Rice market in MERCOSUR

Earlier Report Observations

After reaching 12.6 million tons in 2018, the rice market volume in MERCOSUR fell to 11.3 million tons in 2019. This decline was primarily due to reduced planting areas in Brazil, as farmers switched to more profitable crops like soybeans. The market recovered to 12.0 million tons in 2020, spurred by the COVID-19 pandemic which increased at-home rice consumption across the region.

A shift in consumer preferences towards specialty and brown rice varieties helped drive market volume up by 15% to 13.8 million tons in 2021. However, adverse weather conditions and rising production costs curtailed output in 2022, while India's export restrictions boosted global prices and encouraged record exports from MERCOSUR. As a result, domestic consumption dropped sharply to 11.2 million tons.

In 2023, the market stabilized around 11.1 million tons. Strong external demand, coupled with climate effects such as La Niña, kept international prices high and maintained robust export flows, limiting the growth of internal supply.

Production rice in MERCOSUR

In kind, 2017-2020, K t

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Following a two-year decline, rice production in MERCOSUR rebounded in 2020. That year, the region produced 14 711 thousand tons of rice, marking a 6.4% increase from 2019. Over the 2017-2020 period, production fell by 8.8%, which translates to an average annual decline of 3.0%. The lowest production level was recorded in 2019 at 13 828 thousand tons, when the largest year-on-year drop of 9.7% occurred.

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

In value, 2017-2020, M $ US

After two consecutive years of contraction, the value of rice production in MERCOSUR rose in 2020. Output was valued at 6 372 million US dollars that year, representing a 9.2% increase from 2019. From 2017 to 2020, however, production value decreased by 19%, with a compound annual growth rate of -6.8%. The lowest value was recorded in 2019 at 5 833 million US dollars, while the steepest decline of 20.2% took place in 2018.

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

Exports rice from MERCOSUR

Exports in kind, K t

In 2020, MERCOSUR exported 3 267 thousand tons of rice, a 23.7% increase compared to 2019. Over the 2017-2020 period, exports grew by 47.8%, averaging 13.9% annually. The largest year-on-year decrease of 11.9% occurred in 2019, while the most significant increase of 35.6% was recorded in 2018.

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

Between 2017 and 2020, MERCOSUR's rice exports reached a diverse range of markets. The top three destinations—Venezuela (11.7% of exports in volume), Peru (9.0%), and Senegal (6.1%)—collectively accounted for 26.8% of total export volume. The remaining 73.2% was distributed among numerous smaller markets.

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

In 2020, the value of rice exports from MERCOSUR reached 1 415 million US dollars, reflecting a 27.1% increase from the previous year. From 2017 to 2020, export value rose by 31.3%, with a compound annual growth rate of 9.5%. The largest year-on-year decline of 9.3% was recorded in 2019.

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

The market base for MERCOSUR's rice exports in value terms was broad from 2017 to 2020. The top three markets—Peru (12.4% of export value), Venezuela (9.7%), and Iraq (6.4%)—together represented just 28.5% of total export value. The remaining 71.5% was shared among many other countries.

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

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

Imports rice to MERCOSUR

Imports in kind, K t

Rice imports into MERCOSUR showed significant fluctuations during the period. In 2019, imports hit their lowest point at 135 thousand tons, with a 52.3% decline that year. By 2020, imports surged to 605 thousand tons, a 348.8% increase from 2019. Overall, imports varied 4.5-fold between the trough in 2019 and the peak in 2020.

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

From 2017 to 2020, the sources of rice imports into MERCOSUR were highly diversified. The top three suppliers—the United States (3.7% of import volume), Guyana (1.8%), and Suriname (0.8%)—collectively accounted for only 6.2% of total import volume, with no single partner dominating the market.

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

Rice imports into MERCOSUR increased for the second consecutive year in 2020, reaching 405 million US dollars—a sharp 51.9% rise from 2019. Over the 2017-2020 period, import value grew by 16.3%, with a compound annual growth rate of 5.2%. The lowest value was recorded in 2018 at 237 million US dollars, when the largest decline of 31.8% occurred.

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

Between 2017 and 2020, MERCOSUR's rice imports in value terms came from a wide array of partner countries. The top three sources—the United States (3.7% of import value), Italy (2.2%), and Guyana (1.8%)—together represented just 7.7% of total import value, highlighting the fragmented nature of the supply base.

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

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