In the onion-producing regions of Bahia and Pernambuco, there was a recovery in prices during the week of August 19-23, following a period of decline. The initial drop was due to an increase in production in these areas, which led to an oversupply in the market, affecting prices across Brazil. The recent price recovery was unexpected and attributed to an increase in shipments, notably to neighboring countries such as Argentina, Paraguay, and Uruguay. This export activity spurred demand within the domestic market.
Earlier in the year, Argentina exported a large portion of its onions to Brazil. However, a delay in the Argentine harvest this season created a supply gap that Brazilian onions have started to fill. This situation has been beneficial for Brazilian growers, not only in the Northeast but also in the Cerrado region, including Minas Gerais and Goiás, as well as São Paulo, who have expanded their market reach to other South American countries. Data from Comex Stat highlighted that nearly 5,500 tonnes of onions were exported in July, marking a 664% increase from the 774 tonnes exported in the same month the previous year. This sets a positive outlook for the August export figures, anticipated to be released in early September.
A reduction in supply from Goiás has also contributed to the price increase in the Northeast, redirecting more onions from this region to the Cerrado. As a result, the price for a 20-kg sack of hybrid yellow onions in Irecê surged by 13.7% to R$39.80, while in the São Francisco Valley, prices saw a 24.2% increase, reaching R$37.25 per sack.
Source: HFBrasil