Ecuador: Grain Production To Climb

Posted by Matt Hopkins|1 April 2008

High international prices are leading to increased planting areas in wheat, corn, and rice, according to the US Dept. of Agriculture’s Foreign Agriculture Service (USDA-FAS).

Wheat production is expected to increase to 6,000 metric tons (MT) as farmers are motivated by international prices. This production level is still not sufficient to meet the current demand.

Corn production is expected to grow significantly, by as much as 9.5% to 440,000 MT due again to positive world prices. Local farmers are keen to grow more corn, as they know the government will promote a high absorption price for the 2008 harvest.

Rice production will increase by 5% to 520,000 MT in 2008. Despite high prices and sustained demand for Ecuadorian rice from Colombia, USDA-FAS estimates only a small growth in production due primarily to adverse climatic conditions during the first two months of 2008 and the disincentive of export bans in place since late 2007.