The leafy greens market has been facing many challenges, which have been intensified by the progress of the winter season. Lettuce sales have been quite limited, resulting in losses and in some cases plowing under fields in São Paulo's green belt. Lower temperatures have at times favored crop development, but on the other hand, they have kept demand very restricted, making sales difficult.
Winter cycle harvests began in June, and since then, financial difficulties have increased. In Ibiúna (SP), for example, in August, curly lettuce was sold in the field at an average of BRL 0.65 per head, while the estimated production cost per head is around BRL 1.25. A similar scenario has been observed in Mogi das Cruzes (SP): the average field price of iceberg lettuce during the same period was BRL 1.76 per head, while the cost of production is close to BRL 1.95 per head.
During the winter cycle, leafy greens prices are typically lower. However, producers also faced low price levels in the summer, and even though financial margins were positive in the first half of this year, they were very tight.
As a result of this scenario, lettuce growers have already slowed down planting, both to avoid further surpluses and because of limited financial capacity for larger investments.
Read more at HF Brasil
