Abrafrutas Charts Path to Elevate Brazil as Major Fruit Exporter

Fruit exports from Brazil reached a record high in 2023, totaling $1.34 billion, marking a 23.5% year-on-year increase. This upward trend is expected to continue in the coming year, driven by growing global demand and the high-quality reputation of Brazilian fruits.

In an exclusive interview with Comex do Brasil via email, Guilherme Coelho, President of the Brazilian Association of Fruit and Derivative Exporters (Abrafrutas), offered an optimistic outlook. He stressed the strategic focus of the sector lies on consolidating shipment for the European Union, the primary market for Brazilian fruits abroad, and expanding market penetration in Asia with high-value fruits.

The following chart shows Brazilian fruit (hs 08) exports to the EU between January 2022 and December 20233. The data is from DataLiner.

Fruit Exports to the EU | Jan 2022 – Dec 2023 | TEUs

Source: DataLiner (click here to request a demo)

According to Coelho, “Fruits will be transported by air, creating demand for future direct and faster maritime routes. Target markets in Asia include China, South Korea, Japan, India, and ASEAN countries.”

Boosting air transport emerges as the most viable means of delivering Brazilian fruits to China and other Asian countries, where the product faces logistical challenges. Coelho noted that “transit time by sea to Asian countries is currently around 45 days, including port operations. Fruits maintain satisfactory quality for up to 32 days on average. However, only high-value fruits are commercially viable in air transport due to significantly higher freight costs. Nevertheless, Abrafrutas is working to overcome these obstacles by seeking more efficient logistical solutions through new technologies and product positioning for distant markets.”

While addressing logistical challenges, Abrafrutas is planning a strategy to increase Brazilian fruit exports, involving participation in international fairs, business rounds, and promotional activities and marketing of Brazil abroad.

Turning Brazil into a major exporter

The significant challenge facing the national fruit industry is to elevate Brazil, the world’s third-largest fruit producer after China and India, to prominent positions in the global ranking of major exporters. Currently, Brazil ranks only 24th in fruit exports.

According to Abrafrutas, “Brazil exports approximately 3% of its fruit yields, despite its great potential. One of the main reasons for this modest performance is that, unlike many competitor countries, our domestic market is vast and absorbs most of the volume produced at prices and commercial conditions competitive with the international market.”

Chile’s Example

When discussing fruit exports in Latin American countries, a comparison with Chile is inevitable. Chile is one of the world’s largest fruit exporters, shipping almost $4.360 billion worth of fruits to countries on all continents from January to October last year. This stark contrast shows how far Brazil is from a prominent place among major players.

According to Guilherme Coelho, “Chile has a long tradition and experience in the fruit export market, and relies on significant investments in infrastructure, logistics, and production technologies that yield high-quality fruits.”

Moreover, unlike Brazil, Chile, with a population of about 20 million—more than ten times smaller than Brazil’s—has a significantly smaller domestic market, which facilitates its prioritizing of the international market as a state policy.

In this context, Coelho emphasizes that “Abrafrutas recognizes the importance of learning from the Chilean model and is constantly seeking ways to enhance the competitiveness of Brazilian fruits in international markets, while simultaneously focusing on the business development of producers.”

Source: Comex do Brasil

Click here to read the original article: https://comexdobrasil.com/abrafrutas-projeta-estrategia-para-transformar-o-brasil-em-grande-exportador-mundial-do-setor/

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