In the first half of 2023, the value of jute and mallow in Amazonas increased, with the fibre reaching an average price of R$ 4.90/kg in June this year. The fall of the dollar in Brazil and the increase in jute imports in the first half of 2023 put pressure on domestic prices, however prices have remained firm. The market outlook between 2023 and 2024 is for a more favourable economic scenario compared to previous years, allowing for a more positive consumption performance and sustaining market prices. Jute is an exotic plant in Brazil and has adapted very well to the tropical equatorial climate of the Amazon, however, production has declined dramatically over the past decades. Mallow, on the other hand, is native to the Amazon and has a larger area, productivity and production compared to jute in Brazil, although its production has also shown a significant decline over the past decades. Among the main reasons for this decline in jute and mallow production in Brazil, we can cite the following factors: competition from synthetic fibres and plastic packaging; limited seed production; profound socioeconomic changes in the Amazon region in recent decades; and labour shortages. The data are from the monthly analysis of the National Supply Company, Conab, for June 2023.

Source: Amazon Agency