Brazilian rice report

Rice exports in the first half of 2009 continued to be strong. A traditional importer of rice, Brazil has become an exporter of rice in the past few years. Producers express optimism in assuming the role of one of the top second-tier exporters. While Brazil can't compete with top exporting countries such as Thailand or Vietnam, producers use exports as a hedge in price risk management. Brazil became the 8th largest exporter in 2008 with 511,000 tons and for the first half of the year sales have reached a record volume 280,000 tons, an increase of 80% compared to 2008.
Brazil exports principally in African countries such as Nigeria, South Africa and Senegal. The African countries account for 65% of imports. In spite of the strong increase in shipments the first half of the year, shipments are not expected to reach 2008 levels. In 2008, the majority of shipment occurred in the second half of the year which is not expected to be repeated in 2009 as the local currency has strengthened considerably in the past few months.