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Ecuador Feed Production Expected to Increase

20 March 2013, at 10:36am

ECUADOR - Wheat production in Ecuador is expected to remain around 9,000 million tons (MT) again this year, despite Ecuadorian government incentives for domestic wheat. Domestic production levels are still insignificant compared to current demand.

In Marketing Year (MY) 2012/13 (July 2012-June 2013), it is estimated that imports will increase to 585,000 MT in response to population growth and demand from the aquaculture feed industry.

The market share for exporting countries seems to be showing signs of a shift from Canada to the United States. Canada remains the largest exporter.

The US market share increased from 19 per cent in 2011 to 33 percent in 2012. Ecuador uses the US dollar as its currency.

Given the recent strength of the Canadian dollar, this tends to benefit imports from the United States.

Corn production is expected to increase by about 15 percent in MY2012/2013 (May 2012-April 2013) due to favorable weather conditions. In 2013, annual consumption is expected to increase to 1.41 million MT.

Imported corn is used mainly by the feed meal compound industry and the related poultry, egg, and pork industries. Post projects that corn imports will decrease to decrease to 400,000 MT in MY 2012/13 due to increased domestic production.

The United States did not supply any significant amounts of corn. Argentina is the primary source of imports. Milled rice production will increase to 775,000 MT in MY 2012/13 (April 2012-March 2013). Ecuador has steadily been increasing rice production, but bad weather may affect yields.

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