Potato farmers had their margins squeezed by the winter south and season drought

In July, the price of the processed potato (50 kg bag), weighted by the classification, decreased 45% in relation to the previous month, considering the average throughout the national territory - the root vegetable was traded at R$ 1.23 / kg. Such devaluation is linked to the beginning of the winter season and intensification of the drought harvest.

In the period, Vargem Grande do Sul (SP), Cerrado Mineiro (MG), Sudoeste Paulista (SP) and Sul de Minas (MG) were the main offering regions. In the case of southern plazas, which were also active, productivity in this dry season is very low, resulting in a small volume destined for the market.

The increase in the national supply, combined with reduced demand for quarantine, were the factors responsible for the devaluations - a scenario already expected. Prices didnt nosedive further due to the crop failure in the South region and, also, by the harvest gap some producers had in the Southwest of São Paulo and Cristalina (GO).

For the majority of potato growers who harvested in July, profitability was still positive, even with the devaluation. Southern producers, on the other hand, who experienced more severe productivity drops, closed the month with losses.