Brazilian fruit sector estimates 15% drop in exports

The month of September usually marks the beginning of the fruit export season in Brazil. The states of Ceará, Rio Grande do Norte, Pernambuco, and Bahia are major producers of melon and watermelon. Other fruits such as pineapple, lime, and mango also compose the Brazilian export basket abroad.

The Brazilian Association of Producers and Exporters of Fruits and Derivatives (Abrafrutas) projects a reduction of around 15% in exports.

See below the track record of fruit shipments from Brazil in the period between January 2021 to July 2022. The data is from DataLiner.

Brazilian Fruit Exports | Jan 2021 – Jul 2022 | TEUs

Source: DataLiner (click here to request a demo)

According to Luiz Roberto Barcelos, Institutional Director of Abrafrutas and a partner at Agrícola Famosa, Brazilian fruits have, in general, experienced a reduction in exports.

“In this post-pandemic scenario, it is expected to see lower export volumes because production costs are very high,” he commented, adding that maritime freight costs are negatively impacting the industry.

Barcelos comments that, unlike other market niches, consumers started purchasing more fruits during the pandemic.

“People tend to eat more fruits when at home. Besides, there is the matter of health as fruits have been shown to enhance the immune system. As a result, the pandemic prompted a growth in the sector,” says the director of Abrafrutas, adding that this year’s export levels should return to pre-pandemic levels.

For these reasons, producers expect revenue also to have a slight setback, “Last year, Brazil exported a total amount of fruits worth BRL 1060, which should be a little lower this year,” highlights Barcelos.

As for Ceará exports alone, the specialist comments that the state will remain strong in the export of melons, the flagship of the state, and watermelons, which have grown a lot. The two fruits are mainly destined for European countries: England, the Netherlands, and Spain.

Consumer market

In regard to the international market, the institutional director of Abrafrutas points out that no country has significantly increased its intake of fruits. However, he underlined that the United States “have been buying a little more of our fruit.”

“The European market expands slowly, and we are trying to enter Asia with a variety of fruits, but logistics still constrains us,” explains Barcelos.

Foreign trade specialist Augusto Fernandes reports that the war between Russia and Ukraine also affected fruit exports in addition to the pandemic and post-pandemic period.

“According to a recent study, Russia consumes 70% more fruit than it produces. Monitoring the ports in that region reveals that these fruits are primarily from Latin America.”

He states that exporting companies are projecting an increase of 5% to 10% in that market. The expectation in this harvest is that the volume of six thousand containers, divided into six large export companies, will be maintained, according to Fagundes.

Source: O Povo

To read the full original article, please go to: https://mais.opovo.com.br/jornal/economia/2022/09/08/setor-de-frutas-estima-queda-de-15-nas-exportacoes.html

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