Onions become cheaper wholesale after increased supply in the south of the country

One of the most important ingredients in national and global cuisine became cheaper in Brazilian Ceasas last month: onions. Prices in January showed a new drop, this time much more significant, of -35,13% in relation to the average for December 2022. The data are from the 2nd Bulletin of the Brazilian Horticultural Market Modernization Program (Prohort), released by the Company National Supply (Conab), this Thursday (16). According to the study, the price of onions decreased by at least -20% in all Ceasas analyzed. The reason for the drop in prices was the entry into the market of larger volumes of onions from the south of the country, especially Santa Catarina. In January, shipments to Ceasas from this state increased by around 25%.

Tomatoes also followed the downward trend in January. After a period of increase, prices fell again in terms of average, -6,26% compared to December 2022. However, unlike onions, the movement was not unanimous, being more significant in the wholesale market of Ceagesp/SP . A relevant factor was the greater supply of tomatoes from São Paulo, reaching an increase of almost 40% compared to December 2022. This explains the sharp drop in prices, both in the capital's market and in Campinas/SP. The summer harvest intensified with the prospect of maintaining its volumes in the markets in February.

Other vegetables, such as potatoes and carrots, showed an increase in prices. In the case of potatoes, this trend has been occurring since September/22, and in January of this year prices increased by 2,29% on a weighted average, compared to the previous month. However, the movement was not uniform across wholesale markets. The Prohort Bulletin highlights that, in this case, the supply is currently carried out by the product from the water harvest, and the excess rain in January influenced the reduction in the supply of the product, putting pressure on prices. Carrots, which went through a period of rising prices, followed by an abrupt drop and then stability at low levels throughout 2022, saw their prices rise again in January. The weighted average for the month increased 41,52% compared to the December average. In all Ceasas analyzed by Conab, total carrot movement fell by almost 10%, with a decrease in shipments from Minas Gerais and São Paulo, the main supplying states.

Fruits

In the month of January, among the fruits analyzed, bananas were the ones with the most pronounced downward movement, considering the weighted average of prices. The reduction was greater in Ceasa in Curitiba/PR and Rio Branco/AC, with drops of -20,19% and -14,52%, and prices of R$2,40 and R$1,99 per kilo, respectively. However, the Prohort Bulletin points out that the decrease occurred thanks to the dwarf banana variety, with a good supply and quality products, since silver bananas had fluctuations in prices and quantity offered.

Other fruits such as orange, apple, papaya and watermelon showed an upward trend in prices in almost all Ceasas in the country. In percentage terms, the increase was more significant for watermelon, with an increase in prices and a decrease in supply. Rio Grande do Sul was the main state producing this crop in the period considered, even with the drought that compromised part of the production. In Bahia, the second part of the harvest was delayed due to rain, and the planting of the second crop in São Paulo also did not begin, which contributed to the price increases in the last month.

Orange had small and moderate variations in prices, controlled supply due to industrial demand, in addition to rising retail demand and falling supply in the second half of the month. Apple prices continue to be high and sales have decreased due to the end of Gala and Fuji stocks. For papaya, the weighted average rose 9,64%, as although the supply of the Formosa variety increased, the papaya harvest was smaller due to the rains.

Cheapest options

For those looking for more affordable alternatives, the Prohort Bulletin also indicates some products that saw their prices drop in January. Among the vegetables sold in Ceagesp/SP, for example, the highlights in the reduction in average prices were peppers (-35%), green beans (-24%), ginger (-15%) and strawberries (-12 %). Regarding fruits sold in this warehouse, comparing the same periods, there was a reduction in prices for lychee (-51%), avocado (-46%), persimmon (-41%), jabuticaba (-41% ), lemon (-38%) and mangosteen (-34%).

The statistical data from the Conab Prohort Bulletin are collected in twelve Supply Centers located in São Paulo/SP, Belo Horizonte/MG, Rio de Janeiro/RJ, Vitória/ES, Campinas/SP, Curitiba/PR, São José/SC, Goiânia/GO, Recife/PE, Fortaleza/CE, Rio Branco/AC and Brasília/DF. The complete analyzes can be accessed in the 2nd Hortigranjeiro Bulletin February 2023, with details on the commercialization of fruit and vegetables and also information on Brazilian fruit exports.