Sharp drop in onion and garlic production in Santa Catarina impacts market

Onion and garlic producers in Santa Catarina face a significant drop in production due to climate problems. The 2023/2024 harvest recorded a harvest of around 400 thousand tons of onions, marking a reduction of 27,5% compared to the previous harvest. Garlic production also suffered, with just 7,37 tonnes harvested, representing a 38,6% drop compared to initial estimates. Excessive rainfall was one of the main factors that negatively affected crops, impacting the quality and productivity of crops.

For onions, the initial estimate indicated 29,85 thousand kilos per hectare. It ended up adjusted to 21,31 thousand kilos per hectare. This decline in production resulted in an increase in imports, with Argentina being the main supplier. In January 2024, Brazil imported 5 thousand tons of onions, a significant increase compared to previous years.

Garlic production also faced challenges, with a progressive reduction in the planted area since the 2018/2019 harvest. The 2023/2024 harvest saw just 994 hectares dedicated to garlic cultivation, a drastic decrease compared to previous years. Competition with Argentine garlic and low profitability were factors that contributed to this reduction.

The government of the State of Santa Catarina took measures to support garlic producers, granting presumed ICMS credit to processing establishments. This initiative aims to improve the competitiveness of garlic from Santa Catarina on the domestic market, offering tax incentives totaling R$1,2 million per year to 299 processors. This measure, approved by the Legislature in December, is an attempt to mitigate the negative impacts faced by producers due to climate and market challenges.