Brazil chases own export record

8/10/2019 Brazil chases own export record

1/3FlowerTECH2004, vol. 7/no. 72 www.HortiWorld.

Brazil chases own exportrecord

Country file

At the end of July, the

Brazilian export total

already reached US$14.4

million, up 30% from the

same period in 2003. Market

share of the worlds plant and

flower business is 0.22%, how-

ever, plans are to reach up to

1.5%. Granted that the total

numbers are still representative

of a budding industry in the

world arena, it still shows fast

growth since the US$12.2 mil-

lion yearly average between

1992 and 2000 (Figure 1). This

is to a large extent the result of

an international marketing

campaign started with the

inception of the FloraBrasilis

programme, a partnership

between Ibraflor and APEX, a

federal agency for export pro-

motion. This programme ini-

tially focused on assessing

Brazils export potential, chain

diagnosis, attendance at inter-

national fairs and the fostering

of an exporting culture.

A further phase has recently

been completed, which has

included an achievement eval-

uation and the presentation of

a strategic plan. The imple-

mentation of the plan will

depend on an upcoming part-

nership renewal, but the mar-

ket players are now aware of

the possibilities. With a large

surface area, and a range of cli-

mate conditions, Brazil has

distinct micro regions that cancapitalise on growing crops to

cater for different international

markets all year round.

Optimism realisticCan annual 30% increases in

exports be maintained? One

expert, Hlio Junqueira, says

yes and explained why. He

owns Hrtica, a consulting

company, and has acted as

executive-director at

FloraBrasilis. The word is out

that Brazil has woken up to its

exporting potential and even at

local business fairs we see

more and more international

buyers. After all, this is a sector

driven by novelties and traders

are always hungry for new

products. When you see our

plant export listing, you realise

that it is based on a wide range

of items and destinations

(Table 1). Diversity is the basisof sustainability. However, we

are not a main flower export-

ing country, by any means. Not

yet! Marketing has to continue

since Brazil is not on the buy-

ers route for most items.

Nevertheless, for certain items,

e.g. bulbs sent to the

Netherlands and cuttings

exported to Japan, Brazil

already enjoys a very high

quality reputation.

He quotes other reasons for

optimism, We are breaking

into new markets, e.g.

Germany. Also there are new

products; cut flower exports

have increased so much that

they are nearly equivalent to

the value of bulbs, which trad

tionally hold second position

behind seedlings. Plus, there the increased number of grow

ers to support the export

expansion, together with high

er volumes from traditional

exporters.

Issues still to solveThe larger export volumes

make logistics more of an

issue, especially in a country

the size of Brazil. Among the

factors threatening the growth

success are:

Infrastructure; the cold stor-

age facilities at the main

exporting airport, Guarulhos

(outside So Paulo) are not

only for flowers, and some-

times there is not enough

space.

Air freight; there are not

enough regular air cargo route

scheduled, so on occasion pas

senger flights have to be used

Bureaucracy; new laws oncultivar protection and phy-

tosanitary regulations on

imported plant material take

while to be implemented.

These challenges are being

tackled by four main work-

groups composed of Ibraflor

and the Flower Sector

Chamber, which unites the

various flower production

chains. They proactively sug-

I f the 2004 export forecast of US$25 mill ion for cut

flowers and plants comes true for Brazil and i t

certainly looks promising - i t wi ll be the third successive

year that this budding export sector has broken i ts

record level.

By Mauricio C. Mathias

0

5

10

15

20

25

MillionUS$F

OB

'96 '97 '98 '99 '00 '01 '02 '03 '04

Realised

Projection

Source: Hrtica Consultoria e Treinamento from the Ministry of Development,

Industry and Foreign Trade, Foreign Trade Secretary (ALICE system).

Figure 1. Total flower and plant exports 1996 to 2004. (Therealised amount for 2004 refers to end of July totals)


2/3FlowerTECH2004, vol. 7/no. 7www.HortiWorld.nl

Country file

gest legislation updates to

increase the countrys competi-

tive edge in the world market,

and continually bring sector

issues to the authorities atten-

tion. This is essential for con-

tinued growth since, unlike

other traditional flower-export-

ing countries, the flower sector

does not contribute substan-

tially to the national economy.

Product selectionThe broad product range was

mentioned by Hlio Junqueira

and is clearly an important

aspect for the export increase.

Exports rely on both temperate

plants, e.g. roses, gerberas,

lilies, gladioli (flower and

bulbs), lisianthus, chrysanthe-

mum cuttings, as well as tropi-

cal plants. In this manner, the

country is not competing

directly on a one-product-only

basis with other production

regions. For example, it is well

known that Brazil does not

have the same altitude climate

to compete in rose head size

with Colombia and Ecuador,

and therefore, when compa-

nies decide to grow roses they

choose appropriate varieties.

As the demand for medium

size roses recently increased inthe US market, so did the

Brazilian presence; from

January to July fresh cut bou-

quet flower exports to the US

increased 130% (in $) over the

same period in 2003. Rose

popularity provides a niche for

all types. And while Brazil

imports large-size roses from

Colombia, it actually sends

propagation material now to

the Colombian growers.

