Market Trends of South America Rice Industry
This section covers the major market trends shaping the South America Rice Market according to our research experts:
Rice Production is witnessed to be higher in the Region
- Rice production in South America is focused on tropical countries of the region, with Brazil being the largest producer of grain, followed by Peru, Colombia, and Ecuador. Despite the region's ability to produce rice, Latin America is also a net importer of rice, like Africa. With rice consumption rising in the region by as much as 40% over the last two decades, rice is becoming the fastest-growing staple food in the region. According to Food and Agriculture Organization Corporate Statistical (FAOSTAT) database, rice production in the region increased to 26 million metric tons in 2021 compared to the previous year's production of 25 million metric tons in 2020.
- Rice is a leading protein source for the poorest of the tropical population, accounting for 25% of the South American region. Therefore, these reasons have triggered the increasingly efficient rice production in the region with the adoption of modern varieties that are more resistant to climate change. Furthermore, as per Food and Agriculture Organization (FAO) data, the area harvested for rice was 4,105,452 hectares in 2021, a slight decrease compared to the previous year, 2020, with 4,129,302 hectares. This was due to the pandemic in the region.
- According to the Food and Agriculture Organization Corporate Statistical (FAOSTAT) Database, in 2021, among the South American countries, Brazil was the leading rice producer with 11.6 million metric tons, followed by Peru and Colombia with the production of 4 million metric tons and 3.3 million metric tons, respectively. In Brazil, Peru, Colombia, Argentina, and Uruguay, rice is the majorly consumed crop, providing 20% more calories than any other crop. This is expected to boost the market in the coming years.
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Brazil Dominates the Export in Terms of Volume in South America
- Brazil, the fifth largest country in area and population and the largest in terms of arable land, is among the few countries with the potential to increase agricultural productivity. Over the past two decades, Brazil has consolidated its position as a major producer of agricultural commodities and related food products and a supplier to international markets. These factors will increase the market growth in the coming years.
- 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 International Trade Center (ITC) Trade Map, the export of rice from Brazil witnessed a growth of about 100% during 2018-2021. In the past five years, Brazil exported rice worth USD 467,911 thousand from 2018 to USD 359,090 thousand in 2021 to countries like Venezuela, Peru, Senegal, the United States, Mexico, and more. However, in 2021, the export value declined due to the COVID-19 pandemic.
- In 2020, Venezuela accounted for 14.3% share, and Peru for 15.9% of the total Brazil exports. 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 global demand. This may boost Brazil's exports and, in turn, may drive the South American rice market during the forecast period.
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