The Brazilian horticultural market is once again showing favorable signs for Argentinean onion producers. Over the past week, prices have rebounded strongly in key regions in the country's northeast, such as Irecê and the São Francisco Valley, driven by reduced product availability and quality issues. This context directly affects Argentina, whose onion sector is highly dependent on exports to Brazil.
Between March 30 and April 2, prices rose sharply. In Irecê, a 20-kilo bag of hybrid yellow onion reached 67.50 reais (about 13.1 dollars), a 35% increase. In the São Francisco Valley, the same size bag was priced at 59.75 reais (around 11.6 dollars), a 17.2% increase. The upward trend could continue in the coming weeks.
This development is primarily driven by a decline in regional supply. Rains during February and March impacted both the quantity and quality of production, leading to higher discards and lower availability of market-ready onions.
Additionally, the dragging effect of prices in southern Brazil has exerted upward pressure on markets in the northeastern region.
Sowing for the 2026 season has already started. In Irecê, progress is more advanced than in the São Francisco Valley, where rainfall has caused significant delays. Regardless, these crops will require time before reaching the market, so shortages are expected to continue in the short term.
Meanwhile, supply is maintained by shipments from the south of the country, but they are not enough to fully cover the deficit, resulting in persistently high prices.
This scenario presents Argentina, a major onion supplier to Brazil, with a clear opportunity. The rise in prices improves conditions for increasing shipments and reinforcing its presence in this destination.
Argentine production, mainly located in the southern part of Buenos Aires province, as well as in Rio Negro and, to a lesser extent, Mendoza, offers benefits in quality and availability. Additionally, its geographic proximity enables swift logistics, critical for addressing shortages in Brazil.
The current situation supports higher export margins and could also promote more extensive production planning in upcoming seasons, strengthening Brazil's role as a key market.
Despite the favorable scenario, climate variability in both countries, exchange rate fluctuations, and logistical costs will continue to affect the competitiveness of Argentinean onions.
The combination of reduced supply in Brazil, quality issues, and rising prices creates a favorable situation. Argentina is positioning itself as a crucial supplier to fill the gap, enhancing its role in regional trade and seizing the opportunity to expand its share in its primary foreign market.
Source: masp.lmneuquen.com
