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June 25, 2022
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Good for the consumer, bad for the farmer: value of the fruit and vegetable basket at low levels

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With few exceptions, such as onions, most of the basic products of the horticultural basket have convenient prices for the consumer, although not for the farmer.

Since August 2021 the Valor Kilo Canasta (VKC) is at a low levelreported to The Observer Diego Romero, technician of the Farmer Observatory –which works based on an agreement between the Metropolitan Agrifood Unit (UAM) and the General Farm Directorate (Digegra) of the Ministry of Livestock, Agriculture and Fisheries (MGAP)–.

He pointed out that in 2022, except for March, it was below the average and close to the minimum of recent years.

The VKC for May fell 8.6% compared to April, going from $36.6 to $33.5 per kilo. Compared to the average value of May of the last five years, it is 6.7% below. And compared to May 2021, it is 5.7% below.

This, he explained, It happens due to a situation of high production that causes a high supply, which openly exceeds the demand in many items, setting a scenario of generally low prices..

Most of the products have “reasonable” values ​​for the time and for a very cold winterhe added.

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The farmer’s gaze

Erick Rolando, president of the Uruguayan Farm Confederation (CGU), explained that “In items such as apples, the producer receives a payment that does not cover the cost of production or conservation”citing as an explanation that a high production exceeds the demand of a domestic market that does not grow.

The solution, he mentioned, must go through stimulating an export based on a differentiated production in the world, and at the same time stimulating industrial activity within borders..

Good for the consumer, bad for the farmer: value of the fruit and vegetable basket at low levels

The onion, one of the items with prices above what is usual.

The case of the onion

The exception to low prices is onion, because there was a low yield in the farms due to the drought at the end of 2021 and the beginning of 2022. This water deficit impacted the production cycle and made the harvested product small. To this was added that in February it rained a lot and that compromised the conservation potential.

Due, to supply the market adequately these days it was necessary to importwhen the normal thing in recent years was not to bring from abroad because the local production was enough for the internal supply.

Good for the consumer, bad for the farmer: value of the fruit and vegetable basket at low levels

The offer is good in quantity and quality in almost all segments.

Prices

Juan Marenco, from La Curva (Yaguarón almost Soriano), said that there was a price peak of $1,300 for a 20-kilo bag at UAM a few weeks ago, then it dropped to $1,100 and now, thanks to the fact that it was imported , is at $800, which allows him to sell onions to the customer at $60 per kilo.

There are some items that are priced somewhat above the usual at this time of year, but not much: tomato, bell pepper and eggplantsomething to be expected for a closing of autumn and beginning of winter with low temperatures, since they are products of the summer cycle and it is difficult to force the plants to bear fruit under these conditions.

Marenco said that eggplant and zucchini are at $150 to $160 per kilo, but that At the same time, there are several products at low prices: three bundles of spinach for $100, two bundles of Swiss chard for $50, potatoes from $20 to $45, and sweet potatoes at $40 a kilo..

In fruit, there are several items with prices that are also low: oranges at $20 a kilo, tangerines at $30 a kilo, and apples at $45 a kilo for green and $50 for red.

Good for the consumer, bad for the farmer: value of the fruit and vegetable basket at low levels

The orange, one of the items with low values.

the vkc

The Basket Kilogram Value (VKC) is an indicator that arises from considering the monthly average prices of the 30 main products weighted according to their impact on admissions to the UAM. These 30 products are fixed for the purposes of the calculation and are the main ones, so much so that together they accumulate between 94 and 98% of the income to said wholesale marketing center.

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