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Brazil sets new minimum prices

14/03/2019,

On 12 March, the government approved new minimum guarantee prices for all wheat grain varieties and wheat seeds for the 2019/20 (July/June) agricultural season. Prices were adjusted to reflect higher production costs and were consequently raised by 12.16 percent compared to the levels in the 2018/19 season; price levels differ depending on the region and wheat type. In the South region, which is the country’s key producing area, the minimum price for bread-type wheat was raised to BRL 40.57 (USD 10.63) per 60 kg bag, up from BRL 36.17 (USD 9.47) in the 2018/19 season. Prices of wheat seeds went up from BRL 1.48 (USD 0.39) per kg to BRL 1.66 (USD 0.43) per kg. New prices were also set upwards for coffee and oranges. The mechanism of the minimum prices aims to support producers. Planting of the new wheat crop will start in April, while harvesting of the 2018 crop was completed in December, with the output estimated at 5.5 million tonnes, well above the reduced level of 2017.

Country: Brazil
Region: South America