The Brazilian onion market is experiencing a significant surplus, with prices dropping to just 0,57 BRL (€0.09) per kilogram—well below production costs for growers. Over the past two months, the country has seen an oversupply, pushing prices down and impacting producers across several regions.
The onion season in Brazil begins in May in Bahia, where the fresh crop takes over from stored onions in the South and imports from Argentina. A steady supply prevented prices from rising. Favourable growing conditions for early onions resulted in above-average yields, compensating for reduced acreage, and the crop quality is reported as excellent.
In July, the main harvest started in São Paulo and Minas Gerais. The rapid influx of onions from these regions quickly saturated the market, leaving some large-scale growers unable to harvest all their fields due to the lack of demand.
© Hortifruti/Cepea
Looking ahead, the outlook for producers remains bleak. Growing conditions in the southern states of Santa Catarina and Rio Grande do Sul are also favourable, suggesting that surplus supply will persist well into the new year.
According to the Brazilian Onion Association, domestic consumption is lower than last year. The economic uncertainty and inflation have reduced consumers' buying power, further depressing demand.
With high yields, low prices, and subdued consumption, Brazilian onion growers are facing a challenging season.
© Bahari Services
Manuela onion variety from Enza Zaden, showing the high quality of this season's Brazilian onion harvest.
Contact:
Bram van Staalduinen
Bahari Services
Tel: +31 650 258989
[email protected]
www.bahari-services.nl
