Brazil faces another year of high food inflation due to drought
By Nayara Figueiredo, Reuters
January 12, 2022
SAO PAULO, Jan 12 (Reuters) - Brazilian consumers could see another round of stiff rises in food prices this year as meatpackers grapple with higher costs due to a drought hurting the crops used to feed livestock.
Meat industry group ABPA says there is no relief in sight before Brazil starts harvesting its mid-year corn crop.
"We see the need for companies to continue to pass on costs," Ricardo Santin, the head of ABPA, said in an interview.
Given a weaker outlook for the domestic harvest, companies such as BRF SA (BRFS3.SA) and JBS SA (JBSS3.SA) may have to import cereal, as they did in 2021, he said.
Private analysts are slashing their crop forecasts due to hot, dry weather in Brazil's southern states, while state crop agency Conab has been conservative, trimming its outlook but projecting a larger soy and corn crop than last year.
Meat prices in Brazil rose 8.45%...