Brazil unveils fruit stimulus package

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The Brazilian government has launched an ambitious programme to stimulate the country’s fruit exports and exploit new opportunities in high value markets.

The Brazilian Fruit Development Plan (BFDP) will look at research and development, production systems, plant health, infrastructure and logistics, marketing, credit and risk mitigation and several other key areas in a bid to unlock the country’s export potential.

The plan, which was due to be unveiled in January, is the result of a joint initiative from the Agriculture Ministry and the country’s leading producers of fresh and processed fruits and is being overseen by Eumar Novacki, executive secretary at the ministry, and Luiz Barcelos, president of producer and exporter association Abrafrutas.

“The plan will provide the political framework and initial analysis from which the industry can go on to develop projects on a case-by-case basis,’ explained Ricardo da Cunha Cavalcanti Júnior, advisor to the executive secretariat of the Ministry of Agriculture. “The first step involves setting up a management committee, then it comes down to prioritising specific actions for each product category and geographical region.”

Da Cunha pointed out that Brazil has huge potential to develop a wide range of products in different parts of the country. “The north, for example, is known for its production of acai berries but there is also an opportunity to develop other, lesser-know Amazonian fruits such as cupuaçu, murici and acerola, while areas such as the São Francisco and Açcu Valleys have considerable potential when it comes to the production and export of mangoes, grapes, melons, as well as wide range of tropical fruits like guava, soursop and cashew.

Indeed, while Brazil is a global leader in agri-exports, it punches well below its weight when it comes to fruit and Barcelos acknowledges that it has a long way to go to improve its competitiveness.

“Brazil is the third biggest fruit producer in the world but ranks 23rd in terms of exports,” he told Fruitnet. “Nevertheless, exports are growing – the latest data shows a rise of 11 per cent for the ten months to October 2017.”

The figures reflect a renewed marketing push since the creation of Abrafrutas in 2014 and subsequent launch of the Frutas do Brasil brand by Abrafrutas and trade promotion agency Apex-Brasil a year later. The two bodies were due to renew their agreement for the next two years in December after which Barcelos says efforts to position the brand internationally would begin again in earnest.

“We’re putting together a number of actions including point-of-sale promotions in supermarkets and specialist fruit stores highlighting the tropical origins of Brazilian fruit,” he said.

“The focus will be on educating consumers about the quality and sustainability of fruit grown in a tropical country where the sun is our biggest ally.”

Meanwhile, the government is looking to attract more foreign investment to fund investment in ports and roads after identifying inadequate infrastructure as one of the biggest obstacles to agricultural expansion as part of a more open trade policy that is also seeking wider market access for Brazilian products.

When it comes to opening new markets and negotiating trade agreements Brazil lags well behind South American competitors like Chile and Peru, and successes have been frustratingly slow to arrive.

“In Asia we can now ship melons and avocados to Japan, as well as table grapes to South Korea, but there is so much more to do,” Barcelos acknowledges. “China in particular is a priority. We are getting a lot of help from the agriculture ministry but these things take time.”

Progress on free trade agreements has been even slower, and Barcelos admitted this is hampering trade.

“We are in the process of negotiating a deal with the European Union, but its scope is so wide that it is proving challenging. Nevertheless, we hope to have a deal in place shortly as this would reduce the tariffs on Brazilian fruit by an average of 10 per cent.”

Meanwhile, Brazil will once again increase its presence at this year’s Fruit Logistica. It has extended its pavilion by 100m2 and increased the number of companies that will exhibit at the fair, which at the time of going to press stood at 18.

Source: http://www.fruitnet.com/

Seven out of the ten products most exported by Brazil in the 1st. half are agribusiness

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Despite the positive results in the trade balance, foreign trade of the country has shown strong deceleration. There was a decrease of US $ 29.6 billion in trade between Brazil and decrease of 4.3% in exports, according to information from the National Confederation of Agriculture and Livestock of Brazil (CNA).

The government has highlighted international trade as a priority for economic recovery. The agribusiness sector has been the largest contributor to the trade surplus in the first six months of 2016. The highlight can be seen in the composition of the 10 main Brazilian products exported in the period.

In the first half of 2016, these products have brought to Brazil US $ 41.6 billion in revenue, 46% of the total. Of these, seven are agribusiness, US $ 29.9 billion (33.2%) of total Brazilian exports.

During the period, the highlights of agribusiness were:

· Soy beans, US $ 13.9 billion (+ 11%), appearing as the main
product exported;

· Raw sugar, US $ 3.1 billion (+ 19%) in 4;

· Pulp, US $ 2.7 billion (+ 7%) in 7,

· Beef, US $ 2.2 billion (+ 6%), 8th.

The increase in sugar exports is also influenced by the appreciation of world commodity price due to lower supply and increased demand, which will create a deficit in the current cycle. Another factor that encouraged the growth of prices was the recent depreciation of the dollar against the currencies of producing countries.

