In the first five months of 2024, Brazil experienced a substantial surge in onion imports, totaling 226,500 tonnes, marking a significant 176% increase compared to the same period in 2023. Concurrently, expenditure on these imports rose by 333% year-on-year.
However, signs of a slowdown emerged from April to May 2024, with a 3.8% reduction in import volume. This decline suggests a potential shift as domestic markets begin to stabilize supply. The adverse weather conditions earlier in the year, including excessive rainfall and high temperatures in regions like Cerrado, São Paulo, and the Northeast, impacted local onion productivity and quality. Nonetheless, there are indications of supply normalization underway.
According to reports from Hortifrúti/Cepea, orders at the Porto Xavier border have decreased, and Argentine stocks are also diminishing. This trend supports expectations that by July 2024, Brazil's domestic markets will regain self-sufficiency in meeting onion demand, reducing reliance on imports.
Source: www.datamarnews.com