Onion Price in Brazil Surged by 81.25% YoY, and 39.8% MoM Due to Supply Shortage

The wholesale price of fresh onion in Brazil surged by 81.25% YoY and 39.8% MoM in early Apr-24 due to supply shortages in Ituporanga, Lebon Régis, and Santa Catarina. In addition, the import delay at the Porto Xavier border due to strict sanitary inspections and reduced workforce further boosted the price. The supply is expected to recover in mid-Apr-24 due to favorable weather forecasts in the Northeast region.
The wholesale price of fresh onion in Brazil has seen a notable surge, rising by 81.25% year-over-year (YoY) from USD 1.55 per kilogram (kg) in Apr-23 to USD 2.81/kg in early Apr-24. In addition, there was also a month-over-month (MoM) increase of 39.8% compared to USD 2.01/kg in Mar-24. The rise in Brazilian onion prices can be attributed to the supply shortage in Ituporanga, Lebon Régis, and Santa Catarina region. Although the country has increased its imports from Argentina to meet the demand, the imports face delays at the Porto Xavier border due to strict sanitary inspections and a reduced workforce. Moreover, unfavorable weather conditions have adversely affected onion yields in Irecê, Bahia, and the São Francisco Valley, resulting in a decrease in both the quality and quantity of the harvest. However, the supply is forecasted to improve by mid-April as favorable weather conditions are expected in the Northeast region. As a result, prices are anticipated to stabilize and decrease.