Uncertainty about rice demand in 2021 limits investments

Same with the highest profitability in 2019/20, the area of ​​the Brazilian rice harvest in 2020/21 did not have a significant reaction, considering that many producers did not they had the capital to significantly increase operational investments. In addition Furthermore, uncertainties about demand dynamics in 2021 also prevented greater investments.

Researchers from Cepea point out that domestic demand has already shown signs of cooling at the end of 2020, moving towards a normal consumption rate, after the strong heating observed during the year. According to Irga data, the processing and the output of rice in Rio Grande do Sul, which, until August/20, reached almost 30% higher than the same month in 2019, in November/20, they were only 16,2% higher November/19.

Data of Conab released in December/20 indicate that the supply of paddy rice from 2020/21 harvest could see a drop of 2,1% over the previous one, to 10,94 million tons.