The UN reports that rice prices went up globally in July and this increase also touched Brazil. The Food and Agriculture Organization (FAO) tracks these changes monthly.
In August, the global rate rose by 10%. In Brazil, the increase was 5%, in terms of dollars.
Rice costs in Brazil have jumped 30% over the past year. According to FAO, per ton, the price went from US$550 to US$716.
Brazil produces enough rice for its own needs. However, some of this crop gets exported. To meet local demand, Brazil also imports rice.
For 2023, Brazil’s expected rice harvest is 10 million tons. Exports will make up 1.7 million tons of this.
The upcoming harvest will be 7% smaller than the last one. This drop is due to 8.5% less land being used for rice.
Rio Grande do Sul leads in Brazil’s rice production. This state alone contributes about 70% of it.
Santa Catarina is the next big producer, adding 12% to the total yield. These southern states provide 83% of all the rice grown in Brazil.
The Northeast comes second, with around 9% of the national output.
Background
Brazil has a long history of rice farming. It’s a staple food in the country’s diverse cuisine. In the past decade, Brazil has worked to boost rice yields.
Technology and better farming practices contributed to this. Yet, global factors like climate change can disrupt this progress.
Price hikes affect not just farmers but also consumers. High prices can make basic meals more expensive for average Brazilians.
Policymakers must balance export gains with domestic needs to keep rice affordable.