Wheat production in Santa Catarina should be 38% higher this harvest

The 2022/23 wheat harvest in Santa Catarina should be 480,7 thousand tons, a volume 38% higher than in the previous cycle, when the state produced 347,8 thousand tons. The increase reflects the 36% growth in the planted area, from 102,8 thousand hectares to the current 139,7 thousand hectares. This is one of the highlights of the January Agricultural Bulletin, published monthly by Epagri/Cepa with an analysis of the main agribusiness production chains in Santa Catarina.

Wheat productivity also grows by an average of 2%, rising from 3.384 kg/ha to 3.441 kg/ha. In the last six years, wheat production in Santa Catarina grew 196%, while national production grew 76%.

In December, the average monthly price paid to wheat producers in Santa Catarina was R$ 90,43 per 60 kg bag, a negative variation of 5,33%. In the annual comparison, in nominal terms, prices received in December this year were 4,3% above those recorded in the same month of 2021.

Rice

The current estimate by Epagri/Cepa points to a production of 1.238.587 tons of rice in the 2022/23 harvest in Santa Catarina, a small decrease of -1,07% compared to the previous cycle. Productivity should be 8.424 kg per hectare, a reduction of -0,71% compared to the last harvest, when it was above average. Highlight is the delay in the crop cycle, caused by the prolonged cold period. Low light concerns producers regarding productivity and grain uniformity. Harvesting has started in some areas of the state, especially the North Coast, but with the cycle delayed, the percentage is still very low.

The rice market closed 2022 with rising prices, both in Santa Catarina and Rio Grande do Sul. The scenario was very different from that observed at the beginning of that year, when excess supply generated concerns about producer prices. Despite the recovery in prices in 2022, the gross margin was negative. This is because production costs have increased significantly, especially those related to inputs, such as pesticides and fertilizers.

In 2022, Santa Catarina exported US$4,08 million in rice, which represents 8,6 thousand tons and around 54% of the value exported in 2021. Imports of the grain in the State were 28,06 thousand tons, the equivalent of US $12,7 million.

Bean

Epagri/Cepa estimates that Santa Catarina will harvest 59.565 tons of beans in the first 2022/23 harvest. This number is 11% higher than in the previous cycle. The growth is despite the expected reduction of 14% in the planted area. This is because the last harvest was strongly affected by drought, which compromised that year's production. Likewise, a 29% growth in productivity is expected. This increase also reflects the frustrating result in productivity in the 2021/22 harvest.

The average price of carioca beans in the Santa Catarina market reacted in December, with growth of 33,59% compared to November, closing at a monthly average of R$301,37 per 60 kg bag. Black bean prices also grew by 23,13%, closing the monthly average at R$224,10 per 60 kg bag. Compared to a year ago, the prices for a bag of carioca beans, in nominal terms, are 39,13% above what was paid in December 2021. For black beans, there is a decrease of 5,7%.

With the evolution of planting operations in all producing regions, this phase is technically over.

Corn

Epagri/Cepa technicians updated the corn production estimate in Santa Catarina, in the 2022/23 harvest, from 2,7 to 2,6 million tons currently. Climatic factors already influence the expectation of initial production, in particular, the prolonged cold and drought that hit the Far West and the Uruguay River Valley region in December.

Producer prices recovered from August to December in the state. The market is paying attention to two prevalent factors: weather conditions in the current summer harvest in southern Brazil, and the pace of grain exports from Brazil. A full version of the Bulletin provides an analysis of price developments in 2022 and future market perspectives.

Corn silage

Epagri/Cepa estimates maintain a projection of recovery in corn production for silage purposes in Santa Catarina in the 2022/23 harvest. This scenario appears despite the drought in the Far West in the first half of December. The silage market is growing in Santa Catarina.

Soybean

The estimate for the 2022/23 soybean harvest in Santa Catarina was raised in the January update, exceeding 2,63 million tons, higher than the initial forecast, which was 2,61 million tons. Growth should occur despite the expected productivity of crops due to unfavorable weather conditions. The cultivation area remains at 730 thousand hectares, with the expectation of incorporating areas.

The factors that prevailed regarding the oilseed market in November and December were: the climate in southern Brazil and Argentina, which could impact production potential, and the global macro scenario of the economy. O Agricultural Bulletin January brings an analysis of market developments in 2022.

Garlic

Santa Catarina's garlic crop has already been fully harvested, with an estimated production of 16.201 tons, productivity of 10.873 kg per hectare and a planted area of ​​1.490 hectares.

Sales opened at the end of December and should last until June. In relation to the price paid to the producer, the opening of commercialization of the harvest in the state registered, in December, prices of R$ 6,00/kg for garlic classes 2 and 3. For garlic classes 4 and 5, R$ 11,70/kg; for classes 6 and 7, R$ 14,00/kg. These are prices paid to the producer that are above the estimated average production cost for the state.

In December, 18,38 thousand tons of garlic were imported. The volume internalized in 2022 was 119,59 thousand tons. Compared to 2021, the reduction was 4,8%, when 125,58 tons were imported.

Onion

The Santa Catarina onion harvest is approaching its end. According to a survey by the Epagri/Cepa Safras Project, just over 514 thousand tons of onions should be produced in Santa Catarina in the 2022/23 harvest, a volume higher than the 2021/22 cycle, when almost 496 thousand tons of the vegetable were produced. The performance keeps the State as the largest onion producer in the country, accounting for around 30% of the national total.

Sales continue at a normal pace, with market prices lower than in November and early December. With the entry of harvest production from the South, supply became more balanced with demand, bringing prices to more real levels, but still above the estimated average production cost for the state.

In 2022, the imported volume was 150.524 tons, with Argentina being the main supplier, followed by Chile. This year's average price is US$0,27/kg (FOB) – an increase of 17,39% compared to the average price for 2021.