Wheat and meslin flour and cereals market in Uruguay

Earlier Report Observations

From 2018 to 2021, the market volume for wheat and meslin flour and cereals in Uruguay contracted from 248.3 thousand tonnes to 222.4 thousand tonnes. Molino Cañuelas Uruguay S.A. solidified its position as the leading flour exporter, concentrating roughly 99% of overseas shipments since 2016/17. A 4% increase in national wheat yield in 2018 enhanced local supply, but the following years saw no major regulatory or policy changes that altered the market's downward path.

In 2022, the market rebounded to 249.7 thousand tonnes. This recovery was primarily driven by an 18% expansion in wheat planted area, the largest since 2015/16, which lifted domestic flour production. International wheat and flour prices surged due to the war in Ukraine, prompting the government to reduce import duties on flour from Mercosur countries from 12% to 6% and to cut LATU fees on food imports from 1.5% to 0.5% plus VAT from June onward.

By 2023, market volume eased slightly to 248.9 thousand tonnes after reference prices for flour and wheat were raised by 92% and 107% respectively, likely dampening consumption. Meanwhile, Morixe Uruguay expanded its footprint in the local and regional market by acquiring 100% of Gibur S.A.

Production wheat and meslin flour and cereals in Uruguay

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

Uruguay's production of wheat and meslin flour and cereals declined for the second year in a row. In 2020, the country produced 236.3 K t, marking a 2.0% decrease from the previous year. Looking at the period from 2017 to 2020, production fell by 6.6%, which translates to an average annual decline of 2.3%. The highest production volume was recorded in 2018 at 255.6 K t, with a 1.0% increase that year. In contrast, 2019 saw the largest drop of 5.7%.

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

In value, 2017-2020, K $ US

Uruguay's production value of wheat and meslin flour and cereals also declined for the second consecutive year. In 2020, the output was valued at 87 327 K $ US, showing a slight decrease of 1.1% compared to 2019. Over the 2017-2020 period, however, production value actually increased by 4.4%, averaging a 1.4% annual growth rate. The peak value occurred in 2018 at 97 181 K $ US, with a significant 16.2% rise that year. The largest decline was in 2019, when the value dropped by 9.1%.

Annual dynamics of production in Uruguay in value, 2017-2020, K $ US

Exports wheat and meslin flour and cereals from Uruguay

Exports in kind, t

The export market for wheat and meslin flour and cereals from Uruguay showed volatility during the observed period. In 2017, exports hit their lowest point, while 2019 saw the highest volume at 18 876 t, creating a 2.4-fold difference between these years. In 2020, export volume amounted to 14 792 t, which represents a 21.6% decrease from the previous year. The largest increase was recorded in 2019, with a substantial 76.8% growth.

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

From 2017 to 2020, Brazil remained the primary destination for Uruguay's wheat and meslin flour and cereals exports in volume terms, accounting for 85.2% of the total. The remaining share was distributed among other countries.

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

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

Exports in value, K $ US

The export market in value terms exhibited an unstable trend over the timeframe. Exports reached their lowest point in 2017 and peaked in 2019, with a 2.6-fold variation between these years. In 2020, exports were valued at 5 468 K $ US, a 20.9% decrease from the prior year. The highest value was recorded in 2019 at 6 914 K $ US, accompanied by the largest increase of 70.3% that year.

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

During 2017-2020, Uruguay's exports of wheat and meslin flour and cereals in value terms were heavily concentrated on Brazil, which made up 83.6% of the total. Other countries collectively accounted for the remaining share.

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

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

Imports wheat and meslin flour and cereals to Uruguay

Imports in kind, t

Uruguay's imports of wheat and meslin flour and cereals in volume terms increased for the second consecutive year. In 2020, imports totaled 4 146 t, reflecting a 13.1% rise from the previous year. However, over the 2017-2020 period, imports decreased by 18.3%, with an average annual decline of 6.5%. The lowest volume was recorded in 2018 at 3 358 t, which also saw the largest decline of 33.9%.

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

Throughout 2017-2020, imports in volume terms were heavily focused on Argentina, which accounted for 93.3% of the total flows.

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

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

Imports in value, K $ US

Uruguay's imports of wheat and meslin flour and cereals in value terms also increased for the second year in a row. In 2020, imports were valued at 2 149 K $ US, equivalent to a 17.2% uptick from the prior year. Between 2017 and 2020, however, imports decreased by 4%, averaging a 1.3% annual decline. The minimum value was recorded in 2018 at 1 717 K $ US, which experienced the largest drop of 23.3%.

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

From 2017 to 2020, 92.1% of Uruguay's total imports in value terms of wheat and meslin flour and cereals were directed to Argentina, making this market overwhelmingly dominant.

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

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