In February, at least five cities in Santa Catarina, Brazil, declared a state of emergency due to dramatically low onion prices that are harming local farmers. Regions such as Ituporanga, the national capital of onion production, and other municipalities like Atalanta, Chapadão do Lageado, and Imbuia have noticed the adverse impact on their economies, which heavily rely on onion cultivation. As prices drop, farmers are struggling to cover their production costs, which leads to significant financial distress.

The emergency measures are aimed at alleviating the economic strain on local producers by facilitating access to credit lines and enabling debt renegotiation. In specific cases, authorities have gathered data indicating that the average cost to produce a kilogram of onions is R$ 1.33, yet the market is not providing farmers with this price point. This disconnect between production costs and selling prices poses a critical threat to agricultural sustainability in the region.

As the situation unfolds, the implications of these emergency declarations could influence not just local economies but also the broader agricultural landscape in Santa Catarina. If farmers are unable to receive fair compensation for their produce, it could lead to a decline in onion production, which might also affect food supply dynamics in the area. The response from local governments will be key in determining the future viability of agriculture in these communities.