with the smallest, the productivity of irrigated rice in Santa Catarina, per hectare, grew by more than 23%. With practically the same planted area, total production increased by more than 232 thousand tons from the 2012/2013 harvest to the 2021/2022 harvest. The data is from the Agro Catarinense Observatory. On the interactive panel available on the website it is possible to consult the numbers of planted area, production and productivity by municipality and region.
The survey is carried out by the Epagri Research Center for Socioeconomics and Agricultural Planning (Epagri/Cepa). According to the Socioeconomics and Rural Development analyst at Epagri/Cepa, Glaucia Padrão, the increase in productivity is the result of investment in technology, adoption of fertilization at the correct period and quantity and the adoption of seeds with high productive potential. Of the planted area, more than 70% use cultivars developed by Epagri. “In the 2021/22 harvest, for example, the three main cultivars used in the state were developed by the company, this corresponds to 68% of the total planted area”, she explains.
Currently, the rice harvest for the 2022/23 season is underway. To date, 14,52% of the area sown in the State has been harvested, according to data from the Agricultural Bulletin for the month of February 2023, released by Epagri/Cepa. In the northern region of Santa Catarina, where planting traditionally occurs earlier, the harvest is more advanced and has already exceeded 30% of the planted area.
According to Glaucia, the prolonged cold period in the second half of 2022 delayed the crop cycle. “From area to field, at this time of year, more than 40% of crops should be maturing, according to the average of recent harvests, however, only 26% of crops are at this stage”, he explains.
The outlook is for a slight reduction in productivity for the 2022/23 harvest compared to the previous harvest, when productivity was recorded above the historical average. Even so, the outlook is for a good harvest. The current estimate is for a production of more than 1,25 million tons, on 147,5 thousand hectares.
The rice market closed the year of 2022 with rising prices and continued this trajectory in the first months of 2023, both in Santa Catarina, and in Rio Grande do Sul. Compared to the month of December, the average price of January, in Santa Catarina, was 1,41% higher, closing at R$ 82,25 for a 50kg bag. In the first fortnight of February, there was an increase in prices, with an average of R$83,11 per 50kg bag, which is equivalent to a 1,05% increase compared to the previous month.
According to Glaucia, this increase occurs during off-season periods, therefore, when there is less product availability on the domestic market. Furthermore, the increase in Brazilian rice exports, especially from Rio Grande do Sul, has been an important factor in rising prices in recent months. As the harvest progresses, the speed of this increase tends to reduce, but the expectation is that the market will remain heated due to the lower supply forecast for this harvest. This is mainly due to the reduction in planted area and the drought in Rio Grande do Sul, in addition to the expectation of reduced productivity in both states.
After two years with good results (2020 and 2021), the amount received by producers in 2022, on average, did not cover production costs, which were driven up due to the increase in fertilizer and pesticide prices. One of the factors that contributed to this increase was the rise in the dollar, since most of the agrochemicals used in rice cultivation are imported.
In 2022, the value of rice and derivatives exports from Santa Catarina was approximately US$4,08 million, the result of the sale of 8,6 thousand tons. The value of imports, in the year to date, reached US$ 12,7 million and 28,06 thousand tons of rice. The product's entry takes place mainly from Uruguay and Paraguay.
Receive the latest agriculture news by email