Participation in the rice price agreement fell to 70% in ten years in Uruguay

Published 2024년 9월 24일

Tridge summary

Over the past decade, Uruguay's rice sector has seen significant changes, with a notable decrease in the percentage of rice sold under the traditional price setting agreement with industrialists, falling from 85% to 70%. This shift is due to the increased participation of new operators in the market, who buy rice at higher prices. However, this strategy has not significantly improved production as expected, with only 20% of the current harvest sold at the average price set by the industries. The Rice Growers Association has emphasized that producers selling outside the agreement will receive no more, and possibly less, than the agreed price this harvest, highlighting the importance of the average price agreement.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(By Diário Câmbio/Uy) Over the last ten years, the Uruguayan rice sector has gone through many ups and downs and changes in the industrial and commercial structure, to the point that the traditional agreement between producers and industrialists to set the production price has lost an important percentage share (around 15 percentage points), and the changes made this harvest to attract producers to it have not worked as expected. In the current harvest, it was possible to sell 20% of the rice shipped within the average price agreement, set at a spot price, published every two weeks by the industries. The intention of this spot price was to attract producers who sold their rice outside the agreement with the mills, which “did not react as well as we expected or thought,” said Juan Miguel Silva, director of the Rice Growers Association (ACA). The producer explained that this year there were certain situations in which this tool did not make the expected difference. “There was a rise ...

Source: Planetaarroz