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[BUSINESS] · Brazil · 2 sources

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Brazilian agriculture hit by El Niño and heavy rains, raising food prices

The peak of the El Niño phenomenon expected from September to November is set to increase heat and delay rains in Goiás, Brazil. The climate shift threatens rice and corn harvests, reduces soybean and livestock productivity, and may force the government to rely on thermoelectric plants as hydroelectric output falls. The federal response could cost around R$1.3 billion and add inflationary pressure on food prices, according to economist Greice Guerra.

In southern Brazil, excessive rain over the past two weeks has damaged fruit, vegetable and grain crops in Venâncio Aires, Rio Grande do Sul. Local agronomist Vicente Fin reports limited but notable losses to strawberries, broccoli, canola, wheat and tobacco, as well as soil erosion and poorer pasture quality for cattle. Authorities deem the situation insufficient for an emergency decree, but the combined weather events highlight growing vulnerability of Brazil’s agricultural sector.

Entities

Brazil · Goiás · Greice Guerra · Luiz Inácio Lula da Silva · Rio Grande do Sul