Sharp increase in price for Brazilian papaya

In Brazil, the average price for papaya increased by 82% in the three weeks up to December 1, 2021, and by 25% YOY to BRL 5.0 (USD $0.90) per kilo, according to Mintec Analytics. The rise is explained by tight supply following a sustained period of drought in the main producing areas in the country. Extreme temperatures and lower than average rainfall have negatively impacted production of said fruit.

Brazil is the second-largest producer of papaya worldwide, and the first exporter to the European market. Papaya production in that country has suffered a decline due to the lack of precipitation from September to November 2021, which delayed the fruit’s growth. The conditions resulted in quality issues and high crop losses for growers, resulting in a reported drop in total production. The extreme weather in the country will stay on due to the resurgence of the La Niña phenomenon, possibly increasing the papaya shortage. La Niña is likely to bring cooler than average sea surface temperatures, which could impede production even more, reflecting in additional growth of prices. 

source: mintecglobal.com

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