Garlic and onion production still feels the effect of the 2023 rains, points out the April Agricultural Bulletin

In the month of March, the average price paid to Santa Catarina producers of onion reached R$3.82 per kilo – Photo: Aires Mariga / Epagri

The prices of garlic and onion have gradually increased since the beginning of this year. In the month of March, the average price paid to Santa Catarina producers of onion reached the highest nominal value since November 2019: R$3.82 per kilo. The price of garlic, of the three ranges raised by the Center for Socioeconomics and Agricultural Planning (Epagri/Cepa), more than doubled compared to March 2023.

The state average price paid to the producer in the same month of 2024 reached R$12.21 per kilo for noble garlic types two and three, R$14.91 for types four and five and R$20.81 for the categories six and seven. The information appears in the Agricultural Bulletin for the month of April.

According to the Socioeconomics and Rural Development analyst at Epagri/Cepa, Jurandi Gugel, the increase in prices is due to a low supply of products on the market. In the last harvest, which is in the commercialization phase, the occurrence of heavy rains significantly affected production in Santa Catarina. In the case of garlic, production was 7.26 thousand tons, when the estimate announced in August last year was for a harvest of 10.7 thousand tons.

Even with prices at high levels, the quantity imported was not outside the expected parameters for the period. 15.87 thousand tons were imported, especially from Argentina, originating 93.56% of the volume. This represents an increase of 31.48% in relation to the quantity imported in the same month last year.

In the case of onions, the average value received by Santa Catarina producers in March was 15.75% higher than the previous month and almost 97% higher than in March 2023. Imports in the first quarter of 2024 presented a quantity well above the same period in previous years, 76.9 thousand tons, reflecting the lower supply of the national product. In Santa Catarina, the country’s largest onion producer, 402.9 thousand tons were harvested in the 2023/2024 harvest. This represents a volume around 27% lower than that of the previous harvest.

The Agricultural Bulletin is a monthly publication of Epagri/Cepa which provides contextual information about products of relevance to Santa Catarina. The full document can be viewed on the Santa Catarina Agro Observatorythe Agricultural Research and Rural Extension Company of Santa Catarina (Epagri) and the State Secretariat for Agriculture and Livestock (SAR). Check out a summary of the main information about other monitored products:

Bean

O bean (first harvest) is almost all harvested in the State (around 99% of the planted area). According to the Socioeconomics and Rural Development analyst at Epagri/Cepa, João Alves, dry weather, with high temperatures during the day and mild temperatures at night, prevailed during the month of March, which allowed harvesting operations to progress quickly.

For second harvest beans, all producing regions completed planting operations, resulting in a 21% increase in the planted area compared to the last harvest. Average productivity is expected to increase by 8%. These two factors should cause production of the second harvest to grow by around 30% compared to the previous one.

According to Alves, one of the reasons for this growth is that, due to the shortening of the planting window for the first summer harvest, many producers opted for beans in the second harvest, as there would not be time for a second harvest of corn or soybeans. , longer cycle crops. Another factor that encouraged producers was the price of beans, which are valued.

In March, prices received by carioca bean producers increased by 4.16% compared to the previous month. The average state price went from R$217.08 per 60 kg bag to R$226.10. As for black beans, the average price paid to producers fell by 7.85% compared to February: a 60 kg bag went from R$336.42 to R$310.

Milk

Brazilian imports of dairy remained high in the first quarter of 2024. During the period, around 68.3 million kilos were imported, an increase of 4.1% compared to the first quarter of 2023. In the same period, exports increased by 62.1%, jumping from 6.6 million to 10.7 million kilos.

In March, dairy prices were slightly higher than February prices on the wholesale market. This once again had a positive impact on prices for producers in Santa Catarina. According to preliminary surveys by Epagri/Cepa, the average price in April, in the main producing regions, should be R$2.34 per liter, five cents above the average price in March, which was R$2.29 per liter. It is the fifth consecutive month of increases in prices paid to producers in Santa Catarina. Even so, the values ​​remain lower than those of the first months of 2023.

Litter

In the market of litter, in Santa Catarina, between February and March 2024, there was a devaluation in the prices of category 1 fruit. In national supply centers, the price of apples of Santa Catarina origin appreciated. In the first quarter of 2024, 45.6% of the volume of apples sold at Companhia de Entrepostos e Armazéns Gerais de São Paulo (Ceagesp) was of Santa Catarina origin (12.1 thousand tons), a volume 3.4% higher than in the same period of the previous year.

