Brazilian onions filling gap in neighboring countries’ markets

In the onion-producing regions of Bahia and Pernambuco, prices bounced back this week (August 19-23) after weeks of slips. A constant growth in output in both areas inundated the market with onions, resulting in substantial price drops—not only locally but throughout Brazil. However, this week stunned traders as shipments increased compared to prior weeks, owing to a significant volume of onions sent to neighboring nations such as Argentina, Paraguay, and Uruguay, which drove demand in the home market.

Earlier this year, Argentina exported a significant portion of its onions to Brazil. Typically, northern Argentina supplies its domestic market at this time of year, but delays in their harvest created a supply gap that Brazilian onions are now filling.

In addition to the Northeast, growers in the Cerrado region (Minas Gerais and Goiás) and São Paulo have also been exporting onions to South American markets. According to Comex Stat data, nearly 5,500 tonnes of onions were shipped in July, a staggering 664% increase compared to the 774 tonnes exported in the same month last year. Expectations are high for the August data, set to be released in early September, which could show an even higher volume.

Another factor behind the price recovery in the Northeast is a temporary dip in supply from Goiás, redirecting a significant amount of onions from the northeastern regions to the Cerrado. This shift pushed the average price of hybrid yellow onions in Irecê to R$39.80 per 20-kg sack, a 13.7% jump from the previous week. Meanwhile, prices in the São Francisco Valley rose by 24.2%, reaching R$37.25 per 20-kg sack.

Source: HF Brasil

Original text available at: https://www.hfbrasil.org.br/br/cebola-cepea-precos-subindo-em-plena-safra-exportacoes-favorecem-produtor-brasileiro.aspx

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