As for tropical plants, e.g.

anthuriums, orchids, there is

some overlap with plants

exported by Central-American

countries. However, Brazil has

not become involved in the

same way as some of these

countries with the American

and Dutch enterprises, which

are growing on demand fortheir home markets. Brazils

renowned biodiversity will

have to be explored to offer

unique varieties. Tropical

plants such as heliconias, orna-

mental ananas, native orchids,

calatheas, costus and others are

already creating interest in the

European market. Exports

from north-east Brazil to

Portugal and other countries

may increase further as other

states in this region have

already started to follow

Cears example in organising

their production chain.

The main export segment is

actually represented by

seedlings, representing 51% of

the export value in 2003. This

is mostly due to stable joint-

ventures formed in the early

1980s between growers from

the Holambra region and

European breeders. The major-ity propagate chrysanthemums,

which are exported to Europe

as cuttings. At least one Italian

company also exports

seedlings from southern Brazil.

When the value of the bulb

exports is added to the

seedlings, 75% of the plant

export value is shown not to

be from cut flowers.

Supply challengeHolambra, a town in the state

of So Paulo, where 75% of

the exports originate, has

around 300 growers, mostly

Dutch descendants who sell

their crops at the local auction

(Veiling Holambra). A recent

auction policy to attract pro-

ducers from other regions is

aiming to increase the sectors

synergy and organise suppliers

to physically meet market

demand. The Veilings new

export department is also like-

ly to make a difference to the

developments, located at the

centre of the action. Together

with another local coop,

Coperflora, they have wide-

Destination Exports Exports Percentage

Jan to July Jan to July in total (%)

2003 (US$) 2004 (US$)USA 757,307 1,742,208 66.29

The Netherlands 95,153 672,346 25.58

Portugal 49,038 94,622 3.60

Italy 526 38,336 1.46

United Kingdom - 24,570 0.93

Canada - 21,207 0.81

6 other countries* 45,809 35,013 1.33

TOTAL 947,833 2,628,302 100

* Uruguay, Argentina, Chile, Switzerland, Spain and Germany

Source: Hrtica Consultoria e Treinamento from the Ministry of Development, Industry and

Foreign Trade, Foreign Trade Secretary (ALICE system).

Table 1. Bouquet fresh cut flower exportsby country of destination.

Three major events take place during September weekends and holidays

around So Paulo, Brazils largest city. The number of visitors grows

steadily, a sign of increasing interest in house plants and flowers. All

events sell plants from local growers directly to the public; the strategy

seems to be working judging from the number of excursion buses coming

from different states.

Ati baias Strawberry and Flower Festi valtakes place since 1980 and it has

displayed flowers and fruit to 120 thousand people this year. The 1,000

m2 main hall shows ikebana and different types of flower and fruit

arrangements. There are around 450 growers, planting approx. 240 ha

of flowers in the region. Aflordis the newest of the flower festivals in its thirteenth year. A flower

growers association organises the event, which gathered 30 thousand

people in Aruj to see predominantly orchids from 70 growers situated

in nearby towns.

Expoflorais the largest event, located in Holambra. The Dutch influence

is visible in local architecture as well as in the typical music and dance

presented. Around 150 plant varieties from almost 300 growers are for

sale at a garden center, attracting around 300,000 people. The flower

cooperative and festival are reputedly the largest of their kind in Latin

America.

Events stimulate local interest


3/3FlowerTECH2004, vol. 7/no. 74 www.HortiWorld.

Country file

ranging experience in the inter-

national market.

In the other states particular-

ly there will be openings for

trading companies to develop

the growing environments,

characterised by many small

growers, into business oppor-

tunities with a few internation-

al buyers. Whether the oppor-

tunities will be initiated byBrazilians, foreign trading

companies, or joint-ventures

remains to be seen.

Niche businessOut of the eleven destinations

buying the most Brazilian

flowers this year, six were new

clients, which indicates the

growing interest. In fact, the

market appears to be ready for

air freight companies to fur-

ther invest in cargo space; the

freight prices can represent up

to 50% of the final price oncethe flowers reach the European

market place.

Besides the general increase

in export, another positive

trend for the flower sector has

been the gradual decline in

imported material. Currently,

Brazil imports 22% of the

value exported, which is below

the 30% historical average.

Such a decline is a conse-

quence of the larger export

share now occupied by fresh

cut flowers, which are less

dependent on imported mate-

rial. Fresh cut flowers are thesegment with the most poten-

tial for export growth and the

one that allows more value to

be added to the final product.

There is also reason for opti-

mism in one of the smallest

export segments, but one that

is believed to be just beginnin

to show its potential, dried

leaves and branches. Sales to

both the EU and the USA hav

increased in the first semester

of 2003. Another niche mar-

ket, litchen and moss for deco

ration has doubled its sales,

almost all of it come from thestate of Par.

The author can be contacted at maur i-

[email protected]

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Brazil chases own export record