Last week, Brazil’s potato markets saw modest but noteworthy price variations as the winter harvest in Vargem Grande do Sul (São Paulo) came to an end. Despite these changes being relatively small, they reflect key regional dynamics and agricultural challenges faced by potato farmers across the country.
In São Paulo, the price of special agate potatoes rose by 5.33% compared to the previous week, reaching BRL 100.70 (USD 20.00) per 25 kg sack at the wholesale level. This increase is largely attributed to a reduced influx of goods from Vargem Grande do Sul, where the winter harvest concluded, creating a supply shortage that has driven up prices. As the São Paulo region supplies a significant portion of the state’s wholesale markets, any changes in local production quickly ripple through the system, affecting pricing and availability.
Meanwhile, other regions have seen price declines. In Belo Horizonte, the capital of Minas Gerais (MG), potato prices fell by 9.60%, landing at BRL 83.46 (USD 16.57) per sack. Similarly, in Rio de Janeiro (RJ), prices dropped by 7.15%, reaching BRL 90.90 (USD 18.04) per sack. These decreases are the result of increased supply from southern Minas Gerais, where farmers have slightly ramped up their planting and harvesting efforts. The intense heat in the region has accelerated the harvest, contributing to a temporary boost in supply, which has subsequently lowered prices in both Belo Horizonte and Rio de Janeiro.
Impact of the End of the Winter Harvest
The winter harvest in Vargem Grande do Sul plays a critical role in the potato market of São Paulo. As the harvest winds down, supply constraints are expected to push prices higher across the state. This trend is likely to persist in the coming weeks as the supply from São Paulo continues to dwindle, making it more difficult to meet market demand.
On the other hand, areas like southern Minas Gerais are still actively harvesting, which helps mitigate some of the supply challenges elsewhere. However, the heatwave that has accelerated harvesting in these regions could also lead to an earlier end to their harvest season, which might cause a subsequent supply drop and price increases in these areas as well.
Market Outlook for the Coming Weeks
Looking ahead, the trend suggests an upward shift in prices across Brazil. With the end of the winter harvest in Vargem Grande do Sul and the ongoing harvest in southern Minas Gerais likely to slow down, the national supply of potatoes will decrease. This reduction in supply is expected to drive up prices in the short term, especially in regions like São Paulo that depend heavily on local production.
Farmers and agronomists should closely monitor these supply dynamics to optimize their harvesting and marketing strategies. The rising prices in São Paulo could offer opportunities for farmers in regions with ongoing harvests to capitalize on the supply gap.
Brazil’s potato market is currently experiencing price fluctuations, with São Paulo facing a supply shortage due to the end of the winter harvest in Vargem Grande do Sul. Meanwhile, increased supply from southern Minas Gerais has temporarily reduced prices in Belo Horizonte and Rio de Janeiro. However, as the overall supply is expected to decline in the coming weeks, prices across the country are likely to rise. Farmers must remain agile in responding to these shifts, and those in regions with ongoing harvests may benefit from this temporary price surge.
