Minimum price of grapes for juice and wine increases in the 2020/21 harvest

From January 1st next year, the minimum price for industrial grapes will be R$1,10/kg for the 2020/2021 harvest. The new price is intended for the states of the South, Southeast and Northeast regions for grapes intended for the manufacture of juice, wine and other derivatives (with 15° glucometric).

The adjustment will be in force until December 31, 2021, as provided for in the Ordinance No. 351, published in the Official Gazette of the Union this Monday (9).

The new price, set on October 22 by the National Monetary Council, takes into account the variable production costs of crops, in addition to considering other market indicators. The National Supply Company (Conab) prepares a study on the price through a panel involving farmers, input retailers and industries.

 “This increase was driven mainly by the rise in the price of pesticides and labor", explains Sílvio Farnese, director of Marketing and Supply at the Ministry of Agriculture, Livestock and Supply.

The minimum price is the reference value guaranteed by the government in the Minimum Price Guarantee Policy (PGPM). It is price insurance for the producer at zero cost and a relevant tool in planting decisions. It plays a prominent role as a mechanism for guaranteeing part of the producer's revenue, especially in the event of a price crisis that compromises the economic viability of the activity.

In the 2019/2020 harvest, grape production was approximately 1,4 million tons, considering grapes for industry and table, according to data from IBGE (Brazilian Institute of Geography and Statistics). Processing in this harvest for the production of wines, juices and derivatives was close to 800 thousand tons. In the case of grape cultivation for industrial purposes, it is estimated that the participation of the state of Rio Grande do Sul is greater than 90% of the total produced in the country.