Rice cultivation performed at Salitre Cue is a step-by-step production until harvest and post-production activities took place. From the moment land is being prepared until harvest is taking place 9 months elapse.

The fields are currently in the peak period of irrigation which takes around 90 days and 1,500 hectares are under irrigation as you can see.

Paddy crop is strongly influenced by water supply and water should be kept standing in the field throughout the growth period. Continuous flooding helps ensure sufficient water (elimination of moisture stress and favourable micro-climate to crop production) with greater availability of nutrients such as phosphorus, iron and manganese and control weeds.

You can see the quality of the taipas build thanks to Real Time Kinematic (RTK) technology using GPS guidance (dig irrigation channels build around the edges of the field with the tractors on autopilot).

You can have a complete overlook of the adjusted irrigation system, fully operational. Water is being pumped directly from the river Tebicuary from our main pump station and being redistributed in the irrigation system. In case of low level of the river, our artificial lake of 480 hectares size full of water.

While we are in the sowing peak, continuous rains keep slowing down rice planting progress. After having faced some water shortage (low river level due to lack of rainfall in southern Brazil) and dry soils from the summer period, all crop farmers have to deal with the opposite situation now. In September, we registered 185 mm of rain (+44% compared with the historical average of the month) and already 226 mm as of October 18.

For rice sowing, the problem is not so much the amount of rain but its frequency. In September, we had rain every 3 to 4 days and the trend is the same so far for October where heavy rains are providing in a short period of time (from 2 hours to 1 day) a very large amount of water (100 mm or more).

After heavy rainfalls, we need 48 hours to drain the plots

Rice sowing requires dry soils so after each rain, we have to wait until the land dried and allows sowing. This induced very slow advances in sowing. However, we are still in the optimal sowing period until end of November and knowing that in optimal conditions, we have a daily sowing capacity of 80 ha.

Our situation is not unique and according to preliminary estimates of the Paraguayan grains and oilseed traders association (Capeco), the heavy rainfalls registered should reduce at least by 25% wheat harvest and soybean seeding could not started yet given the high soil humidity.

For the 1st plots already sowed, herbicides and nitrogen were already applied (nitrogen is the most important nutrient for rice productivity as it encourages the vegetative growth of paddy). You can see emerging the seeds and taking benefit from the natural irrigation supplied by rainwater.

Following the closing of our latest harvest and as mentioned previously, we took advantage of this time to perform some adjustments and maintenance in the irrigation system as rice is a culture of precision. The aim of those adjustments are to optimize water flow while reducing as much as possible water losses and electricity consumption required to pump and distribute water in the fields. You can find below some sample of the work which has been performed. In parallel, we moved forward with all pre-sowing requirements (land preparation, seeds, levelling of the taipas, purchase and import of high quality seeds, etc).

Resize of the irrigation pool at the water re-pumping station where we added also in back-up a 2^nd pump coming from the main pump station

Irrigation channel #5 which has been upgraded

New electricity lines and power transformer installed at water re-pumping station

Progressive water filling of the artificial lake (468 ha size) dedicated to store water in case of low level of the river

Cleaning of the water channel access from the river to the main pump station

On September 10, we began with the sowing period. Our objective for the cycle is to sow around 1,600 ha and so far, only around 400 ha have been sowed due to repeated rain events. Rice sowing requires dry soils so after each rain, we have to wait until the land dried and allows sowing.

Furthermore, we choose not to extend significantly our planted surface this cycle given the fact that Brazil plans to reduce its imports by protecting its internal market. Brazil reactivates domestic support programs:

Over the years, Brazil has used various domestic support programs when corn, wheat, and rice commodity prices are low, and for the first time since 2011, they have authorized the use of two programs for rice: Premium for Product Outflow (PEP) and Equalization Premium Paid to the Producer (PEPRO)

The purpose of these programs is to move commodities from high producing areas to any of the ten grain-deficient states in the north of Brazil. The program is not prohibited from fuelling exports, however when used this way, it is a World Trade Organization (WTO) violation and Brazilian rice enjoys a clear and unfair advantage.

The programs are similar in nature in that the Brazilian government guarantees a minimum price to producers by paying the difference between the prevailing market price and the government-established minimum guaranteed price, either to the commercial buyer (PEP) or directly to the producer (PEPRO).

As most of our paddy rice production is ultimately sold to Brazil, we decided not to increase significantly the sown are (≥ 2,000 ha) and maintain our so called “base planted area” of around 1,600 ha.

For now on, the 1st plots sowed have already seed emerged as you can see. Arial application of herbicide and fertilizer have also been performed, and irrigation of those plots is imminent.

