The Brazil Rice Market is estimated to grow at a CAGR of 1.1% during the forecast period. Rice is grown as a major staple crop in Brazil. The crop is cultivated in the wet soils common in the lowlands of the region. The country is continuously increasing its rice production by adopting irrigated ecology and decreasing the significance of the low-yielding upland sector. Countries like Brazil have increased their trade relationship with key African countries. The recent fall in rice trading prices, credit crunch, and high price inventory are putting pressure on the country’s rice trade market.
Key Market Trends
Rice Production Analysis
According to the Food and Agriculture Organization, in 2019, Brazil accounts for 65-70% of all rice-growing areas in South America. The country produces 52% of all irrigated rice, 38% of all rain-fed rice, and 92% of all upland rice in the region. Rice is grown in upland (62%) and in aid soils in the country. The major rice-producing areas are based in 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. 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.
Export of Rice is Driving the Brazil Market
According to the International Trade Centre (ITC), Brazil is the largest rice exporting and importing country in the South America region. Venezuela, Senegal, Peru, Gambia, and the United States are the major importers of Brazilian Rice with Venezuela holding a major share of 64% in 2018. 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 the grain in the face of global demand. According to United States Department of Agriculture, of the Brazilian crop, around 75% or 9 million tons of rice is harvested in the south of the country, in the states of Santa Catarina and the Rio Grande do Sul, on 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.
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