Brazil’s Rice Exports to Rise 416% in 2005

Brazil’s largest rice producer, Rio Grande do Sul state, should export 250,000 tons of the grain this year, which will represent a growth of 416% when compared to last year. In 2004, the state sold 60,000 tons of rice to Europe, Africa, Latin America and the Caribbean countries.

So as to increase foreign sales, the rice producers are negotiating with new markets, like those of the Arab countries, which are great consumers of the product.


The first sale to that region of the world may go to the United Arab Emirates.


“A trading company from Dubai has already shown, through contacts with the Federation of Rice Associations of Rio Grande do Sul (Federarroz), interest in purchasing Brazilian rice,” explained the market director at the Federarroz, Marco Aurélio Tavares.


If the deal is closed, this will be the first time the United Arab Emirates will import rice from Brazil. Tavares guarantees that Rio Grande do Sul is capable of supplying the rice consumption needs of the Arab countries.


Apart from the Emirates, the Federarroz director stated that Saudi Arabia is another potential market for Brazilian rice. Every year the Saudis import 1 million tons of grain. According to figures supplied by the United Nations (UN) Food and Agriculture Organization (FAO), the country is the fourth largest rice importer in the world.


Exporters from the state of Rio Grande do Sul also have their eye on Iraq, which currently buys from Uruguay, among other buyers.


Tavares believes that interest by Arab countries, like the Emirates, in alternative suppliers may be explained by the reduction in the harvest of traditional suppliers like Indonesia, Sumatra and Sri Lanka, due to the tsunamis that affected the harvest at the end of last year.


The FAO estimates that the damages caused by the tsunamis to the rice fields in those countries should cause a 14.6 million ton reduction in the crop, equivalent to 2.4% of the world harvest this year.


According to Marco Aurélio Tavares, who is also a councillor at the Rio Grandense Rice Institute (IRGA), the drought in the state will not alter the product export forecasts.


“Rice losses caused by the drought had already been calculated when we prepared our export forecasts for 2005,” stated Tavares, who estimated a 10% loss in the harvest. The initial forecast was for a harvest of 6.3 million tons.


Partnership


The increase in Rio Grande do Sul rice exports started in 2003, when the IRGA, Federarroz and the State Agriculture and Supply Secretariat prepared a joint strategy to stimulate foreign sales of the product.


In 2003, cooperatives started sending 10% of the rice production of their associates to the foreign market. For this purpose, they established an export pool coordinated by the Federarroz. The cooperatives answer, annually, to 40% of rice production in Rio Grande do Sul.


Export was one of the exits found by the farmers to reduce losses caused by the arrival of Uruguayan and Argentine rice on the Brazilian market which, due to the Mercosur, the customs union between Brazil, Argentina, Uruguay and Paraguay, arrives in Brazil at being less taxed than the Brazilian product.


Taxes paid for the import of rice from Uruguay are 14%, whereas from Argentina they total 16%. Taxes on the Brazilian product are as high as 40%, reducing the competitiveness of the product when compared to that produced by neighbouring countries.


ANBA – Brazil-Arab News Agency
www.anba.com.br

Tags:

Ads

You May Also Like

Lula Has a Word to Describe Brazil 2010: Extraordinary

Talking about the measures announced last week by his government's economic team, Brazilian president ...

English for Brazucas 4

What Brazucas call bife is actually uma posta de carne and may be prepared ...

Brazilian Chicken Exports Grow 13% While Beef Exports Fall 28%

According to figures released Friday, June 27, by the survey Statistics of Animal Husbandry ...

Fueled by Ethanol and Phone Rates Brazil’s Inflation Goes Up to 6.30%

Mid month thirty days consumer prices index in Brazil accelerated to 0.28% during August ...

Brazil Discovers Its Faces and Is Making Money Out of It

Cave paintings are on the ceramics produced by artisans from the city of Serra ...

Cuba's Fidel Castro with Venezuelan President Hugo Chavez

US-Brazil Biofuel Plan Will Condemn 3 Billion People to Death, Says Fidel

In his first two articles in the Cuban Communist Party’s newspaper, Granma, since becoming ...

Minas, Brazil: Land of Martyrs and Churches

Tiradentes and Aleijadinho are two Brazilian heroes from the state of Minas Gerais. One ...

Brazil Sounds Alarm: If Dollar Keeps Falling We’re Ruined

Guido Mantega, the Minister of Economy of Brazil warned this Tuesday, August 5, that ...

Brazil Top 10 in Entrepreneurship. 13% of Brazilians Have Own Business

In 2007, Brazil has come closer to the main countries in entrepreneurship in the ...

Brazil Nabs 70 from Spyware and Phishing Scheme Gang

The latest operation by the Federal Police in Brazil was called Galacticos, the same ...