Brazil: Onion sprouts in Santa Catarina on Friday

The 2024/25 Ituporanga and Lebon Régis (SC) season should be concluded in the coming weeks. Even with a considerable remaining volume (about 15%) of the season, the low quality of the bulbs will limit their commercialization for a long period. Furthermore, Santa Catarina producers will benefit from the reduction in the flow of Argentine onions. Oh, buyers who previously opted for foreign companies are now directing more orders to Santa Catarina.

In Argentina, chuvas throughout April are not only limited to the removal of onions from two fields for processing in frames, but also to logistics at the port. Also, the holidays in recent weeks and this May 1st will also slow down the factory activity, further reducing the entry of foreign products into Brazil. However, it is important to note that, just as the demand for Santa Catarina products increases, the current price levels are below the ideal, due to a safra with prejudices.

The average price paid to the producer for red onion in Ituporanga between November 24 and April 25 was R$ 1.35/kg, which is 66% lower than the average for the same period last year — which has excellent prices due to the bankruptcy. In other words, the 2024/25 calendar was completely opposite to 2023/24. As far as the harvest has passed in the Southern region, prices have risen, reaching R$ 5.00/kg in the field, this season the prices will remain lower or even at the same price throughout the campaign.

The initial expectation was that assembled products could be sold in raw materials, but high temperatures between February and March 2025 will reduce the shelf life, increasing the occurrence of moisture and rot in stock. Given this scenario, producers are discouraged and currently anticipate significant reductions in investments for the 2025/26 cycle.