Government readjusts the minimum price of grapes by 11,96%

The Ministry of Agriculture, Livestock and Supply readjusted the minimum price of industrial grapes for the 11,96/2018 harvest by 2019%. The value went from R$0,92/kg to R$1,03/kg. Measure (158 Ordinance) was published in the Official Gazette of the Union this Friday (18) ) and is in force in the states of the South, Southeast and Northeast regions, until December 31st of this year.

The studies carried out by the National Supply Company (Conab) to support the definition of the new price considered the variable cost of production in relation to the cost recorded in the previous harvest as the main parameter. The increase was driven mainly by the rise in the price of agricultural pesticides and labor.

National production in the 2017/2018 harvest reached 1,4 million tons, according to data from IBGE (Brazilian Institute of Geography and Statistics). The South region is the country's main supplier of grapes and derivatives, with a share of more than 64% in Brazilian production. Rio Grande do Sul is the state with the largest production, around 663,2 thousand tons, destined for the production of wines and derivatives (50%) and juices and derivatives (50%).