Fluctuation in production and Covid 19 increase the price of beans for consumers

A survey carried out by the National Consumer Secretariat in supermarkets identified an increase in food prices across the country, especially beans, between the months of March and April.

Overall, the price of beans increased by up to 70%, a value considered abusive, with no apparent justification; According to the Consumer Protection and Defense Code, in its article 39, item

A hypothetical reason could be because of the new coronavirus and its effects on social isolation, which would be increasing production and transportation costs. This, however, is not a reason to justify the increase: the fluctuations in production still exist, to a certain extent, but transport costs were much lower than usual, with the drop in the price of fuel.

According to a technical report prepared by socio-economists from Embrapa Arroz e Feijão, Alcido Wander and Carlos Magri, the uncertainties related to the quarantine led some consumers to purchase larger quantities of the product to stock, beyond what was necessary, generating heated demand, which increased prices. .

“with social isolation and the consequent feeding of families happening at home, it caused a demand shock, causing the consumption of basic foods such as beans to be greater than it had been in other years. It is believed, however, that the desperate rush to buy is already over and people are understanding that the supply chain is normal and will continue like this, without interruptions, with no need to stock up at home”, explained Alcido Wander.

Another important factor is that the bean market is very dynamic and companies do not work with stocks, as the beans with the best culinary quality are beans sold immediately after harvest.

This way, any fluctuations or delays in the harvest, the market reacts immediately. The positive side is that at the same speed the market drops prices when supply returns to normal.

Embrapa socio-economists also highlighted that the peak demand for beans was March and April, but that over the subsequent weeks they began to fall, and possibly reached normality, especially because production and supply are continuous.

"Considering that the bean crop cycle is short, 60 to 90 days, with the launch of earlier cycle and disease-resistant cultivars, it will be possible to expand the possibilities of bean production within Brazil in terms of producing seasons and regions , so that it increases the possibility of returning to normality more quickly from situations of momentary shortages", concluded Alcido.