Economic Crisis Increases Consumption of Rice and Beans in Brazil

05/10/2017 - 13h19

The economic crisis is making the Brazilian consumer exchange meat for the traditional dish of rice and beans. High unemployment and falling incomes, along with more affordable prices of these products, due to the good harvest, are responsible for the increase in demand, which will be 15% to 20% this month, compared to the forecast for the year.

The information is given by Vlamir Brandalizze, from Consulting Brandalizze. The average consumption per capita is around 3.5 kilos of rice this month. The average consumption of beans is 1,5 kilo and would be even greater if the country had a more elastic offer.

Domestic production is expected to reach 3.5 million tonnes this year, but demand reaches 3.8 million, according to estimates.

One of the indications that demand is good are the prices of products in the field. Even at the end of the harvest, when the supply in the market increases, rice prices stand from R$ 37 to R$ 43 (US$ 11,62 to US$ 13,50)per sack in the crops.

Still, they are lower than last year, when the price of the sack reached R$ 60.(R$ 18,84) The price of beans, depending on the quality, goes from R$ 130 to R$ 180 (US$ 40,82 to US$ 56,52) per bag, a value also supported by demand. Last year, due to the lack of product, it reached R$ 600 (US$ 188,39).

In retail, industries are waging a major dispute for the costumers. With this, the price of the five-kilo package of rice ranges from R$ 9 (US$ 3) to R$23 (US$ 7,2). "In 30 years in this market, I have never seen such a great disparity in prices," says Brandalizze. Beans cost from R$ 3.50 (US$ 1) to R$ 6 (US$ 2) per kilo.

Translated by MARINA DELLA VALLE

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