The rice farmersunlike what was estimated a few weeks ago, they fear that the sowing area of the next campaign will show a new growthas has happened in the last two years.
The current exchange rate, with a weakened dollar; the expected increase in production costs (they would advance some US$150 to US$2,185 per hectare); international prices for cereal that are not on a par with what other grains increased; and a provisional price for the rice from the last harvest that is US$0.80 per bag below the aspirations of the rice growers are the factors that explain this doubt.
The most recent
In the 2021/22 harvest, the crop was planted on 164 thousand hectares, with an average yield of 9,250 kg/ha (the second highest in history) and a production of just over 1.5 million tons.
The record area was achieved in 1998/99 with 205 thousand hectares; he yields record in 2020/21 with 9,400 kg/ha; and the record production in 2010/11 with 1,631 million tons.
The planting area, after falling to 136,000 hectares in 2019 planting, grew to 143,000 in 2020 and then to 164,000 last year.
For this year, based on inquiries made during the recent harvest, a new increase in the area was expected to advance to perhaps 175 thousand hectares, but for now that was in doubt.
HERE
Extraordinary Assembly of the ACA in Treinta y Tres.
The assembly
This Wednesday, in the facilities of the Treinta y Tres Experimental Station of the National Institute of Agricultural Research (INIA), an extraordinary social assembly was held by the Rice Growers Association (ACA), with presence and participation of remote partners.
The assembly “was very well attended, very participatory, very good”, highlighted Lago.
Alfredo Lago, president of ACA, commented to The Observer that most of the time in the assembly was dedicated to informing and discussing everything related to the provisional price that is always established at this point in each annual exercise.
He said that the industry moved a proposal of US$ 11.20 per 50 kilo bag of rice for the healthy, dry and clean productproposal that After being considered by the union board, it was not accepted..
“We understand that this price is below the reality of the business”Lago stated, based on how the rice from the last harvest has been marketed so far, the existing prospects for the second half of 2022 and also an expectation of a drop in industrial costs.
However, as it corresponds, the industrial approach was transferred to the aforementioned assembly, where the producers validated what was done by the directive, giving the same opinion, so the industry’s proposal was later formally answered with a negativewhich Lago transferred to the industrialists this Wednesday.
Based on the dynamics of negotiation between the parties in this integrated agribusiness chain, which considers a contract that contains a disagreement clause, the industry has the power to credit as a provisional price this Thursday June 30 and in favor of the producers a payment of US$ 10 per bagvalue that derives from a mathematical parameter that contemplates the antecedents.
Nevertheless, producers expect the industry to actually provide the same value that was offered, US$11.20 per bag.
The traditional intention on the part of the ACA, Lago remarked, is to arrive at the setting of a provisional price that ends up being the closest thing to the one established as definitive.
Now Negotiations between the parties will continue.Taking into account that the final value will be established after February 28, once all the data on the sale of rice produced in the 2021/22 harvest is available.
At the time, informed the president of ACA, 57% of that slightly more than 1.5 million tons produced has been sold.
Concerns about the exchange rate
Regarding the exchange rate issue, Lago stressed that in the assembly it was clear that It is a matter of great concern.“because it applies to the industrial cost for the rice that remains to be processed and also for the next harvest, we are going to have to insist with the government to see what measures can be used to mitigate this.”
