With a scenario of apprehension among industries, the São Paulo wheat chain meets again at the end of the harvest

Approaching the end of the 2020 wheat harvest in the state, the São Paulo Wheat Sector Chamber will meet again on November 12th, from 9:30 am to 11:30 am, for the last meeting of the year, which due to the coronavirus pandemic Covid-19, will be carried out remotely.

The virtual meeting will bring together different representatives of the São Paulo wheat chain to calculate the final production figures in the state, which will be presented by the four largest cooperatives in São Paulo, Cooperativa Agro Industrial Holambra, Castrolanda, Capal and Cooperativa Agrícola de Capão Bonito.

“We expected a record volume for production in the São Paulo fields, with estimated numbers above 300 thousand tons. From the presentation of the results of the cooperatives during the meeting, we will know whether this projection came true”, says the president of the Wheat Sector Chamber of São Paulo, Victor Oliveira.

In addition, the industry's challenges in the face of the high costs of wheat will be discussed, mainly with the impacts on the exchange rate caused by the coronavirus pandemic in recent months. “There was an expectation from the industry for a drop in the price of raw materials in the months of September and October, during the harvest, however, due to a major change in the level of international wheat, combined with uncertainties in the global financial market, Covid, high dollar exchange rate and an extremely capitalized national producer, the predicted drop in wheat did not occur”, he explains.

According to Oliveira, in this scenario the industry continued to lose margins as it was unable to pass on this increase to the end consumer. “We can say that this increase in costs throughout 2020 is around 60% accumulated”, he reinforces.

So that the sector can prepare itself regarding market projections for the end of this year and beginning of 2021, the meeting also includes a presentation by COFCO representative, Maria Fernanda, on the global and national wheat situation.

“Bringing the industrial sector closer to the production sector is very important for the good development of the entire wheat chain, as we have the opportunity to share the challenges and desires of each sector, with a more concise vision of the market's progress. This meeting is an example of this, as we will come out with grain production figures in the state, in addition to understanding what the production process has been like over the last few months”, concludes the president.

Those interested in attending the meeting should access the following link available here.