Uruguay Agriculture Profile 2012

Reference Date: 13-June-2011

2011 rice crops expected at record levels

The harvest of the summer cereal crops, mainly rice, has just been completed. Early estimates indicate that rice (paddy) production will total 1.65 million tonnes, 44 percent more than in 2010 - an all time high level. Despite dry weather in the north of the country in December at the end of the sowing season which led to crop losses, subsequent favourable rainfall filled the irrigation basins. Particularly favourable weather conditions during the period of growth of the crops made it possible to gain an excellent yield of 8.4 tonnes per hectare, while the area sown increased by 18 percent to 195 000 hectares - the largest area recorded since 2000. Uruguay exports around three-quarters of the rice it produces and it is expected that levels exported will increase substantially in 2011.

Record area of wheat expected in 2011/12

The 2011/12 wheat crop is currently being sown. Early estimates indicate a 25 percent increase in the area sown compared to the 2010/11 season in response to high prices on the international market. Assuming normal yield and weather conditions, wheat production for the next season could reach 1.4 million tonnes - 11 percent more than the amount reached last year.

Wheat flour prices high

Prices of wheat flour have been increasing since mid-2010 due mainly to the reduced wheat production last year and the increase of prices in the international market. In April 2011, prices were 12 percent higher than they were at the same month last year. Prices of rice, on the other hand, remain stable. High prices of wheat flour and other foods are causing inflationary pressure on the economy. The government has postponed the increase in tariffs of basic services in order to contain inflation.

06/12/2010  2010 wheat production below the 2009 record levels but above average
The 2010 winter cereals harvest, mainly wheat and barley, is underway. There is expected to be a sharp decline in output from the record 2009 levels as a result of a significant reduction in sown acreages. The reduction in the acreages under wheat is put at 13 percent, or 70 000 hectares less than last year, down to 488 000 hectares. For barley, the reduction is more marked, reaching 50 percent, down to 28 000 hectares, the lowest in the past decade. The smaller area under cereal cover is due to the wet weather at the time of sowing and the fact that in the first season more soybean was sown, offering greater returns.

Provisional forecasts indicate a 31 percent decline in wheat production from the 2009 record harvest. Nevertheless, the predicted 1.25 million tonne harvest would still be far above the average level of the past five years.

Maize and rice sowing is underway
Good rainfall in the first decade of November improved the soil moisture content following the below-normal rainfall in October. It is expected that 99 000 ha will be sown with maize, slightly less than last year's high level which produced a record output. Less rice may be sown in this season because of the late rains.

2009/10 cereals exports at record levels
Cereals exports in the 2009/10 commercial season stood at about 1.9 million tonnes, some 43 percent above 2008/09 and up to 73 percent over the average of the past five years. The Government of Uruguay estimates that the economy will expand this year by 4 percent, driven, among other things, by increased cereals exports.

Cereals prices remain stable
Wheat flour, bread and rice prices remain stable or are falling because of the unprecedented high wheat production in 2009 and the good 2010 rice harvest.
 

75% of the land of Uruguay is used for grazing, and the raising of cattle and sheep is a major economic activity. Beef, milk, and wool are the main livestock products. Meat and other processed foods, wool, hides and skins, and leather goods make up most of Uruguay's exports. Uruguay's crops consist mainly of grains, chiefly wheat, rice, sorghum, and corn. Fishing is of increasing significance.