São Paulo – Jordan and Saudi Arabia, alongside six other countries, will be targeted by a program aiming to boost rice exports from Brazil. The project is part of a strategic planning-oriented agreement between the Brazilian Export Promotion Agency (Apex) and the Brazilian Rice Industry Association (Abiarroz). The list of target countries also comprises Angola, South Africa, Nigeria, Spain and Cuba. One last country remains to be selected.
“We started with a list of 20 countries and considered, among other issues, the countries’ total rice imports, the rate of growth of imports, Brazilian exports, the main competitors in each market, eventual tariffs imposed on Brazil, food consumption and other variables, such as flours, oil, the countries’ rice productions, GDPs, and local populations,” says Abiarroz’s executive director Andressa Silva. According to her, all of these items were considered, as well as the Brazilian rice industry’s perception of the countries.
The project aims to increase Brazilian rice exports, because there is a growing production surplus in the Mercosur. Because it is the largest consumer market and has a price guarantee policy, Brazil ends up keeping what the other Mercosur countries are unable to export. “The idea is to devise a program that will enable control over surplus and exports, so as to prevent a surplus production on the domestic market, which would lead prices to drop, “says Silva.
Brazil produced 11.9 million tonnes of rice in the 2011-2012 crop, according to figures of the National Supply Company (Conab). Domestic consumption amounts to 12.5 million tonnes and imports amount to 800,000 tonnes. In the previous crop, production reached 13.6 million tonnes, consumption reached 12.5 million tonnes and imports reached 750,000 tonnes. In the 2009-2010 crop, 11.6 million tonnes were harvested.
The idea of a rice exporting project arose out of discussions between Abiarroz and Apex. In April this year a buyer project was held, in which business matchmaking rounds were promoted with importers from nine different countries. As a result of the meeting’s success, says Silva, the Apex proposed an agreement to design a strategic plan for the industry, by carrying out studies based on which to set targets and actions to internationalize rice farmers’ products.
The first phase of the project has already taken place in October, through the setting of a future view for the industry, domestic and foreign environment analysis, a survey of opportunities and threats, strong and weak points, setting of priorities, etc. The second phase, carried out this month, consisted of setting target markets at which to implement promotional actions for Brazilian rice. First, companies in the industry named 20 countries, and then the Apex conducted a commercial intelligence study to narrow them down.
The project will last six months, during which industry studies will be carried out on the selected countries, and projects will be created setting forth targets and actions to be implemented. Actions may include matchmaking rounds, participation at international fairs, and overseas product image promotion, among others.
*Translated by Gabriel Pomerancblum
