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February saw an increase in the price of coffee and eggs, with an impact on the IPCA, according to the IBGE. Check out the causes and the effect on consumption!
Brazilians felt the sharp rise in the prices of coffee and eggs in their pockets in February. According to the latest survey by the Brazilian Institute of Geography and Statistics (IBGE), both products recorded significant increases in National Broad Consumer Price Index (IPCA).
Chicken eggs rose 15,39%, while ground coffee saw a 10,77% increase compared to January. But what factors drove this increase?
Climate, seasonality and exports: the main villains
Experts point out that adverse weather conditions, seasonality and increased exports are among the main reasons for the surge in coffee and egg prices.
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In the case of coffee, problems in the harvest resulting from severe weather conditions affected production.
The coffee sector has been suffering from frosts, droughts and high temperatures, impacting the supply of beans on the domestic market.
“Coffee has been on an upward trajectory since January 2024. The weather has been a determining factor in the reduction in 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 shortage of the product on the domestic market.
With growing global demand and a strong dollar, many producers are prioritizing sales abroad, reducing national supply.
More expensive eggs: growing demand and impact of heat
In the case of eggs, the significant increase in price is related to the greater 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.
Furthermore, high temperatures directly impact bird productivity, reducing supply.
The Brazilian Animal Protein Association (ABPA) highlights that the heat waves that hit the country harmed egg production and also increased the cost of feeding birds.
Corn, the main input in chicken feed, has seen a 30% increase in price, which has a direct impact on production costs.
“After a long period of low prices, demand for eggs naturally increased at this time of year, which also influenced the rise in prices,” ABPA stated in an official note.
Coffee consumption grows despite inflation
Despite the increase in the price of coffee, consumption of the beverage in Brazil continues to grow.
Data from the Brazilian Coffee Industry Association (Abic) indicate that, between 2023 and 2024, consumption of roasted and ground coffee in the country increased by 1,1%, reaching 21,9 million 60-kilo bags. This volume is equivalent to 40,4% of last year's harvest.
Brazil is the second largest consumer of coffee in the world, behind only the United States.
However, the difference between the two markets has been decreasing, reinforcing Brazilians' passion for coffee, even with rising prices.