Otherwise, weather forecasts are not expected to improve during the 1st 2 weeks of October and rains may continue to slow sowing progress of the raining surface.

Fields after several rainfalls occurred during last week of September

This current weather situation is in line with the prediction expressed by the World Meteorogical Organization (WMO) regarding the development of  El Niño phenomenon for our region by the fourth quarter of the year. For your reference, El Nino is a global weather phenomenon which has a strong impact on wind and on water and we hope that the phenomenon will not have the same intensity then in 2016.

On the positive side, the regular rains registered have allowed the water levels rose in the river to their standard levels and contributes naturally to fill the reservoir. However, current efforts of the operating team are focused on the sowing.

While the inauguration ceremony of the new President of Paraguay, Mario Abdo Benitez, took place on 15 August where he announced that his main objective would be to tackle tax evasion and informality, our seeds which we import from Argentina have been delivered to the farm and stored.

Since the beginning, we are intentionally importing our seeds to ensure better traceability and quality. This year production is dedicated 100% to IRGA 424 cultivation over 1,500 ha.

Seed is a living product that must be grown, harvested, and processed correctly in order to realize the yield potential of any rice variety. Good quality seed can increase yields. Using good seed leads to lower seeding rates, higher crop emergence, reduced replanting, more uniform plant stands, and more vigorous early crop growth. Vigorous growth in early stages reduces weed problems and increases crop resistance to insect pests and diseases. All of these factors contribute to higher yields and more productive rice farms.

Good seed is pure (of the chosen variety), full and uniform in size, viable (more than 80% germination with good seedling vigor), and free of weed seeds, seed-borne diseases, pathogens, insects, or other matter.

Choosing seed of a suitable variety of rice that suits the environment it will be grown in and ensuring the seed choosen of that variety is of the highest possible quality is the essential first step in rice production.

Next step will be to full fill our artificial lake of 480 ha with water in case of an extended period of low level of the river. To this aim, we hope that the current low water levels along the Parana river and its tributaries like the river Tebicuary upon which we rely will reverse.

Low water level in the Parana River is causing exporters in Argentina to dispatch vessels without a complete load of grain or other products and increasing freight costs. The summer-long drought in Argentina and a lack of rainfall in southern Brazil is resulting in the lowest water level on the Parana River since 2008.

It takes approximately 30 days for rainfall in southern Brazil to make its way to the Roasrio area. Additionally, the water level in the lower Parana River is also partly determined by the dams and reservoirs on the upper reaches Parana River located primarily in Brazil.

While soybean grain exports have decreased by 2.5% in the first half of 2018 compared to the first half of 2017 due to the drought, a 15% drop in international prices on the Chicago Stock Exchange and the reduction of shipments on the Paraná River, whose water level fell, rice exports have increased by 60% over the same period of time.

Over the past decade, Paraguay’s rice production has quadrupled. Paraguay’s recent dominance of the Brazil rice import market has caused Uruguay and Argentina to find new markets in Latin America, Africa, and the Middle East. Paraguay shipped nearly 80% of its exports to Brazil. It is interesting to note that among the major producers in South America, Brazil is the only country that not only exports but also imports rice.

Only 10 years ago, Uruguay and Argentina supplied more than 80% of Brazil’s rice imports. Last year as Paraguay’s share expanded, these 2 suppliers’ share declined to roughly 40%. However, these 2 countries have been able to capitalize on their port capacities to ship further distances and expand markets abroad (Iraq, West Africa). For instance, Peru is now the top export market for Uruguayan rice. They also have seen considerable growth in their exports to traditional U.S. markets such as Mexico and Costa Rica.

This season, we started very early with land preparation of the fields. Land preparation is important to ensure that the rice field is ready for planting. A well-prepared field controls weeds, recycles plant nutrients, and provides a suitable soil surface for direct seeding.

Land preparation covers a wide range of practices from zero-tillage or minimum tillage which minimizes soil disturbance through to a totally ‘puddled’ soil which actually destroys soil structure.

In order to optimise field-level management, we have adopted Real Time Kinematic (RTK) technology using GPS guidance systems to ensure we have the most accurate picture of the field and achieve the highest level of precision to create an accurate well balanced design. Basically, topographical data collected are then processed with a specific software to build optimal dig irrigation channels around the edges of the field with the tractors on autopilot. The system not only offer higher accuracy but also higher quality constructions while reducing the amount of time it takes to complete our land-leveling operations. All those information can also be reused for future seasons.

The use of the agricultural precision tool helps to ensure optimal water management by providing improvements in yields, water usage, and farm productivity. So far, 1,300 ha have been prepared and dig irrigation channels have been built over 650 ha, waiting for pre-sowing herbicides.