Low cassava production in the south of Minas in Brazil causes starch prices to skyrocket

Published 2022년 5월 12일

Tridge summary

The article highlights a significant increase in the cost of cassava starch, a crucial ingredient in cheese bread, by approximately 41.46% from January to April of the same year. This price hike is due to a decrease in cassava production and a scarcity of the tuber, despite favorable conditions for growth. The shortage has forced some factories to cut production by 30%. The slow production cycle of cassava starch and its fermentation time contribute to the slow adjustment in market prices. This situation is anticipated to raise the price of cheese bread and biscuits.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The main ingredient of the cheese bread recipe, the sprinkle, has risen in price in recent months. According to a data survey carried out by a manufacturer in the South of Minas, it is a matter of time before it reaches the consumer's pocket. According to the data, from January to April this year, the price of cassava starch increased by about 41.46%. According to businessman Jhonatan Vilela Ferreira, the 25 kg bag went from R$120.17 at the beginning of the year to R$170 in April. “When there is a very high adjustment like this, we need to pass it on to the customer. It's where the customer will feel on the skin and on the shelves [of supermarkets] this increase in the product”, explains the businessman. The reason is the low production of the raw material, cassava. Despite being in full season, having a good production in the region, there is a shortage of the tuber. This has raised the price of the product. Conceição dos Ouros (MG) is recognized as the capital of cassava starch. ...

Source: Abam