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Brazil: Imports from the Netherlands and Argentina threatens Brazillian onion market

According to the vice-president of the Federation of Agriculture and Live-Stock of the state of Santa Catarina (FAESC), Enori Barbieri, a massive entry into the Brazilian market of onions from Argentina and the Netherlands due to start in March could speel disaster for domestic production.

At the moment, the price is good for farmers: a bag of 20kg of onion is being sold at R$20. But expectations on the import cause anxiety. The large Dutch harvest this year is worrying, as it will bring a large amount to the international market. Importers from Santa Catarina already closed some business by paying R$8 for a 20kg bag of Dutch onion placed in the Brazilian ports. This is half of the price made in the internal market.

Based on examples from the recent past, when imports disturbed the Brazilian market, Barbieri orientates farmers to fasten their sales contracts and empty their stocks. "Anything can happen, but it's very likely that imports will make internal prices to go down", he explained.

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