Brazil: Drier Weather Speeds Up the Potato Harvest and Pushes Wholesale Prices Lower in the Southeast
Less rain in the Southeast of Brazil sped up the potato harvest and increased supply in mid-September. Wholesale prices fell 12.1% in Rio de Janeiro and 6.6% in Belo Horizonte, according to the research centre CEPEA.
Drier weather in the Southeast of Brazil has sped up the potato harvest. More potatoes are reaching wholesale markets, and prices are falling. The agricultural economics centre CEPEA, part of the University of São Paulo, reported this on 18 September for the week of 14–18 September.
At the start of that week, prices were similar to the week before, because rain continued in most producing regions. Later in the week, the rain eased and the harvest moved faster. Supply increased and prices fell. The result was a small fall in the average weekly price.
According to CEPEA, potatoes at the Ceagesp wholesale market in São Paulo sold at an average of 97.17 reais per 25 kg sack. That is 1.7% less than the week before. In Rio de Janeiro, the price fell 12.1% to 93.35 reais per sack. In Belo Horizonte, it fell 6.6% to 87.65 reais per sack. Most of the potatoes on offer were of good quality.
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CEPEA expects supply to increase further if the forecast of less rain in the Southeast is correct.
The farm federation of Minas Gerais (FAEMG) gave a similar picture on 22 September, in a report by the newspaper O Tempo. According to the federation, more supply is pushing prices down in Minas Gerais and in the Southeast. Continued dry weather will keep prices under pressure. Lower prices may also reach consumers in shops.
The trend differs from the start of September. At that time, rain slowed the harvest in the winter-crop areas of São Paulo state, and prices paid to growers there recovered. Our report on the rain in Vargem Grande do Sul was published on 24 September. Our report on the August fall in wholesale prices, based on data from the national supply company Conab, was published on 24 September.
Why it matters
Brazil is harvesting its winter potato crop, and supply now depends mainly on the weather. When fields are dry, the harvest speeds up and prices fall. When it rains, supply drops and prices rise. Growers and traders therefore face short and sharp price swings. For buyers, lower wholesale prices may bring some relief after a volatile season.
Photo: Potatoes under centre-pivot irrigation in Luziânia, Goiás, Brazil (illustrative). Tiago Firmino Boaven… (Panoramio) / Wikimedia Commons, CC BY 3.0
