Wheat starch market in MERCOSUR

Earlier Report Observations

The wheat starch market in MERCOSUR grew from 20 587 t in 2018 to 32 966 t in 2020. This expansion was initially supported by the liberalization of wheat commercialization and industrialization in Brazil, which fostered greater market freedom for processors. Market growth continued in 2020 despite increased export taxes on wheat in Argentina, which reduced raw material imports for Brazilian mills, as domestic starch production and direct starch imports both increased.

Market volume contracted to 31 303 t in 2021 due to adverse weather conditions that reduced wheat yields and COVID-19 pandemic disruptions affecting supply chains and consumption patterns. A strong rebound followed in 2022, with the market reaching 40 515 t. In 2023, however, the market declined to 36 693 t. During this period, increased Brazilian wheat planting was primarily driven by export opportunities, which may have diverted wheat from domestic starch production.

Production wheat starch in MERCOSUR

In kind, 2017-2020, t

Top producers of wheat starch, 2017-2020

World map of production of wheat starch, 2017-2020

Wheat starch production in MERCOSUR increased for the second consecutive year. In 2020, 31,134 tonnes of wheat starch were produced, marking a significant 17.3% increase from the previous year. Over the period from 2017 to 2020, production grew by 35.4%, with an average annual growth rate of 10.6%. The lowest production level was recorded in 2018 at 20,037 tonnes, which also saw the largest decline of 12.9%. In contrast, 2019 experienced the largest increase of 32.5%.

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

Exports wheat starch from MERCOSUR

Exports in kind, t

The market showed signs of volatility during the observed period. Exports peaked in 2017 and reached their lowest point in 2018, with a 2,028,342-fold difference between these years. In 2020, exported wheat starch volumes from MERCOSUR amounted to 0.1 tonnes, down by 17.4% compared to the previous year. The minimum value was recorded in 2018 at 0.0 tonnes, which also saw the largest decline of 100.0%. The largest increase occurred in 2019, with a 760.0% rise.

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

From 2017 to 2020, three principal markets—Saudi Arabia, Colombia, and Ecuador—together accounted for 58.2% of total wheat starch exports in kind from MERCOSUR.

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 data reveals irregular changes, indicating a volatile market environment. Exports varied significantly, with a 350,976-fold difference from the high in 2017 to the low in 2018. In 2020, wheat starch exports from MERCOSUR amounted to 0.2 thousand US dollars, marking a sharp increase of 29.7% compared to 2019. The minimum value was recorded in 2018 at 0.0 thousand US dollars, which also saw the largest decline of 100.0%. The largest increase occurred in 2019, with a 666.7% rise.

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

Throughout 2017 to 2020, Saudi Arabia (29.8% of exports in value terms), Colombia (12.7%), and Ecuador (11.7%) remained the main markets for wheat starch exports in value terms from MERCOSUR, jointly accounting for 54.2% of total flows.

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

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

Imports wheat starch to MERCOSUR

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. Imports reached their lowest point in 2018 and peaked in 2020, showing a 3.3-fold difference between these years. In 2020, wheat starch imports into MERCOSUR amounted to 1,832 tonnes, representing a 76.6% increase year-over-year. The minimum value was recorded in 2018 at 550 tonnes, which also saw the largest decline of 19.9%. The largest increase occurred in 2019, with an 88.6% rise.

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

Over the period from 2017 to 2020, the geographical structure of imports in kind was highly diversified. Italy (16.3% of imports in kind), Australia (6.3%), and the United States (3.4%) together accounted for only 26.0% of total flows, while the remaining 74.0% was distributed among numerous smaller partner countries.

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

The market exhibited an unstable trend throughout the timeframe. Imports varied from a low in 2018 to a peak in 2020, with a 2.7-fold difference between these years. In 2020, wheat starch imports into MERCOSUR amounted to 1,085 thousand US dollars, reflecting a sharp gain of 72.8% over the previous year. The minimum value was recorded in 2018 at 408 thousand US dollars, which also saw the largest decline of 23.2%.

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

From 2017 to 2020, the country breakdown of imports in value terms remained scattered. Italy (27.6% of imports in value terms), the United States (6.7%), and Australia (6.5%) together accounted for just 40.8% of total flows, with no single partner standing out as clearly dominant.

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

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