Brazilian beer industry expands consume and a challenging 2022 draw near

The sector has been growing year after year, driven by two market trends. First, the independent Breweries of well-known brands have benefited and improved barley usage over the years, based on marketing and legal technicality. The Brazilians know well as Pure Malt. It tends to reject beer adjuncts. The second factor is the vast craft beer manufacturing market for the 'special beer' consumer channel.

As demand has been posing a positive outlook, an inflationary trend on prices can be seen on the way forward. With some crop failures in the EU and the Chinese embargo for the Australian product, the Argentine barley crop is deemed to affect price pressures, similar to last year. From the National perspective, one of the main crops, Guarapuava, closed the harvest with good yields and superior performance, with 99% accounted to be of malting quality.

However, the masters remain uneasy about whether farmers will prefer to wait to sell stocks or benefit from better prices shortly, causing some price volatility and cost increases. Yet omicron lockdown possibilities still exist. With the given uncertainties, the buyer markets tend to look for fixed prices over the annual contract, but the question remains, would suppliers want to lock prices in a likely bullish market landscape?