Despite the slower growth of the Chinese economy, demand for beef quality in that country should remain strong in the second half. This is why this type of cut is demanded by consumers of higher income, which are less influenced by the economic downturn.

China, the world’s second largest economy, was the main destination of exports from Brazil in the first half of 2016 with $ 11.4 billion in revenue (17.2%). The country still has a key role in Brazil’s trade balance, particularly in relation to demand for agricultural products.

The data present a scenario with good opportunities for agricultural producers in Brazil, mainly due to strong demand and favorable exchange. Thus, in 2016, the sector remains a key element in the performance of the country’s trade balance.

Source: Comex do Brasil

Footwear exports up in pairs and values ​​and sector sees signs of early recovery

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After three consecutive declines compared with the same month last year , exports of footwear may be coming in the expected recovery route . The dollar at higher levels , despite the exchange rate volatility , already shows effects – still modest – in shipments .

In April , the footwear exported 8.4 million pairs for $ 69 million , higher numbers both in pairs ( 11.7% ) and in value (0.8%) for the month four of 2015. With this in four months , exporters totaled 40.26 million pairs exported US $ 295.83 million, 2.7 % higher than in pairs and 4.6% lower in value in relation to the same period last year.

The chief executive of the Brazilian Association of Footwear Industries ( Abicalçados ) , Heitor Klein , points out that the slight increase in shipments compared to last April may indicate the resumption of shipments.

“Hopefully, with a definition of the political question, a stabilization of the exchange, which could give more consistency to a recovery in shipments over 2016,” Klein designs.

destinations
For Klein, the recovery in key markets for green-yellow shoes is another fact that lets you design a better year abroad.

Main national product destination since the first exports in the 70s, the United States imported 4.47 million pairs for $ 65.66 million in the first four months of 2016, numbers 22% higher in volume and 17.5% higher dollar in relation to the same interim last year.

Already Argentina, which recovered the second place among the destinations in 2016, recorded an increase of 102% on purchases of shoes, paying 52% more for products in the first four months. Between January and April, hermanos imported more than 2 million pairs for $ 25.73 million.

The third destination in the quarter was France, where they were exported 4.23 million pairs for $ 19 million, down 0.1% in volume and an increase of 1.8% in dollar terms in relation to the same period last year .

States
The main exporter of Brazil’s footwear remains the Rio Grande do Sul state which left more than 36% of the total generated in shipments in the quarter. Between January and April, the gauchos shipped 8.7 million pairs for $ 127.33 million, 48.2% higher than the number in pairs and 13% increase in revenue in relation to the same period last year.

Ceará was the second exporter in the period, accounting for 27% of the total generated in the period. In four months, the Cearense boarded 15.27 million pairs for $ 78.83 million, a 5% fall in volume and 6% in dollar terms in relation to last year. In the third, São Paulo accounted for nearly 14% of the total generated with shipments in the period. Between January and April, São Paulo exported 3.4 million pairs for $ 36.16 million, 25.8% increase in pairs and 15.8% drop in revenue in relation to the same period 2015.

Imports
The dollar at higher levels has also influenced imports. Between January and April, they entered the country 9.53 million pairs, for which they were paid US $ 120.25 million. The results are lower in volume (-33.2%) and dollar (-38%) compared to the same period last year.

The main destinations were Vietnam (3.64 million pairs for $ 64.4 million, a 35.7% fall in volume and 38.7% in dollars), Indonesia (1.44 million pairs for $ 25, 3 million, falling 40.2% and 43.2%, respectively) and China (3.67 million pairs for $ 15.47 million, 8% of falls and 31.2%, respectively).

In parts of footwear – leather, heels, soles, insoles etc – imports reached US $ 18.34 million in the quarter, 28.5% less than the same period in 2015. The main origins were Vietnam, China and Paraguay.

To access the complete data access: http://www.abicalcados.com.br/midia/modulo-download/arquivos/14628142593337.pdf

Source: Abicalçados

Exports of chicken and pigs reach highest monthly level in 2016

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Brazilian exports of chicken and pork have high 2016, second consecutive surveys made by the Brazilian Association of Animal protein (ABPA).

Chicken, whereas all products (fresh, salted, sausages and processed), 403.4 1000 tonnes were exported in March, 15.6% higher than the volume obtained from the third month of the previous year.

With this result, the foreign exchange balance compared to the same month of the previous year returned to stay positive after nine months, 0.9% in revenue recorded in March 2015. In all, were $ 584.3 million. The increase is even more significant in the real balance of 19%, totaling 2.1 billion R$.

Year to date, were shipped 1.04 million tons in the first quarter, amassing high of 12% for the first three months of 2015. In real, the growth of 26.8% over the same period compared with R$ 5.8 billion in 2016. Already the Exchange was 6.3% balance inside, reaching $ 1.491 billion this year.

