Brazil Onion Imports Show Signs of Decline as Domestic Supply Increases – Cepea

Partial data for the first five months of 2024 reveal a substantially high onion import volume in Brazil. Still, at the turn of April to May, imports showed signs of softening. Between January and May, Brazil imported 226,500 tonnes of onions, a 176% increase from the same period in 2023. The revenue spent on these imports also saw a significant rise, up 333% compared to the first five months of the previous year.

Despite the high import volume in May, there are signs that this trend may revert as other domestic markets begin to enter the supply side. From April to May 2024, there was a 3.8% reduction in total import volume.

The chart below shows Brazil’s imports of onions, shallots, and garlic transported in containers every month between January 2021 and April 2024. The data was extracted from Datamar’s maritime intelligence service DataLiner.

Brazilian Onion Imports | Jan 2021 – Apr 2024 | TEUs

Source: DataLiner (click here to request a demo)

The productivity and quality of onions from Brazilian regions like Cerrado, São Paulo, and the Northeast have taken the hit of adverse weather conditions, including excessive rainfall and high temperatures, in the first four months of the year. However, the gradual normalization of supply is already occurring, which should limit the need for additional imports. According to Hortifrúti/Cepea employees, the number of orders at the Porto Xavier border and Argentine stocks have already decreased. Therefore, it is expected that by July, domestic markets will be self-sufficient to meet Brazilian demand.

Source: HF Brasil

Click here to read the original text: https://www.hfbrasil.org.br/br/cebola-cepea-importacoes-ja-mostram-sinais-de-diminuicao-frente-a-maior-oferta-do-br.aspx

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