Price of imported garlic drops, but value paid to national producers increases

The price survey carried out by the National Supply Company (Conab) last month reveals that the average value paid to garlic producers increased in Minas Gerais and Santa Catarina, with a slight reduction in the state of Goiás. Among the factors behind the increase, according to the study, is the off-season period that runs until mid-July in the Southeast and Central-West regions, responsible for more than 70% of garlic production in the country. Furthermore, the first five months of 2021 showed a 12,8% reduction in imported quantities, compared to the same period of the previous year.

In the case of Minas Gerais, the average price paid in May to the producer of extra noble garlic, class 5, was R$ 161,75/box, an increase of 6,5% compared to the previous month. The same comparison reveals that the increase reached 8,3% in Santa Catarina, where the price paid was R$98,81/box on average. In Goiás, the amount of R$ 138,75/box points to a drop of 0,9% compared to April. According to Conab research, even with the increases, the current numbers do not exceed the values ​​for the same period in 2019.

For consumers, the month of May also showed percentage increases. The Company's situation shows that the wholesale price of garlic, in the state of Goiás, for example, stood at R$ 217,50/cx, an increase of 17,8%. The price of national garlic, originating in Minas Gerais, was R$ 183,72/cx, that is, 2,4% more expensive than the previous month. In retail, in the city of São Paulo, there was an increase of 2,7%, following wholesale prices.

Import 

Even with the recent increases, between the months of January and May, the average price of Argentine garlic, responsible for 65,3% of the quantities imported by the country in the period, fell 28,3% compared to the average for the same period in the year previous. Garlic originating in China, responsible for 33,3% of the quantities imported by Brazil in the first five months of the year, also dropped 30,5% in prices. Comparing the two periods, there was a 20,6% reduction in the average price of the imported product when denominated in the national currency. “Wholesale prices should remain firm or rising due to the off-season in the main producing regions, which should last until mid-July and the reduction in imported quantities”, explains Allan Silveira, superintendent of Intelligence and Supply Management at Conab. “But the continuity of the pandemic, low economic activity and unemployment also lead to a tendency to reduce food consumption. The Emergency Aid program is expected to mitigate this impact on the consumer market.”

The monthly agricultural analyzes carried out by Conab provide a comprehensive overview of crops and explain how the market reached its current conditions. The parameters covered are: international and domestic market, supply and demand framework, profitability analysis, economic evaluations, agricultural policy instruments and other aspects of marketing interest.

Check it out here Conab's economic analysis for garlic and other agricultural products.