Most expensive jerk: corn shortage impairs the production of tamales

The months of June and July are marked by the June festivals in different regions of Brazil and attract thousands of connoisseurs of food, songs and typical costumes of the event. However, this year, the regulars of these parties should be prepared to spend more. This is because the supply of maize, which is the main ingredient of many dishes of the jerk, is restricted in this year. Corn crops were punished by drought, particularly in Goiás, Minas Gerais and Mato Grosso. The production is expected to fall back, while product prices register record.
Who is used to produce food typical of jerk I''ve found that prices have risen. Preye Assarisse factory owner di Tamales, uses about 25 tons of corn per month in the production of tamales, corn juice curau, cakes and cookies that are sold in a shop in Piracicaba (SP). The pamonha leads the store sales, with about of 30 1000 units sold a month at this time of year.
The manufacture of tamales and curau, whose recipes take only corn, sugar and water, is the most affected by the smaller supply of raw material. Each Tamale, which was sold for $ 2 in June last year, now has R$ price 2.50. The curau, in 800 grams, worth R$ 4.50 in 2015, this year''s sold for $ 5. "All products had a 12% cost increase to 14%," says Assarisse. "Goes missing tamales in many parties. I''m with new customers that other supplier failed to meet. "
Crop damaged
Assarisse, which produces the raw material in a 80-acre country estate in Charqueada (SP), says the drought registered in April has damaged the crop. "The flowering of the corn was harmed. In addition to the lack of water had more problems with pests, "says the producer. "We also need to irrigate the crops and the cost of electricity has increased."
On average, Assarisse produces 45 tons of corn per month, enough to fuel its plant and sell the surplus of production. However, with the drought, in the month of may were collected only 20 tonnes of maize. The businessman moved from seller to buyer of raw material. "The corn is missing," says Assarisse. "Products can be more expensive, that is inflation of tamales."
Alternatives to keep the business
Another company that is dealing with the crisis in the supply of corn is the Buffet Ephraim, specialized in organizing jerk, located in São Paulo. In comparison with the other months of the year, the number of events attended by the company rises from five to 40 in June and July. In the season of the jerk, William Washington Adam, owner of the buffet, found that is more expensive to prepare this event type, with an increase between 7.5% and 8.5% the total cost of the party.
Not to pass on the increased cost to the customers, the Buffet Ephraim intends to focus on other details of the event. The strategy is to offer more options and expand the party decor to generate additional profit to compensate for the increase in expenditure with the typical foods. "Our customers don''t open hands of jerk and revenues derived from corn," he says. "So we increased the range of the menu for the client to have more options to choose from and leverage our average ticket," says the owner.
The increasing prices of corn
Compared with the first four months of 2015, the volume of corn received by São Paulo Terminal Warehouse of Warehouses and general stores of São Paulo (Ceagesp) is falling. Between January and April this year were 15.2 million tons, while in the same period of the previous year was 18.6 million tons.
Corn prices are also higher in 2016, according to data from the economy and development of the Ceagesp. The monthly average between January and April 2016 was in R$ 0.79 per pound of product. In the same period last year, the average was 0.67 R$. In January last year, a kilo of product cost 0.61 and R$ in the same period of 2016 was marketed to 0.88 R$. The months of February and March also showed high, only in April the value returned to be lower than the same period of the year with the pound sold for 0.73, while R$ in 2015 was quoted at 0.82 R$.
Crisis in the field
When it comes to the production of corn in grain, the shortage of supply is more serious. The lack of rains in the month of April in major corn-producing regions has hampered the second cereal crop. According to the national supply company (Conab), the expectation is a production of 52.9 million tonnes of maize second harvest, 3.1% less than the 54.6 million tons harvested in the same period in 2015.
Corn supply is restricted and the supply crisis undermines especially poultry and swine producers, which rely on corn to feed the animals. To address the lack of corn in some regions, Conab will sell 160 1000 tons of corn inventories of grain. The volume will be marketed by Over-the-counter sales program with the objective to supply mainly South and Northeast States.
According to the Center for advanced studies in applied economics (Cepea), the values of maize grains are high in the Brazilian market. On Friday (27/05), the ESALQ/BM & FBovespa (Campinas – SP) closed the R$ 52.97 a sack of 60 pounds, an increase of 8.9% compared to the end of April.