The rice market in South America is estimated to record a CAGR of 3.5% during the forecast period. Rice is grown as a major staple crop in most countries of South America. The crop is cultivated in the wet soils common in the lowlands of the region. The lowland rice expansion in the vast wetlands of Brazil (with a potential of 24 million ha), the Andean countries (Bolivia, Ecuador, Peru, and Venezuela) and the River Plate Basin (Argentina, Paraguay, and Uruguay) would greatly influence the regional production of rice in the future. The tropical countries of the region account for the majority of demand. Rice consumption is income elastic in the region, as consumers tend to increase consumption as their incomes rise. The average yield in the region varies between 3.9t/ha-5t/ha. Direct seeding and purchased inputs are used for cultivation across the region. Uruguay has gained the third-highest rice productivity in the world—an average of 8 metric ton per hectare of dry paddy rice in the last five years.
Key Market Trends
Production Analysis in South America
In 2018, the production of rice was high in Brazil, which accounted for 11,749 thousand metric ton, followed by Peru and Colombia. with the production of 6,880 thousand metric ton in South America. In Brazil, Peru, Colombia, Argentina, and Uruguay, rice is the majorly consumed crop as it provides 20% more calories than any other crop. Rice acts as a leading source of protein for the poorest of the tropical population, which accounts for 25% in the South American region. The increasingly efficient production in the region is triggered by the adoption of modern varieties that are more resistant to climate change. Hence, all these factors are responsible for boosting the rice market in South America during the forecast period.
Brazil Dominates the Export in Terms of Volume in South America
In South America, Brazil, Uruguay, Paraguay, and Argentina are the major exporters of rice, among which Brazil is the largest producer and exporter. As per the UN Comtrade, the export of rice from Brazil saw a rise of about 108.702% during 2016-2018. In the past five years, Brazil exported rice worth of USD 1,682,187 thousand from 2015-2019 to countries like Peru, Gambia, Iraq, the United States, and more. Further, with the 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 the global demand, which, in turn, may boost the South American rice market during the forecast period.
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