Rice production situation in Entre Rios Province, Argentina

Covid-19 did not affect rice severely as both the world and local demand increased thus encouraging prices. In spite of those favorable conditions, production costs are still very high and close to selling prices. The indifference yield (the production that would cover the total costs of the crop per unit area, including marketing and harvest, to obtain a Gross Margin equal to zero) is 7.5K to 8K kg/hectare while the national average is 6.2K to 6.5K kg/hectare.

The area planted with rice last season was the lowest in 25 years but the paradox is that now the crop is rather scarce when the equation for rice improved a little in Argentina due to the rise in prices and the freezing of tariffs. The relationship, especially in irrigation, has settled down a bit: before, 3 or 4 kilos of rice were needed to buy 1 liter of diesel and now 2.5 are required (the ideal was always 2 to 1). Diesel is important since it feeds the pumps required to irrigate the rice fields that need to remain flooded for long periods of time.