FOOD SECURITY SNAPSHOT
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The 2012 main season rice crop adversely affected by pest attacks and heavy rains
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Cereal imports to remain steady
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Rice prices on the increase
The 2012 main season rice crop affected by pest attacks and heavy rains
Harvesting of the 2012 main season’s rice crop, which represents about 60 percent of the aggregate national output, is about to be completed. In late May and June the crop was hit by a plague of snails which it is estimated to have sharply reduced yields. Earlier in the season, heavy rains severely affected the main growing areas in the provinces of Guayas and Los Ríos and the area lost to rice was officially estimated in late April at about 22 000 hectares, or approximately 6 percent of the annual national area planted to rice. The Government is currently distributing agricultural input packages that include rice, maize and soybeans seeds, and fertilizers to the worst hit provinces and is taking measures to prevent the spread of the snail plague to the secondary season crops, currently being planted. Assuming normal growing conditions during the secondary season, the 2012 rice aggregate output (main and secondary season) is tentatively forecast at 1.4 million tonnes or 5 percent below the drought-reduced level of 2011.
Damages to 2012 maize crops caused by the torrential rains earlier in the year were not severe and the 2012 production forecast points to an increase of 8 percent compared to last year, mainly reflecting higher plantings and yields compared to 2011.
Cereal imports to remain steady
The country heavily depends on wheat imports to satisfy its domestic demand and imports are forecast at around 545 000 tonnes in 2012/13 marketing year (July/June), close to the levels of the past few years.
Despite the good output anticipated in 2012, maize imports are expected to remain at about 500 000 tonnes in 2012/13 (July/June) marketing year (July/June), in response to the increasing demand from the animal feed industry.
Rice prices on the increase
Prices of rice increased in the past few months reflecting deteriorating prospects for the 2012 main season’s rice crop. In Quito, rice prices in the first weeks of July averaged USD 1.02 per kg and were 20 percent higher than a year earlier. The Government announced in July the distribution of 1 400 tonnes of rice in selected markets to be sold at USD 0.7 per kg.
By contrast, prices of yellow maize have declined markedly in the past three months with the arrival of the new harvest into the markets and prices in the first weeks of July were below their levels at the same time a year ago.