“The balance Board in March is the second largest ever recorded in the history of the industry, and allowed the foreign exchange result of reverse shipments made. One of the major highlights is China, both for poultry and pigs, as a consequence of the increase in the number of authorized plants last year. Other markets such as Japan, United Arab Emirates, Hong Kong and Russia also expanded their purchases “, says the Vice President of the ABPA, Ricardo Santin.

Already exports of pork, considering only products in natura, reached 1000 56.7 tonnes in March, 85.1% higher than the balance achieved in the previous year.

With this performance, the exchange rate was 30.9% balance greater than the obtained in the third month of 2015, reaching $ 99.1 million. In real, reached 54.5% increments, with 367.1 million R$.

Year to date, 139.7 1000 tonnes were exported pork in natura, 82.9% more than in the first quarter of 2015. Foreign exchange revenue, the accumulated growth is 25% with $ 247.2 million. Already in the recipe in real, there was increase of 68.7%, with R$ 961 million.

“The monthly result of March is a historical record in shipments of pork meat in natura. Several have elevations in shopping destinations. To Russia, for example, expanded its imports in 75%. Hong Kong, Singapore and China also presented strong lifting “, says Francisco Turra, ABPA Executive.

The total numbers of exports of pork (including processed) will be released by the ABPA the day 11 March in press conference to be held in Porto Alegre (RS).

Source: ABPA

ABPA Announces high of 6% in the volume of exports of chicken meat in February

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Surveys of the Brazilian Association of Animal protein (ABPA) show that total exports of chicken meat (including all products, including whole chickens, cut, salty, processed and embedded) have reached the 1000 320.3 tons in February this year, 6% higher than the volume registered in the same period last year.

In the foreign exchange balance of the month, there was a retraction of 11.5%, with $ 458.6 million held in February. In the actual balance, has registered growth of 24.9%, with 1.82 billion R$.

“The scenario follows heated for exporters and now we have other factors influencing this result compared to last year, as new plants to Mexico and China and the recent start of shipments to Mongolia. Sales to the countries of Asia and the Middle East, in General, showed good performance “, analyzes Ricardo Santin, Vice President of birds of ABPA.

Adding the entire shipment of 2016 (January and February), Brazilian exports of chicken kept high of 9.9%, with 1000 637.1 tons exported. With this, the sector foreign exchange revenue of $ 909.7 million ( -10.2%), and in R$ ‘s Royal 3.6 billion (+32.2%).

“The positive balance YTD has helped lessen the strong effects of high production costs. This ‘ breathe ‘ must contribute to the sector cope with the current moment strength by adjusting the internal offer of products and collaborating for the fluidity of the low stocks with prices elevations. This high already is notable with the slight growth of 0.56% in the average price of exports in February, compared with January, “says the Chief Executive of ABPA, Francisco Turra.

Source: ABPA

Brazil and US sign deal to end cotton dispute

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Brazil and the United States entered into an agreement to settle the trade controversy over subsidies paid by the US government to the country’s cotton farmers.

Brazil’s Ministry of Foreign Relations reported that the two countries signed a memorandum of understanding on the cotton dispute on Wednesday (Oct. 1st), in Washington, “successfully settling a dispute that stretched for more than a decade.”
Foreign Minister Luiz Alberto Figueiredo traveled to the US alongside the Minister of Agriculture, Livestock, and Supplies, Neri Geller, to close the deal and sign the memorandum. In a statement, the Foreign Ministry said that “the bilateral agreement includes additional payments of $300 million, with flexibility for the allocation of resources, which helps to mitigate the losses sustained by Brazilian cotton farmers.”
Since the agreement applies to the cotton industry only, Brazil will still have the right to challenge the US Farm Bill before the World Trade Organization (WTO) regarding other crops.
The cotton dispute began in 2002, when Brazilian cotton farmers asked the government to file a dispute settlement case with the WTO challenging the fairness of subsidies granted by the US government to American cotton farmers and export insurance programs. The US incentives were found to be trade-distorting based on the WTO’s Agreements on Agriculture and Subsidies and Countervailing Measures.
In 2009, the WTO allowed Brazil to retaliate the US by up to $829 million. Since retaliation could have other negative impacts and would not directly benefit cotton farmers themselves, an agreement was reached whereby the US would have to pay $147.3 million every year to the Brazilian Cotton Institute created to manage the funds. In October last year, however, the payments were suspended following the passing of a new farm bill by the US Congress.
The new law maintained the payment of subsidies, violating international trade rules. As Brazil’s Foreign Ministry now reports, “under the Memorandum signed today, the United States pledged to make adjustments in its credit and export guarantee program GSM-102, which will operate within the parameters negotiated bilaterally, thus providing better conditions for the competitiveness of Brazilian products in the international market.”
Source: Agencia Brasil