Paddy rice market in Brazil

Earlier Report Observations

From 2018 to 2023, the Brazilian paddy rice market volume in kind fluctuated, largely influenced by a sustained reduction in planted area as farmers shifted to more profitable crops like soybeans and corn. This structural shift, combined with adverse weather patterns such as La Niña, pressured domestic production and contributed to a declining market volume, which fell to 9.5 million tons in 2023.

The COVID-19 pandemic in 2020 created a temporary market spike, elevating domestic and external demand and leading to higher prices and government measures like a temporary tax suspension to boost supply. Subsequent years saw continued challenges from high production costs due to expensive inputs and logistics, while record export volumes in 2022 further tightened domestic availability, exacerbating the market contraction.

Government responses included the introduction of agricultural risk zoning, the 'Arroz da Gente' support plan for family farmers, and ongoing legislative discussions on differentiated tax treatment for domestic rice. Despite these efforts and technological advances through new cultivars, the market remained pressured by low profitability and climatic factors, with export diversification providing some counterbalance to domestic price pressures.

Production paddy rice in Brazil

In kind, 2018-2021, K t

Brazil was among the world's top ten producers of paddy rice from 2018 to 2021, ranking 10th globally by production volume.

Top producers of paddy rice, 2018-2021

World map of production of paddy rice, 2018-2021

Brazil's paddy rice production increased for the second consecutive year. In 2021, the country produced 11,661 thousand tons, marking a moderate 5.1% rise compared to 2020. The lowest production was recorded in 2019 at 10,369 thousand tons, which represented the largest decline of 12.2% during this period. In contrast, 2020 saw the largest increase of 7.0%.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Brazil's paddy rice production value also grew for the second year in a row. In 2021, the output was valued at 3,605 million US dollars, showing a significant 20.7% increase over the previous year. From 2018 to 2021, production value rose by 14.1%, equivalent to an annualized rate of 4.5%. The lowest value was in 2019 at 2,857 million US dollars, which saw the largest decline of 9.6%.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports paddy rice from Brazil

Exports in kind, K t

The market showed considerable volatility during these years, with a peak-to-trough amplitude of three times from 2018 to 2021. In 2021, Brazil's paddy rice exports amounted to 234.8 thousand tons, a 54.7% decrease compared to 2020. The largest decline occurred in 2019 at 62.4%, while 2020 recorded the largest increase of 92.6%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, K t

From 2018 to 2021, the main destinations for Brazil's paddy rice exports in kind were Venezuela (60.6% of exports), Costa Rica (15.8%), and Nicaragua (9.7%). Together, these three countries accounted for 86.1% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, M $ US

Market performance displayed noticeable fluctuations over this period, with a peak in 2018 and a trough in 2021, showing a 2.6-fold variation. In 2021, Brazil's paddy rice exports were valued at 72.6 million US dollars, which is 48.0% lower than the previous year. The largest decline was in 2019 at 61.3%, while 2020 saw the largest increase of 88.2%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, M $ US

During 2018–2021, Venezuela (60.3% of exports in value terms), Costa Rica (16.1%), and Nicaragua (9.7%) together absorbed 86.0% of Brazil's total paddy rice export value, making them the primary destinations.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports paddy rice to Brazil

Imports in kind, K t

The market exhibited an unstable trend throughout this timeframe. Imports bottomed in 2018 and peaked in 2020, with a 3.8-fold difference between these years. In 2021, Brazil's paddy rice imports were recorded at 96.9 thousand tons, equivalent to a 60.4% fall over the past year. The maximum value was in 2020 at 244.8 thousand tons, which also saw the largest increase of 167.7%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, K t

From 2018 to 2021, two leading markets—Paraguay and the United States—together accounted for 84.0% of Brazil's total paddy rice imports in kind, with the remaining volume distributed across a wide range of other countries.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Imports reached their lowest point in 2018 and peaked in 2020, with a 5.1-fold amplitude. In 2021, Brazil's paddy rice import value was 32.5 million US dollars, corresponding to an intense 60.4% year-on-year decrease. The maximum value was in 2020 at 82.1 million US dollars, which also recorded the largest increase of 283.0%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, M $ US

In 2018–2021, Paraguay (48.9% of imports in value terms), the United States (30.4%), and Uruguay (11.0%) formed the main group of destinations for Brazil's paddy rice imports in value terms, with a combined share of 90.3% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021