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Fruit prices rise twice as much as inflation

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The prices of five of the fruits most consumed by Brazilians rose 32% to 46% between April 2020 and 2022 at Ceagesp, data from the National Supply Company (Conab) show. Ceagesp is the third largest wholesale food center in the world and the main one in Brazil.Oranges lead the price hike, having increased 46%, to R$2.44 per kilo. The fruit is followed, in order, by papaya (+44%), watermelon (+40%), apple (35%) and banana (+32%). The increases exceeded by far the Brazilian inflation in the period, 19.34%, according to the Brazilian Institute of Geography and Statistics (IBGE).In the first year of the Covid-19 pandemic, many farmers faced difficulties to sell their production to foodservice providers and retailers, said Eduardo Brandão, head of the Brazilian Association of Exporting Producers of Fruits and Products (Abrafrutas). He said that increases can be partly linked to the pandemic.Sources heard by Valor mentioned the possibility that, during this time, fruits like orange have lost areas in São Paulo for grains and sugarcane, which are considered more liquid and already had high prices. Abrafrutas and Conab said that the supply was not hindered by this, but by a temporary reduction in production to avoid losses.Sergio De Zen, head of Agricultural Information and Policy at Conab, says that productive areas are returning to normal levels. "It is a capital-intensive activity. And not only financial, human capital too," he said.Mr. Brandão follows the same line and adds that the internal demand also shows signs of improvement. "We have a per capita consumption of 68 kilos a year. This number is below the world average, but it means that we have grown 10 kilos in the last five years. Brazilians are consuming more [fruits]," he said, noting that the lower purchasing power...

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