Broken rice market in MERCOSUR

Earlier Report Observations

The market volume for broken rice in MERCOSUR experienced notable shifts from 2018 to 2023. It started at 1 386 thousand tons in 2018, then dropped sharply to 937 thousand tons in 2019. After a slight stabilization around 942 thousand tons in 2020, the market expanded to 1 234 thousand tons in 2021. However, this was followed by a contraction to 903 thousand tons in 2022 and further down to 837 thousand tons in 2023.

In 2024, imports fell to 13 thousand tons from 18 thousand tons the previous year, while exports decreased to 562 thousand tons from 621 thousand tons. This occurred amid direct intervention by the Brazilian government to control prices, including the suspension of rice purchase auctions, and the elimination of import tariffs for rice from outside MERCOSUR to broaden competition and curb speculation.

Production broken rice in MERCOSUR

In kind, 2017-2020, K t

Top producers of broken rice, 2017-2020

World map of production of broken rice, 2017-2020

Broken rice production in MERCOSUR has declined for the second year in a row. In 2020, production reached 1 497 thousand tonnes, representing a moderate decrease of 4.4% compared to 2019. Over the period from 2017 to 2020, production grew by 16.8%, with an average annual growth rate of 5.3%. The highest production level was recorded in 2018 at 1 971 thousand tonnes, which marked a significant increase of 53.8% from the previous year. However, in 2019, production saw its largest decline of 20.6%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of broken rice production in MERCOSUR was 467.2 million US dollars, showing a gain of 5.8% compared to the previous year. From 2017 to 2020, production value increased by 21.5%, equating to an annualized growth rate of 6.7%. The peak value was recorded in 2018 at 572.0 million US dollars, which represented a substantial increase of 48.7% from 2017. In contrast, 2019 experienced the largest decline of 22.8%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports broken rice from MERCOSUR

Exports in kind, K t

After two years of growth, cross-border shipments of broken rice from MERCOSUR declined. In 2020, export volume was 560.8 thousand tonnes, which is 11.2% lower than in the previous year. Over the period from 2017 to 2020, exports increased by 20.8%, with an average annual growth rate of 6.5%. The highest export volume was recorded in 2019 at 631.3 thousand tonnes, following the largest increase of 26.3% in 2018.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Senegal, Sierra Leone, and Gambia remained the leading destinations for broken rice exports from MERCOSUR in terms of volume. Senegal accounted for 33.8% of exports, Sierra Leone for 23.9%, and Gambia for 18.5%. Together, these three countries represented 76.3% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

Following a two-year uptick, foreign supplies of broken rice from MERCOSUR declined. In 2020, export value totalled 175.0 million US dollars, down by 1.7% compared to the previous year. Over the period from 2017 to 2020, exports increased by 25.7%, with a compound annual growth rate of 7.9%. The peak value was recorded in 2019 at 178.1 million US dollars, after the largest increase of 22.1% in 2018.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

In the period from 2017 to 2020, Senegal, Sierra Leone, and Gambia led the structure of broken rice exports from MERCOSUR in value terms. Senegal accounted for 34.9% of exports, Sierra Leone for 24.8%, and Gambia for 18.8%. Combined, these three destinations represented 78.5% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports broken rice to MERCOSUR

Imports in kind, K t

The market for broken rice imports in MERCOSUR showed an unstable trend over the observed period. Imports reached their lowest point in 2018 at 1.3 thousand tonnes, which marked a decline of 55.8% from the previous year. In 2019, imports saw the largest increase of 126.9%, and by 2020, they totalled 6.6 thousand tonnes, up by 126.9% from 2019. Overall, from the low in 2018 to the high in 2020, import volumes varied by 5.1 times.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Chile was the leading destination in the structure of broken rice imports to MERCOSUR in terms of volume, accounting for 0.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

The market for broken rice imports in MERCOSUR exhibited volatility during the observed period. Imports hit their lowest point in 2018 at 0.6 million US dollars, representing a decline of 56.7% from the previous year. In 2019, imports increased significantly, and by 2020, they totalled 3.1 million US dollars, marking an improvement of 141.3% from 2019. From the low in 2018 to the high in 2020, import values varied by 5.5 times.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

In the period from 2017 to 2020, two main directions—Chile and Thailand—together accounted for 2.0% of total imports in value terms of broken rice to MERCOSUR.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020