Wholesale prices of agricultural products fall 2.31%, says IEA

According to the Institute of Agricultural Economics (IEA), the average price variation in the wholesale market of the São Paulo Metropolitan Region decreased by 2.31% compared to July 2018. This reduction was influenced by garlic and onion products which are in the harvest period and showed significant price declines. For garlic, the variation was between 7% and 13% and for onions was approximately 17%, when coming from the Northeast, and 19.31% for the onion from São Paulo.

In relation to the highs recorded in the month, the highlights are pork ½ carcass with a high of 14.13% and carioquinha beans with 9.38%, explained Vagner Azarias Martins and José Alberto Angelo, IEA researchers. According to the Center for Advanced Studies in Applied Economics (Cepea), the valuation of the price of pork occurred due to the good performance of exports and heated domestic demand, however, it is observed that the average price of that month is 13.11% less than one year, that is, the current price, even considering the inflation of the period and the significant increase in the month is lower than the one practiced in August 2017.

In the case of beans, the positive variation may already be reflecting the fall in production in states important to this crop, such as Bahia and Paraná.

According to the IEA, of the 24 products that make up this monthly monitoring, the distinct behavior of two important products in the wholesale trade, roasted coffee and long-life milk can be highlighted. For that, the last 14 months were considered and the variation of both products during the month of August as a function of the average price of July 2018.

During the period from July 2017 to August 2018, the cumulative variation in average monthly prices for roasted and ground coffee was -8.35%. This situation can be attributed to the record coffee harvest expected for this crop year. It should also be noted that during the current month, in general, the price varied positively in the first fortnight and negatively in the second fortnight.

In terms of long-life milk, the accumulated variation in the last 14 months showed a high of 29.87%, the most significant increase occurring in June and July of that year, when the cumulative variation was approximately 35%. This period (June and July 2018) was immediately after the truck drivers strike, which occurred in the last ten days of May, which significantly affected the milk chain.

In addition, the months of June and July presented precipitation below the expected average, further damaging production and affecting prices. In August, there was a change in the upward trend due to better weather conditions and increased supply; with this, there was a fall of 8.48% in the prices charged.

This text was translated by machine from Brazilian Portuguese.