Wheat and meslin flour and cereals market in South America

Earlier Report Observations

The market volume for wheat and meslin flour and cereals in South America expanded from 18.2 million tons in 2018 to 19.5 million tons in 2023. Initial growth was aided by favorable weather conditions, which boosted wheat yields in Brazil's Cerrado regions. In 2020, the Covid-19 pandemic led to a surge in at-home consumption of staple foods, including flour-based products, pushing the market volume to 18.9 million tons.

A temporary contraction to 18.7 million tons occurred in 2021 amid ongoing political uncertainty in Argentina, which affected trade flows by reducing imports and increasing exports. The market rebounded strongly in 2022, reaching 19.2 million tons. This jump was fueled by a record Brazilian wheat harvest, which grew 23.7% due to heated global demand and tight worldwide supply exacerbated by the war in Ukraine. Concurrently, regulatory changes such as the introduction of PIS/Cofins taxes on imported wheat encouraged domestic production, while population growth and a dietary shift toward wheat-based products underpinned consumption.

Growth continued in 2023, with the market adding 0.3 million tons to reach 19.5 million tons, reflecting steady demand in the absence of the extraordinary drivers seen in prior years.

Production wheat and meslin flour and cereals in South America

In kind, 2017-2020, K t

Top producers of wheat and meslin flour and cereals, 2017-2020

World map of production of wheat and meslin flour and cereals, 2017-2020

South America's production of wheat and meslin flour and cereals has grown for the third year in a row. In 2020, the region produced 18 285 thousand tonnes, representing a modest 0.6% increase over the previous year. Looking at the period from 2017 to 2020, production rose by 6.2%, which translates to an average annual growth rate of 2.0%.

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

Exports wheat and meslin flour and cereals from South America

Exports in kind, K t

The export data shows irregular fluctuations, pointing to a volatile market environment. Exports reached their lowest point in 2020, with South America exporting 55.2 thousand tonnes of wheat and meslin flour and cereals, a sharp 89.9% drop from the year before. The peak occurred in 2017, creating a 10.3-fold difference between these years. The largest increase was recorded in 2019, at 15.4%.

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

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

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

Exports in value, M $ US

In 2020, South America's wheat and meslin flour and cereals export value stood at 245.6 million US dollars, showing a measured decline of 4.1% compared to 2019. The minimum value was recorded in 2018 at 217.1 million US dollars, while the maximum was in 2019 at 256.1 million US dollars. The largest decline occurred in 2018, at 11.5%, and the largest increase was in 2019, at 17.9%.

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

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

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

Imports wheat and meslin flour and cereals to South America

Imports in kind, K t

After two years of growth, South America's imports of wheat and meslin flour and cereals declined. In 2020, imports totaled 700.9 thousand tonnes, marking a moderate decrease of 6.4% from the previous year. Over the 2017-2020 period, imports increased by 34.8%, with a compound annual growth rate of 10.5%. The maximum value was recorded in 2019 at 749.0 thousand tonnes, and the largest increase was in 2018, at 21.4%.

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

From 2017 to 2020, Turkey, the Netherlands, and Mexico were the leading sources in South America's import structure by volume. Turkey accounted for 9.6% of imports in kind, the Netherlands for 2.5%, and Mexico for 1.7%, together making up 13.9% of total import flows.

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

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

Imports in value, M $ US

South America's imports of wheat and meslin flour and cereals in value terms have increased for the second consecutive year. In 2020, the region imported 345.2 million US dollars worth of these products, reflecting a rise of 3.8% compared to 2019. Between 2017 and 2020, imports grew by 11%, equating to an annualized rate of 3.6%. The minimum value was recorded in 2018 at 287.9 million US dollars, with the largest decline that year at 7.4%, and the largest increase in 2019 at 15.5%.

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

The partner structure of imports in value terms from 2017 to 2020 was fragmented, with no single country holding a dominant share. Turkey accounted for 8.9% of imports in value terms, Mexico for 2.2%, and the Netherlands for 2.2%, together representing only 13.2% of total flows.

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

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