The value negotiated with fruit from Santa Catarina was R$96.3 million, 17.2% higher than that recorded in the same period in 2023. In April, the expectation is for a reduction of 18.9% in the production of the Santa Catarina 2023 harvest/ 2024, when compared to the previous one.

Rice

The prices of rice in bark, in March, they maintained a downward trend due to the advance of harvesting and commercialization in the State, as well as the slowdown in the retail market. The occurrence of excessive rain, low light, excess cloudiness, difficulty in carrying out phytosanitary treatments and excess heat during flowering, harmed the development of crops and, as the harvest progresses, lower productivity is confirmed, which is estimated at 3.94% compared to that recorded in the previous harvest.

Corn

The current estimate points to the production of 2.38 million tons of corn in the current Santa Catarina harvest, which represents a reduction of approximately 17.4% compared to the previous harvest. The weather conditions at the beginning of the harvest, with excessive rain, delayed planting, made cultural treatments difficult, and reduced photosynthesis and production potential. By April 15, around 85% of the estimated planted area had been harvested.

In relation to the market, in 2024, corn prices showed, from January to March, a decline of 6.6%. The trend, in the medium term, is for prices to recover in the domestic market, influenced by the increase in cereal consumption (feed and ethanol), the lower national production recorded in 2024, the pace of Brazilian corn exports and the estimated reduction in planting area for the new crop in the United States.

Soy

Total production, forecast for the current Santa Catarina harvest (first and second), is 2.91 million tons. Compared to the previous harvest, this represents a reduction of 2.9%. The drop in productivity was partially offset by the increase in cultivated area in the current harvest. In market terms, in 2024, the producer price of soy in grain registered a drop in the first two months.

In March, soybeans showed a small recovery of 1.2%, with an average monthly value of R$110.63 per 60kg bag. The reduction in production in the current harvest in Brazil, the exchange rate of the dollar and the geopolitical tensions involving Iran and Israel have generated uncertainty in the global oil market, with repercussions on oilseed prices.

Wheat

In the month of March, the average prices received by Santa Catarina producers of wheat had a negative variation of 1.46%, compared to the previous month. In the annual comparison, in nominal terms, the average price received by the Santa Catarina producer was 24.95% below that recorded in the same month of 2023. The prices of commodity, in the domestic market, remain under the influence of international prices and the expectation of an abundant harvest. Global wheat production for 2023/24 is estimated at 786.7 million tonnes.

Cattle

In the first weeks of April, the state average price of arroba do fat ox showed a slight increase of 0.2% in relation to the value recorded in the previous month. This scenario differs from that observed in the main producing states, which recorded negative variations in the period, although not very significant. When taking into account the amount received by producers in April 2023, on the other hand, there is a drop of 17.3%. As shown by data from Cidasc, systematized by Epagri/Cepa, from January to March this year, 156.9 thousand heads were produced and slaughtered in the state, an increase of 6.9% in relation to slaughters in the first quarter of 2023.

Chickens

In March, Santa Catarina exported 94.6 thousand tons of chicken meat – an increase of 2.4% compared to shipments from the previous month, but a drop of 9.6% compared to March 2023. Revenues were US$179.4 million – an increase of 2.4% compared to the previous month, but a drop of 18.2% compared to March 2023.

In the first quarter, the State exported 277.6 thousand tons, with revenues of US$521.4 million – drops of 0.6% in quantity and 13.4% in revenues, compared to the same period of the year past. Santa Catarina was responsible for 24.8% of the revenue generated by Brazilian chicken meat exports in the first three months of the year.

Pigs

Santa Catarina exported 53.1 thousand tons of pork in March – a drop of 0.8% compared to the previous month and 7.6% compared to shipments in March 2023. Revenues were US$117, 5 million, drops of 1.6% compared to the previous month and 14.1% compared to March 2023. In the first quarter, the State exported 160.7 thousand tons of pork, with revenues of US$353.5 million – an increase of 7.1% in quantity, but a drop of 2.5% in revenues compared to the same period in 2023. Santa Catarina accounted for 60.3% of revenues and 58.2% of the volume of pork exported by Brazil this year.

Read the full April Agricultural Bulletin here.