Prices of vegetables have low expressive of the retail field

The production area increased and the weather cooperated, but the consumption did not follow the recent increase in the supply of fresh produce in the domestic market, which generated a crisis marked by low price, retail of Sao Paulo can be overcome 50 percent compared to levels from the beginning of 2016.
"The crisis is the potato, tomato, onion, carrot, beet. Finally, a supersafra of all these products, benefit from a perfect weather "says Enori Barbieri, Vice President of Faesc (Federation of agriculture and livestock of the State of Santa Catarina).
The Santa Catarina market is one of the most feel the pressure of the growing supply of onion, which generated price falls that compromised the ability of local producers to foreclose on their financing. Santa Catarina leads the national onion production. Accounts for little more than 30% of the total, estimated at 1.4 million tons by IBGE. According to Conab, in January the average price paid to producers bulb was 19.7 percent less than the minimum amount set by the Agency (R$ R$ 0.61 per kilo). "The overproduction is being responsible for reducing inflation, which makes it cheaper to assist producers," preaches Barbieri.
And the fall came with consumer force. In retail, in February the average price of the bulb was 52.7% lower than the same month last year, according to the IEA (Institute of agricultural economics) of the Department of Agriculture in the State. Another product whose prices bemoan expressive retractions is the potato. In Sao Paulo, in February the pound tuber fell 60% wholesale, as the Cepea/Esalq, and 42.2% in retail, according to the IEA, in comparison with February 2016, when the offer was compromised by adverse weather.
Sao Paulo accounts for just under 20% of domestic production, estimated by the IBGE in 3,800,000 tons. "Three months ago we''re registering more supply than ability, though everyone is selling the potato prices well below the cost of production," says producer paulista João Carlos Baroffi.
Despite this scenario, Baroffi says he is optimistic about the recovery of the economy, and therefore the demand on the domestic market, throughout this year.
According to Flavio Godas, an economist of evaluates State-owned Ceagesp, lowest prices in fact may boost demand in the coming months, which should lead to an appreciation of these products that are down. But he says that "prices will remain at levels suitable for the consumer, without significant elevations".