June 7, 2013

Peru's 2013 cereal production slightly decreases

Peru's 2013 aggregate cereal production is forecast to decrease slightly from the record level of the previous year to about five million tonnes.

The decline is mainly driven by a contraction in rice production due to a reduction in plantings in response to lower producer prices at the beginning of the season, reports the FAO.

Abundant supplies of rice from the 2012 bumper crop and increased imports resulted in difficulties for marketing the crop and put downward pressure on prices.

The 2013 paddy rice output is officially forecast at 2.8 million tonnes (1.9 million tonnes, milled basis), 5% below the 2012 level. To address the oversupply market situation, the government is promoting rice exports to neighbouring Andean countries, while encouraging farmers to replace rice with corn.

The 2013 aggregate corn output, mainly hard yellow corn for feed, is anticipated slightly up from last year's level to a new record high of 1.7 million tonnes. This reflects higher plantings, in response to strong demand from the feed industry, and good yields due to favourable weather conditions during the main cropping season.

Cereal imports in marketing year 2013 (January-December) are expected to remain at the high levels of 2012, around four million tonnes.

Corn is partially imported and despite this year's good production imports are anticipated to remain firm reflecting sustained demand from the feed and poultry industry.

Wheat is almost totally imported and this year's volumes are forecast to remain stable at around 1.7 million tonnes. Relatively minor rice imports are forecast to decline in 2013.