Uruguay has the largest area of rapeseed planted in South America
Uruguay stands as the country that sows the largest rapeseed area in South America, exceeding 250 thousand hectares planted this year, and placing the oilseed above cereals better known by the national field such as wheat and barley.
Encouraged by European demand and the international market, producers achieved this record mark during the winter, however the agricultural emergency of water deficit has hit the expectations projected at the beginning of the year.
Read also: Check out our coverage on Uruguay
With some crops more or less relevant at the beginning of the new millennium, the first movements of some importance in the rapeseed market in the country began in 2012, destined for the production of biofuel by Alur (Alcoholes del Uruguay), subsidiary of the Ancap Group.
Some time later it would begin to be seen as an exportable product, and specific commercial plans would begin to be drawn up for the business, with the European market as an almost exclusive destination reference, something that allows producers to enjoy an idea of prices stable in the long term and solid in commercial matters, taking into account that said market pays very well, but has high demands in terms of quality.
The International Futures Market of France was used as a reference for the price of the plant, leaving aside the price of soybeans in Chicago, which was used locally by Alur due to the novel nature of the oilseed.
The quality requirements of the European market have to do with the MRL, that is, the maximum residue limit, which mainly examines the existence of traces of agrochemicals, and which has in turn generated a change in the contemplations of the products to be used during its production and drying, seeking to meet international standards and requirements.
Estimates indicate that Uruguay will export around 300,000 tons of rapeseed mainly to the United Kingdom, and is in search of new market openings, such as the Chilean or Mexican, to continue in a position of relevance within a continent. which presents Paraguay with a planting of between 40,000 and 50,000 hectares, as the closest competitor, Chile between 35,000 and 40,000 hectares, and Argentina with some 15,000 to 20,000 hectares planted.
With information from ámbito
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