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February Registered High in the Price of Coffee and Eggs, with Impact on IPCA, According to IBGE. Check Out the Causes and the Effect on Consumption!
Brazilian consumers felt the significant increase in the prices of coffee and eggs in February. According to the latest survey by the Brazilian Institute of Geography and Statistics (IBGE), both products recorded significant increases in the National Consumer Price Index (IPCA).
Chicken eggs rose by 15.39%, while ground coffee saw an adjustment of 10.77% compared to January. But what are the factors that drove this increase?
Climate, Seasonality and Exports: The Great Villains
Experts point out that adverse weather conditions, seasonality, and the increase in exports are among the main reasons for the surge in prices of coffee and eggs.
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In the case of coffee, problems in the harvest due to severe weather conditions affected production.
The coffee sector has been suffering from frost, drought, and high temperatures, impacting the supply of the bean in the domestic market.
“Coffee has been on an upward trajectory since January 2024. Weather has been a determining factor in reducing production, both in Brazil and in other producing countries, such as Vietnam,” explained Fernando Gonçalves, IPCA manager.
The increase in coffee exports also contributes to the scarcity of the product in the domestic market.
With growing global demand and the strong dollar, many producers prioritize sales abroad, reducing national supply.
More Expensive Eggs: Increasing Demand and Impact of Heat
In the case of eggs, the significant price increase is related to higher demand for the product at the beginning of the year, driven by the return to school and the tradition of Lent, which encourages the consumption of alternative proteins to red meat.
Additionally, high temperatures directly impact bird productivity, reducing supply.
The Brazilian Animal Protein Association (ABPA) emphasizes that the heat waves affecting the country harmed egg production and also increased the costs of feeding the birds.
Corn, the main ingredient in chicken feed, saw a 30% increase in price, which directly impacts production costs.
“After a long period of low prices, the demand for eggs naturally increased this time of year, which also influenced the price rise,” said ABPA in an official statement.
Coffee Consumption Grows Despite Inflation
Despite the increase in coffee prices, beverage consumption in Brazil continues to grow.
Data from the Brazilian Coffee Industry Association (Abic) indicates that, between 2023 and 2024, the consumption of roasted and ground coffee in the country increased by 1.1%, reaching 21.9 million sacks of 60 kilograms. This volume corresponds to 40.4% of last year’s harvest.
Brazil is the second largest coffee consumer in the world, only behind the United States.
However, the gap between the two markets has been narrowing, reinforcing Brazilians’ love for coffee, even with rising prices.
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