In the last harvest in Uruguay, the margin of rice producers improved by US$ 400 per hectare

The recent rice harvest in Uruguay presented significant challenges due to adverse weather conditions. The lack of water in the dams at the beginning of the harvest caused a reduction in the planted area, while excess rain delayed the harvest and caused total losses in some farms. According to the Rice Growers Association (ACA), these adverse weather conditions resulted in an approximate loss of 400 kilos per hectare. Despite these setbacks, falling global rice stocks and export restrictions from India have kept international rice prices on the rise. In this context, more than 70% of the harvest has already been sold at very high prices. This scenario led the industry and producers to agree on a provisional record price of US$17.15 per 50-kilo bag of rice. According to an analysis published by Exante, “high prices allowed maintaining very good margins in rice cultivation, despite production costs that remained high.” The consulting firm projects ...