As a means of providing a more complete overview of the fresh and processed fruit sector, the Brazilian Fruit Institute (IBRAF) and the commercial intelligence section of Apex-Brasil (the Brazilian Trade and Investments Promotion Agency) conducted an extensive Potential Markets analysis.
The study, which is valid for 2010 and 2011, analyzed the potential export markets for Brazilian fresh and processed fruit, including frozen and dry fruit, pulps and juices, and the findings will serve as a guide for an action plan being instituted by the Brazilian Fruit Project, an initiative supported by both organizations. Countries such as the United Arab Emirates, England, Germany, the United States, Russia, Canada, Portugal, Singapore and China were highlighted in the survey and will receive special attention.
We saw a great demand for our products in many international markets where Brazil is very much under-servicing, says IBRAF executive manager, Ms. Valeska de Oliveira. The Arab Emirates, for example, has expanded its import of fruit pulp by 27% in recent years and Brazil gets only 0.04% of that business, she added. Oliveira went on to say, Canada is another very interesting market. They import about US$ 1 billion worth of fresh fruit yearly and that amount has expanded by an average of 12.5% from 2003 to 2008, but Brazil currently gets just 0.5% of that business.
Several variables were taken into account in the survey, such as volume and growth of foreign trade, competition analysis, macroeconomic volumes and variations, sector volumes, population demography, access and trade barriers. IBRAF selected 40 markets where it was interested in operating, says Marcos Llis, coordinator of Apex-Brasil’s Commercial and Competitive Intelligence Unit (UICC). These data allowed us to produce the study and ascribe quantitative values, taking into account each of the chosen variables, he adds.
To complete the study and include the views of all the stakeholders, fruit company participation was essential. The companies graded each location according to their interest in that market and relevant business contacts. Adding together the quantitative and qualitative marks gave us the markets where there was the most interest in exploring, said Llis. Interests vary according to the products, but markets like the United States and the United Arab Emirates are unanimously desired.
Planning for 2010 / 2011
Based on these company-defined priority markets, the Brazilian Fruit Project has embarked on a Strategic Planning initiative to build a long- and medium-term internationalization project to outline strategies, goals and action plans. Were considering the competitive conditions of the participating companies in light of the international market dynamics, states Ms. de Oliveira. The companies in the sector must play a significant role in this process. Since they will be the direct beneficiaries of any new initiatives, the participation of producers and fruit companies is essential, she adds.
The planning process will last for approximately six months and once a basic action plan has been outlined, workshops will be held in several regions of the country to present the study results and propose steps to be taken for growth over the next few years.
Source: Brazilian Fruit Institute
