Milled rice and broken rice market in Central America

Earlier Report Observations

From 2018 to 2021, rice production in Central America grew from 1 944 thousand tons to 2 357 thousand tons, peaking at 2 407 thousand tons in 2020. Market volume followed a similar trend, rising from 2 226 thousand tons in 2018 to 2 544 thousand tons in 2021, with a high of 2 609 thousand tons reached in 2020.

In 2022, the government implemented the 'Ruta del Arroz' market liberalization policy, which eliminated price controls and cut import tariffs on rice from 35% to 4–5%. This policy spurred imports, which increased to 246 thousand tons in 2022 and further to 296 thousand tons in 2023, helping lift total market volume to 2 672 thousand tons in 2022 before it stabilized at 2 662 thousand tons in 2023. Domestic production remained resilient at 2 431 thousand tons in 2022 before a modest dip to 2 395 thousand tons in 2023.

The liberalization measures continued into 2024, driving imports up to 400 thousand tons. Contrary to the expected price reduction, consumer rice prices accumulated an 8.2% increase between August 2022 and May 2024, while the market volume trend from previous years indicated sustained supply through imports.

Production milled rice and broken rice in Central America

In kind, 2017-2020, K t

Top producers of milled rice and broken rice, 2017-2020

World map of production of milled rice and broken rice, 2017-2020

Central America's production of milled rice and broken rice has increased for the second year in a row. In 2020, the region produced 2 407 K t, marking a significant 22.1% rise from the previous year. Looking at the period from 2017 to 2020, production grew by 23.1%, with an average annual growth rate of 7.2%. The lowest production level was recorded in 2018 at 1 944 K t, which also saw the largest decline of 0.6% during this timeframe.

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

In value, 2017-2020, M $ US

Following two years of growth, the value of milled rice and broken rice production in Central America saw a decline. In 2020, output was valued at 1 493 M $ US, down by 2.6% compared to 2019. Over the 2017-2020 period, production value increased by 20.7%, with a compound annual growth rate of 6.5%. The peak value was reached in 2019 at 1 533 M $ US, which also experienced the largest increase of 11.7%.

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

Exports milled rice and broken rice from Central America

Exports in kind, K t

Export volumes of milled rice and broken rice from Central America have risen for the second consecutive year. In 2020, exports reached 29.8 K t, showing a sharp increase of 57.2% from 2019. However, over the 2017-2020 period, exports decreased by 2.3%, with an average annual decline of 0.8%. The lowest export volume was recorded in 2018 at 15.6 K t, which saw the largest drop of 49.0%.

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

From 2017 to 2020, the top destinations for Central America's milled rice and broken rice exports in volume terms were the United States (9.4% of exports), Venezuela (9.0%), and Colombia (2.9%). Together, these three countries accounted for 21.3% of total export flows.

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

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

Exports in value, M $ US

Cross-border shipments of milled rice and broken rice from Central America have increased in value for the second year running. In 2020, exports were valued at 18.5 M $ US, representing a 25.3% gain compared to the previous year. Despite this recent growth, exports decreased by 4.1% over the 2017-2020 period, with an average annual decline of 1.4%. The lowest value was recorded in 2018 at 11.0 M $ US, which saw the largest decline of 43.1%. In contrast, 2019 experienced the largest increase of 34.3%.

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

During the 2017-2020 period, Venezuela (16.9% of export value), the United States (15.1%), and Colombia (5.5%) remained the principal buyers of milled rice and broken rice from Central America. Collectively, these three markets accounted for 37.5% of total export value.

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

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

Imports milled rice and broken rice to Central America

Imports in kind, K t

After two years of decline, import volumes of milled rice and broken rice into Central America increased. In 2020, imports reached 232.0 K t, marking a 14.7% rise year-over-year. Over the 2017-2020 period, imports decreased by 26.3%, with an average annual decline of 9.7%. The lowest import volume was recorded in 2019 at 202.2 K t, which also saw the largest decline of 32.1%.

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

From 2017 to 2020, the main suppliers of milled rice and broken rice to Central America in volume terms were the United States (36.6% of imports), Uruguay (19.5%), and Guyana (9.3%). Together, these three countries comprised 65.4% of total imports.

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

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

Imports in value, M $ US

In 2020, the value of milled rice and broken rice imports into Central America amounted to 175.0 M $ US, representing a 33.0% gain compared to 2019. Over the 2017-2020 period, imports decreased by 17%, with an average annual decline of 6.0%. The lowest value was recorded in 2019 at 131.6 M $ US, which saw the largest decline of 38.4%. The peak value occurred in 2018 at 213.6 M $ US.

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

From 2017 to 2020, three key markets — the United States, Uruguay, and Argentina — together absorbed 71.6% of the total import value of milled rice and broken rice into Central America.

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

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