Sorghum market in MERCOSUR

Earlier Report Observations

From 2018 to 2020, the sorghum market in MERCOSUR expanded from 3.8 million tons to 4.3 million tons. This growth was supported by the region's deepening agro-industrial integration, particularly improved road infrastructure in Paraguay that enhanced grain logistics. The common external tariff within the bloc, with duties of 8–12% on cereals, also shaped trade conditions for sorghum.

A sharp rise in international sorghum prices during 2021, driven by strong industrial demand and the recovery of ethanol consumption after pandemic restrictions, made exports highly attractive. This led to a surge in shipments from the region, which temporarily reduced the domestic market volume to 3.9 million tons despite increased production. The market recovered to 4.2 million tons in 2022, aided by the official approval for Brazilian sorghum to enter the Chinese market and growing domestic demand for biofuels and animal feed, which encouraged local consumption.

In 2023, the market volume jumped to 5.4 million tons. This significant increase was propelled by a 34% rise in sorghum production in Brazil, where planted area expanded by 22% as the crop solidified its role as a strategic, cost‑competitive option for the second season (safrinha). The introduction of new high‑yielding hybrid varieties further boosted output, while lower export volumes meant more sorghum remained available for the regional market.

Production sorghum in MERCOSUR

In kind, 2017-2020, K t

Top producers of sorghum, 2017-2020

World map of production of sorghum, 2017-2020

MERCOSUR's sorghum production has increased for the second consecutive year. In 2020, the region produced 4 799 K t of sorghum, marking a controlled rise of 6.0% compared to 2019. Looking at the broader period from 2017 to 2020, production decreased by 5.4%, which translates to an annualized decline of 1.8%. The lowest production level was recorded in 2018 at 4 029 K t, which also saw the largest decline of 20.6%. In contrast, 2019 experienced the largest increase, with production growing by 12.4%.

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

In value, 2017-2020, M $ US

MERCOSUR's sorghum production has increased for the second consecutive year. In 2020, the output was valued at 897.1 M $ US, reflecting a significant year-over-year rise of 17.4%. Over the period from 2017 to 2020, production increased by 12.9%, equating to an annualized growth rate of 4.1%. The lowest value was recorded in 2018 at 666.7 M $ US, which also saw the largest decline of 16.1%.

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

Exports sorghum from MERCOSUR

Exports in kind, K t

MERCOSUR's volume of sorghum exports has increased for the second consecutive year. In 2020, exports reached 480.0 K t, showing an abrupt uptick of 53.9% compared to the previous year. From 2017 to 2020, exports increased by 2.6%, which corresponds to an annualized rate of 0.9%. The lowest export volume was recorded in 2018 at 250.3 K t, a year that also saw the largest decline of 46.5%.

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

Between 2017 and 2020, Japan, China, and Chile were the leading destinations for MERCOSUR's sorghum exports in kind. Japan accounted for 48.9% of exports, China for 30.4%, and Chile for 6.7%. Together, these three countries represented 86.0% 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, K $ US

The market exhibited signs of volatility during the observed period. The lowest export value was recorded in 2018, while the highest was in 2020, with a 2.2-fold gap between these years. In 2020, sorghum exports from MERCOSUR amounted to 89 739 K $ US, up by 70.4% compared to 2019. The minimum value was in 2018 at 41 415 K $ US, which also saw the largest decline of 43.5%.

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

From 2017 to 2020, Japan, China, and Chile were the main destinations for MERCOSUR's sorghum exports in value terms. Japan accounted for 40.0% of exports, China for 30.7%, and Chile for 5.7%. Collectively, these three markets represented 76.4% of total export value, solidifying their position as key importers.

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

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

Imports sorghum to MERCOSUR

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. The lowest import volume was recorded in 2019, while the peak occurred in 2018, with a 5.1-fold difference between these years. In 2020, MERCOSUR's sorghum imports registered 3.1 K t, up by 9.0% compared to 2019. The maximum value was in 2018 at 4.5 K t, which also saw the largest increase of 406.9%. The largest decline was recorded in 2019 at 37.0%.

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

Over the period from 2017 to 2020, the United States and Bolivia were the main sources for sorghum imports in kind to MERCOSUR, together accounting for 13.0% 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, K $ US

MERCOSUR's volume of sorghum imports has increased for the third consecutive year. In 2020, imports registered 8 836 K $ US, indicating a rise of 4.2% relative to the prior year. Between 2017 and 2020, imports increased by 57.8%, equating to an annualized growth rate of 16.4%.

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

Throughout 2017 to 2020, Bolivia, the United States, and Australia formed the core group of markets for MERCOSUR's sorghum imports in value terms. Bolivia accounted for 16.6% of imports, the United States for 13.6%, and Australia for 1.2%. Together, these three countries represented 31.3% of total import flows.

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

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